Pennsylvania budget impasses
Encyclopedia
The Pennsylvania budget impasse is a series of budget impasses or fiscal crises, the latest of which happened on July 1, 2009. In a budget impasse, the State government can't pass a budget through the General Assembly and so the State can't pay its bills or payrolls.
requires the adoption of a budget by midnight June 30 each year. As of October 1st, 2009, Pennsylvania has not adopted a budget. When Governor Ed Rendell
and the Pennsylvania General Assembly
failed to come to terms on a new budget, Pennsylvania entered into its seventh consecutive budget impasse.
ed for one day during that year's budget impasse.
(AFSCME, SEIU Local 668 and FOSCEP) sought a declaration from the Supreme Court of Pennsylvania
that "the Governor's furlough plan is not "legally required" by Article III, Section 24 of the Pennsylvania Constitution and the FLSA, as the Governor's Office has asserted in public statements." The Governor, Ed Rendell, and the then-Treasurer, Robin Wiessmann
, filed a cross-application for summary relief, asking the Court to indicate that paying state employees outside the budget is not allowed by state law.
has stated that, “It is probably the worst I have ever seen,”. Governor Rendell proposed an increase of 16% in the state's personal income tax to balance the budget. Republican lawmakers and some Democrats have insisted on there being no new taxes in 2009.
This disagreement over the state's budget has created this year's budget impasse. Instead of implementing furloughs like previous years, all Pennsylvania state employees are required to continue working through the budget impasse. The majority of these employees will not be paid until after the new budget is adopted.
During the impasse, 16,000 state workers took advantage of a low interest loans to provide for expenses while they were without paychecks.
Background
The Pennsylvania ConstitutionPennsylvania Constitution
The current Constitution of the Commonwealth of Pennsylvania, most recently revised in 1968, forms the law for the United States Commonwealth of Pennsylvania...
requires the adoption of a budget by midnight June 30 each year. As of October 1st, 2009, Pennsylvania has not adopted a budget. When Governor Ed Rendell
Ed Rendell
Edward Gene "Ed" Rendell is an American politician who served as the 45th Governor of Pennsylvania. Rendell, a member of the Democratic Party, was elected Governor of Pennsylvania in 2002, and his term of office began January 21, 2003...
and the Pennsylvania General Assembly
Pennsylvania General Assembly
The Pennsylvania General Assembly is the state legislature of the U.S. state of Pennsylvania. The legislature convenes in the State Capitol building in Harrisburg. In colonial times , the legislature was known as the Pennsylvania Provincial Assembly. Since the Constitution of 1776, written by...
failed to come to terms on a new budget, Pennsylvania entered into its seventh consecutive budget impasse.
2007
In 2007, state employees who were considered non-essential were furloughFurlough
In the United States a furlough is a temporary unpaid leave of some employees due to special needs of a company, which may be due to economic conditions at the specific employer or in the economy as a whole...
ed for one day during that year's budget impasse.
2008
In 2008, three state employee unionsLabor unions in the United States
Labor unions in the United States are legally recognized as representatives of workers in many industries. The most prominent unions are among public sector employees such as teachers and police...
(AFSCME, SEIU Local 668 and FOSCEP) sought a declaration from the Supreme Court of Pennsylvania
Supreme Court of Pennsylvania
The Supreme Court of Pennsylvania is the court of last resort for the Commonwealth of Pennsylvania. It meets in Philadelphia, Pittsburgh, and Harrisburg, Pennsylvania.-History:...
that "the Governor's furlough plan is not "legally required" by Article III, Section 24 of the Pennsylvania Constitution and the FLSA, as the Governor's Office has asserted in public statements." The Governor, Ed Rendell, and the then-Treasurer, Robin Wiessmann
Robin Wiessmann
Robin L. Wiessmann served as Treasurer of Pennsylvania from 2007 to 2009. She was appointed by Governor Ed Rendell in 2007. She was unanimously confirmed by the Pennsylvania Senate on April 30, 2007 to fill the unexpired term of Bob Casey who resigned to take his United States Senate seat...
, filed a cross-application for summary relief, asking the Court to indicate that paying state employees outside the budget is not allowed by state law.
2009
In 2009, the state had a $3.2 billion deficit. Twenty-four year term State Rep. Edward G. StabackEdward Staback
Edward Staback is a Democratic member of the Pennsylvania House of Representatives.-External links:* official PA House website* official Party website...
has stated that, “It is probably the worst I have ever seen,”. Governor Rendell proposed an increase of 16% in the state's personal income tax to balance the budget. Republican lawmakers and some Democrats have insisted on there being no new taxes in 2009.
This disagreement over the state's budget has created this year's budget impasse. Instead of implementing furloughs like previous years, all Pennsylvania state employees are required to continue working through the budget impasse. The majority of these employees will not be paid until after the new budget is adopted.
During the impasse, 16,000 state workers took advantage of a low interest loans to provide for expenses while they were without paychecks.