HARRISBURG, Pa., Feb. 8, 2006 (PRIMEZONE) -- The Pennsylvania Chamber of Business and Industry today cautioned Gov. Ed Rendell against adding to the Commonwealth's growing indebtedness.
"As we've seen from this governor year after year, his actions at budget time are in stark contrast to the administration's so-called 'pay as you go' policy," said Floyd Warner, president of the PA Chamber. "Borrowing our way into prosperity simply doesn't work. Government must offer better solutions to address pressing issues of the day."
The Commonwealth's debt service has more than doubled since 2004 to nearly $900 million, and is projected to reach $1 billion by 2008. The budget unveiled by the governor today would increase the state's indebtedness by approximately 16 percent over last year, in part due to the governor's call for a new $500 million bond issue for life sciences research.
Warner said the governor could have provided needed assistance to Pennsylvania's fledgling biotech and medical research companies through H.B. 515, the business tax reform bill he vetoed in December. The bill would have increased the cap on net operating losses to $10 million over a four-year period, benefiting start-up companies that often lose money in their early years of operation.
"Through careful financial planning, House Bill 515 would have increased the cap to a meaningful level without placing an additional financial burden on future generations," he said.
"The governor's propensity for handing out taxpayer-funded government checks and calling it economic development is matched only by his reliance on borrowing against our children's futures to pay for government programs," Warner said. "If left unchecked, this fiscal philosophy will jeopardize the Commonwealth's long-term prosperity."
The Pennsylvania Chamber of Business and Industry is the state's largest broad-based business association, with more than 12,000 members representing more than 50 percent of the private workforce. More information is available on the Chamber's website at www.pachamber.org
The PA Chamber of Business and Industry logo is available at: http://media.primezone.com/prs/single/?pkgid=353