Rendell: We Escaped a Disaster

By ANNE HOLLIDAY
WESB/WBRR News Director


Governor Ed Rendell said today that Pennsylvania will get close to the $5 billion in budget aid that he was counting on to help the state's financial situation.

The $790 billion stimulus plan, on which Rendell made his assumptions, is expected to be ready for votes on Friday.

During a conference call with reporters Thursday evening, Rendell said there will be no need for any more major cuts in his proposed budget, or additional layoffs of state workers.

"That's good news for Pennsylvania," he said.

Rendell also said more than 100,000 jobs will be created because of the stimulus. The White House estimates 143,000 new jobs. Without the money, he said, an additional 1,500 to 1,600 layoffs would have been necessary.

"It would have been a disaster for people and services and for Pennsylvania's jobs," he said.

He added that, without the federal money, the $50 million the state sends to its 67 counties would have been gone, which would have meant layoffs at the county level and "a significant reduction in county services.

Rendell also said there would have been significant cuts to state-related universities, museums and health care institutions, and the basic education subsidy would have been cut.

The commonwealth "pretty much escaped a disaster," he said.

Rendell also addressed Senator Judd Gregg's withdrawal as commerce secretary nominee.

"If it was transportation or energy, I would have felt some mild pangs," he joked, "but even then I would have resisted … the call, which, as I said, is not likely to come from the Obama Administration. Although they're more loosey goosey than I thought, as it turns out, so I maybe I would have fit in."

"Lord willing," he continued, "I'm staying until the third week in January of 2011. I feel a great responsibility to be here … to deal with this financial crisis that Pennsylvania has. … There are plenty of other people out there to be secretary of commerce other than me."

If Rendell did leave, Republican Lt. Governor Joe Scarnati would become governor.

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