Legislative leaders met with Governor Ed Rendell Thursday to discuss the $1.2 billion hole in the current budget and ways to trim the $29 billion spending proposal for the new fiscal year that begins July 1. Rendell says he’s embracing two cost-savings proposals put forward by House Republicans last month.
Lancaster County Representative John Bear and Cumberland County Representative Sheryl Delozier headed a committee aimed at finding ways to save state money. They made a series of suggestions, including trimming the number of cars in the state fleet, cracking down on Medicaid payment errors and changing the state’s tax structure for Internet sales.
Rendell says he’s on-board with the idea of increasing scrutiny of Pennsylvania’s tax refund payments.
"So we’re spending two million to save 35 million. And that was an excellent suggestion by them. The use of the p-cards, which we get a money back if we use the p-cards, we think we can save five or six million dollars on that."
The P-Card proposal involves paying state bills with debit cards, rather than checks.
When he announced the suggestions in May, Bear said those two ideas could save up to 300 million dollars.