State Budgets: Pennsylvania Reduces Some Spending Growth But Banks on Federal Bailout
Gov. Ed Rendell (D) estimates that the current 2008-09 budget faces a $1.6 billion shortfall (out of $28.3 billion, a 4% increase over the previous budget). His 4-part plan to reduce the shortfall involves budgetary freezes, additional natural gas concessions, drawing down $375 million from the Rainy Day Fund (half of it), and an expectation of receiving $450 million as a federal bailout of state governments. Rendell has been one of the most vocal governors in pushing for a federal bailout. Even with these changes, the budget is still a 2.2% increase over the previous budget.
More on Pennsylvania here.
Was this page helpful to you?
Thank you!
The Tax Foundation works hard to provide insightful tax policy analysis. Our work depends on support from members of the public like you. Would you consider contributing to our work?
Contribute to the Tax FoundationLet us know how we can better serve you!
We work hard to make our analysis as useful as possible. Would you consider telling us more about how we can do better?
Give Us Feedback