Top House Democrats acknowledged publicly for the first time yesterday that Gov. Rendell's controversial proposal to temporarily increase the state's personal-income tax was dead.

"We have taken the [personal-income-tax increase] off the table," House Speaker Keith McCall (D., Carbon) said during a late-afternoon news conference in the Capitol.

It was a surprising and unexpected retreat for McCall and other House Democratic leaders, who have backed Rendell's push to raise the income tax rate 16 percent for three years despite flagging legislative and public support during a recession.

The tax plan has been the central sticking point in the administration's negotiations with Republican lawmakers over a new state budget, which have dragged on for more than a month. Rendell has said it would help pay for increased funding for schools and avert steep cuts to key health and social-services programs.

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