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Of -- governor Ed Rendell just -- the State's 28 billion dollar budget.
-- -- the state plans the -- as much as 600 million dollars to fund statewide construction projects.
Is this spending gone wild in cash strapped PDA or stimulus.
-- the governor himself governor Ed Rendell joins us now.
So are twenty billion dollars.
And 600 million dollars you have to borrow for some of these projects.
Isn't isn't this is the time to be spending like.
-- sure because these projects create jobs directly here.
Construction jobs jobs back and Pennsylvania manufactured in -- factories like steel and concrete and asphalt.
Very important to continue to push our economy we've -- 76000.
Jobs in the last three months.
And second I think in the nation my Texas and we're doing well.
We've got to keep it going and our debt rating is superior.
We just sold about two months ago a bond on Wall Street from three point 1% interest the lowest in the history -- -- So it's a perfect time for us tomorrow.
A perfect time for us to invest in and ready to go projects that will create jobs.
Again like another exciting but I.
-- -- -- copy of my apologized but on what sure when that money stops when you stop spending these.
These special interest projects.
When the federal government stops giving you stimulus monies spent.
Where -- those jobs gonna go.
Well first -- all these aren't these aren't stimulus jobs this is all state borrowing.
And whatever they -- money is it'll be up and -- -- and we don't lose stimulus money that's number one number two.
In addition to the construction jobs these will produce permanent jobs and of course expanded property tax and business tax base so we'll get our investment back.
Fairly quickly within that five years -- do I get the dollars we invest back.
Because all of these dollars have to be matched by private investment usually winds up being three -- -- -- -- -- tell us about the state where are you value and debt are you -- are you running a surplus right now.
Well this year I think we were in the best shape when he large state we had about had one point one billion dollar revenue shortfall.
But compared to our other large industrial states that's pretty good we balanced our budget -- -- were required by our constitution to do so.
And we're in decent shape of course like all states when the stimulus money goes -- next year they'll be some challenges for the state.
Governor but -- -- one day you -- just said that done this year I'm not sure what happened last year but again so if you're running a budget deficit.
Should the federal government.
Bail out the states are a lot of states frankly okay granted some are in worse shape than Pennsylvania -- -- New York California Florida some of -- -- New Jersey so should the federal bail out states their spending more than they're taking in.
Well it's not bailing out what you're talking about us in America is what's called the -- -- extension.
That's to help states with the additional cost in the Medicaid program that are bad economy is costing us for example in this upcoming fiscal year.
Pennsylvania is what we're prognosticate and we're pretty good at this that will head over 61000.
Adults and children who are Medicaid program so what the stimulus funds of what the president's proposed in the house and the senate have passed and separate pills.
Extend some of that extra stimulus dollars to help states -- for that shortfall that comes from having all those new people in our health care programs.
I think it's appropriate until the -- recovery begins to show significant signs of moving in the right -- -- governor let's talk about their for a second you say it's creating jobs and we're waiting for the economy to show us significant recovery going in the right direction but will it ever be able to do that.
As long as these jobs are created because.
You're doing things like borrowing money don't have you're doing things like taking money from the federal government to pay for whatever you -- -- call it still one -- -- Senator let me let me correct you just because you don't know this.
This thing is not -- money it doesn't have our debt limit is forty billion dollars or constitutional debt limit.
We're about it ten and a half billion dollars of our and so Wu would have been very very well and has just said.
The Wall Street interest that we got reflects that number one.
And number two look -- there's a false choice being put up by the political parties.
The false -- she can't have both economic -- targeted investments that will spur jobs at the same time do long term debt and deficit construction.
We know that's not the case at the Peterson foundation just came out -- Very clear and they and they are probably deficit hawks when it comes to getting rid of the deficit.
They said you can't have those investments and short term let let let me -- braves plan for getting rid of the death.
Governor let me let me paraphrase -- good friend of yours -- my boss Neil -- says when you're in a ditch digging a hole and you're getting deeper drop the shovel -- Well but you also need to get a -- and some books -- get -- out of the ditch and that that's what the stimulus dollars are right now.
Now right governor Ed Rendell thank thank you very much for spending some time with a some -- -- pleasure.
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