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Rendell: Bad News In State Budget Briefing

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Dec 9, 2008 11:11 am US/Eastern

Rendell: Bad News In State Budget Briefing

HARRISBURG, Pa. (AP) ― Gov. Ed Rendell will give state legislators a look at Pennsylvania's financial condition, but the news will not be good.

With state tax collections nearly 7 percent behind expectations, Rendell and his aides plan to deliver the traditional mid-year budget briefing to lawmakers Tuesday.

If that rate of shortfall continues, the state will face a nearly $2 billion deficit when the fiscal year ends June 30.

In response, Rendell says he has frozen $440 million in approved spending, although he expects more spending cuts.

He also is withholding annual raises for thousands of nonunion state employees and has halted hiring.

The cuts have affected many different programs, including subsidies for autism treatment and child care for the poor.

(© 2009 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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