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Corbett, lawmakers announce budget deal

Plan nearly same as earlier proposal

HARRISBURG — An agreement on a nearly $27.7 billion budget deal announced Wednesday evening by Gov. Tom Corbett and top Republican lawmakers appears to be nearly identical to what lawmakers had proposed several weeks earlier, a plan that would cut taxes for businesses while squeezing programs for the poor and disabled.

It also includes a meeting of the minds on legislation to create a tax credit sought by Corbett in his pursuit of bringing an integrated petrochemical industry to Pennsylvania, anchored by a multibillion-dollar refinery planned in the Pittsburgh area by a subsidiary of Netherlands-based oil and gas giant Royal Dutch Shell PLC.

The agreement for the fiscal year beginning July 1 puts the state on course for a second straight on-time budget. It comes after two weeks of almost-daily talks behind closed doors and at a time when schools are making plans to lay off thousands of employees, in part because of deep cuts in state aid this year. Corbett, a Republican who took office last year after campaigning on a pledge not to raise taxes, and the others would not give details about their new agreement until rank-and-file lawmakers are briefed in the coming days.

“We have agreement among ourselves on many, many areas,” Corbett said. “There are still some other areas we need to work out.”

The budget, which typically involves the passage of a couple dozen pieces of legislation, still will require approval by the full House and Senate.

Democrats were not invited to the talks, and not one single Democratic lawmaker voted for the budget currently in force, which was Corbett’s first as governor.

The newly agreed-upon spending plan will include no new taxes while raising spending less than 2 percent and leaving about $267 million in reserve a year from now.

Aid for public schools and 18 state-supported universities would remain flat.

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