Rendell tells Cabinet about latest cuts

June 17, 2009 11:34:05 AM PDT
Gov. Ed Rendell's Cabinet members are digesting his order for more spending cuts in next year's proposed spending plan. Rendell on Wednesday formally told his Cabinet that another $500 million is coming out of their anticipated budgets after warning for two weeks that such reductions were necessary.

Rendell says most of the cuts would come from the Education, Public Welfare and Community and Economic Development departments.

The cuts are mostly offset by a drop in federal budget aid and higher-than-anticipated costs for tax refunds and caring for the poor and elderly.

That leaves Rendell's proposed budget at about $28.9 billion for the fiscal year that begins July 1. That plan includes an income tax increase of 16 percent.

Rendell still needs approval from the Legislature on a final budget.

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