Wolf Drops Income Tax Hike Proposal

HARRISBURG, Pa (CBS) -- In another sign that this year's budget process may be less painful than last year's, Governor Wolf says he has dropped his proposal to increase the state income tax.

Governor Wolf's proposal to hike the state income tax was seen as a major obstacle to an on-time or close to on-time state budget.

But appearing on Pittsburgh sister station KDKA Tuesday morning, the governor said he now believes he can meet his major goals, which include a $250 million increase in basic education funding, and $34 million to address the heroin crisis – without an income tax increase.

"I think all this can be done without a broad base tax increase. I'm not asking for a sales tax increase or a personal income tax increase."

But other potential revenue increases – including a cigarette tax hike and an expansion of gaming – are still in play.

The governor, meanwhile, says he believes budget negotiators are "very close".