Pennsylvania collected $25.5 billion of revenue in fiscal 2009 — $3.25 billion, or 11.3%, below prior estimates.

Personal income tax collections saw the biggest decline, with the state bringing in $10.2 billion, a drop of $1.3 billion, or 11.2%, from earlier estimates. Corporate tax revenue and sales tax revenue dipped by $614 million and $595 million, to $4.8 billion and $8.1 billion, respectively, according to the Department of Revenue.

The fiscal 2010 budget is in limbo as Democratic Gov. Edward Rendell and Republican leaders have yet to reach a compromise on how to address a $3.2 billion fiscal 2009 deficit, which will now roll over into the fiscal 2010 budget.

Along with spending cuts and tapping into reserve funds, the governor prefers increasing the personal income tax by 16% for three years to bring in an estimated $1.5 billion of additional annual revenue. GOP leaders said the state needs to cut more from the budget.

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