The Pennsylvania budget impasse is a series of budget impasses or fiscal crises, the latest of which is happening during negotiations of the 2017-2018 state budget. In a budget impasse, the state government cannot pass a budget through the General Assembly and so the Commonwealth cannot pay its bills or payrolls. Update as of March 23,2016 the budget impasse for this fiscal year is over. UPDATE AS of 10/5/2017 the budget impasse for this fiscal year is ongoing.
Sources
http://www.pa.gov/Pages/budgetFAQs.aspx#.VvMX-Zj3aJI
http://www.philly.com/philly/news/20160324_Wolf_relents_on_budget__ends_historic_impasse.html
The Pennsylvania Constitution requires the adoption of a budget by midnight June 30 each year, the last day in the fiscal year. There were seven consecutive budget impasses in Pennsylvania between 2003 and 2009, with tensions between Democratic Governor Ed Rendell and the Republican-controlled State Senate delaying the passage of annual budgets. While the trend was broken for several years after 2009, conflicts between the Legislature and the Governor led to subsequent budget impasses in 2014 and 2015.
In 2007, state employees who were considered non-essential were furloughed for one day during that year's budget impasse.
In 2008, three state employee unions (AFSCME, SEIU Local 668 and FOSCEP) sought a declaration from the Supreme Court of Pennsylvania that "the Governor's furlough plan is not "legally required" by Article III, Section 24 of the Pennsylvania Constitution and the FLSA, as the Governor's Office has asserted in public statements." The Governor, Ed Rendell, and the then-Treasurer, Robin Wiessmann, filed a cross-application for summary relief, asking the Court to indicate that paying state employees outside the budget is not allowed by state law.