State+Rep.+Bill+Kortz+Testifies+Before+House+Appropriations+Committee

= **Appropriations Committee Testimony March 31, 2011 ** = = **Bill Kortz S.R. 38th District ** = =Mr. Chairmen - committee members - Good afternoon. I have come today to discuss the Education portion of the budget. = =I agree with Governor Corbett on several points he made to address the budget crisis: = =1. Requesting a pay freeze. = =2. Grading schools so parents can easily identify which are very good and which are bad utilizing a common sense scale of A – F. = =3. Relief of some unfunded mandates. = =4. Reviewing Act 1 exemptions. = =5. Maintaining Pre-K funding. = =However, I disagree with his approach to balance the budget by cutting education by $1.5 billion. In doing so, the Governor is attacking our children’s future and drastically hurting their basic Ed and higher Ed opportunities, while at the same time, forcing a drastic property tax hike on all home owners across this state, forcing tuition hikes on all higher Ed students, **AND** incurring layoffs….. = =It’s appalling that he cut education $1.5 billion but **THEN** started a brand new Liberty Loan fund of $2 billion. The Governor’s budget proposal shows an **increase in Welfare $2.3 bill (26%)** and **Corrections $186 mil (11%**), while at the same time cutting total Education by $1.5 billion. This cut will devastate our system of learning. What Governor Corbett proposes for education is a complete step backwards. **It is unacceptable to __cutout the entire equity funding formula__ on top of cutting Kindergarten $259 mil, Charter school reimbursement $224 mil and EAP $47 mil.** = =Sadly, local property taxes will be increased to make up for the Governor’s cuts - concurrent with school employee layoffs. = =His budget proposal is nothing more than a tax shift to our constituents, who have been hit **hard enough** by this economy. = =I represent (5) school Districts in the 38th. The loss of monies to each is severe-West Mifflin - $2.74 mil (includes loss of funding for the Duquesne HS students transferred 4 years ago), McKeesport -$4.38 mil, = =South Allegheny -$ 1.45 mil, Baldwin Whitehall -$ 1.5 mil, and West Jefferson Hills -$ 813 K. = =The Governor’s proposal - **cuts many great school programs** such as (Kindergarten, Science its Elementary, Classrooms of the Future, Dual Enrolment etc.) and very likely **will shut down** some schools in this state. Cutting the equity funding formula will have dire consequences to poorer schools such as Duquesne, Chester Upland, Clairton, Sto-Rox, and others that are in deep financial trouble. **They** **may not survive!** = =<span style="font-family: 'Arial','sans-serif'; font-size: 11pt;">The sad part is that this new Governor refuses to tap available revenue streams that would prevent these **looming education cuts**, **layoffs, guaranteed tuition hikes, & guaranteed property tax hikes**. = =**<span style="font-family: 'Arial','sans-serif'; font-size: 11pt;">Everything should be on the table when we are faced with a terrible economic downturn and our children’s education and future hang in the balance **<span style="font-family: 'Arial','sans-serif'; font-size: 11pt;">. **Everything!** = =<span style="font-family: 'Arial','sans-serif'; font-size: 11pt;">I know we have to do more with less and everybody has to share in the pain. = =<span style="font-family: 'Arial','sans-serif'; font-size: 11pt;">But when you are faced with a financial crisis of this magnitude then __everything must be on the table.__ = =<span style="font-family: 'Arial','sans-serif'; font-size: 11pt;">This Governor severely limited his options by taking potential revenue streams __off the table__ and now he is attacking the budget crisis by **slashing the education of our children and putting their future in peril.** = =**<span style="font-family: 'Arial','sans-serif'; font-size: 11pt;">That is unacceptable…. **= =<span style="font-family: 'Arial','sans-serif'; font-size: 11pt;">We must not cut Education to the **extreme** that the Governor desires. = =<span style="font-family: 'Arial','sans-serif'; font-size: 11pt;">Mr. Chairmen, I came here today to also provide the Committee with **//__<span style="-moz-background-clip: border; -moz-background-inline-policy: continuous; -moz-background-origin: padding; background: yellow none repeat scroll 0% 0%;">revenue generating ideas __//**<span style="-moz-background-clip: border; -moz-background-inline-policy: continuous; -moz-background-origin: padding; background: yellow none repeat scroll 0% 0%;"> that **must be on the table to prevent harm to our children’s education.** = =<span style="font-family: 'Arial','sans-serif'; font-size: 11pt; margin-left: 0.5in; text-indent: -0.25in;">- Ideas that would obviate the need for the **drastic education cuts** - property tax hikes, & Layoffs. = =<span style="font-family: 'Arial','sans-serif'; font-size: 11pt;">These revenue streams could provide over $2 billion – More than enough to cover the $1.5 billion cut the Gov. Proposes to education. = = = =**<span style="-moz-background-clip: border; -moz-background-inline-policy: continuous; -moz-background-origin: padding; background: yellow none repeat scroll 0% 0%; font-family: 'Arial','sans-serif'; font-size: 11pt;">My recommendations for closing the education **<span style="-moz-background-clip: border; -moz-background-inline-policy: continuous; -moz-background-origin: padding; background: yellow none repeat scroll 0% 0%; font-family: 'Arial','sans-serif'; font-size: 11pt;"> **funding gap are as follows:** = =<span style="-moz-background-clip: border; -moz-background-inline-policy: continuous; -moz-background-origin: padding; background: yellow none repeat scroll 0% 0%; font-family: 'Arial','sans-serif'; font-size: 11pt;">First, I would propose that we in Govt. lead by example & share in the pain by taking a **__10% cut to all (3) branches of Govt. (Executive, Legislative, Judicial)__ and all Govt. agencies!** = =<span style="-moz-background-clip: border; -moz-background-inline-policy: continuous; -moz-background-origin: padding; background: yellow none repeat scroll 0% 0%; font-family: 'Arial','sans-serif'; font-size: 11pt;">I would request that the Legislative slush fund be cut by a minimum **$100 mil/yr.** = =<span style="-moz-background-clip: border; -moz-background-inline-policy: continuous; -moz-background-origin: padding; background: yellow none repeat scroll 0% 0%; font-family: 'Arial','sans-serif'; font-size: 11pt;">Cut out duplicative Governmental programs - such as the State Police PICS system that is a replica of the Federal NCIS system -savings $2.28 mill/ yr. & (cut the supplementary of $3.8 mil that occurs mid yr.) total **savings $6 mil** and **cut** **other redundant programs**. = =<span style="-moz-background-clip: border; -moz-background-inline-policy: continuous; -moz-background-origin: padding; background: yellow none repeat scroll 0% 0%; font-family: 'Arial','sans-serif'; font-size: 11pt;">Close off the big tax loopholes (loophole loss per yr. **$900 mil/ yr.** – = =<span style="-moz-background-clip: border; -moz-background-inline-policy: continuous; -moz-background-origin: padding; background: yellow none repeat scroll 0% 0%; font-family: 'Arial','sans-serif'; font-size: 11pt;">Delaware loophole **$600 mil/yr**., On-Line Retail sales tax loophole **$300 mil/yr.).** = =//<span style="-moz-background-clip: border; -moz-background-inline-policy: continuous; -moz-background-origin: padding; background: yellow none repeat scroll 0% 0%; font-family: 'Arial','sans-serif'; font-size: 11pt;">I’m sure that our constituents would not be happy to hear that certain businesses are allowed to skip out on paying their fair share. That is indefensible in these tough times //= = = =<span style="-moz-background-clip: border; -moz-background-inline-policy: continuous; -moz-background-origin: padding; background: yellow none repeat scroll 0% 0%; font-family: 'Arial','sans-serif'; font-size: 11pt;">Halt temporarily the phase out of the Capital Stock and Franchise Tax (CSFT) of **$250 mil /yr.** = =<span style="-moz-background-clip: border; -moz-background-inline-policy: continuous; -moz-background-origin: padding; background: yellow none repeat scroll 0% 0%; font-family: 'Arial','sans-serif'; font-size: 11pt;">Push for a __new tax on Political Advertising__ est. **$300 mil/yr.** = =<span style="-moz-background-clip: border; -moz-background-inline-policy: continuous; -moz-background-origin: padding; background: yellow none repeat scroll 0% 0%; font-family: 'Arial','sans-serif'; font-size: 11pt;">Issue a small **severance tax** on the Marcellus Shale gas (5% = **$200 million/ yr**.) with a portion dedicated to locals. = =<span style="-moz-background-clip: border; -moz-background-inline-policy: continuous; -moz-background-origin: padding; background: yellow none repeat scroll 0% 0%; font-family: 'Arial','sans-serif'; font-size: 11pt;">Re-appropriate **$20 mil** from the gaming security fund surplus estimated at $26 mil. = =<span style="-moz-background-clip: border; -moz-background-inline-policy: continuous; -moz-background-origin: padding; background: yellow none repeat scroll 0% 0%; font-family: 'Arial','sans-serif'; font-size: 11pt;">Other revenue sources that should be on the table & considered include – **small tax on smokeless tobacco** and cigars **$ 60 Mil/ yr**, (NOTE: Pa. is the ONLY state in USA not to tax these items) and end the **vendor sales** **tax** **discount** of 1% = **$70 mil/ yr.** = =<span style="-moz-background-clip: border; -moz-background-inline-policy: continuous; -moz-background-origin: padding; background: yellow none repeat scroll 0% 0%; font-family: 'Arial','sans-serif'; font-size: 11pt;">Cut the new Liberty Loan fund of **$2 billion** – It’s shameful that $330 mil of tobacco settlement was put in this new business loan program & taken away from helping people who were on AdultBasic health care. Cutting 42,000 working class people from health care coverage on 3/1/11 was wrong. = =<span style="-moz-background-clip: border; -moz-background-inline-policy: continuous; -moz-background-origin: padding; background: yellow none repeat scroll 0% 0%; font-family: 'Arial','sans-serif'; font-size: 11pt;">Cut Welfare & Corrections back to last year’s levels **saving $2.48 billion** = =<span style="font-family: 'Arial','sans-serif'; font-size: 11pt;">Mr. Chairmen, we must not allow __these revenue generators to be left off the table. We must prevent__ __these drastic cuts to education.__ = =<span style="font-family: 'Arial','sans-serif'; font-size: 11pt;">We have an opportunity to do the right thing for our children and the people of Pennsylvania by putting these items back on the table to balance the budget without hurting our children’s education, the tax payers, and Educators. = =<span style="font-family: 'Arial','sans-serif'; font-size: 11pt;">Mr. Chairmen - Committee members: I appreciate your objective consideration of my suggestions and I thank you for the opportunity to speak today. = =<span style="font-family: 'Arial','sans-serif'; font-size: 11pt;">Thank you, = =<span style="font-family: 'Arial','sans-serif'; font-size: 11pt;">Bill Kortz = =<span style="font-family: 'Arial','sans-serif'; font-size: 11pt;">S.R. 38th =

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