June 26th, 2008

Today the Allentown Morning Call reported that legislators and Governor Rendell are reaching a “framework” for the final budget deal, and are “cautiously optimistic” they can have the plan by early next week.

Yesterday, the negotiators spent most of the day in Senate Majority Leader Dominic Pileggi’s office, while reporters waited outside.  Those involved in the negotiations said the day focused on Rendell’s energy conservation initiatives, infrastructure, and just how much money will be available to spend. 

The biggest problem to work out is that Rendell’s budget was relying on a half a billion dollar surplus, which is now sliced in half because of the slowing economy.  Democrats have proposed to make up for the other half with the Rainy Day fund, while Republicans don’t agree.  After yesterdays negotiations, Senate Appropriations Committee Chairman Gibson Armstrong (R-Lancaster) has said that the rainy day fund is now off the table.