Pa. legislators leave Capitol with no deal on how to pay for budget

HARRISBURG - The Republican-controlled House and Senate left the Capitol building Friday - possibly for the entire holiday weekend - without having resolved how they are going to pay for the $31.5 billion budget they have sent to Gov. Wolf.

After hours of closed-door talks, leaders in the chambers sent their members home, a sign that they are still wrangling among themselves and with the Democratic governor over how much in new revenue is necessary - and what taxes are needed to raise it - to bolster the spending plan they approved with impressive majorities earlier in the week.

Although no one appeared panicked that talks were breaking down Friday afternoon, several officials expressed concern about allowing rank-and-file legislators to return to their districts.

"The danger is losing the momentum that has been building over the last few days for a bipartisan, consensus solution," said Bill Patton, spokesman for the House Democrats.

It was not immediately clear when leaders, who said that they would continue talking Friday night and Saturday, might ask their members to return.

Talks Friday evidently stalled over the question of whether to resurrect a tax that would be passed on to natural-gas consumers. The tax is supported by many in the administration as well as some senators, but has little traction among House Republicans.

"We don't have the votes for it," House Majority Leader Dave Reed (R., Indiana) said. "Folks can talk about it all they want, but it's just not realistic."

Earlier in the day, Senate Majority Leader Jake Corman (R., Centre) was more diplomatic about the status of negotiations: "We're working through it. We're agreeing on some things. We've got some ways to go on some other things."

On Thursday, with hours left in the old fiscal year, legislators approved a plan that would spend about 5 percent more than last year's $30 billion budget, with much of the increase driven by spending on pensions, prisons, human services and education.

The plan would boost state aid for K-12 classroom education by $200 million, with an additional $30 million for early childhood education, $20 million for special education, and $39 million for higher education.

Although Wolf said he would support it, he made it clear he would not sign the bill without first identifying the revenue the state will use to pay for it. In a concession to Republicans, he has backed away from his desire to use hikes in the personal income or sales taxes to fund new education spending or other programs.

The House has proposed a plan that Republican leaders say would raise about $1 billion.

That plan would legalize online gambling and expand slot machines to airports and offtrack betting parlors; hike taxes on cigarettes and other tobacco products; and institute a tax-amnesty program. The fourth component of their revenue package, making wine accessible at supermarkets and other venues not run by the Liquor Control Board, has been signed into law.

Senators have expressed misgivings over the House's gambling and tobacco proposals, and have also questioned whether the House's revenue projections are realistic.

And although the so-called gross receipts tax on natural gas is not beloved by either the Wolf administration or Republican Senate leaders, it does raise serious money: Some revenue projections have it bringing in about $500 million.

The tax, which was rescinded under Gov. Tom Ridge, is levied on natural gas companies but passed along to households and businesses that use natural gas. About half the households in the state use natural gas.

acouloumbis@phillynews.com

717-787-5934 @AngelasInk