June 18th, 2008

Today the Patriot-News reported that state employees can “breathe a little easier.”  Gov. Rendell is now saying that he probably won’t furlough 25,000 employees as early as July 1st, as he threatened for the last couple of weeks.  Despite statements from secretary of administration Naomi Wyatt that the Gov. must furlough these employees to avoid heavy fines for breaking the federal Fair Labor Standards Act, Rendell now says he may do what he did last year — and allow “non-critical” workers to stay at the job if the Legislature is very close to striking a budget deal.

House Republican spokesman Steve Miskin said that Rendell backing away from his once firm stance just proves that he is still using state employees as “pawns” in  his budget negotiations.

Although Rendell thinks agreements in energy policy and an economic stimulus package are not far away, he signaled that some parts of a healthcare plan to help the uninsured are going to have to wait until fall to be negotiated – and for a final package to be passed. 

He also stated that he doesn’t oppose dipping into the stae’s Rainy Day fund to be used in the General fund, but doesn’t intend to use all of the $750 million currently saved.  Rendell says if money for education is cut the Rainy Day fund would be perfect to fill that funding gap.