Pennsylvania Governor Warns of Possible Layoffs

Governor Ed Rendell of Pennsylvania said Thursday that without $850 million in federal aid, he would have to lay off hundreds or thousands of state and local government employees. The only possible source of that funding, a massive $120 billion jobs bill, is currently mired in stalemate in the US Senate, where Democrats are trying to find the votes to break a Republican filibuster.

If the bill cannot get through the Senate, then layoffs will begin in Pennsylvania on the 1st of July. Dozens of state across the country find themselves in a similar position as the recession has severely eroded tax revenue.