Friday, May 1, 2009

PA drowning in red ink

Pennsylvania took in nearly $1 billion less than anticipated in tax revenues for the month of April, sending the state's already massive budget deficit to historic levels.

The state collected $3 billion in General Fund revenue in April, but that was $941.5 million, or 24.2 percent below what state officials projected, according to the Pennsylvania Department of Revenue.

The state has been operating in the red every month since the fiscal year began last July 1, but the April numbers were much higher than previous monthly deficits, which were running about 7 percent below estimates.

Fiscal year-to-date General Fund collections total $21.7 billion, which is $2.6 billion, or 10.5 percent, below estimate, Secretary of Revenue Stephen H. Stetler said.

Gov. Ed Rendell had been predicting a $2.3 billion deficit by the end of the current fiscal year on June 30, but the April numbers will probably send the deficit past the $3 billion mark.

"Tax revenues in April are sobering evidence of the harsh effect the national recession has had on Pennsylvania's workers and businesses," Rendell said in a written statement issued late Friday afternoon. "Though Pennsylvania's Personal Income Tax rate is one of the lowest in the nation, it still accounts for nearly 40 percent of our General Fund revenues, and that category alone was 30 percent below estimate."

To close the potential $3 billion gap, Rendell said he wants the Legislature to tap into the state's Rainy Day Fund, which contains about $750 million, and the Healthcare Provider Retention Account.

"There are signs the overall economy is heading toward recovery, but this is a very volatile time and the pain of this recession is widespread," Rendell said.

Previous measures Rendell took to control state spending include a hiring freeze, which has been violated at least 100 times by his administration, and a ban on out-of-state travel, which has also been ignored by some state officials.

April tax collection revenues were down in every category.

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1 Comments:

Blogger terib912 said...

PA DROWNING in red ink, and
local Montgomery County politicians vote to spend nearly HALF A BILLION DOLLARS!

THAT would be with OUR MONEY!
AND OUR HARD WORK !!!

Tell them what you think:

jhoeffel@montcopa.org
jmatthew@montgopa.org

May 4, 2009 5:02 PM 

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