Details of the nearly $27.7-billion state spending plan endorsed by Republican Governor Tom Corbett and GOP legislative leader has been released.
The final state budget is expected to be approved by the House and Senate before the 2012-13 fiscal year begins at 12:01AM Sunday. On paper, state spending increases by $471-million, or 1.7-percent, from this year's $27.1 billion. Corbett had proposed holding spending level, but agreed to the increase because of improving tax collections.
In reality, state spending increases by $371-million, or 1.4-percent, because of public school grants that were spent in 2011-12, but retroactively budgeted in 2010-11. There will be no change in the state income or sales taxes.
Several tax cuts for businesses would be folded into companion legislation, including the continuation of the ongoing phaseout of the capital stock and franchise tax and expanded tax credits for businesses that contribute to groups that can provide scholarships to private schools.
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