August 28th, 2009

Readers, I can only bring myself to give you an update every other day from now on.   Unless, of course, a major breakthrough occurs. (Thought I’d throw in a little humor with that last sentence.)

Here’s the latest, working our way up from Thursday morning to today.

The legislators most recently in the news for discussing the budget include Rep. Phillips and Rep. Hanna.

Yesterday, the Daily Item reported that Rep. Merle Phillips (R) said that the two budget sides were inching closer to agreeing on a spending number.  Wrote the paper: 

     “Phillips explained that once the two sides settle on the amount of the budget, things will fall into place quickly. Legislators are on a six-hour call, he said, which means they could be summoned to Harrisburg at any time to act on the new budget.

     “It could be tomorrow, or it could be Friday,” Phillips said on Wednesday.”

Rep. Mike Hanna (D) also appeared optimistic earlier this week, reportedly saying that a budget could happen by the end of this week.  Well, we know now that that is CLEARLY not happening, but here is what the Express reported:

     “Hanna said he has heard the two sides have come to an agreement between a budget proposed by Gov. Ed Rendell and Republican senators, led by Sen. Jake Corman, R-Bellefonte.

     He said it appears the two sides have agreed to compromise at a $28 billion spending plan, roughly in the middle of what each side had proposed.

     “That’s the sad part,” Hanna said. “If you ask the average person what should be done, most would say compromise toward the middle and that’s where it’s going to end up.”

     Unfortunately, the two sides have not yet agreed on how to pay for the spending plan, but Rendell’s original proposal to increase the state’s personal income tax is essentially off the table, Hanna said.

     “There will be no personal tax increase,” he said.

     Hanna noted the budget will likely include myriad cuts that will cause hardships for many, but he is hopeful the economy will turn around and those cuts can be reinstated in the near future.”

Yesterday, WGAL-TV reported that Rendell said the “mood” over the budget was “changing.”  At a press conference at the Capitol yesterday, Rendell said that legislators have a “new sense of urgency” [Ed. note: HA!] , that he had a private meeting with Sen. Scarnati, and that the Ds and Rs are better understanding each other now.  He also said that both sides are “recognizing the facts,” whatever those facts are.

HOWEVER!– he also said not to expect a budget this week, and he was right.  Which brings us to the latest news, reported by the Patriot-News, that…

     “House Democratic leaders said today they are suspending direct negotiations with their Senate Republican counterparts on the state budget after getting a counter-offer from the GOP leaders Wednesday that they described as “insulting.”

     The break in the latest chain of talks likely kills any realistic hope of a completed budget before Labor Day, further jeopardizing operations at an array of social services like homeless shelters, day care and drug and alcohol treatment programs that rely on state aid.

     House Speaker Keith McCall, a Democrat from Carbon County, said the latest break occurred when Senate Republicans presented a plan for new revenues that, in the Democrats’ view, represented no real movement toward a settlement.

     The Democrats said the latest Senate plan set spending at $27.5 billion, and relies too heavily on one-time revenues that will set the state up for a budget catastrophe next year. The Democrats’ spending level is at just under $28 billion.

     “I am angry,” McCall said at an afternoon press conference. “Our list of things that we have given on is substantial… and they’re concession sheet is blank.”

     Senate Majority Leader Dominic Pileggi, R-Delaware County, expressed disappointment at the Democrats’ public reaction shortly after the Democrats’ announcement, and called for both sides to return to the bargaining table.

     “They might not like the results of the negotiations… but that’s a different charge than refusing to negotiate.”

So, would you like to venture a guess as to what they’re doing to address this big stall?  That’s right, they’re reconvening the Treehouse Club.