Rendell IDs $350 Million in Cuts
HARRISBURG – With the national economic crisis continuing to affect state revenue collections, Gov. Edward G. Rendell said today that his administration has identified $350 million in cuts to help keep the 2008-09 budget balanced while preserving crucial services.
“I asked my cabinet secretaries last month to find ways to save $200 million this fiscal year,” the Governor said. “They have responded by identifying $289 million in savings in their agencies. They have also followed my directive to preserve critical spending, including funding for state police protection and much-needed health, education and safety net programs for our most vulnerable citizens.
“The revenue situation may get worse before it gets better. We will continue to monitor these volatile economic conditions in order to maintain the commonwealth’s balanced budget.” Governor Rendell said. “Any dire predictions about next year’s potential budget shortfall are premature and counterproductive. We need to focus on the spending reductions announced today and use the expertise we developed in the past six years to continue improving government efficiency to save taxpayer money.”
The $289 million in cuts to agencies under the Governor’s jurisdiction announced today is in addition to the 1.3 percent budget reduction that Governor Rendell agreed to in budget negotiations because of economic conditions. The enacted budget is $72.4 million less than the budget he proposed in February.
With revenues for the current fiscal year coming in below expectations, last month the Governor directed his cabinet secretaries to cut 4.25 percent of their enacted budgets. Agencies that provide public safety, health and education services were given smaller percentage targets to meet. As part of his call for fiscal restraint, the Governor also announced a general hiring freeze and bans on out-of-state travel and on the purchase of new vehicles for the state fleet. The funds from all cost-saving measures will be put into budgetary reserve.
Governor Rendell also requested that independent entities, including the legislature, the judiciary, the treasurer, the attorney general, the auditor general, the Pennsylvania State System of Higher Education and the Pennsylvania Higher Education Assistance Agency (not including direct grants to students) reduce their budgets by the same 4.25 percent that was expected of agencies under his jurisdiction.
The $289 million in cuts identified by agencies under the Governor’s jurisdiction, combined with a $22 million cut the Pennsylvania State System of Higher Education and a $457,000 cut from Thaddeus Stevens College of Technology, comes to $311 million. The SSHE and Thaddeus Stevens cuts represent the 4.25 percent savings the Governor requested.
An additional $39 million in savings would be realized if the General Assembly and other independent state entities agree to make 4.25 percent cuts in their budgets. The General Assembly and the other independent entities have not yet revealed whether they will do so.
“It is my hope and expectation that every branch of government will do their part. I look forward to their cooperation and prompt response,” Governor Rendell said. “Pennsylvania’s revenue shortfall is of no single branch’s making, and it will take the work of all branches of government to respond to this challenge.”
The administration will continue monitoring revenue collections closely in the coming months, the Governor said, and will work to keep the budget balanced.
“I asked my cabinet secretaries last month to find ways to save $200 million this fiscal year,” the Governor said. “They have responded by identifying $289 million in savings in their agencies. They have also followed my directive to preserve critical spending, including funding for state police protection and much-needed health, education and safety net programs for our most vulnerable citizens.
“The revenue situation may get worse before it gets better. We will continue to monitor these volatile economic conditions in order to maintain the commonwealth’s balanced budget.” Governor Rendell said. “Any dire predictions about next year’s potential budget shortfall are premature and counterproductive. We need to focus on the spending reductions announced today and use the expertise we developed in the past six years to continue improving government efficiency to save taxpayer money.”
The $289 million in cuts to agencies under the Governor’s jurisdiction announced today is in addition to the 1.3 percent budget reduction that Governor Rendell agreed to in budget negotiations because of economic conditions. The enacted budget is $72.4 million less than the budget he proposed in February.
With revenues for the current fiscal year coming in below expectations, last month the Governor directed his cabinet secretaries to cut 4.25 percent of their enacted budgets. Agencies that provide public safety, health and education services were given smaller percentage targets to meet. As part of his call for fiscal restraint, the Governor also announced a general hiring freeze and bans on out-of-state travel and on the purchase of new vehicles for the state fleet. The funds from all cost-saving measures will be put into budgetary reserve.
Governor Rendell also requested that independent entities, including the legislature, the judiciary, the treasurer, the attorney general, the auditor general, the Pennsylvania State System of Higher Education and the Pennsylvania Higher Education Assistance Agency (not including direct grants to students) reduce their budgets by the same 4.25 percent that was expected of agencies under his jurisdiction.
The $289 million in cuts identified by agencies under the Governor’s jurisdiction, combined with a $22 million cut the Pennsylvania State System of Higher Education and a $457,000 cut from Thaddeus Stevens College of Technology, comes to $311 million. The SSHE and Thaddeus Stevens cuts represent the 4.25 percent savings the Governor requested.
An additional $39 million in savings would be realized if the General Assembly and other independent state entities agree to make 4.25 percent cuts in their budgets. The General Assembly and the other independent entities have not yet revealed whether they will do so.
“It is my hope and expectation that every branch of government will do their part. I look forward to their cooperation and prompt response,” Governor Rendell said. “Pennsylvania’s revenue shortfall is of no single branch’s making, and it will take the work of all branches of government to respond to this challenge.”
The administration will continue monitoring revenue collections closely in the coming months, the Governor said, and will work to keep the budget balanced.
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