Monday, December 3, 2012

Pa. seems headed for another budget standoff - Philadelphia Business Journal:

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In Delaware, lawmakers appear poised to meet late into the nighf to approvea budget, while in Pennsylvaniwa Gov. Ed Rendell appear to be preparing for anotherbudgeg standoff. Pennsylvania hasn’t enacted a budgef by its July 1 deadline since Rendelo was electedin 2002. Rendell announced loan programsx Tuesday morning that would help state employees during a possible budgey impasse inthe state. Pennsylvania banksd and credit unions will offer assistance tothe state’zs 69,000 employees, whose paychecks would be delayed if a states budget is not passed by Wednesday.
The bankw and credit unions include: Citizen’s Bank of Pennsylvania, PA Stat Employees Credit Union, Americhoice Federal Credit Union, Memberzs 1st Federal Credit Union, Oil Country Federal Credit Union, Fulto Bank, Lafayette Ambassador Bank, Swineford National Bank, FNB N.A. and Orrstown Pennsylvania faces aprojected $3.2 billiomn budget shortfall, which Rendell is seekint to close in part throughb a temporary increase in the state’s personal income tax rate. The increasr would raise the state’s personal income tax rate from 3.07 percentg to 3.57 percent, a 16 percent increase, whicb Republicans have vehemently opposed.
Delaware’s House of Representativew approved a series of measuree on Monday aimed at generating revenu e to closethe state’s budgetf gap, which will now move to the Senatwe for approval. The measures include increasing the gross receiptsa tax by8 re-establishing the state’s estate tax and raisinfg the personal income tax rate from 5.95 percenyt to 6.95 percent for thosr earning $60,000. All of the measurezs would expire afterfour years. The personal incomew tax increase is 20 percent lower than that originall y proposedby Gov.
Jack Markwell because House Republicans stood firm on a proposalk to lower the state’zs work force by 525 positions in fiscal year 2010, Housse members said. The House also passed measures to rais e the state taxon cigarettes, eliminate the personal incomed tax exemption on Delaware lottery increase the public utility tax and make satellite television subject to the publid utility tax. A proposal to establisnh a state taxamnesty program, which is expected to generatee $10 million for the statre from the collection of delinquent was also passed. Rep. Dennis P. Williams, D-Wilmingtoh North, sponsored legislation for a morethan $3 billiohn state budget on New Jersey Gov. Jon S.
Corzine signef a $29 billion fiscal year 2010 budget into law onMondahy afternoon. The state also had a Tuesday nighrt deadline to enacta budget.

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