Lincoln Blog
March 02, 2010:
Among the assumptions made when Pennsylvania's current state budget - passed 101 days late - was that there would be zero revenue growth during the current fiscal year.
It has been worse than predicted. Tax collection statistics for February are in and the state has gathered $467 million less in revenue than projected.
That means those crafting the 2010-2011 budget will need to come up with money to cover the current year's deficit before dealing with the fiscal pressures that await in the new budget year.
Add in the fact the 2009-2010 budget was balanced with the use of one-time revenue sources, such as "rainy day" funds and a raid of the MCAT reserve, not to mention federal stimulus money that will begin to disappear, and the budget challenges that await the governor and the general assembly will be more intractable this year than they were last year.
Overlay all of that with the governor's chair, half of the state senate and all of the state house seats up for election this year and you have a bubbling cauldron that has even more ingredients than last year's scenario - which produced the aforesaid mentioned 101-day budget stalemate.
But such a stalemate this year could have serious political repercussions that could wreak carnage on both political parties.
Given that the state budget has not been approved on time even once during Governor Rendell's seven years in office and the odds are growing that it could end up being another long, hot summer in Harrisburg.
