October Revenues in PA Below Projections

A 160 million dollar revenue shortfall has some House Republicans worried they’ll spend next year fending off more proposed tax increases. October’s revenue numbers came in 19.5 million dollars below expectations, increasing Pennsylvania’s projected budget gap to 160 million dollars.
House Minority Whip Mike Turzai, an Allegheny County Republican, says he’s concerned about how lawmakers will try to fill that deficit during next year’s budget process especially since this year’s spending plan wiped out the entire rainy day fund.
Turzai says he expects Governor Ed Rendell to call for more tax increases, but argues that’s not the answer.

"We have to make more expenditure reductions. There has to be. I’m not saying people have to live without—I’m saying all of us have to live with less. That means government operations, including the Legislature, has to live with less. Including the governor’s office has to live with less."

Rendell spokesman Gary Tuma cautions against reading too much into the 160 million gap.

"We think we’re in good shape to balance next year’s budget. And there’s a good chance that we will mostly grow our way out of the revenue shortfall we have now. Again, not necessarily the case, but there’s a good chance. It’s not a real large revenue shortfall right now."

By October of last year, Pennsylvania’s revenue gap was already 565 million dollars.