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Gov. Rendell Itemizes $311 Million in Spending Freezes, Budget Deficit Could Be $1.7 Billion

Gov. Rendell this week released a list of $311 million in current-year budget spending cuts and called on the Legislature, courts and PHEAA to reduce their spending this year by about $39 million, to match the departments under his control or influence.

Most of the items frozen were from the personnel line items of state agencies. With respect to environmental programs affected, here are the totals from these agencies: Department of Agriculture -$3,492,000, Conservation and Natural Resources -$5,117,000 and Environmental Protection -$9,733,000.

Late Friday, the Department of Revenue reported Pennsylvania collected $1.6 billion in General Fund revenue in October, $283.4 million, or 14.7 percent, less than anticipated. Fiscal year-to-date General Fund collections total $7.4 billion, which is $564.8 million, or 7.1 percent, below estimate.(See announcement)

If this trend continues, the state could see a $1.7 billion deficit for the fiscal year.

"I asked my cabinet secretaries last month to find ways to save $200 million this fiscal year," the Governor said. "They have responded by identifying $289 million in savings in their agencies. They have also followed my directive to preserve critical spending, including funding for state police protection and much-needed health, education and safety net programs for our most vulnerable citizens.

"The revenue situation may get worse before it gets better. We will continue to monitor these volatile economic conditions in order to maintain the commonwealth's balanced budget." Gov. Rendell said. "Any dire predictions about next year's potential budget shortfall are premature and counterproductive. We need to focus on the spending reductions announced today and use the expertise we developed in the past six years to continue improving government efficiency to save taxpayer money."

A complete list of items frozen is available online.

NewsClip: Rendell Identifies $311 Million In Budget Cuts

 
 


10/31/2008

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