Washington Politics Could Affect Pa. Budget
by KYW's Tony Romeo
Developments in Washington are likely to complicate efforts to craft a new budget in Pennsylvania by the end of the month.
As budget negotiations continue, Governor Rendell says the $28.2 billion dollar spending figure he's now looking at would result in the layoff of hundreds of state workers:
"I'd say at 28.2 billion, there could be up to a thousand layoffs, yeah."
But of much greater concern is the fate of $850 million dollars in federal medical assistance money. Up till now, budget negotiations have proceeded under the assumption that that federal money will be coming. But that so-called "FMAP" funding crashed and burned in the US Senate once again on Thursday. And the governor once again warns the consequences will be dire if it's not approved:
"My guess is somewhere around 20,000 layoffs are produced if FMAP goes."
Rendell says those layoffs would include teachers and local government workers.
