Pennsylvania Gov. Edward Rendell yesterday announced proposals to address a transportation funding shortfall, including a short-term plan in which the state would sell $1 billion of debt during the next two years.

Such borrowing — which is not the Democratic governor’s preferred plan — would help offset for two years an annual $472.5 million transportation funding deficit, beginning in fiscal 2011. That gap opened up when the Federal Highway Administration last month denied Pennsylvania’s request to place tolls on Interstate 80.

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