HARRISBURG -- As Pennsylvania missed its budget deadline for the seventh year, Senate Republicans on Tuesday presented united opposition to Gov. Ed Rendell's proposed state tax increases and demanded the Democrat-controlled House vote on a spending plan.
Budget negotiators from both political parties spent a second night with Rendell at the governor's mansion, reviewing his proposed $29 billion spending plan line by line. Taxpayers paid $240 to feed them a flank steak buffet during Monday's talks, Rendell's spokesman Chuck Ardo said.
That review of the budget's first 300 lines produced potential savings of $22 million, a "drop in the bucket," said House Majority Leader Todd Eachus, D-Luzerne County. They were to review 500 line items last night.
"This is a very tough budget," Rendell said. He characterized the first session as "productive" but said Republicans were unwilling to offer additional spending cuts to balance a budget without tax increases.
In a sign the talks could drag on for weeks, Rendell said 10 banks and credit unions would offer no-interest loans and lines of credit for up to 69,000 state employees whose paychecks could be reduced starting July 17.
The state's ability to spend money without an agreement was curtailed at midnight, but Rendell said court decisions require state workers to stay on the job. Employees who go without paychecks would be paid retroactively, once the General Assembly approves a budget and Rendell signs it.
"The state Legislature has a constitutional duty to pass a budget by June 30 of each year and, once again, Gov. Rendell and the leadership of the House Democrats have failed the Constitution and the people of Pennsylvania," said freshman Sen. Kim Ward, R-Westmoreland.
"I know that many legislators have seen this before, but I have not and can't believe this is how our government in Harrisburg works."
The GOP's criteria for a budget are to "hold the line on spending, (impose) no new taxes and to live within our means," said Senate Majority Whip Jane Orie, R-McCandless. Another year with a late budget is "a distinct and infamous legacy for this governor," she said.
The deadlock over taxes means the impasse could last until August, said Senate Majority Leader Dominic Pileggi, R-Delaware County.
"Our caucus is 100 percent in support of the approach we're taking," Pileggi said. "I don't know that the administration is convinced of that yet."
To fill a $3.2 billion deficit, Rendell proposed a 16 percent boost in the state income tax, a 10-cent increase on a pack of cigarettes, higher taxes on smokeless tobacco and cigars, and taxing natural gas extraction.
Republicans want to cut $1.7 billion from Rendell's proposed budget.
Rendell repeatedly has said no immediate negative consequences would result from starting the fiscal year without a budget. But if there's no budget by Monday, state workers would get 70 percent of their pay July 17, Ardo said. If there's no budget by July 13, workers paid on July 24 would get 20 percent of their pay.
"No one gets paid" on time without a budget signed into law by July 26, Ardo said.
Rendell said Monday his administration has a history of adopting late budgets "because we'd rather get it right."
Orie noted the Senate passed an austere spending plan, Senate Bill 850, in May. The House Appropriations Committee voted down the bill three weeks ago.
"Today we are calling on the House to bring up a budget and vote for what they think is right for Pennsylvania," Orie said.
Ardo characterized S.B. 850 as "a political prop, rather than a balanced budget as required by law." Even then, he said, "many Republicans distanced themselves from the pain it caused." Rendell has contended since May that the Senate budget is $1.5 billion out of balance.
House Appropriations Chairman Dwight Evans, D-Philadelphia, asked by a GOP leader on the floor about the lack of a budget vote by deadline, said the House, Senate and governor must negotiate a budget.
"There's no reason to go through an exercise in futility," said Johnna Pro, Evans' spokeswoman. "Clearly, we need to negotiate a budget."
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