State reaches budget deal
HARRISBURG — Gov. Ed Rendell and legislative leaders reached a budget deal Friday to end Pennsylvania's distinction as the last state still fighting over its annual spending plan.
Details were scanty. Rendell said he did not want rank-and-file lawmakers to learn about them in the media, but said it was a roughly $28 billion plan that would raise tax rates on businesses and cigarette sales and would draw more than $1.5 billion from state reserves.
The agreement, which still requires legislative approval, also would raise money from legalizing table games at the state's slot-machine casinos, extending the state sales tax to concert and theater tickets and leasing more state forest land for natural gas exploration.
"There are no winners and losers in this," said Rendell, flanked by leaders of the House Democrats and Senate Republicans. "I know it's hard for the people of Pennsylvania to accept the fact that they are the winner, but they are."
The deal would slash spending by about 1 percent, but will not raise the state income tax or sales tax rates. It remained unclear Friday exactly which programs would be cut, and by how much.
