Pennsylvania finished the last fiscal year with a budget deficit of more than $1 billion. That means actual revenues were more than $1 billion below the $25 billion estimate provided by the governor’s budget office. In the previous fiscal year, actual revenues were $3.2 billion below projections.

Earlier this year, the Federal Highway Administration (FHWA) rejected Pennsylvania’s application to toll Interstate 80, creating a $470 million hole in Pennsylvania’s transportation infrastructure budget. Gov. Ed Rendell subsequently called a special session of the Legislature to address the situation and develop solutions to the funding crisis.

While our state and national economies may be showing the early signs of recovery from the worst financial crisis in generations, Pennsylvania still faces some very difficult challenges. When the 2009-10 fiscal year ends on June 30, Pennsylvania will have a budget deficit of more than $1 billion. Very simply, state government is spending more money than we have available and sooner or later, taxpayers are going to get the bill.

As we near the end of the 2009-10 fiscal year, Pennsylvania once again finds itself in a very difficult financial position. Revenue collections are more than $1 billion below estimates. In other words, Pennsylvania government is on pace to spend $1 billion more than we have. This is irresponsible and it is unacceptable. It is past time for state government to do what every family in Pennsylvania is doing. We must tighten our belts and we must look for opportunities to save money anywhere we can find them.