Rendell: Despite Economy, State Revenue On Target
HARRISBURG (CBS) - Governor Rendell says state revenue collections continue to run close to estimates, as the state's economy added jobs for the third consecutive month.
Pennsylvania added 5,100 non-farm jobs in November, as the state's unemployment rate dropped two-tenths of a percent, to 8.6 percent.
Meanwhile, Governor Rendell says revenue collections at the mid-point of the fiscal year remain steady. He says sales tax and corporate tax revenues are up, but PIT (personal income tax) revenues are stagnant. "Our estimate is conservative. There's a chance that the PIT will not come in as badly as we hoped."
But for now, the governor says the state is on track to end the current fiscal year with a deficit of $63 million, an amount he says would have been covered by a tax on natural gas extraction that lawmakers failed to approve. But that's chump change compared to the multi-billion dollar hole anticipated in next year's budget due largely to increasing costs and the loss of federal stimulus dollars.
Reported by Tony Romeo, KYW Newsradio
