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Governor Tom Corbett, (R-Pa.), on how he is preparing the state for a loss in federal money if the fiscal cliff hits.
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Among licensing continues to -- fiscal cliff Tug of war Pennsylvania's taking steps.
To prepare this state for a possible 300 million dollar loss in federal money.
If the country falls off the cliff joining us now from Philadelphia state governor Republican Tom Corbett.
Welcomes you governor.
Thank you are so Pennsylvania is at risk of losing this 300 million federal funny cool what programs specifically stand to suffer.
While.
Across the border we're gonna have to take a look in I would suspect that.
-- -- two primary areas are education.
And the welfare areas they take up almost 80% of the budget -- Depending on where the cuts are made by the federal government.
That is what we've passed down through our system and could well be passed down to that counties along the way.
Not doing the dinner and its surplus throw it in the state budgets -- could -- dollars fill that gap.
There it is not a surplus and in the state budget and -- people talk about that.
So we have many understandings and went into your budget secretary Ford -- 78 million as of the end of your fiscal year in June if you could just clear that up.
But well -- what happens is that's gonna be taken up by the cost of government going up.
Okay union contracts and so forth so we we are going to be well short of the mounting amount of money we need especially if we -- 300 million reduced from the federal government.
IC okay see -- on the record here.
The unpredictable budgeting scenario is absolutely frightening how are you going about trying to put together a current budget how many versions of the -- you have to come out -- Well we're right now we come out with one version because we don't have to produce our budget until February doesn't have to pass until June 30.
But we are going to work on different alternatives as to where that would be cut.
And what money is being cut from the federal government would -- -- what projects.
Would be cut or what programs because.
To state or in the county level so it's really influx and that's the unknown.
The big unknown also though is my understanding is about one point three billion.
In defense spending in Pennsylvania it would be reduced.
That would be a lot of jobs that we could lose they'll be a lot of taxes in personal income taxes sales and use tax.
That would reduce our revenue projections so.
Right now there's a great unknown I think all governors across the country are facing this not knowing exactly what's going to happen as we have to plan -- budget.
-- you were also quoted in a meeting with several other governors saying there's just -- depressed feel in the room cracked.
What is your message this.
Right now feel and I can tell you from Pennsylvania we were very fragile economy were starting to grow.
This probably couldn't come at a worst time.
That if you have a negative impact on the economy at this point in time what is he going to do to the businesses as to whether they grow in Pennsylvania.
Or whether they go look to another state we're just don't make a decision.
To do anything for the next six or twelve months.
It couldn't come at a worse time.
I'm pressed for time governor I apologize what is the best case scenario two point.
Best case scenario is that the -- government that the house and the senate.
And they the president get there decisions made.
Now so that we can all start planning on -- in January and let's not go over this as I call -- a federal -- Well said governor Corbett Pennsylvania thanks for -- would -- check back with you again.
In a couple of weeks -- -- to -- for even very much.
