Tom MacDonald and Holly Otterbein report on Mayor Nutter’s budget proposal–and the union protesting their lack of a contract outside City Hall. Elana Gordon reports Pennsylvania Governor Tom Corbett has backed off one of the most controversial parts of his Medicaid waiver proposal. We talk with Janice Fine, one of the authors of a new Rutgers University report slamming New Jersey’s oversight of government contractors. Taunya English reports heroin overdose deaths are on the rise in Pennsylvania, prompting some local leaders to take action. Emma Jacobs has details on a Justice Department lawsuit against the Philadelphia School District over a grooming policy it says violates employees’ religious freedom. State Impact Pensylvania’s Katie Colaneri reports concerns over rail shipments of crude oil is mounting just as they begin to create jobs up and down the Delaware River. And we get a week in review from a local rye whiskey distiller.