House Republican leaders rejected a proposal for mixed borrowings and creating new or increasing taxes. Gov. Brown and the Senate Republican leaders supported that proposal.
According to people familiar with the negotiations, the budget plan will likely include borrowings, fees from gambling expansion, and tax increases. Law makers will not push for new taxes on electric and telephone services.
Meanwhile, the Pennsylvania state Senate is set to return to the Capitol on Monday. It is another sign that the legislature is close to finalizing a budget deal.