As 2015 draws to a close, Pennsylvania lawmakers are rushing to come to a consensus on a state budget package that is already six months overdue. As part of that effort, House Republicans have proposed adopting Representative John Payne‘s online gambling bill, HB 649, as a way to shore up the budget without raising taxes. Disagreements between the House GOP majority and the Republican-controlled Senate, however, have led to the collapse of the budget deal this month.

The Senate GOP recently signed off on a $3.8 billion spending package, backed by Governor Tom Wolf, which includes a substantial $350 million increase in school system aid. The 6% bump in education spending was a tradeoff by Senate Republicans, who hope to decrease public pension benefits and break up the state control of the sale of wine and liquor in return. To pay for the bill, the Senate agreed to a $1.2 billion tax increase.

House Republicans, however, rejected the plan as being too expensive and introduced one of their own. That package proposes $30.3 billion in budget spending to be paid for by a $1 per cigarette pack tax increase as well as online gambling.

HB 649, which will seemingly serve as the vehicle for legalizing the industry, was set to be voted on last Wednesday, but the vote never came. Instead, the bill was reworked to allow private establishments to offer video game terminals to their customers. That amendment was flatly rejected by casino operators, who view the expansion as a threat to their own business. The change could scuttle the bill in the Senate GOP, as members are not keen on the idea.

Backers of online gambling have touted Payne’s bill as a way to increase government revenue without imposing the burden of higher taxes. Indeed, the beleaguered government could immediately reap $8 million to $10 million in licensing fees from each casino operator interested in offering iGaming. Additionally, the state could make up to $120 million from the industry in its first year of operation alone, according to Payne’s estimates.

The prolonged budget standoff is having a severe effect on the state’s school system and social service providers. Layoffs in the social sector have increased in the absence of state funding, while the Philadelphia school district has been forced to borrow $525 million.

Perhaps furthering the delay, many of the state’s politicians and business elite convened in New York for the annual Pennsylvania Chamber of Business and Industry event this weekend. Some Senate GOP members decided to make the trip, telling the media that they had done their job in regards to the budget and stated that package is now in the house GOP’s court.

“The Senate has done its job. The House isn’t in session. I made some commitments for today. And I’ll go back tomorrow,” said Senate Majority Leader Jake Corman.

Wolf promised to remain in the state while the budget is being hashed out. “If there’s no budget, I’m not going to be up in New York,” Wolf told reporters at a Holiday Wish volunteer program. “This is where I need to be.”

The budget vote was expected for Wednesday, then moved to Saturday. But House Speaker Mike Turzai says that due to the sheer size of the bills in play, Representatives needed more time to digest the information.

Meanwhile, the Commonwealth’s schools will be forced to decide between borrowing more money and shutting down completely.

Who knows where this is going to end up or how long that’s going to take,” said Jim Buckheit, Executive Director of the Pennsylvania Association of School Administrators. “Given that this is the third go-around, I think people have really lost any faith that they’ll come to a rational agreement or resolution in any short amount of time.”

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