Rendell sued over 'bridge budget'

Gov. Rendell was sued in federal district court late Wednesday by numerous human-services organizations that have not been paid by the state for their work since June 30, the end of the last fiscal year.

The groups claim that the nonpayment, which has resulted from the state budget impasse, is an "unlawful withholding" of state and federal funds in violation of the U.S. Constitution.

The plaintiffs provide foster care for children, mental-health treatment, drug-and-alcohol- treatment programs and other services that are typically funded with state and federal money.

At issue is Rendell's blue-line veto of $12.9 billion in items - including monies for the plaintiffs - from Senate Bill 850, the so-called "bridge budget" he signed last month.

The final bill included $11 billion worth of other measures to pay salaries of state workers and fund essential public-safety services until the Legislature passes a final budget.

Those actions, the lawsuit said, reflected "arbitrary and capricious conduct" by the governor, "lacked a rational basis" and violated the equal protection and due-process clauses of the Constitution.

"The governor decided it was all right to pay state employees for their services, but it was not all right to pay independent third parties for theirs," said Joseph T. Kelley, Jr., attorney for the plaintiffs.

Rendell's spokesman, Gary Tuma, declined to comment on the lawsuit.

It was filed on behalf of NHS Philadelphia, NHS Pennsylvania, NHS Youth Services Inc., Wordsworth Academy, Tabor Children's Services Inc. and the Philadelphia Alliance.

The organizations provide services to clients who are not eligible for Medicaid or services that Medicaid doesn't provide, said Tim Wilson, executive director of the Philadelphia Alliance.

The lawsuit said, for example, that Rendell vetoed "all" appropriations for behavioral health and human services other than those paid for by Medicaid.

"The plaintiffs are also doing the state's work and they should be paid, too," Wilson said, adding: "At some point we'll have to stop providing the services, and that's when people will start getting hurt."

The lawsuit seeks to fully fund SB 850 or to strike the bridge budget in its entirety.