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Harrisburg, Pa. - Lawmakers have a little more than two weeks to come up with a spending bill for Governor Rendell to sign. The Governor's proposal calls for deep cuts in several programs. There is a way to stop some of those cuts, but it's not the most popular option.
We're talking about a possible tax hike. The Governor's office said the option is on the table. One lawmaker told us as early as Tuesday, Rendell will lay out a proposal that involves raising the personal income tax to help balance the budget.
State leaders are trying to find a way to raise about $3.5 billion to cover a current budget shortfall and a funding gap in next year's budget. Lawmakers are awaiting a big announcement from the governor.
"We've been told to be prepared that he's going to call for a temporary increase in the personal income tax tomorrow," said State Representative Eugene DePasquale, (D) York County.
How much of an increase and how long remains to be seen. DePasquale said there are other options.
"That should absolutely be a last resort."
It's clear the final budget will include significant spending cuts, just how deep to go is up for debate.
"Technically, yes, we can cut more," DePasquale said. "We need to hear from the people of Pennsylvania and people of our region as to what cuts they're willing to tolerate."
Some people favor program cuts over a tax hike.
"My income has been cut by a percentage," said Dillsburg resident Bethann Cray. "It's just everywhere. I can't afford to give more anyplace else."
There are those who are fine with a tax increase to protect programs.
"Every dollar does matter, but if it was going to be something that help for the greater good, i'd be ok with that," said Jessica Barron of Mechanicsburg.
Others want to know more.
"If it's half a percent, that's fine. If they're going to raise it by like two, three percent, I think that's a little much," said AtefehYazdi of East Pennsboro Township.
With much still to be discussed and debated, is there any chance we'll have a final budget passed by the deadline?
"Getting one done in 15 days is going to be very challenging," DePasquale said.
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