State Budgets: Pennsylvania Still Negotiating July 22, 2009 Joseph Bishop-Henchman Joseph Bishop-Henchman Pennsylvania’s negotiations are ongoing. A Senate $27 billion plan that cut spending and used rainy day funds was rejected by the House yesterday, which had earlier approved a $29 billion plan. Gov. Ed Rendell (D) continues to push for an increase in Pennsylvania’s flat 3.07% income tax, which would undermine a rare bright spot in Pennsylvania’s distortive and burdensome tax system. State employees are receiving partial paychecks. The next step may be a joint House-Senate committee to hash out some differences. More on Pennsylvania here. Stay informed on the tax policies impacting you. Subscribe to get insights from our trusted experts delivered straight to your inbox. Subscribe Share Tweet Share Email Topics Pennsylvania Tags State Tax and Spending Policy