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Tough budget choices vital to Pa.’s long–term prosperity

March 8, 2011

HARRISBURG, PA – The Pennsylvania Chamber of Business and Industry today said Gov. Tom Corbett’s call to reduce government spending through various agency and program cuts, while difficult, will ultimately benefit the Commonwealth’s taxpayers and economy in the long-run.

“As painful as some of these cuts might be in the short-term, we cannot lose sight of the harsh reality that government spending has eclipsed taxpayers’ ability to pay,” PA Chamber Vice President Gene Barr said, noting that in recent years, government spending has grown faster than the economy. “We can no longer continue down that path.

“The governor’s budget proposal reflects the will of the voters, who sent a clear signal last fall that they want government to get its fiscal house in order.”

Barr called Corbett’s 2011-12 $27.3 billlion General Fund budget a well-thought-out plan that reflects the kind of bold action that is needed to reverse course for the better. He said the governor’s budget address opens up the conversation about the proper role of state government.

“Clearly, many organizations, agencies and programs will have to make do with fewer state dollars,” Barr said. “That’s not always easy, as many individuals and families came to know all too well during the recession. But it’s necessary.

“The benefits of an economically sound Commonwealth in which the essential functions of state government – providing for the health, welfare and safety of its citizens – can be effectively carried out and private sector job creation can flourish will be worth the short-term pain of any budget cuts.”

Barr said the business community is encouraged by the governor’s call for commonsense lawsuit abuse reform in order to create a balanced legal climate that encourages the kind of entrepreneurial risk taking that results in new business and job opportunities.

“A sound business climate is essential to grow the economy,” Barr said. “Restoring balance, fairness and personal responsibility to a legal system that lacks all three is an essential component of creating a positive environment for job creation, and it can be done at no expense to state taxpayers.”

The PA Chamber has joined more than 50 local government, business, health-care and insurance associations in advocating for lawsuit abuse reform.

“On behalf of our statewide member companies – job creators of all sizes and across all industry sectors, the Pennsylvania Chamber looks forward to working with Governor Corbett and legislative leaders on adopting a responsible budget that puts the Commonwealth on the road to prosperity,” he said.

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The Pennsylvania Chamber of Business and Industry is the state’s largest broad-based business association, with thousands of statewide members representing businesses of all sizes and all industry sectors. The PA Chamber is The Statewide Voice of Business™. More information is available on the Chamber’s website at www.pachamber.org.

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