MECHANICSBURG -- With a swipe of a black Uniball pen this morning, Gov. Ed Rendell enacted a $28 billion spending plan -- but that doesn't mean budget debates are over.

Lawmakers claim that on Wednesday they passed the first on-time budget in eight years -- one that includes no tax increases. However, they left the heavy lifting for the fall.

That's when they plan to impose a tax on natural gas extraction, set parameters for a controversial legislative budget office and find a way to fill a budget hole of up to $850 million that could result if Congress doesn't extend medical assistance funding.

This morning, though, the focus was the Legislature's ability to agree on a spending plan, however tenuous.

Mr. Rendell signed the bill before a crowd of about 150, including dozens of Mechanicsburg children who watched the bill signing in the multi-purpose room of Elmwood Elementary School.

Superintendent Joseph Hood said the budget will allow Mechanicsburg Area School District and others to maintain achievement, continue to provide full-day kindergarten and offer pre-school programs.

The budget includes a $250 million boost for basic education. Nearly every other area of the budget, though, was cut and about 1,000 layoffs are expected.

Mr. Rendell wanted a $354 million increase for education but said the $250 million is tremendous in a difficult economy.

Even as he signed the budget, he lamented the Legislature's refusal to tax cigars and smokeless tobacco, increase taxes on cigarettes and close a loophole that businesses use to skirt the corporate net income tax.

Revenue from those measures could have been used to "alleviate pain" or build up a reserve for next year.

"Have we made enough progress? No," Mr. Rendell said. "We've got to keep going."

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