Governor Ed Rendell says that recent education gains made by Pennsylvania students could be jeopardized with next year’s anticipated loss of $650 million in federal stimulus money.

Rendell made the comments yesterday during a joint event in Philadelphia with U.S. Education Secretary Arne Duncan.

Speaking before about 100 state and regional civic leaders at the Greater Philadelphia Chamber of Commerce, the men emphasized that an educated work force attracts businesses.

Duncan says the national dropout rate of 25 percent is “morally unacceptable and economically unsustainable.”

Rendell says basic education spending in Pennsylvania has gone up during each of his eight years in office. But he says the state must be prepared to fill the gap left by stimulus funds.