HARRISBURG –  Governor Edward Rendell says more is needed to deal with the state’s budget crunch.  The governor is ordering another $500 million in spending cuts, and is asking the state legislature to consider a half percent hike in the current 3.07 percent income tax. 

For almost a year our country and our commonwealth have struggled to deal with the pain caused by the worst economic recession since the Great Depression”, said Rendell, Wednesday.  “The greed and need for instant gratification of those who brought our financial system to its knees has hurt everyone.  Now, at kitchen tables across this state, families are struggling with heart-wrenching decisions. You’ve cut back luxuries and in some cases even necessities and it’s still not enough.”

Rendell says state revenues have fallen sharply, creating what he calls “a gaping hole in our state budget”. 

“What I will not allow, however, are politically expedient decisions that gut essential health and safety protections, put people out of work, or shortchange the future of our children.  I will not make decisions that hurt us in the long run, just to avoid difficult decisions in the short run.” 

The Democrat governor lashed out, in particular, at the Republican-controlled State Senate. 

“The Senate budget is still $1 billion short of being balanced.”

Among other specific  proposals made by the governor:

• Suspending the business tax cuts that were planned for this year

• Raising state income tax, the nation’s second lowest, from its current rate of 3.07 percent to 3.57 percent