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Gov. Thomas Corbett, (R-Pa.), on the impact on the state’s budget planning from the looming fiscal cliff.
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Thank you.
-- 9050 states up there all fifty will feel it in some way or another we hit the fiscal cliff I mean how bad.
How will not so bad just 35 days left for congress to reach a deal on the budget -- the camps as you know more than 600 billion dollars in tax hikes and spending cuts kick in.
Some states not waiting around -- all we decided to -- governors on the edge find out what the leaders of each state are doing all week long finding out what they're doing it.
In this period of tremendous uncertainty.
We kick things off with Pennsylvania governor Thomas Corbett in a Fox Business exclusive and you are first up -- governors on the -- week.
Thank you so much for joining -- governor.
Well thank you for having me and thank you grab me first well no problem in a week -- we -- original first stop.
I don't you're being very proactive about it is -- I keep calling it a war room is -- war -- -- that a bomb shelters like Churchill's war room left for me the the tube where do you guys gather -- look at the budget and say.
We don't know what's gonna happen let's prepare for the worst.
While the the budget offices in one building they come over to a big conference -- -- I have.
We are going to the budget earlier today talking about.
The budget that we are drafting that has to be introduced in February to take -- July of next year.
But you -- almost had to have two budgets for next year and then.
If this goes into effect in the in January.
What happens the remaining six months of this year's budget and -- we're gonna find the money if free would find any money to replace that which won't be coming forward.
OK so are you putting together to separate budgets dependent on what the outcome that's that's interesting to me I mean you have to do that well and what we rate now we have the one budget -- assumes that they are going to.
Do the responsible thing in and not go over the fiscal cliff.
If as we get a couple more days down the road we're gonna -- -- drawing up the alternative scenarios.
Of what's gonna have to happen in a reduction of services across India come wants Pennsylvania -- tick Huey in the S social services for example.
Our special education in our community economic development block grants.
And workforce investment would all be dramatically affected by this federal money that normally comes as state and -- into the local community right.
That won't be there at least -- levels that was originally.
We're.
Put out by the -- government in the first place.
What -- -- but -- governor what part of all of those worries.
This concerns you the most.
The cuts the -- And Asia -- we go about 3 o'clock in the morning.
And I wonder where we are going to balance the budget first off with the economy as it is right now it's just slowly increasing.
We have a pension crisis just like every other state did just about has a -- But -- you've had access I want our viewers to know you've balanced to a previous budgets if not more correct me if I'm wrong I mean you've done you've close -- deficit rules of more than four billion dollars you've had -- From a four billion -- group four point two billion dollar deficit to two on time budgets with no tax increases.
But we have pension -- ED up a good portion of the budget that we're gonna have to address and if all of a sudden this federal money that.
Has been coming to the state going down to local communities has cut off.
We're gonna have to sit back and say what services can we provide the what services are going to disappear but -- did it concerns me more is the unemployed they -- it's going great.
-- I think the CBO said that unemployment to go over 9%.
Right and you're that's why you're Syrian the national our residues in Pennsylvania against at least the state of Pennsylvania your head of the national average higher actually at eight point 1% but you also got some ideas you know Royal Dutch Shell may come minute build a petrochemical -- -- I understand it may have just -- That I believe you say would create 20000 jobs.
-- that that we create 20000 jobs.
We created some tax incentives to bring the petrochemical industry the plastics industry.
Near that facility that we create thousands of jobs more.
We believe we -- -- industrialized southwestern and Western Pennsylvania.
If were able to move this forward but the economy -- you know certainly can't have an effect upon that and if all of a sudden we don't have the money there.
I have to be concerned -- companies won't invest the way they were going to invest I don't think that's gonna happen but I at least to have to understand that's on the table and we we wish you good luck.
With all of this at least you're being proactive and on top of it I mean you guys are one of the few states -- America that has not one but two NHL teams the penguins in the flyers.
So there's a lock out there although.
I spotted this weekend that a couple of Philadelphia Flyers found work elsewhere -- -- are out of work.
In the movie -- business forty.
Scott -- elegant and loved fare carrier -- -- itself but they're great in -- by the way everybody should know but let's and that's where they have to go to Hollywood to find work.
Well I haven't had seen -- but we're growing -- industry here in Pennsylvania for the movie industry.
We have a lot of movies.
-- -- filmed here we have one coming out with Tom Cruise next month.
Okay and what's what's that about let us now.
It's called reach your budget that's like really sure it's -- -- Yes he.
You're going to Hollywood but staying in Pennsylvania anything to get it done thank you so much for joining us we appreciate it.
Thank you thank you so much governor Tom -- --
