HARRISBURG — Gov. Ed Rendell is not backing away from his call for a 16-percent income tax increase after two days of wrangling with top legislators over proposed spending cuts.
On Wednesday, Pennsylvania became one of several states that lack the legal authority to pay all their bills.
A partisan stalemate over resolving a multibillion-dollar deficit is stalling approval of Pennsylvania's budget for the new fiscal year.
Some of Rendell's fellow Democrats say they won't vote for an income tax increase, and Republicans who control the Senate are dead set against it.
Rendell says there's no way to balance the budget without it.
In the meantime, the state will delay payments to vendors, although Rendell says residents will notice little difference in government operations for now.
Talks are to resume Monday.
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Governor stands by call for income tax hike
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