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Pa. Senate eyes House budget plan

HARRISBURG — Pennsylvania’s Republican-controlled Legislature on Monday began what could be a long week as lawmakers worked again to try to end a four-month budget standoff with big borrowing and gambling expansion packages to backfill a projected $2.2 billion deficit.

The Senate appeared ready to submit to a House budget-balancing plan that fell well short of what Senate leaders and Democratic Gov. Tom Wolf had sought.

The House plan, passed last week, contains a grab bag of tax increases that is projected to yield as much as $140 million in a full year but perhaps as little as $60 million. That is a small fraction of the $500 million-plus tax package the Senate had passed in July in an effort to help wipe out Pennsylvania’s entrenched post-recession deficit.

Pressing the House for more concessions likely would extend the budget standoff, rather than ending it this week, said Senate Majority Leader Jake Corman, R-Centre.

The House’s budget bill is built around borrowing $1.5 billion against Pennsylvania’s share of a 1998 multistate tobacco settlement. With interest, payback likely would cost more than $2 billion over 20 years.

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