News

October 10, 2009 at 1:15 PM

Pa. state budget signed by governor

The wait is over in Pennsylvania, where state government has been without a budget for more than 100 days -- last night, Gov. Ed Rendell signed into law a nearly $27.8 billion state budget.

The budget impasse has been a continuing struggle for the state, causing state workers to go unpaid and forcing some agencies to function without promised funding.

"While the budget I have signed today is late, it's a responsible budget, given the economic condition of the nation and the state," Rendell said in a press release from the Pennsylvania Office of the Budget. "This budget is a half-billion dollars smaller than the budget we enacted last year. In fact, it is only the third budget in the past 50 years that is lower than the previous year's."

The budget is $1.9 billion lower than the previous year's, the first time the budget has ever decreased during Rendell's time in office.

Funding for higher education, including assistance to state-related schools like Penn State, will remain at last year's level of $1.5 billion with help from federal stimulus money. An additional $300 million in new funding for basic education is also included in the bill.

The budget does not include broad-based tax increases, one of the issues that had divided Democratic and Republican lawmakers. It will bring in new revenue by imposing a 25 cents per pack tax increase on cigarettes and a new tax on small cigars. The budget also plans to bring in revenue from poker and other table games at Pennsylvania's currently slots-only casinos. The games are currently going through the legalization process in the General Assembly.

Strongly criticized taxes on performances, natural gas extraction and small games of chance, such as bingo at fire halls and churches, have all been struck from the bill.

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