Secretary of Revenue C. Daniel Hassell today reported that Pennsylvania collected $2.9 billion in General Fund revenue in April, which was $390 million, or 11.8 percent, less than anticipated. Fiscal year-to-date General Fund collections total $22.8 billion, which is $1.1 billion, or 4.6 percent, below estimate. Click here for complete revenue report.
At a press conference this afternoon, Gov. Rendell said he will revise his 2010-11 budget proposal to help deal with the new $1.1 billion deficit saying he will work with the General Assembly to look for additional budget cuts, look for one-time sources of revenue from special funds that have healthy balances, including the legislative account balances, and options for new revenues.
The sources of new revenue the Governor suggested include using money from Sales Tax reform, ending the Sale Tax collection discounts, adopting combined reporting of business revenues, taxing cigars and smokeless tobacco and a Marcellus Shale natural gas production to balance the budget, rather than putting many of those revenues in a Transition Fund for when federal stimulus funds end.
Gov. Rendell said the Obama Administration has made changes to the federal Medicaid Program that will save the state nearing $275 million, $150 million in fewer tax refunds, and federal changes to the hospital assessments will yield another $125 million in savings which all will result in $550 million more to the state balance sheet.
The Governor said it was too early to determine whether additional state worker layoffs are necessary.
NewsClips
State Budget Deficit Tops $1 Billion
Governor Says PA Needs New Taxes To Fill Budget Shortfall
League Of Women Voters Calls For Extraction Tax On Marcellus Shale
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