Pa. budget sent to Rendell

To help offset the state's recession-driven $1.2 billion deficit, the budget includes steep cuts for state parks, environmental-protection programs, health-care centers, and libraries, among other items.

That, in turn, will likely translate into layoffs of about 1,000 state employees, according to administration estimates.

The situation, however, will be far worse if the federal Medicaid money is not approved by Congress.

The $28 billion spending plan relies on receiving $850 million from Washington to help balance the budget and fund federally mandated Medicaid obligations.

If all or even a portion of that money is not approved, administration officials and legislators will have to cut more programs. Rendell has predicted that 20,000 state workers, county and municipal employees, and public-school teachers could lose their jobs.

"This budget is a political shell game rather than a real solution," said Rep. Scott Perry (R., York), referring to the fact that it relies on many unknowns.

Rendell spent Wednesday in Washington lobbying federal lawmakers reach a speedy resolution and come up with the money. But this year, billion-dollar spending bills are tough territory for members of Congress facing elections of their own.

State House Speaker Keith McCall (D., Carbon) said the state has enough money right now to meet its Medicaid obligations until January. He said he and others will continue to lobby lawmakers in Washington to pass a bill by the congressional deadline of Oct. 1.

This is only the second time in Rendell's tenure that legislators have passed a budget on time. They did so in 2003 - but Rendell vetoed a large chunk of that budget, forcing a months-long stalemate over education funding and tax increases.

Governors Plead Case in D.C.

Gov. Rendell and colleagues from several other cash-strapped states went to Washington to warn that unless Congress gave them more money to help pay for health care for the poor, their states could face layoffs and cuts in services.

The governors, including New York's David Paterson and Michigan's Jennifer Granholm, said Wednesday that their states needed the money to avoid cutbacks that could hurt some of their most vulnerable citizens.

A deficit-weary Congress recently rejected billions of dollars in additional aid to states. The federal stimulus program enacted last year expires in December. Congress was poised to extend some funding to states, including $16 billion for Medicaid, the public health-care program for the poor. But the measure died in the Senate.

- Associated Press

For Pennsylvania House roll-call votes, go to

For Pennsylvania Senate roll-call votes, go to

Contact staff writer Angela Couloumbis at 717-787-5934 or acouloumbis@phillynews.com.