Tuesday, July 12, 2011

Pa. Budget Cuts Economic Development By 35 Percent

HARRISBURG, Pa. -- Attracting out-of-state businesses and helping revitalize communities is getting a bit tougher for state officials under a new Pennsylvania budget that cuts more than $114 million from the Department of Community and Economic Development.

The 35 percent funding reduction to the agency affected dozens of programs and imposed consolidations designed to make recipients work together, regionalize or compete head-to-head.

The reduction is the latest in a series of cuts that have left the DCED with a $213 million budget, down from $327 million last year and $631 million just four years ago.

The new spending plan eliminates all remaining legislatively directed spending referred to as walking-around money, or WAMs.

The Corbett administration said it's trying to make the agency run more efficiently.

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