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Pa. lawmakers, Rendell hold brief session on budget

HARRISBURG — The latest round of budget talks between Gov. Ed Rendell and top legislative leaders ended almost as soon as they resumed on Monday, dashing hopes of a quick deal that would keep checks flowing to government workers, contractors and others who depend on the state's ability to spend money.

The late afternoon meeting in the Capitol broke up after about 20 minutes, and there was no indication that progress had been made.

"We're moving the process," Rendell said afterward. "That's the good news."

The bad news was that nearly a week after the state's fiscal year closed, the politicians who have to negotiate a 2009-10 spending plan remain about $2 billion apart, and with opposing ideas about the solution.

Pennsylvania ended the year with a $3.3 billion deficit, and faces a similar shortfall for 2009-10. Rendell and his Democratic allies in the Legislature are proposing a mixture of program cuts and tax increases, while Republicans have dug in their heels in opposition to adding new taxes or expanding existing ones.

Senate President Joe Scarnati, R-Jefferson, said a three-year, 16 percent income tax proposal that Rendell has floated had to be taken off the table in order for progress to be made.

"Our differences continue to be the same," he said. "I'm not going to negotiate a tax increase in the back room of an office here."

Rendell came into the meeting with an offer of another $72 million in cuts, which Republican leaders said they would examine before they scheduled a follow-up meeting.

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