Proposed Budget Cuts

Sources say that in meetings with legislative leaders today, Governor Rendell made the following proposals to close the budget gap left by FMAP funding.  Currently, the proposal seems to involve the following:
  • 1.9% cuts across the board in discretionary appropriations (expected to total $198 million, including a $50 million cut in basic education funding)
  • 1.9% cut to legislature (totaling $6 million)
  • 1.9% cut to courts (totaling $5 million)
  • 1.9% cut to elected independents (totaling $3 million)
Governor Rendell also expects to use $70 million in funding from a proposed tax on Marcellus Shale.

As many of you know, FMAP passed out of the House yesterday, but at lower levels than the state originally budgeted.  Pennsylvania will be receiving approximately $600 million instead of $850 million from FMAP.

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