HARRISBURG -- Completion of the state budget is in sight now that lawmakers have resolved a disagreement over the creation of an independent fiscal office to make revenue projections and analyze finances.

"We're pretty hopeful at this point" that the Legislature will approve the final pieces of the budget quickly, said Gary Tuma, spokesman for Gov. Ed Rendell, late Friday. "At this point it doesn't look as if there are any obstacles, but you can't count on it until the bills land on his desk."

Earlier in the day Mr. Rendell said he was concerned and worried about a dispute over creation of the office. He said it was "unfathomable" that the argument was holding back final action on bills that would enable implementation of the $28 billion budget passed Wednesday.

Lawmakers resolved their differences by agreeing to take up legislation in the fall that would create the office.

Votes on the remaining pieces of the budget -- including the fiscal code, welfare code, and a bill to allow a $600 million increase in borrowing for capitol projects -- are expected today.

The governor is optimistic they will pass and that he will be able to sign all pieces of the budget package Tuesday, Mr. Tuma said.

Senate Republican spokesman Erik Arneson said the new independent fiscal office is needed in order "to take politics out of the revenue estimate." He compared it to the Congressional Budget Office, which is nonpartisan.

"A revenue estimate should be fact-based, not influenced by a governor's [or a Legislature's] spending priorities," he said. "We want to open up information that is now only available to the executive branch, giving the Legislature and the public better ability to produce a good budget."

However, House Democratic spokesman Brett Marcy said the new office would cost at least $1.5 million a year and would expand the state bureaucracy at a time when most departments have less money to spend.

Currently, state agencies give their annual budget requests only to the governor's budget office. The proposed legislation would require agencies to also give the information to the independent fiscal office, too.

Mr. Rendell said the idea to create this new office wasn't part of the budget discussion until a couple days ago. He didn't say if he supported or opposed the office, saying he would have to examine the bill once it is passed.

But he said he won't support anything that tries to weaken the power of the governor's budget secretary to set state revenue estimates each June, just before a new budget is approved. He said that authority is established in the state constitution and shouldn't be changed.

"Under the law, the budget secretary [alone] certifies annual revenue estimates," he said. "There can't be more than one legal authority setting those estimates. You can't have a split authority."

Mr. Rendell also said he will oppose any efforts to link creation of the new fiscal office to enactment of a new tax on natural gas from Marcellus Shale. The Legislature has tentatively agreed to enact the new gas tax by Oct. 1.

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