A U.S. Senate bill to extend aid to states, unemployment benefits and a host of tax provisions appears likely to fail today, potentially blowing an $850 million hole in Gov. Ed Rendell's budget.

At a Washington news conference this afternoon, Senate Democratic leaders said they do not have assurances that their latest version of the American Jobs and Closing Tax Loopholes Act will garner the needed 60 votes for cloture today. Senate Majority Leader Harry Reid, D-Nev., said if the vote fails, he will move onto another bill rather than continue to revise a measure Senate leaders have tinkered with for weeks.

The House of Representatives passed a version of the bill that did not include the state aid sought by Mr. Rendell and other governors, an extension of Medicaid reimbursements that originated in the stimulus bill. If the Senate passes nothing at all, it would throw Pennsylvania's budget into additional turmoil.

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1. Dilbertnomore wrote: Getting serious when Reid can’t find a RINO or two to borrow or print just a little more ‘magoc money’ to advance yet another step along the path to full-blown dependency on the government. Looks like the Senate-critters may be starting to listen just a little. June 25, 4:50 am | [comment link]

2. Br. Michael wrote: States need to wean themselves from Federal dollars.  Its a bad idea for any number of reasons, the least of which is that it allows the Feds to co-opt and/of force the state to perform federal functions. June 26, 6:17 am | [comment link]

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