PA has lower than expected tax revenues

    Pennsylvania is done counting how much it collected in taxes in October. It’s not as much as the state had hoped for. The lower than expected tax revenues is already sparking partisan debate in the state’s capitol over how to deal with it.

    Pennsylvania is done counting how much it collected in taxes in October. It’s not as much as the state had hoped for. The lower than expected tax revenues is already sparking partisan debate in the state’s capitol over how to deal with it.

    Listen:
    [audio: 091104sdgap.mp3]

    October’s revenue numbers came in $19.5 million dollars below expectations, increasing Pennsylvania’s projected budget gap to 160 million dollars.

    House Minority Whip Mike Turzai, an Allegheny County Republican, says he’s concerned about how lawmakers will try to fill that deficit during next year’s budget process-especially since this year’s spending plan wiped out the entire rainy day fund.

    Turzai says he expects Governor Rendell to call for more tax increases, but argues that’s not the answer.

    Turzai:  We have to make more expenditure reductions. There has to be. I’m not saying people have to live without – I’m saying all of us have to live with less. That means government operations, including the Legislature, has to live with less. Including the governor’s office has to live with less.

    Rendell’s spokesman, Gary Tuma, says it’s too early to talk about next year’s budget proposals.

     He says the administration is still holding out hope the economy might improve, and tax revenues will fill in the budget gap.

    Last year at this time, the projected deficit was $565 million dollars.

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