Ed Rendell

HARRISBURG -- The Pennsylvania state legislature has entered a panicked frenzy this week as lawmakers race to approve the budget, which leadership reached a handshake agreement on early Monday morning. Most lawmakers wanted to be out of Harrisburg by Friday.

But that's not likely to happen, according to Capitolwire (subscription required).

An attempt Wednesday night to work past 11 p.m., when the House is supposed to adjourn, failed when lawmakers complained it was ran contrary to reforms the House tried to make after the pay-raise scandal in 2005.

That prompted House Majority Leader Bill DeWeese (D-Greene County) to say the House will probably need to work Friday and Saturday.

Gov. Ed Rendell: Getty Images PhotoNobody ever said Gov. Ed Rendell took things sitting down.

The governor has formed a grassroots group for Democrats who, while disappointed by U.S. Sen. Hillary Clinton's (D-N.Y.) defeat, plan to support U.S. Sen. Barack Obama (D-Ill.). Called Hillary-Obama-United-Not-Divided, or HOUND, it was created in response to a group called PUMA, short for Party unity, my ass. That group seeks to dissuade former Clinton supporters from voting for Obama.

The governor, who was one of Clinton's most high-profile supporters, wrote the group's credo, which appears on the state Democrats' Web site. Rendell wrote that former Clinton supporters should vote for Obama not because of party loyalty, but because his policies are nearly identical to hers.

HARRISBURG -- The wee hours of early Monday morning yielded the first on-time budget agreement during Gov. Ed Rendell's six-year administration when he and legislative leaders announced a handshake deal they deemed fair and necessary during difficult economic times.

The budget proposal calls for a 3.8 percent spending increase -- 0.4 percentage points fewer than what Rendell called for in his original budget proposal. He said he cut a little more than $500 million from his proposal, reductions he said were unfortunately necessary while a struggling economy shrinks tax revenue.

The legislative leaders who spoke, Republicans and Democrats alike, echoed Rendell's remarks. Everyone had to accept displeasing parts of the budget to make sure an agreement was reached before state workers were furloughed, they said.

Gov. Ed Rendell said today that while he has no intention of cutting his second term short, he would be interested in a cabinet post later if U.S. Sen. Barack Obama (D-Ill.) were president.

Speaking on a TV talk-show on Harrisburg's public access station Thursday night, Rendell spotlighted Secretary of Energy and Secretary of Transportation as two posts he would be particularly interested in filling, The Associated Press reports.

Those positions, he said, would "absolutely" be his first choices if Obama, the presumptive Democratic nominee, wins the White House in November.

Rendell's name has frequently been floated as a possible running mate for Obama, speculation Rendell has always dismissed. He has always maintained that he wants to finish out his term in Harrisburg, which expires in 2011.

"Would I love to go down to Washington in January of 2011 and serve President Obama in some capacity -- secretary of energy, secretary of transportation? Sure," he said on WITF-TV's "Smart Talk" program.

"But I'm not leaving" the governor's office early, he said. "I know that probably disappoints some people over in the Capitol."

A week ago Ed Rendell had the heat turned up in all government office buildings to save money.  Then yesterday Senator Vince Fumo passes out on the state floor.  Could there be a connection?  Reporters and lobbyists alike say it feels like it has been warmer inside the Capitol.  Fumo says he has just been exhausted from budget work. 

The Pennsylvania budget is supposed to be approved and signed into law by mid-night on June 30th.  Over the last 7 years the legislature has chose to treat this more as a suggestion than a requirement.  With split government the legislature can use the budget process to make Governor Ed Rendell look bad by delaying the budget process.  That’s politics. 

So what is the likely outcome this year?  It is unlikely the process will go on until July 17th like it did last year.  Most inside observers believe the most likely date of a budget signing is July 3rd or 4th.  The legislators will want to be home by July 4th which offers many good campaigning opportunities.  In an election year that becomes a priority.  Another theory from one lobbyist is completion before July 7th because they will want the process done before the Bob Regola trial starts.  Either way, with split government don’t expect this process to change any time soon.

As talk heats up about vice-presidential candidates and names are floated, Ed Rendell may make the best case for why he should not be chosen. 

In 2000, after John McCain’s strong primary challenge to George Bush, some pundits talked about McCain as Bush’s running mate.

State Rep. Ron BuxtonHARRISBURG -- State Rep. Ron Buxton (D-Dauphin County) offered a rare glimmer of optimism about the state budget Tuesday afternoon when he said he's seen indications it will be passed by June 30.

"All signals point to we might get a budget on time to prevent state furloughs," he said at a lawmaker rally in the Capitol to show support for state workers.

His remarks differ starkly from the general feeling in the Capitol, where many observers have said this year's budget could be worse than last year's. The state legislature and Gov. Ed Rendell (D) didn't resolve budget negotiations last year until weeks after the June 30 deadline.

Realizing their projected deal is lacking the necessary votes right now to pass the legislature, Governor Ed Rendell and Citi Infrastructure Investors managers have agreed to extend the bid for 30 days to give Rendell time to change minds.