HARRISBURG – State Senator Mike Brubaker (R-36) said today that Senate Republicans will thoroughly review Governor Rendell's proposed $27.2 billion budget for Fiscal Year 2007-2008 over the coming months.

The Governor's proposal includes proposed tax increases totaling more than $2.5 billion on an annual basis. It also includes nearly $1 billion in new spending, which represents a 3.6 percent increase over the $26.3 billion state general fund budget for Fiscal Year 2006-2007. This does not include an additional $211 million in supplemental spending the Governor requested.

"We plan to study the budget in depth over the coming weeks and many of the Governor's proposals and initiatives will be the subject of intense review," Brubaker said.

The tax increases the Governor has recommended include:

• An increase in Pennsylvania's sales tax from six to seven percent statewide; this would cost Pennsylvania consumers an additional $1.24 billion in Fiscal Year 2007-2008
• A new mass transit/oil tax is expected to cost oil companies $760 million, a charge that would be borne by consumers on heating oil bills and at the gas pump
• An energy use tax, based on electric usage, would cost consumers $75 million
• A $2.75 per ton municipal waste disposal fee would take an additional $61.4 million out of Pennsylvanians' pocketbooks
• An additional 10 cents-per-pack tax on cigarettes is projected to cost smokers $61 million annually
• New taxes on smokeless tobacco, loose tobacco and cigars would cost consumers $30.3 million annually

The Governor also outlined a number of budget priorities that would require increased state spending, including increased funding for transportation and mass transit, providing more affordable health care coverage for uninsured adults, promoting the use of renewable fuels, and additional funding for the Department of Education's Accountability Block Grant Program.

Brubaker also noted that he had some concerns with elements in the proposal regarding agriculture. "Agriculture funding is very important to my district, and the Governor has drastically reduced funding in the areas of crop insurance, the Future Farmers of America program, and agricultural research, development and promotion," he said. "I understand that we are in a tight budget cycle. Agriculture will tighten its belt like all sectors will, but there's a balancing act here."

"We must be prudent with taxpayer dollars to ensure that we are not overburdening our families and businesses, while at the same time investing in programs that provide clear benefits to our Commonwealth," Brubaker continued. "I realize that many elements of his proposal, on the spending side as well as the tax side, are causing my constituents significant concern, and I will be listening very carefully to those concerns as we move through the budget process."