HARRISBURG -- Gov. Ed Rendell ended one of the most contentious statehouse conflicts in recent history when he signed a $27.8 billion spending plan last night, the 101st day of the nation's longest budget impasse.

The plan cuts overall spending by 1 percent while it adds $300 million that the governor had insisted on for public schools.

The budget agreement allows the state to begin issuing 12,000 checks to day-care centers, counties, social service agencies and others that haven't received state subsidies since July. Many have had to lay off workers, take out loans or shut down for lack of funds.

Passage of the budget "guarantees our county social service providers get paid and our children's day-care services are restored," said House Majority Leader Todd Eachus, D-Luzerne.

Treasury Department employees will work through the Columbus Day holiday weekend to process $3 billion worth of payments that have been backlogged since July 1 because there was no authorization to release them. Checks and electronic payments could go out as soon as Tuesday.

Still, lawmakers' work on isn't finished.

They have yet to agree on the details of a plan to bring poker, blackjack and other table games to Pennsylvania casinos. That would generate $200 million needed to help provide state funding to Pitt, Penn State, Lincoln and Temple universities as well has several museums, including the Carnegie Museums of Pittsburgh.

House lawmakers want to impose a 34 percent tax on table game revenue at the largest casinos, in addition to a one-time $20 million licensing fee. The Senate prefers a 14 percent tax and $15 million fee.

Mr. Eachus said the Senate's proposal is a giveaway to casinos.

"We have to make sure it adds up to fairness to taxpayers and make sure it fills a budget hole. We're not into giveaways in the Democratic caucus," he said.

Lawmakers will attempt to find middle ground next week.

For now they are pleased to have reached a budget agreement that doesn't increase income- or sales-tax rates.

Budgeting was particularly difficult this year because a weakened economy caused a decline in revenue and an increase in the need for social services such as welfare.

"It's been a long and grinding process," Mr. Eachus said.

"I am embarrassed and I am sorry that the stalemate dragged on for 101 days and hurt people across the commonwealth. This has been difficult on so many levels," he said.

Mr. Rendell said he's embarrassed, too. That's why he signed the three pieces of budget legislation in private instead of in a public ceremony as he has for the last six years.

"There is no reason to celebrate the signing of the bill," he said. "It's a responsible budget and it does good things for the people of Pennsylvania, but it took entirely too long."

To balance the spending plan, lawmakers relied on $2.6 billion in federal stimulus money and $909 million from a blend of new taxes including an 25-cent-per-pack increase in the cigarette tax, a first-ever tax on little cigars, and a delay of a planned phase-out of a tax on business assets. They also approved a plan to raise $60 million by leasing state land to energy companies for natural gas extraction.

Lawmakers also tapped $1.4 billion in one-time revenue sources, depleting the state's $755 million emergency fund, transferring money from the tobacco-settlement fund and tapping an account that subsidizes physicians' payments for medical malpractice insurance.

Relying on fund transfers does not position the state well for the future, said House Minority Leader Sam Smith, R-Punxsutawney.

"Clearly I believe there was a better approach to this budget," he said.

His Democratic counterpart Mr. Eachus, said the budget protects children, veterans and seniors. It invests in education without burdening property taxpayers, he said.

House Speaker Keith McCall, D-Carbon, said he is relieved that the budget passed, but he's not celebrating.

Neither, apparently, are other lawmakers, most of whom cleared out of the Capitol within minutes of the Senate vote. They've spent many nights and a few weekends away from their families during budget negotiations.

"This budget isn't perfect but it's a worthy compromise that gets the job done," Mr. McCall said.

Rick Swartz, executive director of the Bloomfield Garfield Corp., a neighborhood group in Pittsburgh that works to revitalize communities, was not happy with the final budget compromise. He was upset with a cut in funding for the Department of Community and Economic Development.

The budget does too little for communities while relying too heavily on federal stimulus monies that will run out in 2010, he said.

"It's a sad day for the working-class citizens of Pennsylvania," he said.

Meanwhile, the advocacy group Pennsylvania Partnerships for Children lauded the budget agreement, particularly its $300 million increase for basic education and $8 million increase in welfare spending.

"Under unprecedented fiscal challenges, we are pleased that a number of children's programs avoided damaging cuts and some received increased funding," said Joan Benso, the group's president and CEO. "Despite the length of the impasse, legislative leaders and the governor found a way to manage state and federal resources to help Pennsylvania's children and families."

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