Pa. Dem Gov. Wolf Feuds With Republicans Over 'Garbage' Budget

Pennsylvania Governor Tom Wolf on Tuesday rejected a budget proposed by Republican-led lawmakers, calling it "garbage," but allowed spending on education and some services to be funded to avoid a threatened closure of schools in the state.

Pennsylvania has been without a budget for six months due to a feud between Wolf, a Democrat who took office at the start of the year, and the Republican-controlled legislature. The impasse has led to credit downgrades and threatened basic services.

"I am expressing the outrage that all of us should feel about the garbage the Republican legislative leaders have tried to dump on us," said a visibly angry Wolf. "This budget is wrong for Pennsylvania, and the legislature, the folks we elected to serve us, need to own up to this."

Wolf said the Republican proposal cut school spending by $95 million.

Lawmakers are fighting over additional education spending Wolf wants to fund with income tax hikes and a new tax on natural gas extraction. Republicans balked at those measures and want reform to the state's public pension system.

The line-item veto exercised by the governor will allow spending of around $23.3 billion, compared with the $30.3 billion that was in the Republicans' budget proposal.

That money will go toward education funding, state corrections institutions and medical assistance, Wolf said.

The move buys a reprieve for state schools that are running low on funds. Philadelphia, the state's largest school district, said it would have to shut its doors in late January if the budget stalemate is not resolved.

School districts across the state have had to borrow at least $900 million in total to stay open.

Wolf called on lawmakers to return to Harrisburg to pass the $30.8 billion plan he wanted. That budget contains an additional $377 million in education funding.

"It's imperative that we get back together," said Senate Majority Leader Jake Corman, adding that he hopes to return to negotiations with Wolf in the "next day or two."

The higher budget was passed by the Senate and twice by the House before House Speaker Mike Turzai, facing a conservative rebellion, sent members home before they could vote. The Senate then sent Woolf the $30.3 billion budget approved by the House.

The state and its agencies have faced a number of credit downgrades this year. Fitch downgraded Pennsylvania to 'AA-minus' from 'AA' in September. (Reporting by David DeKok in Harrisburg; Writing by Edward Krudy; Editing by Bernadette Baum and Dan Grebler)