Pa. Gov. Ed Rendell defends cuts, pressures lawmakers to act

HARRISBURG (AP) — Gov. Ed Rendell says Pennsylvania’s state budget can’t be balanced without new taxes and says there’s enough time to get a deal before the fiscal year ends June 30.

The Democratic governor said at a news conference Thursday that the $2 billion in budget cuts he’s identified are real, even if the bottom-line number isn’t moving. He’s called for a 16 percent increase in the state’s personal income tax.

He also says he’s willing to consider a stopgap budget that would prevent state employees from having to work without being paid immediately.

Pennsylvania is facing a projected $3.2 billion revenue shortfall for the current year, and Rendell is proposing a mix of spending cuts and tax increases to weather the financial storm.