GOVERNOR WILL OFFER ADDITIONAL CUTS

According to an article in the Philadelphia Inquirer, Gov. Rendell said yesterday that he would offer “several hundred million dollars” in additional spending cuts next week in an effort to balance the new state budget.  With just 34 days left to produce the 2009-10 budget on time, Rendell and legislative Republicans continued sniping at each other. Rendell was still pushing for some smaller tax increases and said he hoped a broad-based tax increase, such as a higher sales or personal income tax, could be avoided. He and Senate Republicans have been $1.7 billion apart on their budget plans. Rendell had suggested $29 billion in combined state-federal spending for the fiscal year starting July 1; the Senate has approved, along party lines, a $27.3 billion, no-tax-increase budget. Click here to read the Philadelphia Inquirer article.

INSURANCE COMMISSIONER WARNS OF BUDGET CUTS

Insurance Commissioner Joel Ario yesterday warned that the Senate Republican budget proposal would dramatically affect the state’s Children Health Insurance Program (CHIP). CHIP, which provides healthcare to approximately 180,000 Pennsylvanian children, must be given high priority in the upcoming budget, said Commissioner Ario. According

Continue reading Eye Opener – May 28, 2009

BUDGET UPDATE: ARDO SAYS EVEN MOST GOP LAWMAKERS WALKING AWAY FROM TOUGH RHETORIC

The governor will reduce his original $29 billion spending plan in the face of increased revenue shortfalls, spokesman Chuck Ardo told PLS. Where the cuts come from and how deep they are remains to be seen. “The governor is fully cognizant of the fact more cuts needs to be made,” Ardo said. “He has been making the adjustments needed as the economic downturn has picked up speed. But there’s a difference between making responsible cuts and making irresponsible proposals.” Senate Republicans unveiled a $27.3 billion budget proposal in early May, Senate Bill 850. They say their plan makes difficult decisions that will prevent the state from facing economic catastrophe when federal stimulus money expires in two years. Go to www.mypls.com and click ‘News and Views’ to read the article. Budget Update will give you a weekly look inside budget negotiations between the governor and four legislative caucuses as all sides try to grapple with what some now project will be a $3.2 billion revenue shortfall.  It will be published every Tuesday morning.

REPUBLICANS BOYCOTT HOUSE EDUCATION COMMITTEE HEARING

Continue reading Eye Opener – May 27, 2009

GOVERNOR CONSIDERING PAYLESS PAYDAYS FOR STATE EMPLOYEES

According to an article in the Citizens Voice Governor Rendell suggested that thousands of state employees would continue to work without pay if Pennsylvania doesn’t have a state budget when the fiscal year starts July 1. They would receive back pay when a budget is enacted. This is a major change in policy from the one-day furlough of “non-essential” employees during a budget impasse in 2007.Two years ago, Rendell said a federal labor law required him to pay employees for work done on a timely basis or else the state would face huge fines. Therefore, he ordered the furlough and rescinded it a day later upon announcing that a budget deal was at hand. Now Rendell says a Commonwealth Court ruling in 2008 gives him more flexibility. The state ban on spending money without a specific appropriation outweighs any federal labor law, the court ruled, but a governor has leeway in deciding whether to furlough employees or let them work without pay. A recently announced cost-savings deal with state employee unions helped quell talk of furloughs too. Click here to read the Citizens’ Voice article.

Eye Opener – May 26, 2009