HARRISBURG -- Leaders of three legislative caucuses emerged from daylong negotiations at midnight with an agreement on a new state budget that they hope meets the governor's approval.

"We put forth an offer to the governor and we're waiting to hear back from the governor to see whether he likes what we put on the table," said House Speaker Keith McCall, D-Carbon.

The high-ranking state lawmakers would not discuss the terms of the offer. They said they expect to hear from Gov. Ed Rendell this morning.

The negotiations centered around tweaking a $27.945 billion plan that House Democrats, Senate Republicans and Senate Democrats had put together last week.

The governor had threatened to veto the budget proposal over concerns it didn't provide enough for pre-kindergarten and after-school tutoring programs.

But the legislative leaders agreed to restore some funding to those areas and trim others to keep the spending number at $27.945 billion.

"We need to see the details and analyze the components of the (budget) offer ... We're suspicious of some of the revenue assumptions contained within it," said Steve Crawford, the governor's chief of staff.

"I know they worked throughout the day to identify more recurring revenues to close the gap."

He said the proposal includes some new revenue sources, but he would not identify them. An income-tax hike is not among them, he said.

Mr. Crawford said the governor will have more to say about the proposal today.

"We're doing everything we can to make the governor more comfortable," Senate Appropriations Chairman Jake Corman, R-Centre, said during a break in negotiations. "When you're this close to a deal, you want to do everything you can to close it."

House Republicans did not participate in negotiations because they strongly oppose the budget proposal.

Legislative leaders from the other three caucuses expect to return for further budget discussions this morning.

Senate Pro Tem Joe Scarnati, R-Jefferson, said caucus leaders are trying to instill confidence in their revenue projections.

Mr. Rendell has said he strongly doubts that expanding taxation on prizes for "small games of chance'' will generate $100 million this fiscal year, as forecast by Senate Democrats and Republicans and House Democrats in the $27.9 billion budget proposal they unveiled Friday.

Also under discussion has been what tax rate should apply to revenue generated by table games in casinos should the Legislature decide to legalize them. Some legislators favor a lower rate, such as 12 percent, while others favor 18 or 21 percent.

Another topic of discussion has been a plan to reduce by $75 million certain state tax credit programs, including tax credits for movies and TV shows made in Pennsylvania.

The spending plan would be supported by a mix of one-time and recurring revenues including an increase in the cigarette tax, revenue from table games in casinos and a tax amnesty program aimed at getting scofflaws to pay up to avoid penalties.

Legislative leaders hope the budget plan meets Mr. Rendell's approval. It would take another week to 10 days to print the voluminous document, proofread it and have the House and Senate discuss it and vote on it.

Pennsylvania has been without a comprehensive budget deal since the new fiscal year began July 1, making it the last state in the nation still wrestling over its annual spending plan. A stopgap measure, however, was passed to pay state workers and fund billions in other government spending.

House Republicans have assailed the proposal for the overall amount of spending and for imposing taxes during an economic slowdown.

"We do no think that raising taxes is the way to go. In fact it's wrong and harmful," said caucus spokesman Steve Miskin.

Republican Leader Sam Smith of Punxsutawney did not participate in yesterday's negotiating sessions.

Leaders of the other caucuses "know we do not agree with this budget," Mr. Miskin said. "We do not agree that the way to get out of this recession is to spend, spend, spend and to raise taxes."