April 27th, 2009

The Associated Press reports that the Senate Republicans new $27.5 billion budget proposal - which allows no tax increases including on cigarettes, health insurance premiums and gas extraction – is a 5 percent reduction from Gov. Rendell’s proposal.  While the GOP proposal doesn’t drain the state’s reserve fund, it still relies on about $2 billion in federal aid.

The new proposal sets up a budget showdown between Republicans and the Governor.  Senate Appropriations Committee Chairman Jake Corman says he hopes the Senate will pass the proposal by early May.