For Rendell, a very bumpy ride

July 10, 2007|By Amy Worden and Thomas Fitzgerald, Inquirer Staff Writers

HARRISBURG - For four years, Gov. Rendell pushed the Republican-controlled legislature to the brink of a government shutdown over the state budget, but in the end always emerged with a deal that averted it.

This year, Rendell may have misjudged his opposition, and his political hardball tactics did not work as well. With no agreement reached on Sunday night, many state government operations were halted and, for the first time ever, tens of thousands of employees were furloughed.

Late last night, after hours of bitter public rhetoric and private negotiations, Rendell and legislative leaders made a deal that includes no new taxes, sends employees back to work, and reopens government operations.

It seemed that negotiations on this year's $27.3 billion budget should have been easier than in past years. The House is now in Democratic hands and higher-than-expected revenue projections have given the state a $650 million surplus.

But Rendell, using his needed approval of the budget as leverage, sought to get the legislature to enact an ambitious agenda, which included a new energy plan, a smoking ban and transportation funding. It ran into immediate opposition in the Senate.

In the deal, Rendell got the transportation bill, which pours new money into mass transit, but agreed to postpone consideration of his energy plan until September.

In defending his outside-the-budget spending and borrowing plans, Rendell was not reluctant to harken to his landslide reelection in November and his high approval ratings as signs of voter endorsement for his agenda.

But last month, the Rendell mandate collided with the newly empowered anti-tax and open government movement, born out of the 2005 pay raise debacle that propelled 55 new lawmakers into office.

Many of the new lawmakers ran on platforms of fiscal restraint and no new taxes.

"The governor has misread the political landscape," Eric Epstein, founder of the anti-pay raise group Rock the Capital, said before last night's agreement was reached. "I think he believes he has a mandate to pillage, but he won 61 percent of the vote against an empty suit last year and he didn't have a clear agenda until June 30."

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