State shutdowns loom as deadlines near
At least 19 states still have to approve their fiscal 2010 budgets before next Tuesday. If they don’t, staffers might not be paid and services might shut down.
By Tami Luhby, CNNMoney.com senior writer
Last Updated: June 24, 2009: 5:30 PM ET
NEW YORK (CNNMoney.com) — One week and counting. An unprecedented number of states have only days left to pass their fiscal 2010 budgets.
At least 19 states are still hammering out their spending plans as the recession wreaks havoc with their finances and sparks fights between governors and lawmakers. If spending plans aren’t approved, state workers may not receive their paychecks and some government offices may shut down.
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In some states, the leaders aren’t even talking. Pennsylvania’s governor and Senate Republicans, who have to close a $3.2 billion gap for the current year, are not negotiating on their budgets.
“There’s been no significant movement on the budget,” said Chuck Ardo, press secretary for Gov. Ed Rendell, who is prepared to cancel his African safari in August if the budget isn’t set.
The governor’s $28.4 billion budget seeks to raise the personal income tax rate by half-a-percentage point and draining the commonwealth’s $750 million rainy day fund. Senate Republicans’ $27.3 billion plan looks to cut spending on areas such as education and community revitalization.
Though the states has never passed a budget on time during Rendell’s seven years in office, both sides agree this year is the worst standoff ever.
“It’s hard to see how a meeting would be productive given the two very different points of view,” said Erik Arneson, communications director for Senate Majority Leader Dominic Pileggi. “At this point, there’s no support in our caucus for a tax increase.”
Sending IOUs instead of $$$
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Pennsylvania’s Rendell has already said state workers would have to stay on the job without being paid if the budget isn’t approved. Services will start to be affected if the budget standoff continues beyond its typical week’s delay.
All these senators and reps. All get a daily allowance of 150.00$ a day if my information is right. Are they still getting this while I’m not being paid? They should be in the eight hours everyday like I have to be, without pay until this thing is passed. They are no better then us. No pay for us…..none for them.