BREAKING NEWS

Pennsylvania lawmakers pass budget but no pension reform

By REUTERS

JULY 1, 2013 05:40

Pennsylvania lawmakers passed a nearly $28.4 billion budget for fiscal 2014 on Sunday, but they pushed back consideration of a controversial public pension bill until fall.

Lawmakers postponed consideration of Republican Governor Tom Corbett's plan to reduce the state's $47 billion-and-growing public pension shortfall until the fall legislative session. That is expected to lead to credit rating downgrades and higher borrowing costs for the state if it needs to tap the $3.7 trillion US municipal bond market in the coming months.

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