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More Programs, Agencies Feeling Hurt Of Zeroed Out Budget, Talks Take Step Backward
School districts this week missed their second payment of $876 million from the state because Gov. Rendell zeroed out their budget line item in hopes of putting pressure on Senate Republicans to increase taxes. The total of missed payments to schools is now $1.3 billion for this fiscal year.

Counties are looking to layoff workers, day care, drug and alcohol abuse, rape and domestic violence victim services are all cutting back or closing their doors as a result of zeroed out line items.

Sen. Mary Jo White (R-Venango), Majority Chair of the Senate Environmental Resources and Energy Committee, wrote to DEP Secretary John Hanger and Health Secretary Everette James this week asking them to reconsider suspending the comprehensive West Nile Virus Program saying there was no reason, beyond Gov. Rendell's zeroing out the budget line item, to suspend the program that helps prevent a potentially fatal illness. (See separate story)

The Senate this week did pass the Philadelphia pension bill-- House Bill 1828-- which was expanded by amendment to include guidelines for other public pension programs, including Pittsburgh. The final vote was 38 to 9. The Senate then adjourned to the call of the President Pro Tempore. The House must concur in the changes to the bill, but have no plans to vote it next week.

House Speaker Keith McCall (D-Carbon) and House Majority Leader Todd Eachus (D-Luzerne) provided an update on budget negotiations Thursday afternoon where they said if there is no budget resolution soon, House Democratic Leadership would put up another version of a state budget for a vote along with proposals for "recurring revenues" to fund that budget.

On July 17 the House passed House Bill 1416, now in the Budget Conference Committee, which contained the House Democrats' version of the budget, but separated out $1.2 billion of higher education costs that was not funded. A meeting has been scheduled for September 1.

They said the Budget Conference Committee is also expected to meet next week for the first time since July 30 to hear testimony from state agencies on what will happen if "recurring revenues" are not found to fund the budget as House Democrats feel it should be funded.

In a counter press conference, Senate Majority Leader Dominic Pileggi (R-Delaware) said the press conference held by House Democratic Leaders and the reconvening of the Budget Conference Committee represents a "step backward" in resolving the budget.

8/31/2009

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