Rendell Proposes Nearly $4 Million More Cut From DEP, DCNR To Fill Budget Hole
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Gov. Rendell told Senate and House legislative leaders this week a $280 million deficit remains in the budget after Congress passed the extra Medicaid funding.

            The Governor said he would like to fill the gap with--
-- An across-the-board cut of 1.9 percent in the state budget that would yield $212 million: 1.9 percent cut to "discretionary appropriations," including $50 million to basic education funding; 1.9 percent cut to the General Assembly, Courts and to elected row offices (Auditor General, Attorney General and State Treasurer); and 
-- Using $70 million from the proposed Marcellus Shale natural gas production severance tax  (Gov. Rendell has never proposed using severance tax revenue to fund any environmental program or even Growing Greener which exhausted its funding this year).
            A sheet distributed by the Governor's Office shows DEP would be cut by $2.4 million and DCNR cut by $1.5 million, but no individual line items were noted.
            Over the last 8 years, $1.3 billion in environmental funding has been diverted to balance the budget or used to fund programs which could not get funding on their own.
            Late Friday, Senate Republicans wrote to Gov. Rendell agreeing with his suggestion to cut funding to certain line items and cutting $50 million in extra funds for basic education funding, although they await specifics on which line items he would cut.  But they went further and suggested the remaining $200 million in extra funding should be directed to deal with the school employees pension funding shortfall.
            At a press conference after the earlier call with the Governor, Senate Majority Leader Dominic Pileggi (R-Delaware) said there is $380 million in the federal bill that goes toward education and stated, “It’s the Governor’s preference to drive that money out through the basic education formula.”  
            He indicated Senate Leadership would examine the basic education subsidy and warned that there will be difficult budget decisions to make next year. 
            “I think part of our analysis will be focused on education funding,” Sen. Pileggi said. “Level funding for school districts is a victory when every other line item is taking substantial cuts.”
            Sen. Pileggi noted Gov. Rendell, by his own action, can put state monies in budgetary reserve without any action needed by the General Assembly and the new Governor next year could act to change those amounts.
                                Rendell Asks For 1.9 Percent Across-The-Board Cuts
                                Rendell Proposes Wide-Ranging Cuts To Fill $280 Million Deficit
                                Marcellus Shale Gas Tax Eyed For Budget Shortfall
                                State Workers In A State Of Confusion About Layoffs
                                Rendells Sees 200 Layoffs, But May Not Be All
                                PA To Bet $1 Billion For Teachers, Medicaid
                                GOP May Push Education Funding Cut To Bridge Funding Gap
                                Federal Education Money: Windfall Or Waste?
                                State Spends $40K To Move Statue From Governor's Residence
                                How Will Rendell's Proposed Transportation Taxes Play In Pottsville?
                                Lawmakers Unfazed By Rendell's PR Tour For Funding
                                Rendell Urges Fee Hikes, Higher Gas Tax
                                Rendell Assails Dangerous State Bridges
                                Editorial: Underfunding Bridges Leads To Structural Deficiencies
                                Editorial: Transportation Woes, There Are Ways To Generate Money
                                Editorial: Funding Plan Unsafe At Any Speed
                                Editorial: PA Roads, Bridges Need First Aid

8/16/2010

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