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Pa.'s budget doesn't erase the need for much concern

The state General Assembly acted responsibly in passing an on-time 2010-11 budget Wednesday that includes no income tax or sales tax increase. Considering the condition of the commonwealth's economy, it would have been wrong to do otherwise.

But even with a new budget that is only 0.6 percent higher than the 2009-10 spending plan, state taxpayers should withhold excessive plaudits to lawmakers for the new budget that they and Gov. Ed Rendell produced.

Under the 2009-10 budget, the state missed revenue projections by $1.2 billion. The question now becomes whether Harrisburg's 2010-11 projections will be on the mark, underestimated or, once again, overestimated.

Besides that, the new budget relies on $850 million in federal aid that might or might not come.

The absence of the federal money might encourage more lawmakers to get on board with a proposal to impose a tax on energy companies that extract natural gas from Marcellus Shale.

Helping to make the on-time budget deal between lawmakers and Rendell possible was a big chunk of additional money for basic education. Rendell didn't get the $300 million he had sought, but the schools fared well with the additional $250 million that the new budget provides.

But while agencies such as the state Department of Conservation and Natural Resources and Department of Environmental Protection will have to operate with funding cuts of more than 9 percent, taxpayers should take note of what lawmakers haven't trumpeted.

That is the minimal negative impact on the two houses of the Legislature. The House will take a cut of just 0.6 percent — $1.04 million — while the Senate's cut will be just 0.1 percent — $119,000.

In fact, as the good government group Democracy Rising PA points out, with such small cuts to their operations, the House and Senate are on track to increase their surplus to more than $200 million by this time next year. Their surplus currently is $180 million.

Lawmakers are hoping most taxpayers won't notice.

It's good that the state has a 2010-11 budget approved but, all considered, it could be significantly better.

The situation cries out for state taxpayers to pay close attention during the next 12 months.

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