Gov. Edward Rendell last week announced $128 million of additional broad-based spending reductions from the current fiscal 2009 budget, which began July 1. Pennsylvania’s revenues to date are $658 million, or 6.8%, below projections.
The governor also urged the General Assembly to reduce its spending by 4.25%, which would generate $36 million of savings. Along with program reductions, Rendell said he would freeze wages for more than 13,600 non-union employees, saving $14.3 million through June 30. In addition, he announced he would donate back his 2.8% mandated cost-of-living increase, after state and federal taxes, and directed 51 cabinet and executive officials to also follow suit.