Budget showdown looming in Pa.

April 27, 2009 11:23:20 AM PDT
Pennsylvania's Senate Republicans are preparing a budget proposal that allows no tax increases and spends 5 percent less than Gov. Ed Rendell's plan. Senate Appropriations Chairman Jake Corman said Monday that he hopes the Republican-controlled chamber will pass the $27.5 billion plan in early May.

The evolving plan sets up a showdown with the Democratic governor and Democratic-controlled House. The state's budget deadline is July 1, when the new fiscal year begins.

Corman says the Republican plan rejects Rendell's proposal to add taxes on health insurance premiums, natural gas extraction and tobacco sales.

It also avoids draining the state's budget reserve fund, but still relies on about $2 billion in federal budget aid.

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