HARRISBURG -
Another year, another state budget stalemate. But this year is shaping up to be different. With both sides divided over how to fix the state's money woes, it could be weeks, if not months, until a deal is reached.
Things are quiet this morning at the state capitol and during budget negotiations, that is not a good thing. The two sides are still $2 billion apart as the stalemate enters day two. However, the bigger problem is, the two sides are ideologically miles apart on how to fix the problem.
"There is no way that we can have a balanced budget by just cuts alone," said Governor Ed Rendell.
"Yeah, we can pass a budget without raising taxes," said House Republican Leader Sam Smith.
It appears the state budget stalemate will continue, at least through the July 4 long weekend. After nine hours of meetings over the past two days, both sides still standing firm on their promises.
"There is no way we are going to be able to have a Constitutionally passed signed budget without revenue increases," Rendell said.
"We'll tighten our belts, do it efficiently and make sure we're not hurting people by increasing their taxes," said House Republican Whip Mike Turzai.
The two sides still remain about $2 billion apart, trying to fill a revenue shortfall of over $3 billion. The question, how to do it. The Governor wants to increase the state's personal income tax by 16 percent. Republicans say no way. In fact, they held this rally yesterday in the capitol, signing a billboard saying they will not vote for a tax increase. Republican legislators say, this is the time to make the hard decisions.
"We just need to get down to business, pass a budget and deal with good public policy and not deal with the fact that this is a crisis and we just need to pass anything to get out of here," said Representative Sheryl Delozier, (R) Cumberland County.
State employees will remain at work during this process, however they could see decreased paychecks starting July 17 if a budget isn't passed.
Certainly no deal looks imminent. Talks are scheduled to resume again on Monday, legislators giving themselves the long 4th of July weekend to mull things over.
In the mean time, the state will delay payments to vendors as they have lost the authority to pay for many things.
Things are quiet this morning at the state capitol and during budget negotiations, that is not a good thing. The two sides are still $2 billion apart as the stalemate enters day two. However, the bigger problem is, the two sides are ideologically miles apart on how to fix the problem.
"There is no way that we can have a balanced budget by just cuts alone," said Governor Ed Rendell.
"Yeah, we can pass a budget without raising taxes," said House Republican Leader Sam Smith.
It appears the state budget stalemate will continue, at least through the July 4 long weekend. After nine hours of meetings over the past two days, both sides still standing firm on their promises.
"There is no way we are going to be able to have a Constitutionally passed signed budget without revenue increases," Rendell said.
"We'll tighten our belts, do it efficiently and make sure we're not hurting people by increasing their taxes," said House Republican Whip Mike Turzai.
The two sides still remain about $2 billion apart, trying to fill a revenue shortfall of over $3 billion. The question, how to do it. The Governor wants to increase the state's personal income tax by 16 percent. Republicans say no way. In fact, they held this rally yesterday in the capitol, signing a billboard saying they will not vote for a tax increase. Republican legislators say, this is the time to make the hard decisions.
"We just need to get down to business, pass a budget and deal with good public policy and not deal with the fact that this is a crisis and we just need to pass anything to get out of here," said Representative Sheryl Delozier, (R) Cumberland County.
State employees will remain at work during this process, however they could see decreased paychecks starting July 17 if a budget isn't passed.
Certainly no deal looks imminent. Talks are scheduled to resume again on Monday, legislators giving themselves the long 4th of July weekend to mull things over.
In the mean time, the state will delay payments to vendors as they have lost the authority to pay for many things.
