Most Popular Videos Featured On KDKA.com
Jun 30, 2009 7:27 pm US/Eastern
Budget Impasse Will Affect State Workers' Pay
PITTSBURGH (KDKA) ―
With no budget resolution in sight, more than 80,000 state workers were told to keep working even though the state cannot pay them -- at least for awhile.
Out at the Southwestern Veterans Center, nobody would talk publicly but privately many are concerned about meeting their July mortgage payments and other bills.
Governor Rendell blames the Republicans for the impasse.
"If they had a budget that balanced, I would like to see it," says Gov. Ed Rendell.
But Republicans say the governor's budget is balanced only because he raises taxes.
"The governor wants to increase their personal income tax, and it's enough. Enough's enough," notes PA Rep. Mike Turzai, a McCandless Republican.
Part of the problem is nobody agrees on how much spending there should be.
The current budget spent $28.2 billion -- even with his budget cuts, the governor wants to spend $28.9 billion in the coming year -- while the Republicans have cut spending down to $27.3 billion.
Now here's where the really nitty, gritty tough negotiations begin. Legislative leaders met last night for five hours, and are meeting again tonight, going through the state budget line by line.
Sources tell KDKA's Jon Delano they found only $50 million out of the $1 billion they need to find to cut in order to avoid a state tax increase.
While the parties haggle, state workers will feel the brunt.
If the budget is not approved by July 6, workers next paycheck will be cut by 30 percent. If the budget is not approved by July 13, their following paycheck will be cut 80 percent.
"Our state employees didn't cause this problem. They've worked hard over the last six years. They've been part of an efficiency movement," says Rendell.
They may not be responsible, but state workers will bear the brunt -- although the governor announced some efforts to help them through -- like no-interest loans.
Independent agencies like liquor stores and casinos are not affected and welfare payments and state pensions will continue to get paid.
As for how long the impasse will last, well, nobody is optimistic.
If it drags into August, it's likely to affect most of us.
(© MMX, CBS Broadcasting Inc. All Rights Reserved.)
Latest 5-Day Forecast
Click to enlarge
Stumble It!
Reporting
Comments