...January 15, 2010 - Governor Announces Mid-Year Budget Cuts as Revenues Dwindle
The Rendell Administration has identified $161 million in cuts to the 2009-10 state budget to address a revenue shortfall driven by the severe recession. These funds are actually being placed in budgetary reserve, rather than being cut, but because of the revenue deficit, it is unlikely that those funds will be available.

The plan eliminates 33 line items, including state funding for health-care facilities, bio-technology research, regional community college services, rural cancer outreach, zoos and regional history centers. More than 240 other programs, including county child welfare, mental health services, children's health insurance, and Pre-K Counts, received cuts ranging from 1% to 97%. Funds from the cuts are being put into budgetary reserve, meaning they cannot be spent.

The Tally:
 - 33 programs eliminated ($30.4 million cut)
 - Funding reduced for 244 other programs ($130.8 million cut)
Total reductions: $161 million

Déjà Vu, All Over Again: How Did We Get Here?

As of December, the state's revenue deficit exceeded $250 million. The Rendell Administration is estimating that the Commonwealth will end the 2009-10 fiscal year in June with a $450 million revenue shortfall. Last month, the Governor proposed to address the growing deficit through $170 million in budget cuts, $50 million in unused prior-year funds, and gaming license fees from the addition of table games to casinos. The Governor said that those actions will produce a $124 million year-end surplus.

However, in the first half of the fiscal year, revenue collections are below even cautious estimates for 2009-10 and below collections in 2008-09. As more than half of all tax receipts come in during the second half of the fiscal year, the deficit could grow at a faster pace between January and June. That, together with questions about the timeliness of gaming revenues, suggests that the defect could grow and that the reserves will turn into permanent cuts.

Notable Cuts:
 - In agencies under the Governor's jurisdiction, general state government operations were cut between 1% and 1.8% ($8.3 million, in total, cut).
 - More than one-third of the announced cuts are within the Department of Public Welfare

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...December 11, 2009 - Governor Rendell Announces Resignation of DPW Secretary Estelle B. Richman
Governor Edward G. Rendell announced the resignation of Public Welfare Secretary Estelle B. Richman, effective Dec. 31. Richman has served as secretary since the beginning of Governor Rendell’s administration in 2003.

“Secretary Richman served during one of the most challenging periods in modern Pennsylvania history for human services, and she met that challenge in a way few others could have done,” Governor Rendell said. “The recession increased demands on social services just as public money became scarce, yet she improved the quality of DPW programs while still managing the department with heightened efficiency.

“Since 2003, Secretary Richman has been a champion for vulnerable children and their families in every corner of Pennsylvania,” the Governor added. “Low-income families are stronger, healthier and on the road to self-sufficiency because of her passion for their well-being. We are delighted that Estelle will now focus that same energy on national housing issues in her role as Chief Operating Officer at HUD.”

The Governor has nominated Harriet Dichter of Philadelphia to succeed Richman as secretary. Her nomination is subject to Senate confirmation.

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