The threat of furloughs for state workers is no longer in Gov. Ed Rendell's bargaining arsenal.

Rendell announced today he reached a tentative agreement with some of the state's largest employees' unions to eliminates the immediate need for rolling furloughs of employees in those unions to help close the state's growing budget gap.

Pennsylvania has run up a $1.6 billion budget deficit as of the end of March and Rendell projects a $2.3 billion deficit by the end of the current fiscal year at the end of June.

The agreement to temporarily reduce the commonwealth's health care benefit contribution rate by 20 percent will generate up to $200 million in savings over the next 15 months, Rendell said in a press release.

"This agreement is truly a win-win for employees and the state," Rendell said. "The temporary reduction in our health care contribution rate will provide us with enough savings to eliminate the immediate need to consider rolling furloughs for participating unions. This ensures that state government will keep running at the same pace for the people of Pennsylvania."

Rendell used furloughs last year to bully the Legislature into passing his deficit budget. Without the threat this year, expect the Harrisburg bunch to spend all summer haggling over the budget.

Read Rendell's full release at the link below:

Governor Rendell Announces Agreement to Avoid Immediate Need for Rolling Furloughs