HARRISBURG -- Half of the state House's Republicans united with Democrats yesterday to reject a $27.1 billion spending plan backed by the GOP Senate.
The Senate intends to dig in its heels, forcing a conference committee of six legislative leaders to hash out differences. It isn't yet clear whether the group will meet behind closed doors, as past conference committees have.
It could be weeks yet before the commonwealth is able to pay its vendors or 77,000 government employees for goods and services received after July 1, when the new budget-less fiscal year began.
House Democratic leaders characterized yesterday's 150-49 vote as a rebuke of the Senate funding plan, which they say underfunds education while avoiding a broad-based tax increase.
Gov. Ed Rendell has been pressing to increase the personal income tax from 3.07 percent to 3.57 percent, but hasn't been able to round up enough votes. He would not say yesterday whether he thinks the tides are turning enough to enable the hike.
Republicans such as Doug Reichley of Lancaster County said that's doubtful.
"Three of the four legislative caucuses are against the tax increase. I don't see it happening," he said in an interview yesterday.
Also on the table are a new tax on smokeless tobacco, an increase in the cigarette tax, fees for companies that extract natural gas from Marcellus shale and expansions to legalized gambling to include video poker machines in bars or table games in casinos.
Changes to the gaming law would take months to roll out -- too long to raise significant revenue to balance the 2009-10 budget, Mr. Reichley said.
Rep. Mario Civera, Republican chairman of the House Appropriations Committee, said he's hoping for rapid action from the conference committee. Leaders say they are negotiating already, even though conferees have not yet been named.
During a lighter moment on the House floor yesterday, Mary Wilson, an original member of the Supremes, offered up a verse of "Stop! In the Name of Love" as inspiration to end the budget impasse.
She was a guest of Rep. Rosita Youngblood, D-Philadelphia.
Earlier, Ms. Wilson serenaded Democrats during a closed-door caucus.
Despite the attempt at inspiration, both sides remain far apart.
Democrats last proposed $29.1 billion in spending as part of a plan that had identified no revenue source for $1.3 billion in higher-education spending.
That's $2 billion more than the plan favored by Senate Republicans.
"We've still got a lot of work to do," said Democratic Appropriations Chairman Dwight Evans of Philadelphia.
Last fiscal year's spending was $27.8 billion.
Today the state enters its fourth week without a budget.
