Thursday, June 24, 2010

At A Minimum, 1,000 State Workers May Be Furloughed Under New Budget

Late today Gov. Rendell and House Democrats said they support a $28.1 billion budget proposal that would cut from 5 to 10 percent of every line item in the budget in order to increase basic education funding. Gov. Rendell estimated at this spending level 1,000 state workers will have to be furloughed.
Senate Republicans support a $27.8 billion spending level, however, details of what cuts were made and how many furloughs would be required to meet that level were not available.
And the word from Congress is they are unlikely to appropriate the $850 million in additional Medicaid funding the Governor, House Democrats and Senate Republicans include in their budgets. That means additional cuts and diversions will no doubt have to be made to balance the state budget.
Gov. Rendell this week proposed $132 million in transfers and suspensions from a variety of environmental funds this week to help balance the state's budget. But these transfers don't end the bad news.
NewsClip: Rendell Says Budget Proposal Would Require 1,000 State Worker Layoffs
Bill's Failure In U.S. Senate Could Blow State Budget

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