Kasunic Blasts Budget Proposal

HARRISBURG, MAY 6, 2009 – State Senator Richard A. Kasunic (D-Fayette/Somerset) today lashed out against a budget proposal that he said would “cut or eliminate hundreds of crucial government services and programs.

The Senate passed Senate Bill 850 by a party line vote of 30 to 20.

While agreeing that many spending cuts would be necessary this year, Kasunic criticized the spending plan for “passing the buck” to local governments.  He said proposed state cuts to education funding would condemn local property tax owners to tax hikes of 5-10 percent.

He also said the removal of required state matching dollars could imperil billions of federal stimulus dollars for health care and education.

Kasunic said the plan would have a far-reaching impact on the sustainability of rural hospitals.

“These hospitals are already struggling to survive, and many are on the brink of shutting their doors” Kasunic said. “In just two years, hospital total margins have dropped 12 points and are at a new 15 year low. These very hospitals are often their community’s largest employer – and more importantly – are a county’s only local health care facility.

“Hospitals are already facing state cuts to their disproportionate share payments; drastic cuts to their health profession education programs, cuts of nearly 30 percent to obstetrical and neonatal service payments, and the elimination of funding for the state’s 25 small critical access hospitals.”

“We cannot afford to cut all things,” Kasunic said on the Senate floor.  “Especially at a time when many of our rural counties are approaching or have surpassed 9 percent unemployment, hospitals continue to provide steady employment, and access to care that often times can be the difference between life and death.”

Kasunic implored the Senate to “reject this (SB 850) proposal and resume serious and productive budget deliberations to craft the best possible spending plan for Pennsylvania.”

The bill now goes to the House of Representatives for consideration.

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CONTACT: CHARLES TOCCI
PHONE: (717) 787-5166