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State Reaches Budget Deal

State Employees Return To Work

Posted: 7:02 am EDT July 10, 2007Updated: 5:51 pm EDT July 10, 2007


1:10 PM UPDATE: Sen. Jay Costa Jr. provided the following statement on the budget agreement:

"With a budget agreement now in place, I am hopeful the General Assembly will act quickly to put all the necessary parts of the budget in place. While I remain disappointed that the General Assembly failed to produce a budget in a timely fashion, I am pleased that the agreed-to budget will hold the line on taxes while providing adequate funding for important government programs, projects and services. I am also confident that when the legislature reconvenes in September, we will act responsibly and aggressively on the remaining issues and challenges Governor Rendell prioritized this year. As I stated on the Senate Floor yesterday, it is imperative that we put partisan posturing aside and work cooperatively on a spending plan that will best serve the needs of the citizens we represent. We now need to carry this spirit of cooperation and compromise in our future efforts. Hopefully, this regretful chapter in our history will serve to remind all legislators of what our true purpose is - and the very real human consequences of putting political interests ahead of our responsibilities to all Pennsylvanians. The time has come for right and wrong to be more important than win and lose."

12:45 PM UPDATE: Channel 11’s Andy Gastmeyer in still in Harrisburg at this hour. He has spoken with Republican State Rep. Mike Turzai and Democratic State Sen. Jim Ferlo and their thoughts are echoing broad feelings on both sides of the aisle for the tentative budget agreement last night. Turzai said he’s actually still considering whether to vote yes on it, but Ferlo says he’s solidly behind the agreement. Andy is also learning more about reaction to the some of the finer points of the agreement and its impact on people who live in Pittsburgh. Andy is returning to WPXI this afternoon and will have the latest on the budget on Channel 11 News starting at 5.


Pennsylvania has a new budget plan, and nearly 24,000 state employees are headed back to work.

State parks and driver's license centers will also be open for business.

The budget total is estimated at more than $27 billion. That's close to what democrats had proposed.

The deal addresses some of Gov. Ed Rendell's health care and energy initiatives.

There are no tax-or-fee increases.

Of course, the budget still requires a vote by the full legislature.

Here's what Rendell had to say when word of the deal came down: “All of our budget priorities that were in the budget that I sent to the legislature have been preserved. As we went through this process, cuts had to be made but those cuts were the choice of the legislature and the administration to reach the goal that we all agreed upon.”

A number of high-priority items are included in the budget.

Those include funding for mass transit and a new arena for the Pittsburgh Penguins. Tolls were also added to several state highways.

The governor also set aside money for alternative energy like windmills.

So what did the one-day furlough cost?

Rendell's Office of Administration said the furlough for nearly 24,000 state workers equaled $3.5 million in lost wages. Rendell said options to lessen the impact are under consideration and will be announced in the coming days.

We will continue to follow the aftermath of the budget deal today in Harrisburg. Channel 11 News reporter Andy Gastmeyer will work to get reaction from local lawmakers. Watch for new details on Channel 11 News.

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