Gov. Ed Rendell’s office is putting the finishing touches on a statement opposing the so-called budget agreement reached by three of the four legislative caucuses, a spokesman said. But his chief of staff, Steve Crawford, told The Post-Gazette Rendell cannot support the plan.
The spending proposal by Senate Republican and Democratic leaders and House Democrat leaders — which is already more than two months late — fails on three key criteria, he said.
It makes reductions in key education programs, such as pre-kindergarten programs and school accountability block grants; it reduces important health care program, such as the Children’s Health Insurance Program; and it seriously overestimates recurring revenue for fiscal 2009-10 by as much as $500 million, he said.
He said Mr. Rendell wants to continue working with legislative leaders to reach a budget deal that he can sign, but “based on the numbers and analysis to date, he would not be able to support it.”
Without enough sustainable, recurring tax revenue this year, the state would need to enact a tax increase next summer to fill a deficit, and Mr. Rendell doesn’t want to do that, Mr. Crawford said.











