PA Budget Impasse Ends

Pennsylvania's budget stalemate finally comes to an end.

Late Friday night, Governor Ed Rendell announced they have reached a deal on a nearly 28-billion-dollar spending plan. Fox 29's Robin Taylor has the highlights.

The partisan bickering that held up Pennsylvania's budget for 80 days has finally ended.

"I think we can say with a great deal of satisfaction that we have a budget agreement," said Governor Ed Rendell, (D) Pennsylvania.

The 27.9-billion dollar spending plan is leaner than last year, trimming 400-million dollars from the budget, yet schools remain a top priority. In fact, Gov. Rendell got his way, with a 300-million dollar increase in spending for education.

"I think it's fair to say that Pennsylvania is one of the few states in this difficult, horrible economic recession that actually is increasing funding for education," said Rendell.

The deal avoids any major tax increases, although the sales tax will be extended theater or concert tickets. Business taxes are also going up. And smokers aren't going to like this. The price of a pack of cigarettes is going up 25-cents.

"They need to find something else to tax because cigarettes shouldn't be taxed that much," said Josh Flanders, a smoker, who lives in Philadelphia.

Casinos will be expanding from just slots. The deal legalizes table games such as blackjack and poker.

Pennsylvania is the only state in the nation still operating under an incomplete budget. The impasse has wreaked havoc on day cares and other agencies that rely heavily on state subsidies.

"I think that this horrible time is over and we can begin to rebuild," said Shelly Yanoff, the Executive Director of Public Citizens for Children and Youth. She hopes the money will start flowing again soon.

"We were worried that there would be an agreement reached without supporting education, without supporting children's health care or child care."

The governor insists economic development, health care and education remain top priorities in this agreement.

Lawmakers still need to vote on the final bill. If all goes well, the budget will be ready for the Governor to sign in a week or two.

Many details of the plan are still under wraps, and final spending on some programs still needs to be determined, but legislative leaders have agreed on the big picture.