Obamaconomics Forces Pa. To Cut Spending

Gov. Ed Rendell, yesterday, announced a plan that would turn a $96 million deficit into a projected $124 million surplus by the end of the fiscal year in June.

The plan calls for reductions in discretionary grant programs and a 1 percent across-the-board cut in spending by state agencies. He would also use last year’s surpluses for some programs.

The reason for this is sluggish revenues — IOW  fewer people working means   fewer people are buying things which means less money for Harrisburg from the state sales tax; and obviously the receipts from the state income tax are going to be less.

And people just don’t seem to be flocking to the casinos do they?

Rendell says he hopes the action will mean he can avoid layoffs of state workers.

The laid-off non-state workers who still have to pay property taxes feel your pain, I’m sure.

Kudos to GrassrootsPa.Com for the tip.

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