Rendell Calls Meeting on Possible Budget Hole
Governor Rendell has called a meeting with state legislative leaders next week to discuss ways of dealing with a potential $850-million hole in the state budget caused by the apparent loss of federal medical assistance funds.
KYW's Tony Romeo reports Governor Rendell insisted on budgeting as if the state would receive the federal money. Now, spokesman Gary Tuma says Rendell hasn't lost all hope that the money will come, but he has grown more pessimistic:
"It doesn't look like Congress is going to take action on it soon, and possibly may not take action on it at all. So he believes we have to start the process of the contingency plan."
The governor has suggested that lawmakers revisit some the tax proposals that were rejected in the budget process. Chester Republican Dominic Pileggi, the Senate majority leader:
"There has been no support on either side of the aisle for new taxes in the Senate up to this date. I don't see that position changing in the next few weeks."
The governor has warned that there will be thousands of layoffs at various levels of government without the federal money.
(File photo)
