Senate and House Republicans and Gov. Corbett Wednesday announced an agreement on a General Fund spend number-- $27.656 billion, taking the first major step toward resolving their differences over largest portion of the state budget.

This spending cap is about $500 million more than the Governor’s request and almost identical to what Senate and House Republicans have been advocating.

In return, the Governor received a commitment from the Leaders to adopt the $1.65 billion tax credit initiative he proposed to attract the Shell ethane plant to Beaver County.

There is no word yet on whether the Keystone Fund will be restored to the Senate’s level of $19 million or the House proposal of full restoration of all $38 million.  There is also no word yet on whether other environmental funding will be restored.

In addition, there is also apparent agreement on at least some funding increases over the Governor’s budget request--

-- $245 million for higher education restorations;

-- $100 million for K-12 accountability block grant programs;

-- $82 million for county welfare programs, restoring half the funds that were removed; and

-- $25 million for the Educational Improvement Tax Credit.

NewsClips:

Framework For $27.656 Billion Budget Reached

Corbett Agrees To Restore Budget

PA Has A Deal On Budget

Any PA Budget Deal Remains Under Wraps

State Budget Agreement Launches Other Negotiations

Corbett, Lawmakers Reach Deal On $1.65 Billion Shell Tax Break

Corbett’s Tax Breaks For Shell Raises Questions About Jobs

Support For Shell Tax Break In Monaca, Questions On Job Claims

Corbett Launches Public Defense Of Shell Tax Credit

Corbett Lines Up Shell Tax Credit Crew

Shell’s $3.2 Billion Plant Estimated To Create 17,000 Jobs

Big Test For Corbett Looms In Election, Tax Credit

Are Tax Breaks Effective To Reel In Businesses?

Shell Tax Credit Breaks Designed To Be Offset

Op-Ed: Shell Tax Breaks Would Pay Off For PA

Editorial: Corbett’s Shell Tax Break Good Deal For State

6/25/2012