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Taxes, Borrowing, Gaming At Heart Of PA Budget Impasse

HARRISBURG, PA (CBS) -- Pennsylvania has a new budget but still no plan to pay for it.

A Sunday session of the state House was cancelled after majority Republicans, meeting behind closed doors Saturday, failed to rally around Speaker Mike Turzai's proposal to close the budget gap without tax increases.

Another issue separating the parties is an expansion of gaming.

PA Senate To Return This Week After House Strikes Out In Budget Effort

The Senate favors licensing mini "satellite casinos," but Turzai says the House still wants to legalize video gaming terminals in establishments with liquor licenses.

"That's where our caucus is," he said. "It also brings in significantly more revenue, and we don't want to do taxes."

One of the prominently discussed tax options is a levy on natural gas usage.

Revenue negotiations have also included borrowing, an option Turzai says his caucus does not support.

Turzai continues to push for more liquor reforms as part of the revenue package.

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