HARRISBURG — Gov. Ed Rendell dramatically changed his stance Thursday toward a bid by top state legislators to end a 2Z\x-month budget impasse, opening the door to an agreement soon.

The move came just hours after he had threatened again to veto their plan.

Rendell would not say what had changed — it wouldn't be productive in securing an agreement, he told reporters in a Thursday night news conference in the Capitol.

But the Democrat's shift in tone was remarkable after he spent nearly a week, including Thursday morning, disparaging legislators' evolving budget proposal as a "phony" plan that lacked political courage and left the state facing a new deficit.

"We're not there yet, but I am cautiously optimistic that, in the next day or two, we have a real chance to close the gap and agree on something that will be beneficial for the citizens of this commonwealth and ... will allow us to have a balanced budget for next year," Rendell said.

Rendell spoke following a private meeting with Senate Republican leaders at his official residence in Harrisburg.

The meeting was cordial but did not bridge a $200 million to $300 million gap between what the sides believe can be collected in the future from the taxes, fees and other revenue sources in the legislators' plan, said Senate Majority Leader Dominic Pileggi, R-Delaware.

Resolving those differences will not be easy, Pileggi warned.

"But we're committed to making a diligent effort to do that," he said.

The primary issue dividing Rendell and legislators is how to fill a multibillion-dollar, recession-driven shortfall in tax collections.

Pennsylvania has been without a comprehensive budget since the fiscal year began July 1 and is the last state still fighting over its annual spending plan. Without money flowing from the state treasury, the private organizations and businesses that make up Pennsylvania's social safety net are taking out loans, laying off workers and shuttering services to stay afloat.

Last week, leaders of the House Democrats and of both parties in the Senate unveiled the original version of their nearly $28 billion plan. Many details about the plan remain under wraps or are being negotiated behind closed doors.

Dealmakers are counting on higher taxes on businesses and cigarettes and more money from expanding legalized gambling and gas exploration in state forests to help balance the recession-ravaged budget. They also propose tapping more than $1.5 billion in reserves, slashing overall spending by about 1 percent and boosting funding for public schools' operations and instruction by more than 5 percent.