Pa. lawmakers outline deal to end budget impasse

HARRISBURG (AP) — Pennsylvania legislative leaders outlined the broad terms of a state budget deal today that includes higher business and cigarette taxes, as well as revenue from legalized table games in casinos and more drilling for gas in state forests.

They acknowledged, however, that many details remained to be worked out. Meanwhile, Gov. Ed Rendell threatened a veto, and his chief of staff warned that the plan’s revenue assumptions are too rosy.

Leaders of both parties in the Senate and of the House Democratic caucus described the nearly $28 billion budget as a compromise that draws $2.1 billion from one-time sources such as the state’s “rainy day” contingency fund but also addresses longer-term revenue needs.

“People on both extremes of points of view surrounding this budget will find fault in what we’re agreeing to today, but the people of Pennsylvania have waited long enough for a budget, and this represents a fair middle ground,” said Senate Majority Leader Dominic Pileggi, R-Delaware.