Friday, July 23, 2010

Looking for Alternatives to FMAP $$$

Governor Ed Rendell says he’ll try to resurrect some of his policy proposals that weren’t adopted by the Pennsylvania General Assembly, if Congress doesn’t pass a federal medical funding bill.
Rendell admits prospects for receiving the $850 million in FMAP funding for Pennsylvania’s budget banks on are growing bleak.
He says if he’s forced to cut the money out of the spending plan he signed into law this month, he’ll ask lawmakers to fill some of the gap by eliminating or restricting the tax discount the state provides to businesses who file their returns on time.

"Other than that, I don’t see much revenue increase. We’re going to deal with 850 by making tough and in many cases brutal cuts. Brutal cuts. So we’ll see where we go."

Rendell proposed capping or eliminating the vendor sales discount, along with tobacco taxes, in his February budget address, but lawmakers didn’t include the proposals in their budget bills.
The governor concedes a limited sales discount wouldn’t make up all of the lost revenue, and that he’d still need to lay off “thousands” of state employees, if the federal money doesn’t come through.

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