Earlier, the House overwhelmingly approved changes to the state's two major government pension plans - including lowering the size of pensions for new employees - aimed at helping reduce a looming spike in costs to taxpayers.
Under the Democratic leadership's shale-tax plan, 80 percent of the revenue would go to the state's general fund and 20 percent would be divided among local governments in the counties where the gas is drilled and environmental-cleanup programs.
But the caucus rift was made abundantly clear by the number of Democrats who spoke out against giving such a large share to the state.
Rep. David K. Levdansky (D., Allegheny) offered a proposal to divide the revenue, with the first $50 million going to the state, after which it would be split evenly between the state and local governments. He said residents he encountered in many of the 55 counties with shale deposits were opposed to such a large share going into state coffers.
"I traveled 1,000 miles across the state holding hearings about this in May," Levdansky said. "The people don't want it all to go to the state. They want it to address their needs."
Several hours of debate on the issue ended abruptly after House leaders met with the governor. Afterward, the House voted 118-80 to send the bill back to the House Appropriations Committee to reconcile tax issues.
"The votes weren't there because some things need to be ironed out," Rendell said at a late afternoon news conference.
He also said there was agreement with Democratic leaders that the House budget-revenue legislation should also have the blessing of the Republican-led Senate.
To that end, he said, he and the leaders of the four legislative caucuses would meet again Wednesday. "I don't expect an agreement and everyone singing 'Kumbaya,' but to set out solid assignments we can work together toward," Rendell said.
The House passed a $29 billion budget in March; the Senate has yet to vote on one.
