You have to read between the lines, but Gov. Rendell is signaling that next year's state budget process will be even more excruciating than this year's 101-day extravaganza. See the reference to a fiscal "tsunami" in this
Inquirer story. The problem is this: the economy has recovered a bit, but tax revenues are still down. The state spent its Rainy Day Fund and used a huge one-shot infusion of federal stimulus money to balance this year's budget. As to next year? Look for a multi-billion dollar gap between income and expenditures. It's clear what Rendell wants to do: raise the state income tax and also tax the natural gas being drawn from the Marcellus Shale. It's equally clear the legislature -- in an election year -- won't want to raise taxes at al.
