State Budget Deal Crumbles In Saturday Vote, Lawmakers Warn of Layoffs

A deal to solve a six-month state budget impasse fell apart Saturday as members of the House voted down a proposal to revamp public pensions.

The collapse happened after the house voted 149-52 against a bill that would have put new teachers and state workers on a hybrid pension plan, the Philadelphia Inquirer reports. The Inquirer said the pension reform bill was considered a “key piece” of the $30.8 billion budget deal.

Following the vote, lawmakers gave grave predictions about the state of the budget process, saying a continued impasse will soon result in serious measures, such as state layoffs and a lack of funding for the Educational Improvement Tax Credit Program, the Morning Call reported.

It is unclear what the next steps are.

Lawmakers in the House suggested a stop gap budget, but Governor Wolf and members of the Senate dismissed that as an option.

“Let me be clear. A stop gap is not the answer. We need a full year budget,” Wolf said.

Wolf, in a statement issued Saturday night, attempted to remain optimistic.

“We still have a budget plan. It is a compromise and it is the product of a lot of good people working across the aisle to get it done,” he said.

It is not known what the framework of a new budget deal would be.

“This is not over. We still need a budget. And we need it now,” Wolf said.

Meanwhile, the months-long stalemate has already had impacts throughout the state.

The Philadelphia School District warned it would have to shut down in January if a deal is not reached. Bucks County Community College said it will begin borrowing money to stay open. Bucks County government is withholding state payments until a budget is passed.