PA in $280 Million Hole After Passage of FMAP Legislation

Senate Majority Leader Dominic Pileggi (R-Delaware) held a teleconference with reporters today after holding a conference call with Governor and members of leadership from the four caucuses. Governor Rendell told the leaders that Pennsylvania has a $280 million budget shortfall after the passage of FMAP legislation last night and outlined his plan for filling the gap.  Senator Pileggi said Governor Rendell wants to  ”have an across the board reduction in spending of 1.9 percent” which would yield about $210 million, a $50 million reduction in the basic education subsidy, and $50 million in revenue from the proposed Marcellus Shale tax. Senator Pileggi said there is $380 million in the federal bill that goes toward education and stated “it’s the governor’s preference to drive that money out through the basic education formula.”  He indicated that Senate Leadership would examine the basic education subsidy and warned that there will be difficult budget decisions to make next year. “I think part of our analysis will be focused on education funding,” he stated. “Level funding for school districts is a victory when every other line item is taking substantial cuts.”