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Centre Daily Times - 2007-07-11

State budget deal goes under lawmakers' microscope

By MARK SCOLFORO - Associated Press Writer

 

HARRISBURG, Pa.--The lengthy and sometimes chaotic process of negotiation that resulted in a tentative state budget deal has cleared the way for an even tougher challenge for legislators: getting an affirmative vote by the General Assembly's rank-and-file by this weekend.

Legislative leaders and Gov. Ed Rendell struck the tentative agreement on Monday night that ended furloughs and a partial government shutdown. Now, with details just starting to come into focus, the reaction on Tuesday was mixed.

"There wasn't a revolt," said House GOP spokesman Steve Miskin, after Republicans met to discuss the deal. "There's just still a lot of questions."

The budget calls for $27.2 billion in spending. Along with $300 million in transit funding being taken out of the general fund, that will be a 4.5 percent increase over 2006-07.

Legislative reforms passed earlier this year add a new twist to the process by slowing down consideration of the budget, whereas in previous years leaders could grease the procedural skids for final passage once they and the governor signed off on a plan.

That means the final votes probably will not be taken until Saturday or Sunday, giving lawmakers - and lobbyists - the chance to pore over the fine print.

"It's mischief time right now," said Sen. Vince Fumo, D-Philadelphia, a veteran of Harrisburg budget battles. "I wish everybody would get out of this building."

Rendell told reporters Tuesday he was satisfied to be making progress on transportation, health care, energy and education, even if the final product will not be what he first proposed.

"We all blinked a little bit," he said, adding that if "there's no mutual blinking, there's no budget, and there's no legislation that comes out of here."

He said the budget keeps the growth of spending well below that of most other states, and that the significant borrowing his deal envisions keeps Pennsylvania comfortably within what Wall Street considers the state's capacity to accommodate.

Rendell won a special session in September on his energy independence strategy, billions for highways and transit, a vote by November on borrowing $500 million for the Jonas Salk for biotech investment fund and support to build a new Pittsburgh Penguins arena and expand the Pennsylvania Convention Center in Philadelphia.

"The caucus wanted investments and they got them, and people were very happy today," said Johnna Pro, spokeswoman for Appropriations Committee Chairman Dwight Evans, D-Philadelphia. "This was about our vision, this was about taking action."

Miskin said the House Republicans felt generally good about accomplishing their goals of preventing new taxes, controlling spending and limiting borrowing. But several members said they would not pronounce judgment until they had a better handle on the details.

"In a sense, you've got the frame, but the innards are still missing," Miskin said.

Not everyone was applauding the budget compromise.

David Masur, director of PennEnvironment, referred to a shift of Keystone Recreation, Parks and Conservation Fund money into hazardous sites cleanup as "the largest cut in conservation funding in Pennsylvania history."

Matthew J. Brouillette, president of the Commonwealth Foundation, which advocates for conservative fiscal policies, said the transportation element depends on a tolling plan for Interstate 80 that may never get federal approval.

"We're going to throw good money after bad," Brouillette said. "We're going to strap taxpayers with higher debt, and we're going to expand the political patronage playing fields of Harrisburg politicians, and it's going to ultimately fail to solve our transportation funding problems."

And Rep. Daryl Metcalfe, R-Butler, said he would vote against the budget, predicting many of his fellow House Republicans will join him.

"The conversation should have been, 'How do we return $650 million to the taxpayers?,'" the amount by which state tax revenue outpaced projections, he said. "Instead the conversation was, 'How do we keep the governor at bay and eat up the surplus?'"

There are some loose ends, notably over raising the state's debt ceiling by $500 million for civic redevelopment projects around the state. That plan has already passed the Democratic controlled House, and Pro insisted there was an understanding that the Senate will take it up this fall.

But Erik Arneson, spokesman for Senate Majority Leader Dominic Pileggi, R-Delaware, said there was no deal of any kind on the bill.

The Monday night budget deal ended after one day the unpaid furloughs of 23,562 state workers, and on Tuesday Rendell said he was still considering a proposal to reimburse them for the pay they lost.