Details of $28.2 billion budget remain elusive
HARRISBURG — The details of a $28.2 billion state budget deal reached overnight remained vague Monday, as aides scrambled on the last day of the fiscal year to distill the agreement into understandable facts and figures.
The agreement between Gov. Ed Rendell and top legislators, announced just after 1 a.m. Monday on the heels of six hours of talks, would inject huge amounts of money into public schools, alternative energy projects and municipal water and sewer systems.
The deal ensured that thousands of state workers would stay on the job and averted threatened furloughs and a partial government shutdown.
Rendell was unwilling to delve into the details of the budget agreement, referring reporters to the line-by-line spreadsheets and charts of the budget and billions of dollars in attached borrowing programs that legislative aides were grinding out Monday.
"Right now, you know, there can be many a slip between a cup and the lips," Rendell told reporters.
The budget package would push up spending by 3.8 percent and would not increase any broad-based taxes or fees. It also would authorize about $2.5 billion in borrowing, much of it to encourage expansion of a homegrown alternative energy industry, help local governments with civic improvement projects, and replace aging bridges, dams and water and sewer facilities.
The budget also will deliver $274 million more, a 5.5 percent increase, for public school instruction and operations, almost the entire increase Rendell had sought. Rendell's plan was reworked so that no school district will receive less than a 3 percent bump, up from a 1.5 percent basement that some legislators opposed, senators said.
Creative budget-making also would maintain spending at close to the $28.3 billion that Rendell proposed in February. A stumbling national economy has choked off state revenue, leaving an enormous hole in Rendell's assumptions that negotiators filled by scrounging more than $500 million in one-time dollars.
To fill that hole, they scrapped plans to transfer a $138 million chunk of surplus into the state's "rainy day" contingency fund, drew on unspent money from various programs and tapped state liquor store and lottery revenue to pay some bills. Rendell also agreed to halve his $90 million proposal to buy laptops for high-school classrooms.
