pennsylvania capitol building

State budget crisis takes a new turn.

With a public pension employee reform bill resoundingly defeated in the state House Saturday, House Majority Leader David Reed, R-Indiana County, conceded the proposed "framework" budget is likely off-track.

Reed said one leading option to try to get some resolution to Pennsylvania's six-month state budget impasse before Christmas would be a renewed effort to pass a stopgap funding bill.

A stopgap measure would be designed to drive out some portion of state aid to school districts, counties and other their parties that have been forced to scrape by without it since the current fiscal year began July 1.

But any interim funding measure would likely contain a lower spending number for schools and human services agencies than the $30.8 billion "framework" budget Gov. Tom Wolf had been lobbying for this week.

Reed said that's because both his leadership team and Senate Republican leaders have insisted on significant action on the state's major cost driver - swollen pension liabilities - in exchange for imposing new taxes on Pennsylvanians.

"We said from the very beginning we are not looking at additional revenue sources until we address the number one cost driver for the state and the school districts," Reed said.

"If that's not possible, then new revenue is off the table as well, and we're going to have to plan accordingly."

Reed could not offer any specifics on a stopgap plan, if that becomes the plan of choice, noting final numbers will depend on fresh looks at revenue projections, economic outlooks and other factors.

Senate GOP leaders did not immediately endorse the stopgap concept, but told Reed they needed time to think about next steps. Reed said those cross-chamber conversations will continue through the day.

"Obviously a full-year budget was priority number one. Obviously that's not possible given the vote today," Reed said. "So we've got to go to option B."

Wolf Administration officials could not immediately be reached for comment.