Pa. budget talks narrow gap but deal still elusive

HARRISBURG, Pa. (AP) — High-level talks on Pennsylvania’s state budget continued today, with legislative leaders and Gov. Ed Rendell sounding encouraged about progress toward a deal with a week to go before the new fiscal year begins.

Leaders huddled behind closed doors in the morning to consider a $28.2 billion proposal by House Democrats, and then again with Rendell in the afternoon.

The Democrats’ latest effort was $700 million more than Senate Republicans had put on the table a day earlier, and unlike the GOP plan would raise new revenues and boost the basic subsidy for public schools by $300 million.

Senate President Joe Scarnati, R-Jefferson, put the odds at 80 percent that a deal would be struck before July 1. He said talks had reached a critical stage.