By Tony Romeo

HARRISBURG, Pa. (CBS) – Governor Corbett says the likely loss of federal dollars as a result of the debt ceiling deal in Washington is a good example of why he didn’t want to spend the surplus from last year’s budget.

When Governor Corbett made his budget address in March, he faced a deficit of more than $4-billion, due in large part to the disappearance of federal stimulus dollars. But by the end of the fiscal year, the state had collected almost $800-million more than had been projected, and Corbett was under intense pressure from Democrats to use it to mitigate budget cuts.

But the governor insisted on putting most of that money aside, “We wanted to keep that money in reserve, because we certainly might need it. And now with the budget deal in Washington (there is) more likelihood than not that we might need it.”

The governor says the details of the federal spending picture are still being worked out and he declined to speculate on what the impact on Pennsylvania might be, but he says a cut in federal spending is likely to affect the state.

Reported by Harrisburg Bureau Chief Tony Romeo, KYW Newsradio 1060

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