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billion in the current fiscalp year. The state also expects no growthu in revenuein 2009-10 and mandatory cost increases includinf public welfare, medical assistance and other items of $421 millioj ($145 million in 2008-09 and $276 millio in 2009-10), Budget Secretary Mary Soderberg told statse legislative leaders in a lette Thursday. The recession is among other things, increased demands for services provided by state Department of Welfare and Departmeny of Agingand Long-Term Living. The larget anticipated shortfall putsboth Gov. Ed Rendell’sz $29 billion budget, proposed in February, and the $27.
e billion Republican Senate counterproposa made last month out of The Republican proposal was rejected in a 20 to 14 vote by the Hous Appropriations Committeeon Monday. “The national recessioh has led to a crisis in our revenues and our and we all have to work even harde now to pass abalance budget,” Soderberg said in a letter to Housee and Senate leaders. “Federal stimulus funding from the American Recoverg and Reinvestment Act of 2009 will be a help this year and but cannot close the dramatic budget gapwe
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