Wednesday, October 1, 2008

Rendell budget sinks deeper in the red

It's not looking any better for Gov. Ed Rendell's deficit budget for the 2008-09 fiscal year.

For the third month in a row, the state took in less than it spent.

The three-month deficit in Rendell's $28.3 billion budget now totals $281.4 million.

The Pennsylvania Department of Revenue today released its monthly revenue figures, showing Pennsylvania collected $2.3 billion in General Fund revenue in September, $163.8 million, or 6.5 percent, less than anticipated.

Fiscal year-to-date General Fund collections total $5.8 billion, which is $281.4 million, or 4.7 percent, below estimate, Revenue Secretary Tom Wolf said in a written statement.

"September is the first significant collections month of the fiscal year, as quarterly corporation tax and personal income tax estimated payments were due this month," Wolf said. "Pennsylvania has weathered the economic storm better than other states, but it's clear that the uncertainties in the national economy are affecting our tax collections in Pennsylvania."

Earlier this month, Gov. Rendell ordered a hiring freeze and a ban on out-of-state travel and instructed most state agencies to reduce spending by 4.25 percent to save about $200 million.

But those savings won't even cover the $281.4 million running deficit and there are still nine more months to go in the fiscal year. Republican lawmakers want to re-open the $28.3 billion budget to find more places to cut.

Can somebody bail out Pennsylvania?

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