CLEAR+Coalition's+Budget+Response

= CLEAR Coalition's 2012 State Budget Response = =Published by the CLEAR Coalition= =2/7/12= = =

= Gov. Corbett’s massive budget cuts are hurting families across the = = Commonwealth. We can’t afford another year of devastating cuts especially = = when there are better options to balance the budget. = = = = = =We simply cannot afford a second year of corporate tax handouts and devastating= =budget cuts that come at the direct expense of our school children, college= =students, seniors and our most vulnerable citizens. Instead Governor Corbett= =should focus on creating family-sustaining jobs, building PA’s economy, and= =protecting the safety net.= = = =Last year Governor Corbett and the republican controlled legislature chose to= =manage the 2011-12 state budget with huge cuts to our students, seniors and= =working families instead of generating much needed revenues by closing tax= =loopholes for corporations, enacting a tax on Marcellus Shale drillers and using= =the $700 million taxpayer surplus.= =The 2011-12 budget was not a “no tax” budget as Corbett and republican leaders= =claim, the 2011-12 budget is a huge tax shift on to local communities, college= =students, home owners and hospitals.= = = =In 2012 Governor Corbett announced his intention to cut the Corporate Net= =Income Tax, the Capital Stock and Franchise Tax, and the State Inheritance Tax,= =none of which benefit Pennsylvania’s working families who need help the most.= = = =State tax cuts, particularly for corporations, will further exacerbate the state’s= =fiscal situation while doing little to create jobs. There is little evidence that state= =business tax cuts create jobs, lead to economic growth or even pay for themselves.= = = =Governor Corbett’s budget cuts hurt children - Over 150,000= =Pennsylvanians have been kicked off the Medicaid rolls and have lost access to= =affordable healthcare -- including 88,000 children! Corbett slashed more= =than $1 billion in funding for programs that provide critical health services to= =children, seniors, individuals with disabilities and vulnerable citizens.= = = =Governor Corbett’s Cuts Hurt Students - Funding to public schools has= =been cut by $900 million, forcing more kids into larger classes, and school= =districts to cancel classes, tutoring and other vital services. Corbett cut funding to= =colleges and universities, forcing families to dig deeper to pay spiraling tuition= =hikes. Penn State raised tuition by 4.9%, University of Pittsburgh by 7%, the PA= =State System of Higher Education by 7.5%, making college increasingly= =unaffordable for middle-class students and their families.= = = =Corbett’s Cuts Hurt Working Families- 21,000 people lost their public-= =sector jobs, including 14,000 teaching and other education jobs in the last year.= =With these job losses, and their ripple effect on the rest of the economy as these= =laid-off workers reduce their consumer activity, our state went from the top ten in= =job growth to the bottom ten in just a year.= = = = “A Better Way for Pennsylvania, Restoring Pennsylvania’s Fiscal Health = = through Fairness, Efficiency and Innovation” = = = =The fact is there are alternatives to a “cuts only” approach to the state budget. The= =CLEAR Coalition has written a report “A Better Way for Pennsylvania, Restoring= =Pennsylvania’s Fiscal Health through Fairness, Efficiency and Innovation” which= =outlines a series of very specific recommendations that could generate up to $2.3= =billion in savings and new revenue for the state.= = = =Improved efficiency; spending reform; revenue maximization; and tax-fairness:= =These measures would generate over 2 billion dollars in cost-savings and revenue= =for Pennsylvania at a time where there are those who proclaim that irresponsible= =cuts are the only path for us to take.= = = =The report includes proposals from Republicans and Democrats in the= =legislature, from Auditor General Jack Wagner, and from outside experts. We= =were purposefully bipartisan in our approach.= = = =The report provides a real path toward greater government efficiency and= =fairness, while simultaneously ensuring that our children, seniors, and most= =vulnerable citizens do not fall victim to nonsensical cuts in vital services. The= =recommendations we propose take a thoughtful and common sense approach to= =fixing the issues we face, and does so without gutting our education system,= =slashing health care services, or giving even more tax breaks to large= =corporations.= = = =PA can save millions of dollars not only by making government work better, but= =also implementing reasonable spending reforms that attack waste, abuse, and= =fraud. These are real ways to improve state government operations, by moving= =away from a top-heavy state government and right-sizing the state’s= =management/worker ratio, addressing contracting reform, prescription drug= =purchases, long-term care issues, and smarter payment methods, we can reduce= =costs that allow for us to invest in the long-term health and well-being of the= =Commonwealth.= = = =We have outlined spending reforms, including cutting Medicaid provider fraud= =and abuse, stopping wasteful charter and cyber school costs, and improving state= =tax credit programs. At the Department of Corrections alone, we believe that= =sentencing reform and smart intermediate punishment alternatives can generate= =$60 million to $75 million in savings.= = = =There are also some concrete steps to maximize revenue streams including= =modernizing the Liquor Control Board, improving state tax collections, and= =increasing collections under our state’s unclaimed property laws which would= =bring in hundreds of millions of dollars alone.= = “Fool’s Gold” of Privatization = =Studies show that privatization of government services actually cost more and= =can undermine quality and efficiency.= = = =Proponents of privatization promise to fix budget woes by saving the government= =money. But numerous examples in a variety of sectors show that projected= =savings rarely materialize. Cost overruns combined with hidden and indirect= =costs, such as contract monitoring and administration, can make privatization= =more expensive than in-house services for governments. In fact, the Government= =Finance Officers Association estimates that hidden and indirect costs can add up= =to 25% to the contract price.= = = =In Pennsylvania, state and local governments have been burned by privatization= =of school bus services, county nursing homes and prison health care services,= =which have all failed to deliver promised savings and increased efficiency.= = = =Analyses of HB 11, the original bill to privatize wine and spirit sales in= =Pennsylvania, found that privatization would have increased taxes and prices,= =cost thousands of jobs, cut millions in revenues for the state and intensified= =alcohol-related health and safety risks, while providing no improvement in= =consumer convenience.= = = = = = = = = = = = = = = = = = = = = = = =News= =home=