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Gov. Rendell and top lawmakers late Monday night announced an end to their budget standoff that forced the furloughs of about 24,000 public employees and the partial shutdown of state government.
Flanked by about two dozen Democrats from the House and Senate, Rendell described the spending package as "a good budget for all."
"This is an agreement where all sides can say they have achieved some of their goals," the governor said at a news conference shortly after 11 p.m. "There has to be some give and take, and there has to be some victories and some goals not achieved."
Under the deal, all of the state employees whom the administration classified as "noncritical" will return to work Tuesday, and Rendell indicated that they would likely be paid for their one-day furlough.
"If there is a way they can be made whole, they will be made whole," Rendell said.
Nine days past the June 30 deadline for a new budget, Rendell and legislators agreed on the framework of a $27.3 billion spending plan that holds the line on taxes but increases costs over the previous year by more than 4 percent.
Senate and House GOP leaders said they were pleased that the deal maintains their core principle of keeping the rate of spending down.
"We're on our way. The people of Pennsylvania won with this budget. There are no new taxes and spending limits," said Rep. Mario Civera (R., Delaware), the ranking Republican on the House Appropriations Committee.
Sen. Gib Armstrong (R., Lancaster), chairman of the Senate Appropriations Committee, said: "Republicans stood fast. We achieved something that in February I didn't think was possible."
Although the budget is not officially in place, Rendell said he was satisfied that enough progress was made to call off the furloughs and reopen government. Lawmakers could send the fiscal blueprint to Rendell by the end of the week.
House and Senate leaders also reached an accord on another Rendell priority: a transportation plan that over the next decade would provide $900 million annually in new funding for highways and mass-transit agencies through bonds and tolls on Interstate 80.
Rendell called it a "historic transportation agreement" that devotes more money than ever before for road and bridge projects and for struggling mass-transit agencies, including SEPTA, that are facing fare hikes and service cuts.
Under the deal, funding would be set aside for the expansion of the Convention Center and a new arena for the Pittsburgh Penguins of the National Hockey League.
The two sides, however, could not come to terms on the more controversial aspects of Rendell's energy-independence strategy. But in a compromise, legislators have agreed to hold a special session in the fall to deal with Rendell's proposals, which include the expansion of alternative energy use.
"This is a commonsense document that genuinely improves our commonwealth," said House Majority Leader Bill DeWeese (D., Greene).
Rep. Dwight Evans (D., Phila.), chairman of the House Appropriations Committee, called the deal a product of "a long fight."
"But I'm satisfied that the Democrats achieved what we set out to achieve," he added.
Rendell also secured agreements on several of his health-care initiatives: allowing nurse practitioners and other professionals to perform more medical procedures, and new policies to reduce hospital-acquired infections. However, two other health-related goals remain unfinished.
There remains disagreement in the House and Senate over the governor's push for a statewide smoking ban and his $500 million biosciences research fund. Rendell said the Senate had agreed to vote on the so-called Jonas Salk Legacy Fund in the fall.
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