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Wolf says he'll veto GOP interim budget

HARRISBURG - An angry Gov. Wolf said Wednesday he would veto the temporary budget Republicans are proposing, calling it "a very cynical, hypocritical attempt" to solve the problems the two sides are having in reaching a deal.

HARRISBURG - An angry Gov. Wolf said Wednesday he would veto the temporary budget Republicans are proposing, calling it "a very cynical, hypocritical attempt" to solve the problems the two sides are having in reaching a deal.

Wolf, who met with leaders of the GOP-controlled legislature earlier in the day, said he offered Republicans two proposals for issues important to them - reforming the public liquor and pension systems - and "got nothing" in return.

The Democratic governor also said it was "ridiculous" for Republicans to say they want a stopgap, or interim, budget because they are worried about state funding drying up for social service nonprofit organizations.

"They are not," Wolf said. "We are the ones . . . proposing to actually provide long-term and adequate and fair funding for human services.

"This stopgap [plan] is not that. This stopgap is a poke in the eye, and I'm treating it as such, and I'm going to veto it," he told reporters Wednesday afternoon.

Wolf's comments, on the day the state Senate resumed its legislative session, signaled a new hurdle in negotiations and sent the message that the two sides are no closer to a deal despite months of talks.

The state has been operating without a budget since July 1, holding up payments to counties, public schools, and social service nonprofits that rely on state aid.

The split between Wolf and Republicans is over how much to spend and whether to raise taxes. Wolf has advocated for large increases in public education funding and a shift away from property taxes to pay for public schools. To do so, he proposes to increase the state sales and income tax and impose a new tax on natural gas drillers.

The GOP has resisted his plan, pushing instead for savings through changes to the state's public employee pension plans and new revenue by privatizing the state-run liquor system.

Wolf said Wednesday he pitched plans to Republicans on both those subjects. He proposed leasing the wholesale and retail operations of the state's Liquor Control Board. On pensions, he outlined a plan to move new employees into 401(k)-style plans on any income they earn over $75,000.

He said legislative leaders did not make commitments to either.

Senate Majority Leader Jake Corman (R., Centre) said Wednesday he believed a stopgap budget was the best option to quickly release money for schools and providers of social services ranging from drug-addiction treatment to domestic-violence shelters.

"Clearly, we're going to be at least a couple of weeks, if not more, finalizing any agreement we could get to, and we don't think they should be held hostage in the meantime," Corman said.

The $11 billion stopgap measure would give the state authority to spend money through October and would be retroactive to July 1. The plan calls for largely the same funding proposed over the summer in a GOP-authored budget, one that Wolf has already vetoed.

The Senate could approve it as early as Friday, and the House is scheduled to vote on it next week.

acouloumbis@phillynews.com

717-787-5934@AngelasInk