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Lawmakers, Rendell near agreement on state budget

By Alison Hawkes For The 2 min read

HARRISBURG – Gov. Ed Rendell announced late Monday night that he and legislative leaders are just $10 million away from closing a deal on a $24 billion budget that restores about half the proposed benefit cuts to Medicaid. The deal calls for doing away with some of the proposed caps on hospital visits and prescription drugs for women and the chronically ill, and doesn’t impose any extra co-pays for medical treatment and drugs, Rendell said.

Restoration of funding toward the public health-care program for the poor and disabled was made possible by increased revenue projections from a growing economy, Rendell said.

“When you put this package together, this is terrific for the most vulnerable citizens,” Rendell said. “It’s a good budget in a difficult year.”

The pending deal came at the end of lengthy negotiations that stretched well past the June 30 deadline. Lawmakers and staff spent the weekend into the Fourth of July debating bills on the chamber floors as fireworks erupted over the nearby Susquehanna River.

Party leadership from both sides confirmed a deal was imminent by Tuesday morning.

“We made a whole lot of progress toward an agreement tonight,” said House Minority Whip Michael Veon (D-Beaver), walking out of budget negotiations in the Capitol. “I’m very confident we will come to an agreement late tonight or tomorrow.”

“I think we’re in good shape,” said Senate President Pro Tempore Robert Jubelirer. “I’m not going to tell you everyone’s singing Kum-ba-ya yet, but we’re getting closer.”

Among the pieces that have come together is the $625 million Growing Greener environmental bond, which will include a portion of block grants to the counties, as Republicans wanted. Rendell said his foundation funding, which elevates all Pennsylvania school districts to $8,500 per pupil spending every year, is in the budget. Head Start funding is intact, and extra funding to hire state police is on the books.

There was still no word on a legislative pay raise, though Rendell said he would consider one with a requisite tie-in to a federal pay scale for public officials in similar positions, with judges and the executive branch included. As for the $10 million left on the table, Rendell said he’s asked the four caucuses to find a way to eliminate that spending.

Alison Hawkes can be reached at 717-705-6330 or ahawkes@calkins-media.com.

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