Pennsylvania Governor Ed Rendell announced state workers won't be getting a raise this year as a part of a $128 million budget cut.

This means that roughly 13,000 state workers won't be receiving their annual 2.8 percent cost of living raise (deemed a COLA) this year.

That freeze, however, won't apply to union workers. Rendell said if economic conditions continue to decline he may approach labor leaders to negotiate union salary increase schedules.

Governor Rendell is rumored to be among President-Elect Barack Obama's choices for the Department of Transportation. Rendell's cost-cutting measures in his state could bolster his credentials for taking control of the pork-laden agency.