HARRISBURG — Hours from the end of the fiscal year, the state Senate advanced a transportation package that would put tolls on Interstate 80 and raise $700 million next year through borrowing for the state's deteriorating highway system and struggling mass transit agencies.

But any agreement on transportation funding may not be enough to break a deadlock with Gov. Ed Rendell that is holding up a $27 billion-plus state budget before the new fiscal year begins Sunday morning.

The House and Senate adjourned Friday, and were scheduled to return Saturday.

The Senate Transportation Committee voted 11-2 to send the funding plan to the full chamber ahead of an anticipated Saturday vote. Under the plan, the funding initially would come from borrowing against future toll revenues on Pennsylvania turnpike and I-80, although federal approval is still required to add tolls to the latter roadway.

The Senate's plan would raise more money by 2009-10 faster than a House plan approved earlier in the week. It is unclear whether Rendell will accept the Senate's transportation bill after demanding at least $1 billion next year in new money for highways and transit. A spokesman for the Democratic governor called the bill a step in the right direction.

Sen. Joe Scarnati, the chamber's president pro tempore, said it would require too much borrowing to supply $1 billion right away.

"This bill gives (Rendell) what we think is adequate funding. It's realistic funding," said Scarnati, R-Jefferson.

The Senate plan would inject $700 million into highways and transit next year, an amount that would rise to $900 million in fiscal year 2009-10 and at a 2.5 percent annual rate after that.

The funding plan would rely on more than $13 billion in borrowing until a 25 percent turnpike toll increase in 2009 and newly placed tolls on I-80 pick up the burden, said Timothy J. Carson, the turnpike's vice chairman. Tolls would rise at a 3 percent clip annually after that.

The House's $720 million transportation bill relies on borrowing, turnpike tolls going up in 2010 and tolls on I-80, as well as new tax revenue from local governments.

Until recent days, Republicans had said they would not deal with transportation funding until the fall. In a gesture to persuade the GOP, Rendell's transportation secretary, Allen D. Biehler, has been going door-to-door in the Capitol to show legislators which highway and bridge projects are in line for funding.

On the budget, negotiators have yet to resolve a $300 million disagreement between Democrats and Republicans that has been sidetracked while legislators discussed transportation funding. Democrats want to spend about $27.3 billion in the new fiscal year — roughly a 4 percent increase — while Republicans want to hold the increase to less than 3 percent, or about $27 billion.

And Rendell is still pressing for action on a long list of legislation that he says he wants on his desk before legislators leave Harrisburg for their traditional two-month summer break. Republicans and some Democrats have resisted some of Rendell's demands, including a charge on electricity use that would fund alternative energy and conservation programs.

A budget impasse that extends well into July could mean furloughs of about 25,000 "nonessential" state workers, and a freeze on spending not deemed critical to the health and safety of the state's residents. For instance, Pennsylvania State Police patrols and health care subsidies for the poor would continue, while state parks and grant programs would shut down.

In addition, the state's new slot-machine parlors would be shut down because the 16 Revenue Department workers who process the gambling receipts and man the state computer that monitors the machines are deemed to be nonessential workers.

The Rendell administration says no decision on furloughs will be made before Thursday, and workers will not be sent home before July 7.

The last time a budget impasse resulted in state workers being furloughed was in 1991, when a 34-day stalemate led unpaid workers to protest inside the Capitol.

Rep. Dwight Evans, the Philadelphia Democrat who chairs the Appropriations Committee, suggested that a budget can pass when everybody compromises and, so far, Senate Republicans have not been willing.