Pennsylvania budget shortfall grows to $658 million

The Pennsylvania Department of Revenue has released the November Revenue Collections, showing the state General Fund collections now $658 million below estimate.

This shortfall exceeds the entire twelve-month shortfalls for fiscal years 1990-91 and 2002-03, respectively—budget cycles which resulted in the two largest tax increases in Pennsylvania history and significantly hindered the state’s economic performance.

Our news release notes that between fiscal years 2002-03 and 2008-09, total state spending increased 35.8 percent ($16.2 billion), well exceeding the rate of inflation. That’s why were calling on the government to reduce state spending to 2007 levels, a difference of $2 billion. Or they could just adopt some of Government on a Diet: Spending Tips 2008, which identified billions in potential spending reductions.