Thornburgh
asks sales
tax increase
4:i Continued from page 1
Senate Majority Leader Edward
ci:Zemprelli, who said he was not en
dorsing Thornburgh's concept, agreed
that re-imposing, the tax rates would
: amount to an increase and he questioned
.whether the budget is austere.
"But it's pretty much realized that the
Motor License Fund needs to be beefed
up," said Zemprelli, whose caucus will
;'`give a Democratic alternative next
.week.
"I don't think any new tax is going to
be popular," said Senate Minority
N :Leader Henry Hager, giving the
Republican view. "Yet I think highway
, tonditions may be the kind of thing to
,convince people you just can't fix
kt •
• without more money."
The budget's new initiatives stem
directly from Thornburgh's favorite
campaign themes. They include:
An increase of $ll5 million for basic
' , education subsidies. The state now pays
, 43 percent of the funding for the 505
it school districts, and Thornburgh's long
range goal is to make it 50 percent.
An increase of $12.5 million for
..economic development. Most of the
: money will go to the Pennsylvania In-
dustrial Development Authority, which
provides low interest loans to entice
A? "industrial growth. It also includes an
"advertising campaign to lure new in
, dustry and a $1 million advertising
program to boost the tourist industry.
An extra $2.2 million to fight crime
-7. through the legislation passed last year
; 'dealing with statewide grand juries,
11 ‘=wiretapping, etc. The budget also in
eludes $l5 million set aside for damages,
now that the state can be sued.
,:. An extra $16.8 million to fund a
;» "modest" 5 percent increase for the
':. state's 764,000 welfare recipients, the
.: first increase since 1975 but not enough
to reach federal poverty levels. Thorn
burgh also set aside money to crack
.4 down on welfare fraud and abuses.
~.
ITaxes may
Ipose budget
problems
HARRISBURG (AP) If Gov. Dick
Thornburgh's new budget proposal is
,14
. v a
going to have trouble in the General
I
Assembly, it will most likely be over
taxes or spending priorities, legislative
:1 leaders predicted yesterday. =
"He (Thornburgh) is probably
o reneging on a campaign promise,"
d House Democratic Minority Whip James
Manderino said, referring to what he
called the governor's campaign
promises to roll back previous personal
income tax increases.
"I think there are really a couple
: 4 4 brouhahas. The biggest will be tran
:', sportation," Senate Minority Leader
ki Henry Hager said, referring to a
7 ,4 proposed 6 percent hike in wholesale
gasoline and oil prices. •
1 1 The new budget proposal also calls for
;1 action to keep income and corporate
ol taxes from automatically reverting to
lower levels, , and for higher truck
`1 registration fees.
Republican lawmakers were
r i predictably supportive, if not en
thusiastic. They politely applauded
Thornburgh's budget address before a
joint session of the House and Senate and
later praised his proposals.
\-. Reaction from Democrats ranged
Ah
from sober-sided criticism to laughter
*, and informal conversations with each
other during the governor's speech.
"One thing that causes me to react is
(that) the governor says he is not calling
for any new tax when in fact he is,"
House Majority Leader K. Leroy Irvis
said.
Democratic House members chuckled
aloud when Thornburgh said he wants
truck registration fees raised 25 percent,
apparently because they're familiar
with pressure from the trucking in
, " dustry.
• But Republicans saw Thornburgh's
budget plans as realistic.
t "In order to fix these roads we're
going •to require additional revenues.
That's the major legislative problem,"
House Majority Leader Matthew Ryan
said.
House Speaker Jack Seltzer said he
expects Democrats to protest an in
t:: crease of only 5 percent in welfare cash
• assistance grants.
"Oh, I can see people who want to
•
• spend more on welfare than on basic
:;'education, but there's no money
available for that unless additional taxes
Ore imposed upon people," Seltzer said.
Sure enough, Irvis lambasted the 5
percent welfare proposal.
"OlMously that's a token gesture ...
;: Anything less than 15 to 18 percent would
not even put them up to the basic level of
subsistence. Certainly we're not going to
f. sit still for that at least I'm not," Irvis
said.
Rep. James Gallagher, minority
chairman of the House Education
Committee and a long-standing ad
vocate of education programs, pored
over the thick budget document, jotting
notes, during the speech.
,•; Later, he said his computations in
dicated Thornburgh had proposed only a
$9O million increase in basic school
subsidies, not the $ll5 million claimed in
'; the speech, He said at least $l5O million
is needed for basic subsidies just to keep
up with the law governing subsidy
payments to school districts.
USE OF THE GENERAL FUND
1979-80 FISCAL YEAR
DEBT SERVI
REQUIREMEN
4.2 C
CAPITAL
IMPROVEMENT
le
- An extra $46.5 million for the
mentally ill and the mentally retarded,
the bulk of it earmarked to upgrade
living cbnditions.
A new $2O million program called
Older Pennsylvania Energy Needs to
help senior citizens meet soaring winter
heating bills.
"The increases we're proposing all are
substantially less than what we would
like to see to put Pennsylvania in first
class running order," Thornburgh said
at a budget briefing.
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The governor also appealed for
bipartisan support on the budget.
"The problems facing Pennsylvania
cannot be addressed in the budget alone..
They cannot be solved by the governor
alone. They cannot, indeed, be solved by
government itself alone," he said.
"For any government that attempts to
do all things for its people is doomed to
none of them well. Let us now work
together. Let us reach together for the
dream of a better Pennsylvania for all of
our people."
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The Daily Collegian Thursda
rej
, March 8, 1979-