Rendell Plans to Use Federal Medical, Education Funds
Congress has finally approved more medical assistance money for states – but less than expected. And now Governor Rendell is calling for a nearly two-percent cut in state spending to help close a budget deficit he estimates at more than $280-million.
KYW's Tony Romeo reports that in addition to medical assistance money, Congress has also approved more money for education. In the new state budget, Governor Rendell got more money for basic education. And Chester Republican Dominic Pileggi, the Senate majority leader, says the governor also wants to apply all the federal education money to basic subsidies:
"School districts, by my quick math, would be receiving $580-million based on the governor's proposal."
But Rendell chief of staff Steve Crawford says it's too soon to say if the federal education funds can be used for basic subsidies:
"We don't have the specific direction from the feds yet as to how to apply that money."
If the federal education money can be applied to basic subsidies, and the governor eliminated the state increase, Senate Republicans say it could free money to balance the rest of the budget.
