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By Tony Romeo

HARRISBURG, Pa. (CBS) – In his mid-year briefing, Pennsylvania’s budget secretary says the outlook for the rest of the fiscal year is status quo but that the budget for the new fiscal year may be the toughest one yet.

Zogby_RomeoBudget Secretary Charles Zogby says revenues for the current fiscal year are expected to remain slightly above projections… and that including the balance from last year and unspent funds this year, the state should be in the black by almost half a billion dollars by the end of June.

But he says with increased medical assistance costs and pension obligations looming, crafting a budget for the new fiscal year will be no fun.

“I think in many respects the ’13-’14 budget is going to be the most difficult budget that we’ve had thus far in what have been two very difficult budgets.”

And Zogby says it could mean layoffs of state workers. He says among the things that could complicate the next state budget is going over the so-called federal fiscal cliff, which could cost Pennsylvania $300 million dollars if it happens.

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