Rendell on latest budget plan: Where’s the revenue?

Gov. Rendell said today that the fiscal spending plan legislative leaders gave him late last night is "a step in the right direction" but added that it still doesn't contain enough new revenue sources needed to balance the budget.

Speaking after attending a women's conference at the Pennsylvania Convention Center, Rendell said the state is "facing two tsunamis" down the road when billions in federal stimulus dollars and other funding dries up.

"We have to have revenue, recurring revenue," Rendell said, adding that if legislative leaders came up with additional funding sources the budget stalemate "could be settled tonight."

Those comments were tamer than ones he gave just hours before.

At a stop in Bucks County, he told reporters he was still holding out hope that legislative leaders would "get real and understand that this can't be a totally painless process and put in the type of recurring revenue and the amount of recurring revenue that will balance this year's and next year's budget."

"I'm still hopeful that will occur. But the plan they submitted last night doesn't come close."

Leaders of three of the four legislative caucus met for hours yesterday before forwarding the governor another budget proposal around midnight. Neither Rendell nor his senior aides were in on the talks.

The newest proposal revises one from last week that called for nearly $28 billion in spending, increased business and cigarette taxes and the authorization of table games at Pennsylvania casinos.

Rendell had said he would veto that plan, in large part because it was built on "phony" revenue projections.

Rendell's comments today about the new plan drew a rebuke from Senate Republicans who control the upper chamber.

"It is time for the governor to return to Harrisburg and engage in serious, face-to-face negotiations with legislative leaders," said Erik Arneson, spokesman for Senate Majority Leader Dominic Pileggi (R., Delaware).

"Over the past couple of days, Gov. Rendell has appeared on the Dr. Phil show to discuss Michael Vick, on the Rachel Maddow Show to discuss President Obama's health care plan, and at an event with the U.S. energy secretary," he added. "The one thing he has not done is discuss the state budget with legislative leaders.

"This budget is 79 days late, and the governor needs to set aside his personal appearances to take part in face-to-face negotiations."

Pennsylvania is the only state without a complete budget on the books for this fiscal year, which began July 1.