HARRISBURG -- Less than 24 hours remain for Democratic Gov. Ed Rendell and Republican legislative leaders to work out a new state budget on time, and neither side is optimistic about coming to an agreement anytime soon.

Mr. Rendell said yesterday it could take up to two more months to reach a compromise between his $28.8 billion spending plan for fiscal 2009-10 and the Senate Republicans' alternate budget of $27.3 billion, which makes deep cuts in many state programs.

"Do I think [the impasse] will go beyond 60 days? Maybe," he told reporters. He insisted that it's better "to get the budget done right than get it done on time," meaning by tomorrow, the start of the new fiscal year.

Mr. Rendell insisted that the state's current $3.2 billion budget deficit cannot be erased just by cutting state spending, as Republicans want to do. He claimed that Senate Bill 850, approved by the Senate in early May, could mean the loss of up to 800 state troopers and unacceptably severe cuts to education, economic development, libraries, parks and other state services.

Republicans leaders counter than Mr. Rendell is using "scare tactics" to gain approval of his budget plan. They denied such a large number of state troopers would be laid off. GOP officials said that with the recession continuing, strapped taxpayers can't afford to pay more in state taxes.

Mr. Rendell last week proposed $500 million in spending cuts of his own, but he's also pushing for several new or larger taxes that legislators, including some Democrats, are having trouble supporting. He wants to increase the personal income tax rate to 3.57 percent (from the current 3.07 percent) for the next three years.

Also, he wants to institute a new tax on natural gas extracted from underground Marcellus shale areas of the state; increase the cigarette tax by 10 cents a pack; enact a first-time tax on sales of cigars and smokeless tobacco; and dip into the state's $750 million Rainy Day Fund for emergencies and the $700 million surplus in a fund that pays for doctors' medical malpractice insurance.

Matthew Brouillette of the conservative Commonwealth Foundation, a frequent critic of Mr. Rendell, said, "It's clear, given the governor's negotiating position of 'my way or the highway,' that we're in for a long summer."

Mr. Rendell said that July 17 may be a more important target than July 1. The 17th is the first day that many state workers would actually miss a paycheck, since they will be paid on July 3 for their previous two weeks of work.

He said that members of his administration and state legislators are due to get their next monthly paycheck tomorrow. So they would have to wait for that paycheck until the new 2009-10 budget is finally approved.

Mr. Rendell praised a state employee credit union for offering 60-day, no-interest loans to state workers if the budget approval is delayed. He may seek to have that no-interest period extended if the budget isn't completed within 60 days.

"We will do everything we can to minimize the pain for our state workers," he said. "They surely didn't cause this [budget problem]."