Is budget nightmare over, or just beginning?

IS OUR LONG STATE BUDGET nightmare finally over? Or is it just beginning?

Gov. Rendell and legislative leaders have finally agreed on a state budget - a final Senate vote is expected today - but it's no cause to celebrate. Not only did it take 100 days, but the budget is hardly a model of legislative wisdom; it's an exercise in making easy choices that only get us through the short-term.

Worse, with across-the-board cuts to many departments to fill a $3.2 billion gap, this budget will hurt people.

Instead of finding long-term solutions to Pennsylvania's problems, the General Assembly is poised to pass a spending agreement that ensures we'll face the same troubles again. The biggest problem? Lawmakers decided to sidestep several good ideas that would have generated sustainable revenue. Worse, the budget provides breaks to special interests at the expense of ordinary citizens. Among the worst parts of the agreement that was finalized yesterday:

Big cuts to social services. The budget agreement cuts more than $50 million from the Department of Public Welfare, which administers programs to help low-income children and families. Child-care programs will take the biggest bite, losing more than $25 million in funding. Services for the homeless will also lose $7.5 million. During a time of economic hardship, we shouldn't be cutting back on help for the people who need it the most.

Environmental protection takes a big hit. The spending plan also calls for the Department of Environmental Protection to lose $70 million in state funding. Program cuts will include clean-

water initiatives and conservation efforts. These cuts could undermine Pennsylvania's ability to compete in the future.

Economic development loses. More than $88 million will be cut from the Department of Economic and Community Development including $2 million from a program to develop minority-owned businesses, $13 million for affordable housing and $10.7 million from job training. Wait: Don't these programs need more during an economic downturn?

Rainy Day Fund goes dry: The budget deal transfers the entire $755 million balance of the Rainy Day Fund to the General Fund. The state will face a multiyear problem and the 2010 budget process is going to be no walk in the park. By using all of this money, lawmakers have deprived themselves of options in the future.

Natural-gas extraction remains untaxed. Companies mining natural gas in Pennsylvania do not pay for the privilege, while they must in every other state. It's outrageous considering the environmental damage done by mining companies and the cuts to state conservation programs. The final kicker: The budget agreement expands the amount of land open to mining without increasing funding to monitor the impact on Pennsylvania's natural resources.

So does smokeless tobacco. Thanks to the influence of industry lobbyists, Pennsylvania will remain the only state besides Florida that doesn't tax chew and snuff.

Tax breaks for big business. Lawmakers snuck a change to the tax code that is a giant gift to major corporations. The cost to taxpayers? More than $100 million a year.

Expands gambling. Lawmakers expect $200 million in revenue from expanding gaming to include table games, but the recession means no one really knows how much this will bring.

The worst part of this train wreck? The bad choices in this budget guarantee that we get to do this all over again when Rendell starts the FY11 budget process . . . in less than three months.