Corbett calls on Rendell to refrain from spending $300 million on projects with borrowed funds

FOR IMMEDIATE RELEASE:

Tuesday, July 6, 2010
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Kevin Harley, Communications Director

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Corbett calls on Rendell to refrain from spending $300 million on projects with borrowed funds

$600 million increase in state’s borrowing limit allows Rendell to spend $300 million to fund projects, including $10 million for Specter library

Harrisburg – Attorney General Tom Corbett today called on Gov. Ed Rendell to refrain from spending nearly $300 million on projects during his last six months as governor.

The $300 million is included in a package of budget bills that raises the state’s debt ceiling or borrowing limit by $600 million and was passed by the Legislature as part of the $28 billion state budget approved by Gov. Rendell.

Corbett, the Republican gubernatorial nominee, said when the state unemployment rate is 9.1 percent and we have a hole of $850 million in our current budget, Gov. Rendell wants to borrow more money to fund projects such as the Arlen Specter Library Project Center, which is scheduled to receive $10 million.

Corbett said, “We have a budget deficit for this year, the last thing we should be doing is borrowing more money to fund projects.”

The Pittsburgh Tribune Review reports that the debt service, which also must be paid by the taxpayers, is $48 million on the $600 million increase of the debt ceiling.

“This is a classic example of what’s wrong with Harrisburg,” Corbett said. “Gov. Rendell will be long out of office, but our children and grandchildren will be paying the debt service or interest for his spending for years and years to come.”

Corbett also called on Dan Onorato to join him in urging Gov. Rendell to not to spend the $300 million in borrowed funds.
Corbett said the governor should know that this is not the not the time to be borrowing more money to fund projects, regardless of their potential worth, when he just cut spending for family farmers.
Corbett said, “You can’t tax, borrow and spend your way to prosperity.  Someday the bill comes due and it’s the taxpayers who are left holding the bag.”

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Paid for by Tom Corbett for Governor

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