Pennsylvania to Cut Jobs, Services

Pennsylvania’s Democratic Governor Ed Rendell proposed today a $26.6 billion general fund budget for fiscal 2010, a 0.2% reduction that cuts almost 3,000 state jobs and reduces funding in most agencies.

Almost $1 billion in spending cuts will be achieved by eliminating funding from 101 state programs, and reducing support for another 346 programs. The new budget proposes to reduce the state work force by 2,995 positions.

The only areas to receive more funding are education, public welfare, corrections and probation and parole.

“The budget I propose requires considerable sacrifice and pain so that we can close the deficit and put our fiscal house in order,” Rendell said in a speech to the state legislature. “The crisis demands that we make these cuts.”

The budget assumes the state will receive $1.1 billion in federal funds in the current year, and another $2.4 billion in the fiscal year starting July 1, as part of the Obama administration’s national economic stimulus plan.

This year’s anticipated federal funds would pay for a temporary increase in medical assistance. A further $493 million is expected in fiscal 2010 to allow Pennsylvania to maintain critical services such as education and public safety, along with about $26 million for special education and child care.