After contentious delay, budget signed

HARRISBURG - More than two weeks into the new fiscal year, the state of Pennsylvania at last has a spending plan.

Gov. Rendell yesterday signed the 2007-08 state budget, ending a bitter struggle over the $27.2 billion fiscal blueprint that resulted in the first-ever furlough of government workers.

With a passel of tiny children at his feet, Rendell touted historic increases in early childhood education funding and bemoaned the delays in reaching a deal with the Republicans who control the Senate.

"Obviously it took too long to sign this budget, there were a lot of ups and downs in the process, too much wrangling and too much partisanship," said Rendell at a ceremony in his Capitol reception room. ". . . The good news for Pennsylvania is, notwithstanding that, this is a terrific budget."

Rendell said the end result was worth the exhaustive debate, the partial government shutdown and the one-day furloughs because the budget package addresses pressing needs across the state, from mass transit and highway funding to health care and job training.

"I don't apologize for spending to meet needs," said Rendell. "I think that's important."

Senate Republicans with whom Rendell waged his toughest budget war since he took office in 2003 said they were satisfied with the budget because it holds down spending and includes no new broad-based taxes.

"It's a good budget," said Erik Arneson, spokesman for Senate Majority Leader Dominic Pileggi (R., Delaware). "It makes needed investments in key areas, but brings growth of state spending down to reasonable level. Barring some sort of economic downturn, we are well positioned next year to avoid tax increase again."

The budget increases total state general-fund spending by 3.2 percent, the lowest rate since Rendell took office. The increase is 4.4 percent counting $300 million in mass transit money being diverted into a special fund.

Rendell said he was pleased several bills related to his "Prescription for Pennsylvania" health-care plan won legislative approval, including an initiative that requires hospitals to track hospital-acquired infections and another that increases the ability of nurse practitioners, dental hygienists and others to provide medical services.

But he said he wants the legislature to pass other elements of his health-care plan when lawmakers return in the fall, including a statewide smoking ban and his proposed $500 million Jonas Salk biosciences research fund.

Rendell called for a special session in September to address alternative energy proposals that got hung up in the budget process, including increasing investment in renewable energy and conservation and setting standards for the use of renewable fuels in vehicles.

He also asked the General Assembly to come up with a solution to the nearly bankrupt hazardous waste cleanup fund. A plan to shore up the cleanup fund with more than $40 million from a land-preservation fund was put on hold, and Rendell's proposal to raise landfill dumping fees was rejected by the General Assembly as a tax on business.

Arneson said the top priority for Pileggi this fall is revising the state's open records law to expand public access to government records at every level.

House Majority Leader Bill DeWeese (D., Greene) said Democrats would focus on the property-tax issue in the fall. He said they also would consider bills dealing with open records and campaign finance.

House Speaker Dennis O'Brien (R., Phila.), who secured $10 million in new funding to help adults with autism, said state businesses would benefit from the continuation of a long-term phasing out of the Capital Stock and Franchise Tax.

Rep. Dwight Evans (D., Phila.), chairman of the House Appropriations Committee, hailed the budget package as a victory for Philadelphia because it pours millions into mass transit, spurs the expansion of the Pennsylvania Convention Center and helps stabilize social services programs.

"This is the best investment budget I've seen in 27 years," said Evans.

The budget was passed by both chambers Monday, more than two weeks after the June 30 deadline that marks the end of the fiscal year. The impasse with Senate Republicans led to the closure of parts and government offices and a one-day furlough of about 24,000 state workers.

Before breaking for the summer, the House gave final approval yesterday to budget companion bills authorizing transportation and education funding.

The landmark budget marathon officially ended before nightfall with House lawmakers bursting into a chorus of "God Bless America."

For details of the 2007-08 budget, go to http://go.philly.com/07budgetEndText