Many local lawmakers had not seen details of the spending blueprint early this morning, but some Republicans promised to oppose any tax increase or legalization of slot machines.

"I'm going to vote against anything that has to do with gambling or a tax increase,'' said state Rep. Katie True, a Republican from East Hempfield Township. "I think people have been taxed enough. Our constituencies are getting hit from all sides.'' But with pressure mounting on the Legislature to release state subsidies for public schools and pass a budget, the compromise is believed to have enough support in both the House and Senate to win passage.

"I think it's about as good as we can do,'' said state Sen. Noah W. Wenger, a Republican from Stevens. "It's not going to be perfect -- there will be some people that will not be happy with what the end result is.

"You have to realize, Pennsylvania is a very diverse state and you have to get 26 votes in the Senate and 102 in the House,'' Wenger said. "This compromise is reflective of the sentiment all across the commonwealth, and I think it has a good chance of passing.'' The Senate plan would raise the income tax from 2.8 percent to 3.07 percent on Jan. 1. The move would raise $700 million annually to help finance Rendell's early-childhood education initiatives, restore social-service cuts and avert a deficit.

The blueprint does not, however, include a plan to legalize slot machines to generate money for property-tax reductions. Such a plan would have to be introduced separately, lawmakers said. It is likely that will happen.

"The slot-machine issue is very much alive,'' Wenger said.

On Wednesday, Rendell and legislative leaders spent a third day behind closed doors in the governor's official residence and the statehouse to reach the agreement.

Its approval would end a nine-month impasse that has left Pennsylvania as the only state without a completed budget this fiscal year.

The deal was presented to the Senate rank and file Wednesday night, and was being outline to House members late this morning.

"Both sides gave more than they felt comfortable giving,'' said Erik Arneson, chief of staff for Senate Majority Leader David J. Brightbill, who represents part of Lancaster County.

"When you have a split government, with a governor of one party and a legislature of another, that's probably how things need to get done,'' Arneson said. "That said, I do think it's important to note that of the states that have a personal income tax, Pennsylvania's is the lowest and this is an increase of less than 10 percent.'' In October, Senate Republicans blocked an earlier compromise Rendell had struck with the House that would have raised the income tax to 3.25 percent.

In addition, the compromise levies new taxes on companies that provide cellular and landline telephone service -- taxes that are likely to be passed on to consumers. It was unclear this morning exactly how much those levies would be.

The deal calls for releasing the $4.1 billion earmarked for basic state subsidies that has been withheld -- providing about 35 percent of district budgets statewide -- plus an increase to offset the effect of inflation, Senate sources said.

It would also provide $175 million for Rendell's learning initiatives, $25 million less than October's House bill. But the money would not be spent until next fiscal year; the impasse dragged on so long, there wouldn't be enough time to implement the programs in this school year.

"It's unfortunate that there were tens of thousands of preschool kids that missed that this year, tens of thousands of kindergarten kids that didn't get kindergarten or only half days,'' said state Rep. Mike Sturla, a Democrat from Lancaster City. "We lost a year on that, but at least we're starting down the right path.

"The fact that we've finally come to a compromise -- before we couldn't even agree on what we disagreed on -- is a positive step forward,'' Sturla said.

It is still unclear how much of the funding cuts to libraries and social services would be restored.

"At this point, I do not believe that all money will be restored to libraries,'' Brightbill's spokesman said, "but I will say the senator is very happy that we won some restoration.'' If and when a budget deal is agreed to by all sides, bills to legalize and tax slot machines as a way to finance lower property taxes could be negotiated so that an entire package of bills is voted on at once, said Sen. Robert M. Tomlinson, a Republican from Bucks County.

Tomlinson, who has advocated legalizing slots to revive Pennsylvania's horse racing industry, said Rendell told him Wednesday that he did not want to raise the income tax without cutting property taxes, as he promised in his 2002 election campaign.

Bills to legalize slot machines and lower property taxes have passed both houses this year, but neither chamber could agree with the other.

(The Associated Press contributed to this report.)

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