HARRISBURG -- House Democratic leaders are lashing out at Democratic Gov. Ed Rendell in a letter denouncing one facet of a new budget agreement that emerged during a breakfast meeting this morning and came to a quick vote in the Senate an hour later.

"It is our understanding that you agreed today to a $27.834 billion Senate spending proposal. This is not acceptable," reads the letter signed by Appropriations Chairman Dwight Evans, D-Philadelphia, and Majority Leader Todd Eachus, D-Luzerene.

Mr. Evans and Mr. Eachus declined to speak with reporters after the morning meeting in the governor's residence, but caucus spokesmen said they are concerned that the agreement provides $12 million for the governor to spend at his discretion on items such as violence reduction, cultural preservation and health clinics.

House Democrats responded to the Senate action by putting a competing budget bill back in play, disbanding a bi-cameral conference committee that controlled it.

That puts the House back in control of a the proposal, which leaders intend to amend this afternoon into something they hope can pass both chambers by week's end. The aim is to transfer the $12 million in discretionary funding -- often termed "walking-around money" -- to broader based programs that they say help vulnerable Pennsylvanians, hospitals and children.

"We cannot support a plan that would divert money from broad-based programs for discretionary spending on targeted projects," Mr. Evans and Mr. Eachus wrote in their letter to the governor.

Said caucus spokesmen Bill Thomas: "We are pennies away from an agreement and this is the big issue."

He said the amended bill could come to a vote in the House tomorrow, setting it up for Senate action Friday. Moving the bill out of the conference committee is the fastest way to get a budget passed, Mr. Thomas said.

House Republican spokesman Steve Miskin said the action puts another option into play for passing a budget already 98 days overdue.

His boss, Republican Leader Sam Smith of Punxsutawney, said he's pleased that the latest spend number is down about $110 million from the last.

"I'm not ready to say we (House Republicans) support this version, but it's getting closer to where my caucus can put support behind it. It's come down enough to pique my interest," he said.

More details in tomorrow's Pittsburgh Post-Gazette.

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