Rendell: Layoffs are Possible if
Lawmakers Can't Come Up with Revenue
By ANNE HOLLIDAY
WESB/WBRR News Director
Governor Ed Rendell says unless state lawmakers come up with new revenue sources, a “significant” number of state workers will have to be laid off.
Rendell held a news conference this afternoon saying that the state revenue department received $290 million less than anticipated in April. That’s not including the $100 in table games license fees, which the revenue department projected would be paid, but are not required to be paid until June.
That brings the deficit-to-date to $1 billion. Senate Appropriations Committee Chairman Jake Corman says the deficit is likely to be $1.3 billion by the end of the fiscal year.
" We really need to start over, start from scratch and figure out a way to put the budget together on time – before June 30th – that reflects the revenues we have as opposed to what was projected back in February,” Corman said in a news conference.
Rendell says he's ready and willing to work with the Legislature to find ways to reduce spending and create new revenue. One of his ideas is imposing a 4 percent tax on services provided by doctors, lawyers, accountants, architects and other professionals.
Democrats in the state Senate held their own news conference this afternoon to voice their opposition to that plan.
“Imagine tacking a sales tax on top of a co-pay when you or your child needs to see a doctor,” said Senator Mike Stack, Democratic vice chairman of the Senate Appropriations Committee. “Some people right now can barely pay their co-pay, let alone the tax on the actual cost of the visit.”
Stack added that the tax could only hurt would-be homeowners. The Pennsylvania Association of Realtors said it would have to add the tax to 11 transactions dealing with buying a home. These include appraisals, credit reports, inspections, title searches and more.
“How does adding 11 new fees to a home sale increase the affordability of housing?” Stack asked. “How does this help people purchase homes and stabilize neighborhoods through owner-occupied housing? Simple. … It does not.”
“With our economy still struggling, it’s inappropriate to burden the people of Pennsylvania with this kind of tax expansion, and it’s counterproductive in an era of cost-cutting and penny-pinching,” Stack said, adding that the plan doesn’t have bipartisan support in the Senate or the House.
"If the Legislature fails to enact revenue enhancements, we'll have to obviously up tempo the level of cuts, layoffs, furloughs. I hope not to be in position to do that," Rendell said.
compiled from news releases sent to WESB and The HERO from various sources in Harrisburg
WESB/WBRR News Director
Governor Ed Rendell says unless state lawmakers come up with new revenue sources, a “significant” number of state workers will have to be laid off.
Rendell held a news conference this afternoon saying that the state revenue department received $290 million less than anticipated in April. That’s not including the $100 in table games license fees, which the revenue department projected would be paid, but are not required to be paid until June.
That brings the deficit-to-date to $1 billion. Senate Appropriations Committee Chairman Jake Corman says the deficit is likely to be $1.3 billion by the end of the fiscal year.
" We really need to start over, start from scratch and figure out a way to put the budget together on time – before June 30th – that reflects the revenues we have as opposed to what was projected back in February,” Corman said in a news conference.
Rendell says he's ready and willing to work with the Legislature to find ways to reduce spending and create new revenue. One of his ideas is imposing a 4 percent tax on services provided by doctors, lawyers, accountants, architects and other professionals.
Democrats in the state Senate held their own news conference this afternoon to voice their opposition to that plan.
“Imagine tacking a sales tax on top of a co-pay when you or your child needs to see a doctor,” said Senator Mike Stack, Democratic vice chairman of the Senate Appropriations Committee. “Some people right now can barely pay their co-pay, let alone the tax on the actual cost of the visit.”
Stack added that the tax could only hurt would-be homeowners. The Pennsylvania Association of Realtors said it would have to add the tax to 11 transactions dealing with buying a home. These include appraisals, credit reports, inspections, title searches and more.
“How does adding 11 new fees to a home sale increase the affordability of housing?” Stack asked. “How does this help people purchase homes and stabilize neighborhoods through owner-occupied housing? Simple. … It does not.”
“With our economy still struggling, it’s inappropriate to burden the people of Pennsylvania with this kind of tax expansion, and it’s counterproductive in an era of cost-cutting and penny-pinching,” Stack said, adding that the plan doesn’t have bipartisan support in the Senate or the House.
"If the Legislature fails to enact revenue enhancements, we'll have to obviously up tempo the level of cuts, layoffs, furloughs. I hope not to be in position to do that," Rendell said.
compiled from news releases sent to WESB and The HERO from various sources in Harrisburg
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