Governor Tom Corbett Unveils 2013-2014 Budget

Harrisburg, Dauphin County - Transportation funding, pension reform and money for public education were the main things Governor Tom Corbett focused on during his 2013-2014 budget address Tuesday.

The governor laid out his spending plan before a joint session of the legislature in the House Chambers.

This was Governor Corbett's third budget address.

The budget increases overall spending by nearly three percent but does not increase the personal income tax or the sales tax.

"Now is not the time to make small changes and expect big results," Governor Corbett said.

Saying now is the time to be bold, Governor Corbett laid out a plan to fix the state's crumbling roads and bridges in his budget address.

"Transportation is the bloodstream of our economy. It if fails our economy fails," Corbett said.

The governor has proposed increasing the wholesale tax that gas stations pay on gasoline but also dropping the liquid fuels tax by two cents over two years.

Governor Corbett says his plan would raise billions of dollars.

Democrats disagree and they worry it could lead to higher prices at the pump for drivers.

"The governor's kinda playing three-card monte with transportation," State Senator John Yudichak of Luzerne County said. "I'm going to reduce the tax over here but raise the tax here. Find the funding? There's no way it generates the level of funding that we need."

While public schools would see an additional $90 million, state colleges and universities would see no funding changes over this current year.

The governor also continued to push his plan to privatize the state lottery and liquor system.

"Now is not the time to be timid in our approach," Governor Corbett said. "Now is not the time to cling to old ideas and the status quo."

In his address, Governor Corbett also proposed an overhaul of public pension spending.

"We can make certain that our pension plans are sound and hard-working employees, when they retire, will receive the pensions we promised and they earned," Governor Corbett said.

The governor wants new employees to go into a 401-K style retirement plan.

Members of the governor's own party say something needs to be done with pensions.

"That's probably the 800-pound gorilla. We have to address that issue before it eats us alive," State Senator David Argall said.

As part of the governor's transportation funding plan, the governor also wants to change the current four-year driver's licenses to six-year licenses.

Governor Corbett also wants to replace the current annual vehicle registration with a two year registration plan but it would still cost $36 a year.

The state legislature now has until June 30 to pass a spending plan.