close

Grim new forecast sees nearly $3B budget gap in Pennsylvania

1 min read
article image -

HARRISBURG (AP) – Pennsylvania’s grim state budget forecast is getting gloomier.

The head of the state Legislature’s Independent Fiscal Office said Thursday that revenue collections are even weaker than expected last fall. Matthew Knittel says year-over-year revenue collections are flat amid weak corporate profits.

That means that, without any changes, the projected budget gap is approaching $3 billion through mid-2018. The state’s approved budget is $31.5 billion this fiscal year.

The Republican-controlled Legislature’s rebuffed Gov. Tom Wolf’s efforts the past two years to balance the deficit with a broad tax increase. Now the Democratic governor says he’ll produce a budget-balancing plan next month that relies heavily on cuts and savings measures.

Spending is being pushed up by the rising cost of health care, prisons and overdue pension obligation payments.

CUSTOMER LOGIN

If you have an account and are registered for online access, sign in with your email address and password below.

NEW CUSTOMERS/UNREGISTERED ACCOUNTS

Never been a subscriber and want to subscribe, click the Subscribe button below.

Starting at $3.75/week.

Subscribe Today