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Pa. legislators reach plan to end budget disagreement

Legislators have closed in on an agreement to end a dispute that has been threatening enactment of the state's $28 billion budget.

Demonstrators protest the proposed state budget reductions in funding for education programs and social services at City Hall in Philadelphia on Thursday. But that isn't even the holdup on signing the spending plan into law. (AP Photo / Matt Rourke)
Demonstrators protest the proposed state budget reductions in funding for education programs and social services at City Hall in Philadelphia on Thursday. But that isn't even the holdup on signing the spending plan into law. (AP Photo / Matt Rourke)Read more
    by Angela Couloumbis, INQUIRER HARRISBURG BUREAU
    Published 

HARRISBURG – Legislators have closed in on an agreement to end a dispute that has been threatening enactment of the state's $28 billion budget.

The dispute in the legislature centers on whether to establish an Independent Financial Office to act as the General Assembly's outside check on the governor's revenue projections and spending reports.

Senate Republicans, who have championed creation of such an office, had said it was part of the overall budget agreement between both parties this year, and want to include it in a package of budget-related bills that still needs legislative approval.

House Democrats, led by Rep. Dwight Evans of Philadelphia, had countered that there was never such an agreement.

Gov. Rendell has said he cannot sign the budget, which the legislature approved Wednesday, until all budget bills are approved by the House and Senate.

But after talks on Friday, the two sides have found a solution: they will insert language in budget-related bills to create the Independence Financial Office – but lawmakers will have until Oct. 1 to vote on legislation to actually establish it, according to senior legislative aides.

If the legislation passes, the office would begin operating on January 1, 2011.

Johnna Pro, spokeswoman for Evans, said Democrats were satisfied with the agreement, but added that getting through the details of passing the budget bills will take time and patience.

"It's going to be a long day," she said.

For his part, Senate Majority Leader Dominic Pileggi (R., Delaware) said: "We are pleased that the issue seems to have been resolved. The [independent financial office] will be the most significant change to Pennsylvania's budget process since the 1968 constitutional convention, and it will be a huge improvement over the current dysfunctional process."

Earlier Friday, Gov. Rendell said that legislators should stay in Harrisburg until they resolve the dispute, even if that means spending the July Fourth weekend in the Capitol.

"I am very worried, and I am very concerned," Rendell told reporters during a news conference in the Capitol. "I can't believe that this cannot be resolved, that this is going to hold it up. It's unfathomable to me."