Governor Signs “Bare Bones” Budget to Pay State Employees

What started out as a Republican-backed bare-bones state budget turned into a stopgap measure primarily to pay state employees when Governor Rendell signed Senate Bill 850 this morning after vetoing most of the line items in the bill.

In signing the measure, Rendell stressed that it is not a final budget, and he urged House and Senate negotiators to return to the bargaining table to hash out the rest.  Members of the Budget Conference Committee could resume negotiations as soon as Thursday.

Although not all of the state’s 77,000 employees were covered in the stopgap bill, Rendell said the General Assembly was in the process of approving additional measures that would result in all employees being paid next week.  Most employees began receiving partial paychecks in mid-July and have received no pay more recently.

Again, it is important to note that Passage of Senate Bill 850 is NOT a final budget.  Additionally, it is unclear at this time if the enactment of SB 850 will result in paying vendors in addition to the 77,000 state employees.  In his remarks today, Rendell indicated that SB 850 would, “simply allow us to pay state workers who provide for immediate critical public health and safety services.”

APC will continue to monitor the situation and keep you updated on all progress – or lack thereof.  It is still our understanding that payments to contractors WILL CONTINUE under this budget scenario.  We ask that members contact APC if they are told (by an owner’s employee) of any disruption in payments to Commonwealth contractors.

08.05.09