Governor Rendell signed into law the state budget (House Bill 2279) on July 6, 2010 at Elmwood Elementary School in Mechanicsburg, PA. The $28.04 billion budget represents a .7% increase in spending from 2009-2010 after accounting for the use of nearly $2.7 billion in federal American Recovery and Reinvestment Act funds in 2009-10 and $2.8 billion in 2010-11. The budget includes some deep program cuts and a few one-time transfers of money from individual funds. It does not include revenue from four proposed but not approved revenue sources that were part of this year’s budget debate – a tax on cigars, a tax on smokeless tobacco, ending the discount for businesses that remit sales tax receipts on time, and revenue from closing the Delaware loophole for corporations. When the budget was enacted (and currently), the U.S. Congress still had not taken action on approving $850 million of enhanced federal support for Medical Assistance programs (FMAP) which was assumed as revenue to balance the budget. If Congress does not approve this funding, the Governor will need to make further spending reductions to balance the state budget.