PA Budget Deficit Growing
The latest Pennsylvania Revenue Department report indicates that collections were $160 million below estimates in September, and $280 million below for the fiscal year which began in July.
As our news release notes, this shortfall is well above what the state faced at this point in 2002 and 2003 – years which ended with tax increases.
While Governor Rendell had called for some thrift in spending, which he estimates would save $200 million, this will fall far short of what is needed. While Tony Phyrillas has (tongue-in-cheek) asked for a “bailout” from Washington, it is clear that the General Assembly needs to reduce spending now. Luckily, the Commonwealth Foundation has already identified billions of wasteful and unnecessary programs in our report Government on a Diet for legislators to choose from.