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State Budget Debate Continues, Fiscal Year Begins

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Jul 1, 2009 8:10 am US/Eastern

State Budget Debate Continues, Fiscal Year Begins

HARRISBURG (KDKA/AP) ― The debate over a state budget for the 2009-2010 fiscal year continues today for Gov. Ed Rendell and state legislators.

Pennsylvania is again without a spending plan at the July 1st deadline.

Budget talks have been difficult this year because of the state's multi-billion dollar deficit, which has been brought on in part by the recession.

Gov. Ed Rendell has proposed more than $2 billion in higher taxes, and that includes a three-year, 16 percent jump in the personal income tax.

However, Senate Republicans say they oppose any tax increase.

While there does not appear to be a deal on the budget yet, Gov. Rendell says that Pennsylvania residents will not notice a drop off in the state services for now.

Stay with KDKA for the latest details.

(© 2009 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)

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