Pennsylvania’s 2011 budget is $28 billion, and there is already a projected deficit for 2012 of $5 billion! Typical state phony budgeting!
The state’s pension costs increase by $800 million and the state will lose $2.5 billion in federal stimulus funds. The state also owes the federal government an expected $3 billion for unemployment payments.
They have a total state debt of $41.8 billion.
Pennsylvania Gov. Tom Corbett introduced his $27.3 billion proposed budget for FY2011-2012. Corbett’s plan cuts spending by $866 million, returning spending to 2008-09 levels, prior to the billions in federal bailouts. The proposed budget does not raise taxes. He also wants to eliminate nearly 1,000 vacant state jobs as well as laying off about 500 state workers. The budget includes no pay increase for state workers for the 2011-12 year and will look for salary roll backs. Corbett is also calling for school districts to freeze pay for all employees even if it means re-opening contracts.
Good luck Gov, but the unions will fight you all the way!
City pension systems for government union workers are in crisis in Pennsylvania.
Pittsburgh, Philadelphia, Scranton and others are rated “severely distressed”.
Pittsburgh is the worst:
- spends 50 cents of every dollar in their budget on govt worker pensions, health care and debt.
- there are more than 2 retirees that have to be paid benefits for every active govt employee.
- the pension for govt workers has a $700 mill unfunded liability.
- even traditionally pro-union Democrat mayor says something has to be done.