Rendell expects layoffs as a result of new budget

The newly signed state budget will likely result in hundreds of lost state jobs, the governor warns, and possibly more if critical federal contributions don’t come through.

Pennsylvania Governor Ed Rendell warns he may need to layoff about 700 state employees in the coming weeks.

Rendell has remained vague about the layoffs. He won’t say which state departments will be hardest-hit, but promises the eliminated jobs will come from throughout state government.

“We’re still identifying the layoffs that come from the budget we passed,” he says. “And as I said there, the target is about 700. And we’re trying to work with the cabinet secretaries. We’re trying to get that all under control, and we’ll be announcing that shortly.”

Rendell says stalled federal medical funding impacts the layoffs.

If Congress denies the $850 million of extended aid Pennsylvania has banked on, that money will need to come out of the budget, and thousands of additional layoffs will be needed.

The governor says he’d rather make all the cuts at once, so he’s putting off the announcement and hoping for a definitive answer on the FMAP money.