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Pa. Budgetmakers Will Sort through Plans to Borrow Billions
   posted 7:34 am Thu May 22, 2008 - Harrisburg, Pa. (AP)
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Plans to borrow money are all over the table in this year's state budget negotiations. Both Republicans and Democrats looking to finance everything from new alternative energy projects to water and sewer facilities.

All told, more than $4 billion in borrowing is tucked into various proposals that will be poked, prodded and plugged over the next six weeks.

Negotiators from the House, Senate and governor's office are shaping a spending plan for the fiscal year that begins July 1.

Gov. Ed Rendell and Democrats say borrowing is a way to smooth over a rough economy and create job and business opportunities.

Republicans have sought to characterize their own proposals as more affordable than the governor's competing plans and attacking desperate needs.

Details of various proposals to borrow money that state budget negotiators will consider as part of the 2008-09 spending plan:

WATER, SEWER, DAMS AND MORE: Senate GOP wants to borrow $750 million for water projects. Money would come from slot-machine gambling revenue.

CIVIC REDEVELOPMENT: Two different proposals - $500 million and $750 million - would lift the state's debt ceiling for financing civic redevelopment projects that must be matched by local dollars. Money would come from state's general tax collections.

BRIDGES: Gov. Ed Rendell wants to borrow $2 billion over 10 years to speed up repairs to structurally deficient bridges. Money would come from existing bridge funds in the Motor License Fund.

ENERGY: Senate Republicans ($250 million) and House Democrats ($850 million) have competing plans to finance clean energy projects and conservation and efficiency efforts. Money would come from state's general tax collections.

(Copyright 2008 by The Associated Press. All Rights Reserved.)

 

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