July 8th, 2009

Gov. Rendell told the Pittsburgh Post-Gazette that in a meeting with legislative leaders Monday night another $70 million in savings was achieved.  

This means that the gap between Rendell’s and the Senate Republican’s budget has narrowed by $200 million, but still remains $1.3 billion apart.  Still a long way to go…

“We are looking at other budget lines for savings and I hope we can cut another $50 million,” Mr. Rendell said. The cost savings could entail up to 800 state workers being laid off, he added.

In addition, he is looking for the General Assembly to save $50 million to $70 million in personal and budget reserve costs. The Legislature has what is sometimes called a “slush fund” of $200 million left over from previous years.

But the bottom line on Mr. Rendell’s budget, even with another $200 million in reductions, would still be about $28.6 billion, while the Republican-controlled Senate is sticking with its $27.3 billion budget approved in early May.

Mr. Rendell said that budget could, however, be at least $1 billion out of balance because state revenues declined more than expected in May and June. He urged Senate leaders to tell him how they would get their budget back in balance. Senate leaders are firmly opposing any tax increases.

Mr. Rendell said he is firm in adding $418 million to basic education costs this year, a point that is opposed by GOP leaders. Mr. Rendell said that without sufficient state aid for education, local and school property taxes would simply rise, hurting local homeowners.

 Read more about the slow progress in the Philadelphia Inquirer.