The state budget impasse, which has left Pennsylvania without a budget for 81 days, may finally be concluding -- and the new proposal is calling for increased funding to Penn State.

The ink dried Friday evening on a nearly $28 billion budget plan endorsed by Gov. Ed Rendell, Senate Republicans, Senate Democrats and House Republicans that would end the deadlock, which has crippled organizations that depend on state funding.

The proposed budget would increase business taxes, place a new 25-cent tax on cigarettes and draw revenue from not-yet-legalized casino table games. The plan would also draw more than $1 billion from the state's rainy day fund and an account that helps doctors pay malpractice premiums. There will be no increase in personal income taxes in the plan, according to a press release from the Senate Republican Communications Office.

Many House Republicans, the minority in the House, are not endorsing the plan and are citing opposition to new taxes. The plan still faces legislative approval.

Pennsylvania's state-owned and state-related universities, including Penn State, would receive increases in state funding, and the Pennsylvania Higher Education Assistance Agency (PHEAA) would receive additional funding to be used toward student scholarships, according to the press release.

Taxes have been a divisive issue in the budget over the last two and a half months. Republican legislators have adamantly opposed broad-based tax increases, while many Democrats, especially Rendell, emphasized what they saw as necessary increases.

"This agreement reflects a balanced, responsible budget that does not require a broad-based tax increase," Senate Appropriations Committee Chairman Jake Corman, R-Centre, said in the press release. "By defeating the Governor's proposed tax hike and keeping state spending at a lower level than any year of this Governor's tenure, this budget compromise is a win for Pennsylvania taxpayers."

In addition to new taxes, the legalization of table games in Pennsylvania's slot machine casinos is another hot-button issue in a budget that is trying to find revenue wherever it can. The new plan is banking on the games, as well as an increased sales tax for concert and theater tickets.

The price tag on the budget plan is the same as a plan proposed by key bipartisan legislators last week. Rendell adamantly refused that plan earlier this week but sat down with legislators afterward to rearrange the funding in the bill.

This is the first time in Rendell's six-year governorship that the state budget will be smaller than the year before.

-- The Associated Press contributed to this report.