Days until budget deadline: 5

Budget action yesterday: Legislative leaders and officials from the Rendell administration met for several hours. They said "good progress'' was made, but didn't report any specific breakthroughs or agreements. Leaders still hope to reach a budget agreement by Tuesday, the start of the new fiscal year, or a day or two later.

Issues discussed yesterday: education funding and energy funding. Gov. Ed Rendell has proposed $5.2 billion for K-12 in fiscal 2008-09, a $291 million increase over this year. He supports more money for preschool programs and funds to develop high school graduation tests. Senate Republicans support just a $173 million increase for basic education. On energy, Mr. Rendell supports an $850 million program to lessen the state's dependence on foreign oil. It includes a slight surcharge on electric bills. Republicans favor a less expensive energy plan with no additional fees or taxes.

Other issues: whether to dip into the state's $750 million Rainy Day Fund for fiscal 2008-09 spending, including using $20 million to avert the unpaid furloughs of 25,000 workers on Tuesday -- the start of the new fiscal year -- if no budget deal has been reached by then.