Governor Predicts 20,000 Worker Layoffs If Federal Funds Not Received

At a press conference this afternoon, Gov. Rendell said there was a joint decision with legislative leaders to not meet today because they thought there was progress in the meeting with the four Caucuses this morning.
Gov. Rendell also asked the legislative leaders to stay in Harrisburg continuously, starting June 21, until the state budget is finished.
In response to questions, if the federal government does not approve $850 million in federal Medicaid funding by July 1, he would begin putting state funds in escrow to cover that budget need. The funds, he said, would be gleaned from further budget cuts and state and local worker furloughs.
The Governor estimated there would be 20,000 state and local worker furloughs if the federal funds are not approved. (NewsClip: Medicaid Funding Uncertain)
Leaders from the four legislative caucuses met this morning on state budget issues and much of the discussion centered on trying to come to an agreement (they didn't) on a spend number and on the $850 million the state may or may not get from the federal government to cover some Medicaid costs.
They did, reportedly, agree they had $27.5 billion in revenue to spend, $26.65 billion if the federal Medicaid funds don't come through.
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