Fiscal Conservatism: Leadership by Example

Dear Friend, Winter 2010

Rep. Milne’s Leadership Roles
As we enter a new budget year for the state, I continue to be mind- in the Legislature
ful that the policy decisions I make as your state legislator involve
With over 3,000 bills introduced each
spending dollars that are not mine, but rather are yours, the people’s. year, the volume of legislation to be con-
In this newsletter, I give you a sense of our state budget, and some of sidered is extraordinary. To help manage
the budget challenges facing us as a state. this workload, each legislator serves on
In addition, given the sluggish economic climate, I believe it is mor- some of the 25 committees in the House
ally imperative to be extra prudent as legislators with the tax dollars of Representatives. Committees perform
a crucial role in evaluating bills and de-
that we potentially could spend on ourselves. We cannot ask others to
termining which ones will advance to the
cut back if we ourselves are not doing likewise. floor for further debate and an eventual
As a matter of fiscal conservatism, please know that: vote. As my time in the legislature has
advanced, so too have my leadership
$ I do not accept nor drive a state car. responsibilities and, by extension, my
$ I do not charge a cell phone to the taxpayers. ability to serve you as constituents.
$ I do not take offers to go on lobbyist-paid vacations.
For your information, here are my
$ I have reduced mailings, while still meeting the equally
important responsibility of keeping you appropriately
current leadership assignments:
informed.  Intergovernmental Affairs Committee
- Co-chair, Federal-State Relations
$ I refused my paycheck for four months during last year’s  Education Committee
budget stalemate, believing it was the right example to set.  Aging and Older Adults Committee
 History Caucus
$ I turned down my legislative pay raise for this fiscal year; - Co-chairman
in fact, I returned that money to the State Treasury.  Alternative Energy Caucus
 Alzheimer’s Caucus
I have voluntarily done all of the above because I keep at the  Bio-Technology Medical Caucus
forefront of my thinking that you, the citizens, are my employers,  Bipartisan Reform Caucus
and my job is to fight for wise and efficient spending of your tax  Emergency Services Caucus
 Women’s Health Caucus
dollars.
Duane

Milne Votes Against Expansion of Gambling and Casinos

I am disappointed that legislation to expand gambling and casinos in Pennsylvania was signed into law this past
January. Under this new law, casinos will be able to turn themselves into full-scale casinos, a la Las Vegas, and one
can expect more casinos to open across the state. I do not believe this policy direction of increasing reliance on
gambling and casinos is right for our state and is why I voted against the legislation.
First, the negative effects of gambling in the state likely will only become more widespread in times ahead. Pushing
expanded gambling will fuel some of the social and behavioral problems associated with problem gambling. Further,
many concerns have been expressed that
“I’m not interested in turning Pennsylvania more casino activity and development will add
to crime problems in the general surrounding
into the Las Vegas of the East ... ” areas of the establishments.
- Rep. Milne declared in Harrisburg Second, the property tax relief promised
to result because of gambling, and really the
only reason the original gambling legislation
even passed in 2004, has fallen rather short of predictions. For a Pennsylvania family who is actually receiving any
property tax relief, the amount of relief averages $180 a year. I harbor grave doubts that most Pennsylvania families
will ever see much in the way of property tax relief from gambling, expanded or otherwise.
Third, an ironic twist of the advent of gambling in Pennsylvania is that state lottery ticket sales have been stagnant
the past couple of years with sales actually down in areas near which casinos are located. This trend has been evi-
continued on page 3

Contact Rep. Milne via email at dmilne@pahousegop.com

Website: DuaneMilne.com ~ Phone: 610-251-1070
District office: 18 E. Lancaster Ave. (Rts. 29 & 30), Malvern PA 19355
 SPECIAL REPORT: FISCAL YEAR 2010-20
PROPOSED PA STATE BU
EXPENDITURES
As one can see in the expenditures pie graph, pre-K to
12th education is the largest policy area to which the state
devotes funding. This section of the budget pie represents
the state dollars that are distributed across the 500 school
districts that comprise Pennsylvania. The most significant
challenge here is to re-engineer the state’s Education Fund-
ing Formula so that state dollars are more properly aligned
with where in the state the dollars should flow. It is also about
lessening Harrisburg control over education and reducing
state mandates in order to ease the property tax burden on
local homeowners.
Aggregating together the dozens of human services
programs for which the state is responsible requires, in total,
38.6 percent of the budget. The largest expenditure areas
are for medical assistance (18.5 percent) and children and
youth programs (5.7 percent).
Corrections consumes close to 7 percent of the budget.
The state is responsible for 51,000 inmates in 26 prisons
across the Commonwealth. Albeit a sad commentary, it
should be pointed out that spending for this slice is the fast-
est growing part of the budget, as it has been increasing an
average of 6 percent a year over the past several years.
Last year alone, expenditures on corrections increased by
almost 10 percent.

REVENUES
Per the data in the revenue pie chart, the state income
tax and the state sales tax together make up over 60 percent
of the entire General Fund revenue for the state. Pennsyl-
vania ranks eleventh highest in the nation for overall tax
burden, but our state income tax is the ninth lowest at 3.07
percent. At 6 percent, our sales tax is the thirteenth highest
in the nation.
The bulk of the remaining revenue comes from various
business taxes in the state. This includes the Corporate Net
Income (CNI) tax, the Gross Receipts Tax, the Capital Stock
and Franchise Tax, as well as some of the Inheritance Tax
and the Realty Transfer Tax.
The main challenge to balancing a budget is of course
the sluggish economy which has resulted in state tax rev-
enue continuing to be down from what collections are in
normal economic times. Total revenues going into last year’s
budget were $25.5 billion, $2.4 billion less than the previous
year. For this upcoming fiscal year, projections are showing
a budget deficit of nearly half a billion dollars by June 30.
Should the economy experience any additional setbacks,
that number will increase.
In case you are wondering, the state gas tax is collected
and treated separately from this General Fund budget. The
32.3 cents paid on a gallon of gas in the state goes to the
Motor License Fund, which is substantially dedicated to
funding highway and bridge needs in the state as well as
some state police operations.

Unlike the national government, our state government does have a constitutional balanced budget provision, and govern
Still, as a state we need to exercise more fiscal restraint and get debt service closer to zero. I do not want excessive
state could use in better ways, including keeping down taxes for citizens.

Contact Rep. Milne via email at dmilne@pah

011 BUDGET WILL PROVE CHALLENGING
UDGET: $29.03 BILLION
Rep. Milne raises a point at a recent committee hearing in Harrisburg.
Milne Holds the
Line on Tax Hikes
In the midst of (eventually) balancing
last year’s budget, a number of tax
increases were proposed. I helped hold
the line against state tax increases in
this challenging fiscal climate.
Here were my stances on
the following proposed tax hikes:
Increasing the state’s
personal income tax (PIT)
 YES  NO X
Increasing the state’s sales tax
 YES  NO X
Imposing a tax on non-profit arts
and cultural organizations
 YES  NO X
Imposing a tax on small games of
chance run by volunteer
fire companies and other
types of charitable organizations
nors are granted line-item veto power.
 YES  NO X
debt service to drain away funds the
housegop.com ~ Website: DuaneMilne.com
GAMBLING ... from page 1
dent just with slot machines now in the
state. Add table gaming to the equation
and ticket sales could decrease even
further. This calls in to question what
revenue will be available in the future
for the senior citizen programs funded
by the lottery, including assistance with
prescription drug purchases and free
fares on public transportation.
Fourth, more and more questions
are being brought to the forefront
about legal issues surrounding the
operations of casinos, both those al-
ready in place as well as some that are
proposed to be opened. Investigations
have been launched in to why proper
background checks were not con-
ducted on some individuals seeking to
own and operate casinos in the state.
Further, explosive legal fights have
erupted, because of plans to place
casinos in spots where vehement local
opposition exists to gambling opera-
tions being forced upon them in their
neighborhoods.
As you can see, the status quo of
gambling in Pennsylvania demands
serious scrutiny and accompanying
reform, which is a matter about which
I will continue to demand action.
 Community Corner HUNGER IN
CHESTER COUNTY:
 One out of 10 residents of Ches-
ter County miss meals due to lack of
money to buy food.
 Chester County Food Bank feeds
39,825 households annually, includ-
ing 33,456 children, 70,369 adults,
and 21,753 elderly in Chester County.
This represents an average increase
of 40 percent over last year’s num-
bers.
 Chester County Food Bank
distributes more than one million
pounds of food a year to over 60 sites
including 27 food cupboards, feeding
Rep. Milne presents House Resolution 563, of which he was the main sponsor, at the West Chester sites, non-profit organizations and
Food Cupboard to honor the good works of the Chester County Food Bank. Shown left to right: shelters.
Rep. Milne, Chester County Commissioners Carol Aichele and Terence Farrell, Chester County
Human Services Director Ruth Kranz-Carl, Commissioner Kathi Cozzone and Chester County Food
Bank Executive Director, Larry Welsch
SATELLITE OFFICE HOURS
 In my continuing efforts to provide you

You’re Invited ... with quality constituent services, I have

established satellite office hours at the
clip and save

following locations:
Join me for  Chester County Library: Every
Wednesday (11-2 pm)
Dessert with Duane!  Phoenixville Library: First Monday
of the Month (11-2 pm)
 Easttown Library: Second Monday
Thursday, March 25
of the Month (11-2 pm)
East Pikeland Township Building / 1158 Rapps Dam Road
 Malvern Library: Third Monday of
Phoenixville ~ 7 pm – 9 pm
the Month (11-2 pm)
Thursday, April 8
Easttown Library, 720 1st Ave.
Berwyn ~ 7 pm – 9 pm Mark Your Calendars Now*...
ANNUAL SHREDDER/RECYCLING EVENT
Thursday, April 22 Saturday, April 17 ~ 9 AM – NOON
The School at Church Farm (Auditorium) / 1001 West Lincoln Highway Penn State Great Valley (parking lot), Malvern
Exton ~ 7 pm – 9 pm
DISTRICT OFFICE OPEN HOUSE
These meetings are meant to provide you with an opportunity to Saturday, May 1 ~ 9:00 AM – 3:00 PM
hear updates on current issues in Harrisburg and to voice your 18 E. Lancaster Ave. (Rts. 29 & 30), Malvern
opinions and concerns in person with me, your state representative.
Please R.S.V.P. to my district office at (610) 251-1070. *To reduce budget expenses, this will be the
only notice mailed about these events.

167TH Legislative District

DUANE D. MILNE, Ph.D.
PERMIT NO. 529
REPRESENTATIVE
HARRISBURG, PA
PAID STATE
U.S. POSTAGE
PRSRT STD www.DuaneMilne.com