Pennsylvania budget impasses

The Pennsylvania budget impasse is a series of budget impasses or fiscal crises, the latest of which happened on July 1, 2009. In a budget impasse, the State government cannot pass a budget through the General Assembly and so the State cannot pay its bills or payrolls.

Background

The Pennsylvania Constitution requires the adoption of a budget by midnight June 30 each year.[1] As of October 1, 2009, Pennsylvania has not adopted a budget. When Governor Ed Rendell and the Pennsylvania General Assembly failed to come to terms on a new budget, Pennsylvania entered into its seventh consecutive budget impasse.[1]

Past Budget Impasses

2007

In 2007, state employees who were considered non-essential were furloughed for one day during that year's budget impasse.

2008

In 2008, three state employee unions (AFSCME, SEIU Local 668 and FOSCEP) sought a declaration from the Supreme Court of Pennsylvania that "the Governor's furlough plan is not "legally required" by Article III, Section 24 of the Pennsylvania Constitution and the FLSA, as the Governor's Office has asserted in public statements."[2] The Governor, Ed Rendell, and the then-Treasurer, Robin Wiessmann, filed a cross-application for summary relief, asking the Court to indicate that paying state employees outside the budget is not allowed by state law.

2009

In 2009, the state had a $3.2 billion deficit. Twenty-four year term State Rep. Edward G. Staback has stated that, “It is probably the worst I have ever seen,”.[3] Governor Rendell proposed an increase of 16% in the state's personal income tax to balance the budget.[4] Republican lawmakers and some Democrats have insisted on there being no new taxes in 2009.[5]

This disagreement over the state's budget has created this year's budget impasse. Instead of implementing furloughs like previous years, all Pennsylvania state employees are required to continue working through the budget impasse. The majority of these employees will not be paid until after the new budget is adopted.[5]

During the impasse, 16,000 state workers took advantage of low interest loans to provide for expenses while they were without paychecks.[6]

References

  1. ↑ 1.0 1.1 Renatta Signorini (July 7, 2009). "Transit agency worries about budget stalemate". Pittsburgh Tribune-Review. Retrieved July 29, 2009.
  2. ↑ "COMMONWEALTH COURT OF PENNSYLVANIA - No. 322 M.D. 2008" (PDF). aopc.org. 2009. Retrieved July 29, 2009.
  3. ↑ Steve McConnell (July 13, 2009). "Legislator calls state budget deficit "worst he’s seen"". Wayne Independent. Retrieved July 29, 2009.
  4. ↑ "Pa. budget talks resume but consensus distant". The Philadelphia Inquirer. July 7, 2009. Retrieved July 29, 2009.
  5. ↑ 5.0 5.1 "Gov. Ed Rendell to address Pennsylvania budget impasse Monday morning". The Patriot-News. July 12, 2009. Retrieved July 29, 2009.
  6. ↑ Murphy, Jan (December 7, 2009). "Pennsylvania budget delay led nearly 16,000 state employees to borrow money". Patriot News. Archived from the original on 2009-12-09.

External links