June 24th, 2008

State lawmakers and the Governor have exactly seven days to work out an approximate $28 billion spending plan for the coming fiscal year –before deadline strikes, and Gov. Rendell turns into a pumpkin…okay, not really…. But, after next tuesday, July 1st, approximately 25,000 state workers that are considered “non-critical” to public health and welfare could be furloughed without pay.

Legislative leaders from all four caucuses met with Gov. Rendell for approximately 90 minutes yesterday, and said although they don’t have a deal yet, they are coming closer to agreements. 

One of the biggest issues that needs clarification right now is how much, if any, of the state’s rainy day fund will be used, and for which projects. The Pittsburgh Post-Gazette reports, “House Democratic leader Bill DeWeese of Waynesburg said that at least $500 million would remain in the Rainy Day Fund, while part of the other $250 million could go for education.”

Adding to budget negotiations is now the issue of soon-rising electricity rates across the state.  Republicans would like to help consumers phase-in price increases over the next few years, rather than letting increases hit all at once when rate caps expire over the next two years.