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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