With the help of a $700 million surplus, an election year and a grumpy public, it didn't take long for Democrats and Republicans in Harrisburg to overcome their differences and agree on a 2006-07 budget Sunday.

Pennsylvania's $26 billion spending plan was passed by the Legislature and signed by Gov. Ed Rendell late -- about 26 hours into the new fiscal year. But compared with neighboring New Jersey, where a budget impasse has closed state agencies for a fifth day, the timing of the Pennsylvania deal was good enough for government work.

Though not perfect, the package will focus attention on key human-service areas while managing to trim business taxes. Lawmakers and Gov. Rendell should be commended for a budget that:

Provides health coverage for all Pennsylvania children. With the federal government's failure to solve the medical insurance crisis, Cover All Kids will fill in the gap for children, whose insurance will either be free (in families with little or no income) or at affordable, sliding-scale rates (for those with more money).

Insulates seniors from the rising cost of health care. The state's PACE Plus program will shield limited-income elderly Pennsylvanians from the higher costs of enrolling in the Medicare prescription drug program.

Boosts state funding for basic education. The targeted 7.5 percent increase, to $11 billion statewide, should ease pressure on local property taxes and be a way for school boards to either cut millage or keep it in check.

Continues the phaseout of the capital stock and franchise tax and raises the cap on operating losses that a firm may carry over to decrease state taxes. The first cut will save businesses $219 million a year, part of an overall $300 million package of business tax cuts.

Strengthens higher education. Community colleges and state-owned universities will receive 5 percent increases and the four state-related universities -- Pitt, Penn State, Temple and Lincoln -- will get 4.5 percent.

Encourages more families to save for college educations. Pennsylvania will offer $25 million in state tax cuts for savings in tuition account plans.

While the Post-Gazette supported these initiatives, we're disappointed that the plan failed to shave the corporate net income tax, which, at 9.99 percent, is second-highest in the nation. If Pennsylvania wants to attract more business, it needs to cut this tax. That message has been repeated by Republicans, but if the state appears headed for another healthy surplus, Democrats, including the governor, should make it their issue, too.