By Associated Press - Monday, July 10, 2017

HARRISBURG, Pa. (AP) - The Latest on Pennsylvania’s budget negotiations (all times local):

4:30 p.m.

For the second straight year, Democratic Gov. Tom Wolf will let a state budget bill become law despite the fact that it is badly out of balance.

Wolf’s office released his decision in a statement Monday, hours before the nearly $32 billion spending bill was to become law without his signature at midnight. He’s pressing Pennsylvania’s Republican-controlled Legislature to approve a tax package big enough to avoid a credit downgrade.

There are questions about the constitutionality of a budget bill becoming law without a plan in place to pay for it.

Monday was the 10th day of a budget stalemate between Wolf and the House and Senate Republican majorities.

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4 p.m.

Democratic Gov. Tom Wolf faces a midnight deadline to decide on how to handle a nearly $32 billion spending bill that’s badly out of balance.

At midnight Monday, the spending bill on Wolf’s desk becomes law without his signature. Before then, Wolf can sign it, veto it or strike out some of the spending. There are questions about the constitutionality of a budget bill becoming law without a plan in place to pay for it.

Monday was the 10th day of a budget stalemate.

Leaders of Pennsylvania’s Republican-controlled Legislature say they’re unwilling to approve a tax package as big as Wolf wants. Democratic lawmakers say that Wolf wants $700 million to $800 million in reliable revenue to avoid another downgrade to Pennsylvania’s tattered credit rating.

Lawmakers say $2.2 billion in new revenue is required to wipe out a deficit. But it’ll rely primarily on borrowing and involves another big expansion of casino gambling.

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9 a.m.

It looks increasingly unlikely that Democratic Gov. Tom Wolf will have funding legislation on his desk before he must decide on a nearly $32 billion spending bill.

At midnight Monday, the spending bill becomes law without Wolf’s signature. Before then, Wolf can sign it, veto it or strike out some of the spending. There was no agreement late Sunday night, the ninth day of a budget stalemate between Wolf and leaders of the House and Senate Republican majorities.

Senate Majority Leader Jake Corman says the sides are about $200 million apart on a roughly $2.2 billion revenue package to patch up state government’s tattered finances.

It’ll lean heavily on borrowing, but Wolf is seeking more in tax increases to avoid another credit downgrade.

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