Gov. Rendell's proposal to increase the state income tax to cover a gaping deficit ran headlong into a Republican wall of opposition, proving quickly to be a new flash point in an already contentious budget process.
The normal rite of spring known as the budget battle in Harrisburg is fast becoming a struggle for the future of Pennsylvania. As a result of the serious recession and declining revenue the state must deal with a large deficit in the current fiscal year and figure out what to do about the upcoming fiscal year slated to start July 1. The Republican controlled Senate has passed a plan that holds total expenditures at the current fiscal year level by using Federal stimulus money and outlay reductions to fill the hole created by next year’s projected revenue decline. Continue