Pa. budget talks resume but consensus distant

Gov. Rendell and lawmakers resumed talks last night on the overdue state budget, but the impasse continues as the meeting broke up after about 20 minutes - their shortest meeting so far.

The governor and the legislature are fighting about a number of issues in the spending plan for fiscal 2009-10, including how to close a $3.3 billion deficit. Rendell offered an additional $72 million in cuts.

Rendell, a Democrat, has proposed a nearly $29 billion budget that includes a mix of cuts and tax increases, including a 16 percent hike in the personal income-tax rate. Republicans, who control the Senate, are pushing a spending plan that calls for reining in spending further and would contain no tax hikes.

For the seventh year in a row, the two sides have missed the July 1 deadline to pass a budget. Those affected by the impasse include tens of thousands of state workers, many of whom will receive their last partial paycheck on July 17. After that, they would not be paid but would still be expected to show up for work. They will be reimbursed back pay once a budget agreement is struck. - Angela Couloumbis and AP