Rifts in Capitol deepen as budget stalemate continues
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HARRISBURG -- Senate Republicans and House Democrats deepened their differences over a new state budget yesterday, as the GOP prepared to reject the $29.1 billion budget approved by the House on Friday.
The Senate Appropriations Committee gave a negative recommendation to House Bill 1416, the Democratic budget. The full Senate will take up the bill tomorrow and will amend it with a substitute spending proposal of about $27.4 billion, said Sen. Jake Corman, R-Centre.
Republicans criticized the House-approved spending level as excessive and said it will require tax increases, which the GOP opposes. Republicans especially didn't like the House's plan to split off $1.3 billion in higher-education spending into a separate account for which, as of now, there is no specific funding.
Also tomorrow, Mr. Corman said, the Senate will approve about $1.5 billion in one-time funds from sources such as the $750 million Rainy Day Fund and others to erase a deficit remaining from fiscal 2008-09, which ended June 30. Then it will approve and send to the House a fiscal 2009-10 budget of $27.4 billion, which is slightly larger than Senate Bill 850, a budget the Senate approved in early May.
At a press conference yesterday, Gov. Ed Rendell said he's glad to see that Republicans finally recognize the need for additional revenue. But he contended that recurring revenue -- such as through tax increases -- is needed in addition to the one-time revenue.
Mr. Rendell has proposed a $28.8 billion budget, which contains $5.5 billion for basic education, grades K-12. That spending item is one of his top priorities. Some Republicans want to reduce that by $1 billion, but Mr. Rendell adamantly refuses.
"If the Senate thinks they are taking $1 billion out of education, we will be here a long time [without a budget], because that isn't happening," Mr. Rendell said yesterday.
The House's proposed budget of $29.1 billion consists of $27.8 billion for most of the budget plus the additional $1.3 billion for higher education. That could come from a higher personal income tax or sales tax, or from new gambling revenues, such as table games or video poker in bars.
If the Senate sticks with its $27.4 billion plan, and the House with its $29.1 billion plan, the governor and legislative leaders "will have to sit down and figure out where a compromise lies," Mr. Rendell said, but that could take a while.
"The question is, how much new revenue is needed and in what form, and what spending cuts will be made," Mr. Rendell said. "There has to be a real dialogue."
First Published July 19, 2009 12:00 am
