As of the date this newsletter was published, Pennsylvania’s $2.2 billion budget gap had not yet been filled and Governor Tom Wolf was indicating the commonwealth could be heading for major spending freezes. By September 15, the governor said he either has to put spending for certain state programs on hold, or borrow more money from the Treasury. He also stated that he does not want to borrow without a balanced budget. The House is not scheduled to return until September 11, and it was unclear if they would have a compromise in place by then. The Treasury projected that the general fund would hit zero by the end of August. A spokesman said September 15 is the day a significant Medicaid provider payment is due, which would put the fund $1.6 billion underwater. However, payments cannot be made unless some additional revenue is found. House Republican leaders say their caucus still disagrees regarding the tax increases in the Senate proposal. Additional information can be found in the links above.