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.
