Pennsylvania Gov. Rendell Plans 'Bridge Budget' If Impasse Lasts

Pennsylvania Gov. Edward Rendell yesterday announced that he plans to sign a bridge budget for fiscal 2010 if a conference committee is unable to unlock a fiscal impasse by Sunday.

The move would keep essential government services running throughout the year and enable the state to pay its employees. Pennsylvania has been operating without a fiscal 2010 spending plan since July 1.

The governor and his fellow Democratic legislators believe the state needs some form of new or additional revenue, on top of nearly $3 billion of spending cuts, to help balance the budget.

Conversely, Republican senators say the state needs to live within its means and any tax hike would be difficult for families during the current recession. Democrats control the House while the GOP controls the Senate.

Rendell said that if the committee fails to make progress, he would ask the House to pass S. 850, the Senate GOP's budget bill, so that he can line-item veto any nonessential issue.

"This is not a final budget," Rendell said during a press conference. "This is a bridge - it is a very important bridge and government operations actually can keep going throughout most of the fiscal year because it is not a stop-gap budget. It's not money for a month or two months of operation. We won't be back here in mid-September having to worry about whether state employees will continue to be paid."

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