Yesterday, the Pa. Senate Appropriations Committee advanced a budget (the full Senate is expected to vote on it today) that includes $27.65 billion in General Fund spending.
Unfortunately, this budget spends about $300 million more than what the projected net revenues will be for next year.
The budget is “balanced” by using the remaining monies left in the account following last year. With federal stimulus funds, and the transfer of the “Rainy Day Fund” and other one-time revenues, the state ended Fiscal Year 2010-11 with more than $1 billion in the General Fund.
Both the current 2011-12 budget and the proposed 2012-13 budget would spend more than revenue, dropping that fund balance to slightly more than $100 million, based on the latest revenue forecast of the Independent Fiscal Office.