Summary of the Executive Budget Address

In his Feb. 5 budget address, Gov. Ed Rendell (D) touted Pennsylvania’s finances but warned that a downturn in the national economy would affect struggling residents. 

Rendell called for swift passage of a one-time tax rebate of up to $400 for 475,000 “working families” — a proposal similar to a national economic stimulus plan approved by Congress on Feb. 7.

Rendell tied two of his signature issues — energy independence and expanded access to health insurance — to the state’s economy. He urged Pennsylvanians to cut their dependence on foreign oil by using biofuels produced in the Keystone State, and said universal access to health care would drive down costs for individuals and businesses. “It’s the right thing to do, and it’s the smart thing to do,” he said.

The governor asked the politically split General Assembly to approve a new education funding formula that would pour $2.6 billion over six years into schools that a recent state study said were not spending enough on students. He also urged lawmakers to fund bridge improvements by borrowing $600 million over three years.