Finance - December 17, 2010

Gov. Reports $63 Million Deficit
Earlier this week Governor Rendell gave his mid year budget report. He predicts that the commonwealth will have a $63 million deficit by the end of the fiscal year on June 30. The Governor said that if the legislature would have passed a severance tax on Marcellus Shale gas, the deficit would be smaller. He also mentioned the need for an improved income tax revenue which will happen around April. All other tax collections are higher than anticipated.
He also reported that the unemployment rate in Pennsylvania for the month of November was at 8.6% which is nearly one percentage point lower than the national average.
Casino License Taken From Phila. Developer
On Thursday the state's Gaming Control Board revoked a casino license from a developer wanting to build a casino in Philadelphia along the Delaware River. According to the Philadelphia Daily News, the reasons the Board took back the license - something they've never done before - is because the developer submitted incomplete documents to the state on the deal, they changed the way charities would benefit from casino profits and the project today is different than the project approved in December 2006.