Gov. Rendell's now-dead plan to increase the income tax by 16 percent would have generated more than $1 billion. Many in Harrisburg believe that the remaining options amount to comparative scraps.
"It's like Thanksgiving dinner without the turkey. All we are left with are the vegetables," said Sharon Ward, director of the Pennsylvania Budget and Policy Center, a liberal-leaning think tank in Harrisburg.
Here are some of the ideas being discussed.
Tobacco taxes
Rendell is pushing for an additional dime-a-pack tax on cigarettes and for the state to, for the first time, stick a tax on cigars and smokeless tobacco. Combined, it could raise an additional $99 million annually, according to some estimates, although that could drop the longer the budget is delayed.
Pro: It's a classic "sin tax" paid only by those committing the sin.
Con: The law of diminishing returns: The more the tax, the fewer packs are sold and the less revenue brought in.
This might be the easiest new tax to enact as GOP leaders from both chambers acknowledged that even some staunch antitax members are open to the idea.
House Minority Leader Sam Smith last week characterized the possibility of the success of the tax more as a referendum on tobacco use than as a proven revenue generator.
"It's truly pennies on the dollar relative to the kind of money the governor is insisting on," said Smith (R., Jefferson).
Rainy Day Fund
The state's savings account built up as a hedge against economic hard times is flush with $750 million. Most agree that some of it has to be tapped. But the question is how much.
Pro: A somewhat easier lift than raising taxes. It is an existing pot of money dedicated just for this reason.
Con: Tapping a one-time revenue source means less money available for future "rainy days."
