HARRISBURG — Most area lawmakers voted in favor of the new, $28.2 billion state budget, applauding a reduction in business taxes and a hike in support for public schools. Two legislators opposed the spending plan.

The final budget, while up nearly 4 percent from last year's version, is $150 million less than was first proposed by Gov. Ed Rendell.

"House Republicans were successful at reducing spending and holding the line on taxes," said Rep. Brian Ellis, R-11th. "For the first time during the governor's six years in office, we were able to keep spending below the rate of inflation."

One of the key elements in the 2008-09 budget is a more equitable proposal for funding basic education, including an overall 5.5 percent increase ($274.7 million) in basic education funding to a total of $5.2 billion.

All 501 districts throughout the Commonwealth are guaranteed to receive at least a 3 percent increase, up from the 1.5 percent the governor originally proposed.

"This budget is a win for the children of Pennsylvania to have access to a top quality education," Ellis said.

Sen. Mary Jo White, R-21st, praised the budget as holding the line on spending.

In voting for the budget, she called the extra borrowing a "prudent investment in public infrastructure."

In particular, $350 million is set aside to make critical improvements to 400 bridges across the state.

"These budget negotiations began with the goal of holding the line on state spending, ensuring the continuation of essential services and programs, and mitigating the long-term financial impact on taxpayers, small businesses and future budgets. I think we achieved that," White said.

The final spending plan protects Pennsylvania's job creators by maintaining the scheduled reduction of the Capital Stock and Franchise Tax. The administration had proposed slowing the reduction, which would have cost employers an estimated $40 million in 2008-09, White said.

"And since state tax revenues are down and not expected to go up soon, we also had to resist calls by many to tap into the state Rainy Day Fund which we may need in the near future," White said.

Rep. Jared Gibbons, D-10th, said he voted for the new budget because he is pleased with the priorities in it.

"I'm proud we have passed another no-tax-increase budget, which mirrors the priorities of Pennsylvania's working families," he said. "The state's businesses also were aided with a business tax reduction by a continued phase-out of the Corporate Stock and Franchise Tax."

Gibbons said the schools in his district would get funding increases across the board.

Gibbons also highlighted the $650 million in the budget which will help consumers and businesses lower energy costs and encourage development of renewable energy sources.

State Sen. Jane Orie, R-40th, said the budget is both a "responsible and fiscally conservative budget."

"There are cuts across the board, yet there is $230 million worth of business tax cuts under the Capital Stock and Franchise Tax," Orie said.

State Sen. Bob Robbins, R-50th, who voted for the proposal, said he was pleased with the restrained spending.

"The truth is not everyone is going to be happy with this budget, but I believe we did the best we could with what we had available," said Robbins. "Certainly the key was to hold the line in spending. With the economic conditions in Pennsylvania the way that they are now, we have to look down the road and tighten our spending accordingly.

"We need only look at last year, when we rejected all seven of the governor's proposed tax increases. We were better able to hold the line this year because of that and that put us in a much better financial position than many of our neighboring states."

State Sen. Don White, R-41st, who voted in favor of the budget, described this year's state budget as "a compromised process."

"I'm proud of our Senate Republicans who stood up against excessive spending proposals from the House Democrats and the governor," said White, who said Democrats wanted to use the state's Rainy Day Fund to fund their projects.

"Our state, unlike many surrounding us had a budget surplus," said White, who pointed out that surplus started at $520 million at the beginning of this year's budget and has been reduced to $150 million, showing a declining trend going into an even tougher budget next year.

Rep. Dick Stevenson, R-8th, said provisions in the budget for infrastructure projects will help various communities in Butler County.

"Prospect is a community that is struggling with sewer issues," Stevenson said. "Moraine State Park is processing the sewage from Prospect, and that system is becoming overloaded.

"Prospect is under a consent order by the Department of Environmental Protection and I am hopeful that the budget will help that community with their needs, as well as Harmony, a community that has been hit hard by flooding in recent years."

Two legislators from the area did vote against the budget.

Rep. Scott Hutchinson, R-64th, said he had hoped it would include a reduction in taxes for residents. It also relies too much on borrowing, he said.

"In these tough economic times, I think we should live within our means," he said.

One of the good aspects of the budget is that it helps local school districts more than earlier proposals, he said.

The other negative vote came from Rep. Daryl Metcalfe, R-12th, who said he was dissatisfied with continued increases in state spending, however seemingly slight.

"Today's debt is tomorrow's tax increase. Currently, the total state and local debt burden for taxpayers already exceeds $110 billion," Metcalfe said. "This year's budget adds $2.9 billion in new borrowing that will also have to be paid back by future generations of Pennsylvania taxpayers.

"The 2008-09 state budget should reduce spending, reduce debt and reduce the overall tax burden for all Pennsylvania citizens."

Eagle staff writers Bob Schultz, Stephanie Rex and Ed Biller contributed to this report.