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Rendell, Legislators Have To Cut $250-260 Million, Not $850 Million, From State Budget
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Gov. Rendell and legislative leaders will now "only" have to cut $250-260 million from the state budget, rather than the $850 million they were expecting when the U.S. Senate passed supplemental Medicaid funding this week.

           "It's a tremendous relief. I'm extremely gratified that the Senate voted to invoke cloture on the bill that would extend the stimulus money for Medicaid," said Gov. Rendell.  "While it is not 100 percent of the original appropriation, it would extend about 70 percent of the funding - and that is crucial for our Commonwealth."
            Before the vote in Washington, Gov. Rendell said the $250 million in extra funding provided for basic education in the state might have to be sacrificed to fill the budget gap.  After, the vote it was a much different tune.
            After the U.S. Senate voted, the Governor repeated his call for the General Assembly to end the one-percent vendor discount that businesses receive for paying sales taxes to the state on-time. He offered the idea as part of his original budget proposal in order to generate more than $70 million in new revenues for this fiscal year.
            "I think it's insane for Pennsylvania to give big retailers a discount simply for paying their taxes on time. They actually make a profit on the sales tax, and I find that ludicrous," he added.
            About 700 state workers were expected to be laid off to balance this year's budget without the additional $250-260 million in cuts planned to meet the now smaller Medicaid funding hole.
            Gov. Rendell said he expects to meet with legislators next week on how to fill the budget gap.

            NewsClips: PA Facing Spending Cuts
                                State Budget Hole Shrinking, Thanks To Medicaid Funding

                                Hole In State Budget Looming Larger
                                Rendell's Planned Cuts Include Basic Education Spending
                                Federal Aid Could Help Avert State, Local Layoffs

 


8/9/2010

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