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Testimony from the PA Coalition for Responsible Government to the PA House Appropriations
Committee on May 22, 2009

Good afternoon, my name is Gregory Wrightstone and I am the President of the Pennsylvania Coalition
for Responsible Government. The PCRG is a grass roots organization that was formed to promote and
advance the principles of limited government and to assist ordinary citizens to be effective agents of
change to promote free enterprise, limited government and the empowerment of the individual.
I am here today representing average taxpayers throughout the Commonwealth in support of the
Senate Bill 850. This is a common sense, no tax increase budget which is significantly less than the
budget proposed by Governor Rendell. In a time of an economic downturn, most Pennsylvania families
and businesses are trimming their budgets to the bone and making do with less and less each month.
We believe it is time for the government to do the same and even more so, since you are spending OUR
hard earned money.

You have heard from other speakers before me, with virtually all advocating for increased spending and
increased taxation. Most of those speakers were representing special interests that feed at the trough of
government largesse and are dependent on an ever increasing and bloated government system. Please
remember that every dollar you spend must necessarily be money that is taken out of my wallet and my
neighbors’ wallets. I am representing the largest special interest group in the state and apparently,
judging by the previous speakers, the most disenfranchised special interest group – the Taxpayers.
Contrary to what other speakers have told you, the average taxpayer doesn’t want the Government to
do more for them, they want the Government to get out of the way, to downsize, to spend less, to do
less and to tax less.

Pennsylvania has the 11th highest state and local tax rate in the Nation and it appears that Governor
Rendell and his supporters believe that they can tax and spend and borrow their way out of problems.
Every taxpayer with a shred of common sense will tell you that this is a recipe for financial disaster.
Governor Rendell’s budget calls for tax increases of nearly $500 million and will spend more than $3
billion dollars more than what it takes in during this fiscal year. In a recession our leaders should be
talking about cutting taxes to stimulate the economy, not raising them. Since 1992 state spending has
increased an incredible 35.8%, which is 13% higher than the rate of inflation. In addition, the state debt
now stands at $110 billion – that amounts to almost $10,000 per person.

In spite of spending billions of dollars in corporate welfare to spur economic development under
Governor Rendell, Pennsylvania ranks 40th in the nation in both job growth and income. As it stands
now, Pennsylvania ranks 28th in the Tax Foundation’s State Business Climate Index. Considering the poor
corporate climate and high corporate tax rate in Pennsylvania it is not surprising that companies are
voting with their feet and leaving the Commonwealth for locations in other states with a better and less
punitive tax structure.

Yesterday, you heard Matt Brouillette of the Commonwealth Foundation identify nearly $5 billion
dollars of wasteful state spending that should be eliminated. We have reviewed these proposals and
believe that it would be a good first step toward bringing our state spending back under control. We
support their three step proposal toward putting the Commonwealth on a path toward fiscal and
economic health while restoring the state government’s constitutional role and function in citizens’
lives. These include:

• Limit the annual growth in state government spending
• Allow voters the choice to accept or reject any and all tax increases
• Reduce Pennsylvania’s tax burden on families and businesses

Interestingly, the Governor proposes to spend $428.4 million dollars in his Growing Greener initiative to
spur the development of uneconomic and in some cases unproven “alternative energy” resources such
as bio fuels, windmills and solar power, while at the same time his administration throws up road blocks
and refuses to lease additional acreage for the development of the vast clean burning natural gas
resources from the Marcellus Shale. Encouragement by the DEP to development of this huge resource
would benefit all Pennsylvanians and be a major step toward the Governor’s stated goal of making
Pennsylvania energy independent. It is estimated that as many as 60,000 new high paying jobs could be
created by development of this new resource with no taxpayer funding. Incredibly, the Governor’s
Budget proposes to implement a new 5% severance tax on all natural gas production in the state, stifling
this startup business before it even gets off of the ground. Apparently, the Governor wants to kill the
goose before it has had a chance to lay its first golden egg.

As you consider the choices before you, remember that your vote on this budget is a test on whether
you will stand with the “little people” who actually pay the taxes and desire a smaller, less intrusive
government or will you promote an ever growing behemoth that swallows more and more of our
money. This is a new day and if you haven’t noticed – the voters and taxpayers are increasingly aware
and angry at those legislators who support wasteful spending. The mood of the electorate in
Pennsylvania and across the nation is vehemently against additional wasteful spending plans and the
recent vote in California is an example, where the multiple proposals to increase taxes and borrow
money were soundly rejected by the voters.

I implore you to stand up for the taxpayers and support the common sense no‐tax budget passed by the
Senate or risk facing voters who will remember this important vote. I guarantee you that we will be
there to remind them of your actions.

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