Budget Watch

Governor Rendell and state legislative leaders agreed on the framework for a state budget agreement on the evening of June 28. According to news accounts, the 2009-10 fiscal plan will reduce the Governor's February request by somewhere around $130 million through a 1.3% across the board cut in the proposed budget for most programs.

The calendar is closing in on June 30, the end of the 2007-08 fiscal year with legislators and the Governor furiously trying to reach agreement on a spending plan for 2008-09 In February, the Governor proposed to increase General Fund spending by 4.2% to $28.3 billion. Major initiatives included:

A report by the National Association of State Budget Officers (NASBO) ranks Pennsylvania's proposed spending increase 33rd in the county, and places the Governor's proposed 3.6% spending plan below the national average of 4.2 %. Governors of traditionally low spending states, including Mississippi, Alabama, Louisiana and Arkansas have proposed larger spending increases than Governor Ed Rendell.

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