July 20th, 2009

Senate Republicans say they will  introduce an amendment to cut the House’s budget from $29.1 billion to $27.4 billion, using one time revenue sources such as tax amnesty and the Rainy Day Fund to balance revenue with spending, according to The Patriot-News.

If the Senate introduces this amendment and passes it on the floor today the budget will return back to the House, where it is likely to get voted down.  This will force more direct negotiation talks.

Meanwhile, Rendell’s top negotiator Steve Crawford says that the Administration is troubled by Senate Leaders unresponsiveness and unwillingness to negotiate.

“The response was: ‘It’s too early,’” Crawford said. He added, “I think they look at this more as a political opportunity than as a fiscal crisis.”

Pileggi’s spokesman Erik Arneson said in an e-mail Sunday that his boss has never refused to negotiate.

“However, we are not willing to discuss the massive tax hike which would be necessary to fund the governor’s proposed spending plan. … I suspect that is the real source of frustration,” Arneson said.