Budget officials with the Rendell administration predict that the General Fund deficit will reach $450 million by the time fiscal year 2009-10 ends June 30 unless measures are taken to narrow the gap. The prediction came during the annual mid-year budget briefing by Gov. Edward G. Rendell and his budget secretary Mary Soderberg.
At the briefing, Rendell ordered a freeze of $170 million, which is less than a 1 percent reduction in state expenditures. The state will also recoup $50 million from prior-year unspent funds and will plan to draw $230 million from a year-end surplus originally projected at $354 million. That will leave $124 million to serve as a cushion against further erosion of finances.
