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State workers may soon see paychecks

House OKs spending bill

HARRISBURG — It's not a done deal, but tens of thousands of state employees soon might be collecting their pay again.

The Pennsylvania House of Representatives voted 187-11 Monday to position a spending bill for a final vote today, although a complete fiscal-year budget is no closer to making it through the politically riven Legislature.

Democratic Gov. Ed Rendell said he will use his line-item veto authority to pare billions of dollars from a GOP-sponsored budget bill that passed the Senate three months ago. Estimates of how much spending the governor would leave in place have ranged from $4 billion to $7 billion, dramatically less than the 2008-09 enacted state budget of $28.3 billion.

The measure to pay state workers could pass the House and be sent to Rendell by today. Rendell spokesman Ken Snyder said the governor might sign the budget on Wednesday, after which it would take about six days to pay workers.

"We view it as a vehicle to pay state employees and get them out of the crossfire of the budget impasse, while funding some basic government services," Snyder said. "The differences that exist are real and remain unresolved."

Republicans had urged Democrats to join them in voting for an alternative version of the legislation, which would have spent $27.3 billion to operate the state and its programs for the entire fiscal year.

"This isn't just about state workers," said Rep. John Maher, R-Allegheny. "It's also about the people that pay the state workers, the state taxpayers. They deserve for you to stand up for them and pass a bona fide budget."

The Democratic-controlled House also voted 103-95 to reject an alternative Republican budget, with Rep. Dennis O'Brien, R-Philadelphia, the only vote across party lines.

Today's floor debate began with uncertainty about whether a third alternative would be considered — a bill developed by conservative "Blue Dog" Democrats with Republican help.

Rep. Nick Kotik, D-Allegheny, withdrew that amendment after Democratic leaders promised to abandon a proposed increase in the personal income tax Rendell supports.

It was a last-minute change of heart: Less than an hour before the session started, Kotik said he stood by his initiative as he entered a meeting with party leaders.

Speaker Keith McCall, D-Carbon, said the proposed 16 percent income tax increase had been off the table in negotiations for some time, although that position had not been acknowledged publicly.

"It really has not been a matter of discussion for well over a month," McCall said.

House Minority Leader Sam Smith, R-Jefferson, said the Blue Dogs had been intimidated into backing off.

"Their leaders scared them back out of sight," Smith said.

Senate Majority Leader Dominic Pileggi, R-Delaware, called ruling out an income tax hike "a positive development" but cautioned that other revenue issues were unresolved.

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