Gov. Ed Rendell today proposed a general fund budget of just over $29 billion for the fiscal year that starts July 1, an increase of more than 4 percent over the current year’s $27.8 billion spending package. He isn’t calling for increases in the state income tax rate, but he is calling for dramatic changes in the state’s 6 percent sales tax — starting in September, if the Legislature agrees. He said the changes are needed so the state can compensate for looming budget deficits in 2011 and 2012.
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