Senate, House Leaders Announce Agreement On Budget Framework

Leaders from the Senate Republican, House Democratic, and Senate Democratic caucuses said they have reached an agreement on a budget framework that calls for the adoption of a $27.945 billion spending plan with no broad-based tax increases.
It uses a combination of one-time revenues and recurring revenues to produce a balanced budget for 2009-10 which maintains adequate funding for core government services and provides key investments in basic education.
The budget revenue projections include an anticipated $100 million by leasing more state land for Marcellus Shale drilling, specifically $143 million will be transferred from the DCNR Oil and Gas Lease Fund to fill the 2009-10 budget gap, plus an additional $125 million transfer for 2010-11.
Among the revenue sources included in the plan are a slowdown in the phase-out of the Capital Stock and Franchise Tax, the introduction of table games at Pennsylvania’s casinos, and a 25-cent per pack increase in the cigarette tax.
The agreement also taps the state’s Rainy Day Fund and will transfer an existing surplus in the Health Care Provider Retention Account to the General Fund.
Work will continue through the weekend to draft the legislation necessary to enact this agreement and determine how specific line items will be funded. Leaders anticipate a meeting of the Budget Conference Committee on Monday to put the agreement in print. The plan could be voted on in both the House and the Senate as early as next week. Follow on bills to authorize table games and casinos will take more time.
Senate and House Leaders, when asked what if the Governor comes in with his own suggestions for changes or spending more money than the framework, said, "This is the agreement."
The key players attending included: Lt. Gov. Joe Scarnati (R-Jefferson), Speaker of the House Keith McCall (D-Carbon), Senate Majority Leader Dominic Pileggi (R-Delaware), Senate Democratic Leader Robert Mellow (D-Lackawanna), House Majority Leader Todd Eachus (D-Luzerne), Senate Appropriations Majority Chairman Jake Corman (R-Centre), Senate Democratic Appropriations Chairman Jay Costa (D-Allegheny), and House Majority Appropriations Chairman Dwight Evans (D-Philadelphia).
Gov. Rendell and House Republicans were not there.