June 3rd, 2008

Rendell said yesterday that after meeting with legislative leaders yesterday he believes that a “fair, decent budget” can be worked out by June 30. However, he is keeping a possible furlough on the table as a playing chip in  negotiations – stating that this year he could possibly furlough certain state workers as early as July 1st if the budget isn’t passed, reports The Philadelphia Inquirer.

 Spokesmen for the Senate and House Republicans, both say that Republicans are still looking into whether last year’s furlough of 24,000 state workers was required under current federal law.  House Republican spokesman Steve Miskin states that last years furlough was just “political gamemanship” by the Gov.

Rendell’s $28.3 billion budget would increase spending by 4.2 %, which he says lines up with the current rate of inflation.  House Republicans say that with the  current economic outlook on a down-turn the state should be shrinking spending,  not increasing.  Another ideological divide resides in the amount of borrowing Rendell is proposing, with Senate R’s believing it’s too much.

One way the state could save $100 million a year Rendell says is if lawmakers approve his “carve-out” plan for Dept. of Public Welfare to take over prescription purchases for Medicaid recipients – benefits that are currently in the hands of private managed care companies.