[1][2][3][4] When elected officials at the state government level have been unable to pass annual budgets after repeated votes in the Pennsylvania General Assembly in previous years, the budget processes have stalled and, in several cases, reached impasses, during which times the commonwealth was unable to pay its bills or payrolls.
[8] In 2008, three state employee unions (AFSCME, SEIU Local 668 and FOSCEP) sought a declaration from the Supreme Court of Pennsylvania that "the Governor's furlough plan is not "legally required" by Article III, Section 24 of the Pennsylvania Constitution and the FLSA, as the Governor's Office has asserted in public statements.
"[10] Governor Rendell proposed an increase of 16% in the state's personal income tax and $72 million in cuts to balance the budget.
[12] Instead of implementing furloughs like previous years, all Pennsylvania state employees were required to continue working through the budget impasse.
[14] The impasse ended on July 10, when Corbett ultimately signed the Legislature's budget proposal, which continued to lack pension reform.