9-Month Pa. Budget Impasse Over

HARRISBURG, Pa. (EYT) – Pennsylvania Governor Tom Wolf announced today that he would let the Republican 2015-2016 budget become law.

Although the budget cuts expenditures by another $238 million, and remains $290 million out of balance, in order to move forward and address a looming 2016-2017 deficit of $2 billion, Governor Wolf is allowing the budget to become law without his signature.

“I am going to allow the 2015-2016 budget to become law without my signature,” said Governor Tom Wolf. “This will allow for funding to go out to schools and other services in the short term, but we still face enormous problems that this budget does not even pretend to address.

“Let’s be clear: the math in this budget does not work. Next fiscal year – that already has a $2 billion deficit – will now begin with an extra $300 million deficit. Ratings agencies and the Independent Fiscal Office have all agreed that we face a massive structural deficit. Left unaddressed, the deficit will force cuts to schools and human services, devastating credit downgrades that will cost taxpayers millions, and increase property taxes for our senior citizens. We must face this reality this year and balance our budget with real, sustainable revenues.”

The two sides will now begin negotiating a new budget for upcoming fiscal year.