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For Immediate
Release
6/28/06
CONTACT:
PA
Senate Republican Communications
(717) 787-6725
Legislation to Shift Focus of Economic Development Work
Orie,
Vance, Browne Bill Would Center Efforts on Entire Business Climate
HARRISBURG -- Sens.
Jane Orie, Pat Vance and Pat Browne announced today that they will soon
introduce legislation to refocus economic development efforts away from
individual business subsidies and toward general improvements in the
Commonwealth's business climate.
The
bill would repeal the authority of the Commonwealth Financing Agency
(CFA) to incur additional debt and to repeal its authority to fund
grants and loans. CFA was created in 2004 as part of Gov. Ed Rendell's
efforts to create new jobs in industries such as tourism, agriculture,
high-tech, manufacturing and venture capital.
"In
two years the Commonwealth Financing Agency has floated $376.6 million
in bonds, with another $185 million to be issued in October 2006 and
$185 million to be issued in April 2007," said Orie (R-McCandless).
"The Commonwealth will be paying debt service on these bonds for 20
years. Taxpayer funds needed to cover this debt service is projected to
be $37 million in the upcoming fiscal year and reaching $115 million in
2008-09."
"Not
only will taxpayers be heavily burdened by this debt for years to come,
these subsidies for individual businesses have not produced the desired
results," said Vance (R-Cumberland/York). "Pennsylvania government must
change its policy of trying to pick winners and enact tax cuts that
benefit all businesses."
"It's
time to focus on the entire Commonwealth's business climate and not
individual businesses," said Browne (R-Lehigh). "By preventing the
Commonwealth Financing Authority from taking on additional debt, we will
have the resources available to improve the general business climate.
By concentrating on individual businesses, we are losing sight of the
big picture."
Orie's
district includes parts of southern Butler County and northern Allegheny
County. Vance's district includes all of Cumberland County and portions
of Northern York County. Browne's district includes parts of Lehigh,
Monroe and Northampton counties.
 Orie
Vance
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