HARRISBURG — Gov. Ed Rendell said today he doesn't believe a budget that fulfills the state's obligations to Pennsylvanians can be balanced without new taxes.

Rendell met today with legislative leaders and said his proposed $28.2 billion budget brings spending about as low as he believes is manageable.

To support it, Rendell wants new taxes on natural gas extraction and sales of some tobacco products.

Pennsylvania is weathering a $1 billion-plus deficit, and uncertainties in federal support could force more services cuts and layoffs than are already planned.

Senate Republican leaders who want to spend about $400 million less are studying Rendell's counterproposal. The new fiscal year is a week away.

Rendell's proposal would raise spending about 1 percent from this year's approved amount, including more for public school instruction.