HARRISBURG, Pa. — The Pennsylvania Credit Union Association belongs to the 18-member Pennsylvania Business Council that has proposed a plan to close the state's $2 billion budget deficit.

The council said last week it seeks to fill the gap without raising taxes. The council has suggested putting restrictions on the state's general fund and "off budget" spending, limiting the use of debt financing and adopting a zero-based-budgeting approach that requires agencies to justify spending each year, rather than simply plan for incremental growth.

The council has also suggested conducting performance audits every five years and empowering a grace commission to address costs in an effort to reduce or eliminate wasteful or unnecessary spending.

David W. Patti, president/CEO of the Pennsylvania Business Council, said lawmakers should use previous budgets as a guide. The 2008-09 enacted general fund budget is $28.3 billion while the 2005-2006 budget was $24.7 billion. Patti said adopting the latter budget "would provide the savings necessary to tackle the current deficit and anticipated revenue declines in the coming fiscal year."

Along with the Pennsylvania CU Association, the Pennsylvania Association of Community Bankers and the Pennsylvania Chamber of Business and Industry are among those that are members of the council.

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