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Lawmakers send GOP budget, agenda to Wolf to await veto

HARRISBURG, Pa. (AP) - A veto awaited a Republican-crafted spending plan that was sent Tuesday to Democratic Gov. Tom Wolf's desk, as the GOP used its huge legislative majorities on the final day of the state government's fiscal year to push through an ambitious agenda.

The nearly $30.2 billion budget bill passed the House and Senate without a single Democratic vote after negotiations between GOP leaders and Wolf stalled in recent weeks.

Lawmakers also sent Wolf a bill to license private companies to take over the marketing, shipment and sale of wine and liquor from the state and a bill to squeeze savings from the large pension systems while ending the traditional pension benefit for future school employees and state workers.

Wolf said Tuesday it was only a question of whether he will veto the entire budget or part of it, as he seeks to force concessions from Republicans on his own agenda.

After a brief meeting with House GOP leaders Tuesday morning, Wolf said both sides "will have some things to talk about tomorrow."

If Wolf rejects the budget in total, it would be the first time that has occurred in Pennsylvania for at least four decades. The state also would lose some of its authority to spend money, including billions of dollars for public schools and social services.

Wolf also opposes Republicans' pension and liquor plans. Democrats, who voted in blocs against both bills, expect Wolf to veto each one.

During four hours of debate Tuesday, Republicans defended their budget bill as a responsible alternative to the multibillion-dollar tax increase sought by Wolf to wipe out a gaping deficit and reverse deep cuts in education made under his Republican predecessor.

The GOP's budget bill does not increase taxes and authorizes an additional $1.1 billion in spending, primarily for rising costs for public pensions and health care, as well as $200 million more for education.

Senate Majority Leader Jake Corman, R-Centre, said that if Wolf vetoes the budget he will be ready to return to work on it Wednesday.

"I'll be here tomorrow, if need be I'll be here the next day and the day after that and the Fourth of July," Corman said during floor debate. "Whatever it may be, we will be here rolling up our sleeves, ready to go and do our job for the people of Pennsylvania."

Wolf has said the spending plan shortchanges public schools, lets the Marcellus Shale natural gas industry off the hook without a severance tax and adds to the state government's deficit because it is packed with one-time stopgaps, including transfers from off-budget funds and payment delays.

The stopgaps and lack of input from Democrats prompted Sen. Rob Teplitz, D-Dauphin, to call the GOP's budget bill little more than theatrics.

"It's also not real because there's not a person in this building who believes it'll be enacted into law," Teplitz said, referring to the expectation of Wolf's veto.

Another Wolf priority, legislation to cut local school property taxes statewide, has been stalled in the Senate after passing the House.

The wine and liquor privatization plan, which passed the House 113-82 and the Senate 27-22, with Democrats opposed, would allow about 14,000 beer-sales license holders - retailers, restaurants, grocery stores and others - to pay a higher fee for permission to also sell wine, liquor or both.

It would also provide a pathway to the closure of the approximately 600 state-controlled wine and liquor stores and, Republicans said, add convenience and modernization to an archaic system.

Democrats countered that the plan would irresponsibly liquidate a valuable state money maker for virtually nothing.

During debate on the pension bill, Republican backers said the current system is not sustainable for taxpayers. The bill's major feature would direct most new hires into a 401(k)-style defined contribution plan, while using other changes, such as a cash balance plan, to save about $11 billion in payments over more than 30 years on a pension debt currently estimated at $53 billion. Lawmakers also would go into the 401(k)-style plan after their next election.

It passed the Senate 29-20 on Tuesday night, a few hours after it passed the House, 106-89.

Republicans said the plan would set the state on a more fiscally responsible path, but Democrats slammed the proposal as taking away retirement security for future state government and public school employees and risking a court challenge.

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Associated Press reporter Peter Jackson contributed to this report.