House Democrats and Gov. Ed Rendell have agreed to lower their total spending demand from a starting point of about $29 billion to just under $28 billion. Democrats also agreed to back off for an increase in the personal income tax.On the other hand, Senate Republicans, now say they will consider drawing new revenue from higher cigarette taxes, a restructuring of the phase-out of the state's tax on business assets, and table games at the state's casinos. The Senate GOP also has moved up its spending, from an initial $27.1 billion to $27.5 billion.  

    The budget talks were on hold Friday, it was not clear whether they would resume talks before a Tuesday meeting of a House-Senate conference committee. Republicans said their package stands as proof that the Senate majority party is willing to compromise while still avoiding increases in the state's personal income or sales tax rates.