Here's the latest State Capitol Roundup courtesy of Rep. Bob Mensch (R-147):

House Republicans Pledge to Fight Income Tax Hike

Gov. Ed Rendell this week called on the General Assembly to increase the Personal Income Tax by 16.28 percent to generate $1.5 billion in new revenue. The increase is expected to cost a Pennsylvania family earning $50,000 a year about $250 annually. House Republicans have rejected the necessity of such a tax increase, and instead say state government must live within its means. Additionally, another week has passed in the Democrat-controlled House with no legislative action to bring a budget proposal to the House floor, making the prospect for enacting a state budget prior to the June 30 deadline virtually impossible. House Republicans are committed to controlling spending and ensuring that already-anxious families are not saddled with higher income taxes. For the latest state budget news, visit PAHouseGOP.com

Lawmakers Outline 'Pact with PA' to Reform Budget Process in Pennsylvania

Several House and Senate Republicans gathered this week to unveil the "Pact with PA" proposal, an agreement between state legislators and taxpayers to redefine the state's budgeting process to reflect what people can afford to pay instead of what government wants to spend. Pact for PA outlines five key budgetary principles: no tax increases, no additional state debt, preserving the Rainy Day Fund for its original intent, stabilizing existing financial obligations and enacting proactive tax reform to improve Pennsylvania's job climate. Lawmakers point to these principles as being essential for the state to move toward long-term fiscal stability and economic growth. For the latest legislative news, visit PAHouseGOP.com

Lawmakers Seek to Reduce Welfare Fraud During Tough Budget Year

House Republicans are renewing calls for legislation to enact stricter controls on the distribution of welfare funding following the recent arrest of 16 state and City of Philadelphia employees involved in a half-million dollar fraud operation. Legislation sponsored by Rep. Bryan Cutler (R-Peach Bottom) to address several lax policies in the Low Income Home Energy Assistance Program (LIHEAP) has already been introduced. House Bill 1638 would require photo identification to be issued to LIHEAP recipients, establish a computerized income eligibility verification system to reduce fraud and duplication, create a case review system and establish an Office of Program Compliance for LIHEAP. The legislation is currently awaiting consideration by the House Health and Human Services Committee.

Hearing Shows Need for Unemployment Compensation Overhaul

The House Republican Policy Committee, chaired by Rep. Stan Saylor (R-York), recently held a fact-finding hearing on unemployment compensation issues in Pennsylvania. The hearing was led by Rep. Bob Mensch (R-Montgomery), who is proposing several reforms to the system. The legislation would help the unemployed find a job in their field by requiring registration with PA CareerLink; enabling departing employees to receive benefits immediately following the allowance of a severance pay period; and changing how weekly benefit rates are calculated. Testimony offered at the hearing also highlighted the potential for an estimated $2 billion in cost overruns through 2016 as a result of a diminished Unemployment Trust Fund if steps are not taken to address ballooning expenses.