The state budget deal a
nnounced Tuesday (June 29) calls for an overall increase in government spending of just one percent, but it is going to cause a lot of pain. The $28.05 billion package includes no new taxes. It does increase state aid to local school districts by $250 million, but to raise that money Gov. Rendell had to agree to deep cuts in the budgets of a dozen state departments, including Agriculture, Environmental Protection and Conservation and Natural Resources. Rendell said it will result in the layoff of about 1,000 state employees. The state House still must approve the budget, so the deal isn't closed yet.
