Budget gap now $1.2 billion

Pennsylvania’s revenue gap has ballooned to 1.2 billion dollars.

May’s tax revenues came in 125 million dollars below estimates, which means the commonwealth has now collected 1.2 billion dollars less than the amount factored into this year’s budget. The revenue gap will loom over June budget negotiations, as lawmakers figure out whether to fill the gap through cuts, tax increases, or a mix of both.

As revenue has dropped over March, April and May, Senate Republicans have called on Governor Rendell to revise and slash the 29 billion dollar spending plan he submitted in February.

In a statement, Senate Appropriations Committee Chairman Jake Corman says the latest figures means the state will need to “hold the line” on spending.

Rendell’s budget is about a billion dollars more than last year’s spending plan. He says the bulk of that increased spending is mandated.


About pubradiopolitics
Scott covers state government and politics for Pennsylvania's public radio stations, including WITF in Harrisburg, WHYY in Philadelphia and WDUQ in Pittsburgh.

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