State deal needs votes

By ASSOCIATED PRESS

July 11, 2007 Last Updated: July 11, 2007 12:47 PM Pennsylvania News

Lawmakers study budget

HARRISBURG — The lengthy and sometimes chaotic process of negotiation that resulted in a tentative state budget deal has cleared the way for an even tougher challenge for legislators: getting an affirmative vote by the General Assembly's rank-and-file by this weekend.

Legislative leaders and Gov. Ed Rendell struck the tentative agreement on Monday night that ended furloughs and a partial government shutdown. Now, with details just starting to come into focus, the reaction on Tuesday was mixed.

"There wasn't a revolt," said House GOP spokesman Steve Miskin, after Republicans met to discuss the deal. "There's just still a lot of questions."

The budget calls for $27.2 billion in spending. Along with $300 million in transit funding being taken out of the general fund, that will be a 4.5 percent increase over 2006-07.

Legislative reforms passed earlier this year add a new twist to the process by slowing down consideration of the budget, whereas in previous years leaders could grease the procedural skids for final passage once they and the governor signed off on a plan.

That means the final votes probably will not be taken until Saturday or Sunday, giving lawmakers — and lobbyists — the chance to pore over the fine print.

"It's mischief time right now," said Sen. Vince Fumo, D-Philadelphia, a veteran of Harrisburg budget battles. "I wish everybody would get out of this building."

Rendell told reporters Tuesday he was satisfied to be making progress on transportation, health care, energy and education, even if the final product will not be what he first proposed.

"We all blinked a little bit," he said, adding that if "there's no mutual blinking, there's no budget, and there's no legislation that comes out of here."

He said the budget keeps the growth of spending well below that of most other states, and that the significant borrowing his deal envisions keeps Pennsylvania comfortably within what Wall Street considers the state's capacity to accommodate.

Rendell won a special session in September on his energy independence strategy, billions for highways and transit, a vote by November on borrowing $500 million for the Jonas Salk for biotech investment fund and support to build a new Pittsburgh Penguins arena and expand the Pennsylvania Convention Center in Philadelphia.

"The caucus wanted investments and they got them, and people were very happy today," said Johnna Pro, spokeswoman for Appropriations Committee Chairman Dwight Evans, D-Philadelphia. "This was about our vision, this was about taking action."

Miskin said the House Republicans felt generally good about accomplishing their goals of preventing new taxes, controlling spending and limiting borrowing. But several members said they would not pronounce judgment until they had a better handle on the details.

"In a sense, you've got the frame, but the innards are still missing," Miskin said.

Not everyone was applauding the budget compromise.

David Masur, director of PennEnvironment, referred to a shift of Keystone Recreation, Parks and Conservation Fund money into hazardous sites cleanup as "the largest cut in conservation funding in Pennsylvania history."

Matthew Brouillette, president of the Commonwealth Foundation, which advocates for conservative fiscal policies, said the transportation element depends on a tolling plan for Interstate 80 that may never get federal approval.

And Rep. Daryl Metcalfe, R-Butler, said he would vote against the budget, predicting many of his fellow House Republicans will join him.

"The conversation should have been, 'How do we return $650 million to the taxpayers?"' the amount by which state tax revenue outpaced projections, he said. "Instead the conversation was, 'How do we keep the governor at bay and eat up the surplus?"'

Highlights of the budget package agreed to by Gov. Ed Rendell and legislative leaders:4 2007-08 BUDGET: The $27.2 billion budget will boost spending by 3.3 percent, with substantial increases for prekindergarten programs and laptop computers in public schools and services for the mentally retarded. (The total excludes about $300 million that was earmarked for mass transit agencies in last year's budget. That money is being moved into a special fund, where it will finance the same programs this year. Adding that back in would push total spending for $27.5 billion — an increase of 4.5 percent.)4 TRANSPORTATION: The bill, which still requires votes in the full House and Senate, would increase new money for highways and mass transit next year by $750 million. That amount would rise to $900 million in fiscal year 2009-10 and grow by 2.5 percent a year after that. The plan relies on more than $13 billion in borrowing by the Pennsylvania Turnpike Commission until a 25 percent turnpike toll increase in 2009 and newly placed tolls on I-80 pick up the burden. Turnpike tolls would rise at a 3 percent clip annually after 2009. Also, to help finance local mass transit operations, Allegheny County would be empowered to tax the sale of liquor and beer and impose fees on car rentals.4 HEALTH CARE: This package, part of Gov. Ed Rendell's Prescription for Pennsylvania initiative, is designed to lower the cost of health care. One bill would ban smoking in most indoor workplaces and public spaces. Another would encourage health care facilities to reduce infections contracted by patients. Others would expand the scope of duties that can be performed by some medical professionals, including nurse practitioners and dental hygienists.4 ENERGY: Rendell will call a special legislative session beginning Sept. 17 to focus on proposals to promote alternative energy and conservation, including what he said could be the creation of a $750 million fund to finance those projects.4 SLOTS FUNDING: Lawmakers would authorize the release of money for civic development projects that represents 5 percent of the revenue from gambling at Pennsylvania's slot-machine casinos. The bill includes $880 million to expand the Pennsylvania Convention Center in Philadelphia, $240 million for a new hockey arena in Pittsburgh, $150 million for debt payments and improvements at Pittsburgh International Airport and $495 million for construction of a regional cargo airport in Luzerne County.4 BIOMEDICAL RESEARCH: The Senate will vote by Nov. 1 on Rendell's proposed Jonas Salk Legacy Fund, which will borrow $500 million against revenues from Pennsylvania's portion of the national settlement with tobacco companies. The money would be used to provide grants for biomedical research and laboratory equipment.4 ENVIRONMENTAL CLEANUPS: Cleanups of hazardous sites would be guaranteed an additional $3.3 million per month, or about $40 million a year, from the state's realty transfer tax. The new funding for the Hazardous Sites Cleanup Fund will be diverted from a fund that matches money from governments, civic institutions and nonprofits for land preservation and other purposes.