Pa. Budget Secretary Eyes Spending Freezes To Make Up For Lagging Tax Revenue

By Tony Romeo

HARRISBURG, Pa. (CBS) - Pennsylvania's budget secretary says some state spending will have to be frozen to compensate for revenue collections that continue to lag below projections.

At his mid-year briefing, Pennsylvania Budget Secretary Charles Zogby told reporters that as things stand now, the lagging economy would mean that the state would need almost three quarters of a billion dollars to balance the budget for the new fiscal year that starts in July. And that doesn't account for any financial cushion that Governor Corbett may want to build into the budget, as he did this year.

Zogby says he's proceeding as if the budget will have to be balanced with spending cuts. "I am not working under the assumption that I have additional revenue options. So right now, I'm looking at the expenditure side. No tax increases."

In addition to revenues below projections in the current fiscal year, Zogby says the state faces increases in pension and other costs. He could not offer details on what kind of spending might be frozen, but said he expects the governor to make a decision by the end of the month.