by KYW’s Tony Romeo
With Pennsylvania facing a potentially long budget standoff, the big question for many has to do with when they will start to feel the effects.
Governor Rendell acknowledges that all of his previous budgets were late but insists:
“In those six years when we missed the deadline, no harm’s occurred to the citizens.”
But this year, sharp division over Rendell’s proposal to increase the income tax sets the stage for a potentially longer standoff. The governor’s chief of staff, Steve Crawford, says vendors and contractors who have business with the state will feel the pinch after a few weeks:
“Probably later in July or early August… those folks have been put on notice…”
State workers will not be paid for work done in the new fiscal year. If there’s no budget by Tuesday, checks issued on July 17th will be at 70-percent of normal pay. If there’s no budget by July 13th, July 24th checks will be 20-percent of pay. If there’s no budget by July 26th, there’ll be no pay until there is a budget. State workers will be eligible for no-interest and low-interest loans.
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