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COLUMN |
FOR IMMEDIATE RELEASE |
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State
Rep. Mike Carroll |
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To: Editor, Pocono Living
From: State Rep. Mike Carroll, Luzerne/Monroe
RE: Anticipated state budget shortfall
Pennsylvania is facing a projected $1.6 billion shortfall in the 2008-09 state budget. According to the Center on Budget and Policy Priorities, Pennsylvania is one of 41 states facing budget shortfalls in fiscal year 2009 or projected shortfalls for fiscal year 2010.
The governor has implemented a number of cost-saving measures in an effort to close the budget gap, including:
· $464 million from cuts in the 2008-09 budget;
· a wage freeze for more than 13,600 non-union employees and the elimination of this year’s cost-of-living adjustment for the governor and cabinet members;
· a hiring freeze for state positions and a ban on out-of-state travel for state employees;
· $375 million from a portion of the commonwealth’s $750 million Rainy Day Fund;
· $174 million in income from the Marcellus Shale natural gas drilling leases;
· $450 million in anticipated federal fiscal relief; and
· $101 million in unused funds left over in state accounts from prior-year budgets.
The continued decline in the national economy is reflected in the decline of our state's economy, making it imperative that we find additional ways to reduce the budget deficit. Tapping into the state's Rainy Day Fund has been criticized by some, but an emergency situation like the one we are currently facing is exactly why the fund was established. Using a portion of the fund will help reduce the state's budget deficit so we can continue to offer important programs and services that many Pennsylvanians depend on.
When the legislature returns to session in January, we will carefully consider ideas for finding enough money to put the budget back on track and ensure that vital programs have the funding they need to keep operating.
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