HARRISBURG, Pa. (WBNG Binghamton) Gov. Ed Rendell is presenting lawmakers with a $29 billion spending plan that would devote more money to schools while taxing the sale of many services for the first time.
Rendell delivered the proposal Tuesday in a speech to the state
Legislature. The plan comes amid a stubborn recession that is
cutting deeply into state tax collections.
It would increase spending by $1.1 billion, or 4 percent, for
the 2010-11 fiscal year that begins July 1.
About one-third of that increase would go to public school
instruction.
To help the state bridge a financial cliff after he leaves
office, Rendell would extend the sales tax to services and many
other transactions that are currently exempt. But he would reduce
the sales tax rate from 6 percent to 4 percent.
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