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Rendell: Progress Made On Budget, Except 20,000 Workers May Be Furloughed
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At a press conference this week, Gov. Rendell said there was progress in a meeting with the four Caucus leaders where they laid out a schedule to get the state budget done almost on time.

           But he also asked the legislative leaders to stay in Harrisburg continuously, starting June 21, until the state budget is finished.
            At the same time, the Governor said if the federal government does not approve $850 million in federal Medicaid funding by July 1, he would begin putting state funds in escrow to cover that budget need.  
            The funds, he said, would be gleaned from further budget cuts and the furlough of 20,000 state  and local workers.
            The Governor also noted the state's budget costs will increase over $1 billion in programs neither he nor legislators have any control over, citing: Medical Assistance (FMAP): $337 million increase state share; Pension Costs: $336 million increase in payments; Department of Corrections: $145 million increase; Debt Service: $109 million payment increase; Aging Medical Assistance: $68 million increase;  and School Employees Social Security: $22 million increase.
            Severance Tax Bill Fails Again
            After two and a half hours of debate and several attempts to amend the bill, House Democrats failed to gather enough votes to amend or pass House Bill 325 (Melio-D-Bucks) which would impose a new severance tax on natural gas production, on smokeless tobacco and cigars and raise the tax on cigarettes.  
            The bill was referred back to the House Appropriations Committee.
            Rep. David Levdansky (D-Allegheny) attempted to suspend the rules to offer an amendment to provide environmental programs with more funding from the natural gas severance tax, but the effort failed by a vote of 104 to 95.  Other amendments were either withdrawn or rebuffed.
            Senate Shuffles Budget Bills
            The Senate this week moved  House Bill 2279 (D.Evans-D-Philadelphia) providing for General Fund appropriations (House Democrat version) out of and back into the Senate Appropriations Committee with a "negative recommendation."
            Also moved along in the process were more than a dozen House bills containing non-preferred appropriations.

            NewsClips: Rendell Asks Legislators To Stay Until Budget Gets Done

                                House Yanks Vote On Marcellus Shale Tax Bill

                                Disagreements Delay Proposed Marcellus Shale Gas Tax

                                PA Is Considering An Extraction Tax On Natural Gas Drillers
                                Shale Tax Dispute Delays PA House Budget Vote
                                Rep. Everett: Severance Tax Prevents Drilling
                                Reps. Hanna, Mirabito Offer Gas Tax Sharing Plan
                                Chester County's Green Fund Could Be Casualty Of State Budget
                                Letter: Natural Gas Severance Tax Should Benefit Growing Greener
                                Column: Colliding Political Agendas Block Budget Progress
                                John Baer: We Could Have State Budget On Time
                                Some Legislators Think Natural Gas Tax Is Best Answer
                                PA Extraction Tax May Be Price Of Marcellus Gas
                                Drilling In Marcellus Shale Bringing Little Tax Revenue

 


6/21/2010

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