[PRCo] Re: Evening___Service

[John Swindler]

>Derrick  suggested:
>
>On Fri, 11 Apr 2003, Harold Geissenheimer wrote:
>
> > John
> >
> > To take exception.  The state's money is the people,s money.
> > The state is only an agent of the people.
>
>  It's a larger pool of money, so you can (attempt to) draw more from it 
>without needing a tax increase, because something else can be cut. There 
>are a lot fewer "something else"s at the local level, and those there are 
>will probably be hurt but a cut large enough to do anything with the money 
>you'd give to someone else.
>


Let's see if this website works.  It's in adobe.

http://www.budget.state.pa.us/budget/lib/budget/2003-2004/2003_04budgetslides.pdf


I was surprised at drop in corporate taxes past couple years.  And even 
personal income taxes dropped two years ago.  It's not a case or 
reallocating a growing pot of money.  It's a fight over a shrinking pot of 
money.  And it looks like education and medical assistance might be coming 
out ahead in that fight.

>From one of the charts:

Personal, corporate, capital stock and sales tax receipts were $17.3 billion 
in 200-01 (state is on a July-June fiscal year).

They were only 16.7 billion in 2001-02; a 600 million decrease.  PAT did not 
receive any reduction in their grant.

This current year, these revenues are 16.9 billion, still 400 million under 
two years ago.  PAT still received no reduction in their grant.

For next year, the crystal ball projects revenue of 17.4 billion.

The state constitution requires a balanced budget.  To achieve that this 
year, several one-time accounting changes were made to treatment of both 
revenues and expenses to generate $2 billion additional income.

(as footnote, Fred the third and I were both part of one of these accounting 
'slight of hands' about 20 years ago to balance a previous budget.  State 
reduced state salaries by 1/26th, and didn't pay employees their final 
paycheck in one fiscal year.  Instead, we were paid a check that represented 
a 'loan' against our final paycheck.  So it had no effect on the individual 
employee.  But it meant that there was a liability in the out years.)


Selected Funding Reductions for July 2003-June 2004:

10% Cut in General Government Administration . . $ –211.8 M
Sewage Treatment Plant Operations Grants . . . . . $ –52.1 M
Behavioral Health Services . . . . . . . . . . . . $ –47.9 M
Improvement of Library Services  . . . . . . . . . $ –37.6 M
State-Related Universities . . . . . . . . . . . . $ –34.1 M
State System of Higher Education . . . . . . . . . $ –22.9 M
Mass Transportation Assistance . . . . . . . . . . $ –16.1 M


Just for the record, that's $16.1 million reduction out of $267.4 million 
for operating assistance.  And I haven't heard of any reduction
in separate pots of money for equipment maintenance.

John

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