Gov. Ed Rendell and lawmakers agreed Thursday after their first official budget negotiation that a willingness to compromise exists in order to finish next year's budget by the June 30 deadline.

After last year's 101-day standoff and in a re-election year for many lawmakers, officials have said that enacting a spending plan on time for the fiscal year that begins July 1 is their No. 1 priority.

But at a news conference Thursday afternoon, Rendell signaled that he would be willing to blow past that deadline to fight for funding public education, one of the priorities of his two-term tenure. The state faces a $1.2 billion budget deficit and Rendell is asking lawmakers to approve a $354 million increase in basic-education funding.

"There's room for compromise," Rendell said. "But let me say there's nothing more important to the commonwealth's future —nothing. And guys, I'm ready. I'm ready for 101 days if it's necessary."

Rendell, a Democrat, and Senate Republican leaders remained coy about where they hoped an overall spending figure for next year's budget would fall. Rendell said it will be less than the $29 billion figure he proposed this spring, but would not name a new target.

Senate Appropriations Committee Chairman Jake Corman, R-Centre County, said they are starting with $27.5 billion, the amount all parties agree they have for next year if no other revenue is added from taxes or fund transfers.

"We're not really starting at a spending number," Corman said. "We're starting with what we have, which I think most people do when they do a budget. So that's where we are today."