February 4th, 2009

The following are the highlights of Gov. Rendell’s budget address, via the Patriot-News:

Gov. Ed Rendell’s proposes a $29 billion state government spending plan for 2009-2010, which represents a 2.5 percent increase over this year’s spending. That includes relying on about $2.5 billion in anticipated federal relief to balance the budget.

His plan includes eliminating a net 2,622 positions and cutting spending by 8.8 percent in all areas except education, public welfare, corrections and probation and parole. It also proposes investing more than $537 million in rebuilding the state’s infrastructure. And it recommends expanding the adultBasic insurance program to serve an additional 50,000 uninsured adults.

Rendell also said in his budget address is calling for allowing counties to charge a 1 percent sales tax on top of the state’s 6 percent sales tax to help with their revenue situation.

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It proposes a $300 million increase in aid to school districts, $5 million increase for community colleges, but other state-funded higher education institutions are either flat-funded or seeing a funding cut. Grants to college students, however, will be increased by $45 million for a total of $513.7 million.