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No deal on taxes; budget talks linger

HARRISBURG — Negotiators reported no agreement on financing state government’s $31.5 billion budget plan as top lawmakers met privately, and apparently fruitlessly, Tuesday in the state Capitol five days into the fiscal year.

The state House of Representatives and Senate weren’t scheduled to resume session Tuesday as a divide over election-year tax increases dragged out negotiations between Democratic Gov. Tom Wolf and the Republican-controlled Legislature.

House Majority Leader Dave Reed, R-Indiana, joined a brief meeting with other top lawmakers and said he could not predict whether an agreement was imminent, or even possible, this week.

Under discussion are higher taxes on some tobacco products, as well as a huge expansion of casino-style gambling.

The first budget go-around between Wolf and the Legislature resulted in a record-breaking stalemate that was resolved in April. Reed downplayed any comparison between that stalemate and the fight over Wolf’s second budget, saying negotiators are “light years” ahead.

“Last year at this time nobody was even talking, let alone having a spending plan in place,” Reed said.

Wolf stayed out of sight Tuesday.

To some extent, House Republicans are isolated in the negotiations, and the spotlight has fallen on their willingness to agree to a big enough revenue deal to satisfy Wolf, Democratic lawmakers and Senate Republicans. House Republicans, late last year, revolted against a bipartisan budget deal with Wolf. That ultimately led to Wolf allowing a Republican-penned budget plan to become law to end the stalemate, even though he withheld his signature.

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