Governor Rendell, you may want to note that the tax cut takes effect next fiscal year (July 1, 2006), and you haven’t submitted a budget for next year yet. They can’t pair it with a spending cut because we have currently allocated exactly $0 for next year. In fact, spending and tax revenue will most assuredly increase next year – though perhaps not as much as Rendell would like. A less substantial increase in government spending and a spending cut are not the same thing.
Governor Rendell promises to veto the tax cuts just passed by the General Assembly. His reason: “lawmakers did not pair the legislation with a corresponding spending cut.”