Road to Pa. budget resolution remains long

HARRISBURG - Late last week, Gov. Wolf quietly made a 90-minute road trip to the State College area to talk to Republican legislative leaders about the budget impasse.

There were no cameras or fanfare - and, unlike in the last few months, no rhetoric or sweeping public pronouncements in the aftermath.

It was the second time in three days the two sides seemed to give more than perfunctory face time to each other. Yet each meeting ended the same way: without an agreement to keep government running.

As their stalemate hurtles into its fourth week, both sides acknowledge the impasse will soon land its first financial blow.

Within days, state aid will run out for social service organizations that provide everything from drug-addiction counseling to food for the homeless.

And the chances of a swift resolution look slim.

As of Friday, no talks were scheduled for the coming week, and many legislators, including some key leaders, have planned vacations in early August. The House of Representatives isn't scheduled to return to the Capitol until Aug. 25, the Senate possibly later.

Wolf says his administration is taking steps to lessen the impact of the stalemate, but he acknowledged last week that social service organizations may have to make contingency plans, including taking out loans.

"I want to make sure that the disruption is as little as possible, so I'll continue to work on that," the governor said Friday in an interview on KQV-AM radio in Pittsburgh.

Wolf also defended the need to stick to his principles: "In the long run, all of us, including the social services agencies, have a vested interest in making sure we do the right thing for Pennsylvania. And that's what I'm focused on."

For Wolf, that means a nearly $30 billion budget that spends hundreds of millions more on public education and takes steps to reduce school districts' reliance on the oft-maligned property tax to fund schools. The governor wants a new tax on natural gas drillers, as well as an increase in the sales and personal income tax to fund a massive, statewide property-tax relief proposal.

For Republicans, doing the right thing means not raising taxes. They instead have advocated for generating new revenue through privatizing the state-run liquor stores and garnering savings from reining in the burgeoning cost of public employee pensions.

Since the July 1 start of the new fiscal year, negotiating sessions have been held only once or twice a week between the Democratic governor and the Republicans who control both legislative chambers. Some have been short on substance - simply gatherings to plan future negotiating sessions.

Each side has accused the other of being unwilling to compromise, and been aided by outside groups in an increasingly sharp public relations war.

In the meantime, officials at social service nonprofits have been fretting about how to make ends meet.

The last protracted impasse - in 2009 under Gov. Ed Rendell - nearly paralyzed them. Some providers drew down on cash reserves or took out personal loans to stay open; others were forced to lay off employees and turn away people seeking their services.

"We are talking about basic needs, kids in foster care, adoption services, funding that supports treatment for the severely mentally ill, delinquent kids, substance-abuse addiction, supportive housing and after-school programming," Samantha Balbier, executive director of the Greater Pittsburgh Nonprofit Partnership (GPNP), said in a statement.

Added Susan Rauscher, chair of the GPNP's Public Policy Committee: "It is the job of the legislature and this administration to work on passing a budget for the citizens of this state. This is not the time to be going on vacation."

Nonprofits won't be the only ones hurt. School districts receive an infusion of state aid at the end of August. Some districts, like Philadelphia and Chester Upland, rely on that money for an on-time opening.

State officials have publicly shied away from putting a timetable on their negotiations, but many privately say they hope to strike a deal before schools open.

And though it was fleeting, a thaw seemed to be occurring last week.

On Tuesday, Wolf and Republicans met for nearly three hours behind closed doors - even ordering pizza - for a line-by-line review of the budget proposals.

"We had a productive discussion," House Speaker Mike Turzai (R., Allegheny) said when he emerged from the meeting. "We really rolled up our sleeves . . . and we were able to establish some parameters. We want to get an agreement."

Wolf's Thursday trip took him to Bellefonte, near State College, to meet Senate Majority Leader Jake Corman (R., Centre) and House Majority Leader Dave Reed (R., Indiana).

The location was selected for convenience - budget talks are usually held in the Capitol - because Republicans leaders couldn't make it to Harrisburg that day. But the choice was also symbolic, as Bellefonte is Corman's home district.

The three men met for about two hours.

"Was there movement on any particular issue? No. But people were at least encouraged afterward," said Jennifer Kocher, spokeswoman for Senate Republicans.

She added: "It definitely was a move forward."

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