Rendell Urges Stimulus Action

February job statistics for Pennsylvania are the first sign that the national economic slowdown might affect the state, Gov. Edward G. Rendell said.

“Until now, our economy has been in great shape,” Rendell said in a statement this month. “As recently as January we had more jobs than any time in history. But, last month the job count dropped and the unemployment rate rose slightly, indicating immediate action is needed to lesson the effects of a sagging national economy.”

Over the past month, the number of jobs in Pennsylvania declined by 8,000 for a total of 5.8 million in February, and the commonwealth’s unemployment rate increased to 4.9%.

“This is the first indicator that the weakening national economy is beginning to take a toll in Pennsylvania,” Rendell said. “We cannot continue a wait-and-see approach. If we don’t act now to stimulate Pennsylvania’s economy, our workers, businesses and communities could be dragged down by the national economy.”

Rendell called on the General Assembly to act quickly on his economic stimulus proposals that the legislature is debating. It includes his energy independence strategy and the Jonas Salk Legacy Fund, both of which involve bond funding.

The energy strategy is aimed at cutting consumer energy costs and significantly expanding the alternative fuel, clean energy, and conservation sectors. Rendell claims that the plan will cut the state’s energy bills by $10 billion over the next 10 years and generate 13,000 jobs. He has proposed a small charge on all electricity used, and the revenue would be used to pay the principal and interest on $850 million of bonds issued by the Pennsylvania Energy Development Authority.

The Jonas Salk Legacy Fund would help foster research and advances in biotechnology, pharmaceuticals, and medical devices, according to the state’s Department of Community and Economic Development.

Under the proposal, the commonwealth would use part of the money it receives annually under the 1998 Master Settlement Agreement with tobacco companies to leverage about $35 million, or 9.5% its tobacco settlement dollars, through a $500 million bond issue.

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