Rendell Warns of Layoffs Without US Budget Aid

Gov. Ed Rendell says layoffs of teachers and state and local government employees will result if Pennsylvania doesn't get $850 million in budget help from the federal government.

Rendell said Wednesday layoffs will begin in July if Congress doesn't approve additional subsidies helping states weather the recession and a severe downturn in tax collections.

Rendell didn't give a specific number of state employees who would lose their jobs, but says government employees at all levels would be laid off.

He says spending cuts on public schools would result in teacher layoffs, while the state would have to cut payments that help subsidize county programs.

Congress is debating a bill that combines subsidies for cash-strapped state governments with jobless aid and the renewal of dozens of tax breaks.