HARRISBURG– Gov. Edward G. Rendell issued the following statement at the Capitol Saturday regarding progress of state budget negotiations, following a vote by the House of Representatives on Friday night to amend a revenue package that had been agreed to previously by leaders of three legislative caucuses and the administration:
“The bill that passed the House yesterday does not reflect the budget deal that was reached by House leaders with the other caucuses and the administration. Its future is no doubt in serious question in the Senate, and that means it is a step back. It is a step back because we are further away from having a signed budget than advancing the ball.
“It does, however, reflect the collective will of the Democratic House caucus and the members have a right to express their collective will. For many of them, this is the first tax vote they have ever had to cast. And truth be told, the positions they took are positions that are consistent with things I’ve said before. I made clear I didn’t like the tax on arts and culture. I made clear I didn’t think the small games tax made sense, but I was willing to live up to the budget deal that I had set forth. I said I would sign any budget the legislature brought to me that didn’t cut education, health or economic development any further, and balanced this year and next year with enough recurring revenue to do so.
“I didn’t like those two taxes. In addition, the tax on smokeless tobacco was one I proposed in my original budget speech and the severance tax was in my original budget as well. The House Democratic caucus even modified the severance tax proposal to be consistent with what I have been saying the last month, which is we should have a severance tax which begins next fiscal year, and the bill they passed has that severance tax starting in July 2010.
“So I understand what the members have done. I understand the point that they were insisting on making yesterday. But doing the budget is not about making points. It’s not about setting out markers. It is about compromise, and it’s about shared pain.
“I believe we are still very, very close to having a budget. I know some analysts have said this puts us back to square one. I disagree. I think the framework for a budget deal is still there. I think we are very close. I intend to talk to Senator Pileggi and Senator Scarnati sometime tomorrow and talk to House Democratic and Senate Democratic leaders subsequent to that. I believe if we put aside our personal preferences and work with one goal in mind – what’s good for the people of Pennsylvania –we can get a budget done, and we can get it done very soon.”