Budget deal thisclose to being sealed

Legislative leaders said they expected to announce the pact at 11 a.m. today, the House majority leader said.

September 11, 2009|By Mario F. Cattabiani and Amy Worden, Inquirer Harrisburg Bureau

HARRISBURG - Legislative leaders are nearing a "handshake agreement" that would end a protracted budget deadlock and Pennsylvania's distinction as the only state in the nation without a fiscal spending plan in place.

House Majority Leader Todd Eachus (D., Luzerne) said last night that he and Republican counterparts in the Senate will hold a news conference at 11 a.m. today in the Capitol to announce the agreement.

"It is now Sept. 10. Tomorrow will be Sept. 11. It's time to get a budget passed," Eachus said. "More news at 11."

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When pressed whether that meant there would be an announcement of a handshake agreement, Eachus said: "I think we have a framework of that. We are working through the night to guarantee it."

"We are hopeful that we will make a conclusion of this tomorrow."

Specifics were few last night, but the aides confirmed that legislative leaders had agreed on an overall spending figure of roughly $28 billion - less than Rendell had sought but more than Senate Republicans were initially willing to appropriate.

The proposal contains a 25-cent increase in the cigarette tax and a 30 percent increase in the Capital Stock and Franchise business tax. It also expands gambling to include table games, said Steve Miskin, spokesman for House Minority Leader Sam Smith (R., Jefferson).

The agreement, which could resolve the impasse that is about to stretch into its 10th week, also would include other recurring revenue sources.

Top administration officials said that they were pleased legislative leaders had made progress, but that the current proposal still did not meet Rendell's criteria for a budget bill he would sign: sustained revenue to carry the state through the predicted slow growth of the next two years and the preservation of education and health-care funding.

"The document we have been shown struggles on all counts," said Steve Crawford, Rendell's chief of staff.

Erik Arneson, a spokesman for Senate Majority Leader Dominic Pileggi (R., Delaware), said: "Discussions among legislative leaders over the past week have been very productive. There is a growing sense of optimism, and we hope to have more to say tomorrow."

Johnna Pro, a spokeswoman for House Appropriations Committee Chairman Dwight Evans (D., Phila.), echoed Arneson's optimism, saying: "We have come a lot closer on how much to spend and how much needs to be raised."

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