...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
Read more...
...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.
Read more...