HARRISBURG -- A $27.9 billion "compromise" budget drafted by legislative leaders received a huge jolt yesterday when Gov. Ed Rendell vowed to veto it, claiming it overestimates certain tax revenues and reduces spending for important programs he supports.

The budget plan -- which calls for legalizing table games at Pennsylvania casinos -- was developed by three of the four legislative caucuses, Senate Republicans and Democrats and House Democrats. Senate GOP leaders Joe Scarnati and Dominic Pileggi, Senate Democrats Bob Mellow and Jay Costa, and House Democrats Keith McCall and Todd Eachus all strongly backed it, while also admitting "it's not perfect."

Mr. Rendell employed his usual bluntness in addressing what he sees as the proposal's shortcomings.

"I will veto that budget," he said during a visit to Pittsburgh yesterday. He was unhappy that the proposal trims spending for some education programs, including "Pre-Kindergarten Counts" and the Children's Health Insurance Program, two issues on which he said he will not compromise.

He also claimed the proposed budget isn't balanced for 2009-10 or for 2010-11. He maintained it could result in a $1 billion deficit next year, which could require some serious tax increases. In addition, he said, it overestimates the amount of recurring revenue (which supporters put at $1.1 billion per year) and depends on growth in the state's economy, which could be slow in coming as the recession drags on.

"I hope I'm wrong, but it doesn't look like there's going to be any growth," he said.

He promised to work with legislative leaders but said he will not support any budget that cuts funding for education or children's health insurance.

"I won't countenance that," he said. "This would be ruinous to the people of Pennsylvania."

Mr. Pileggi was upset with Mr. Rendell's criticism. "He has not been personally engaged in the budget discussions for more than a month," Mr. Pileggi said. "Now that a bipartisan agreement has been reached, he is attempting to derail it, 73 days after the budget was due."

The senator said he expects both chambers to approve it and send it to the governor. Despite the veto threat, Mr. Pileggi said he's hoping Mr. Rendell would support "this bipartisan, bicameral compromise."

Perhaps the most interesting revenue-raiser in the package is expanding gambling to let casinos add table games such as poker, roulette, 21 and dice. Backers estimate that $200 million could be raised this year from table games -- when casinos buy one-time licenses -- but some critics think that estimate is too high.

Legislation by Rep. Bill DeWeese, D-Waynesburg, would set the license fee at $10 million per casino, but it would have to be increased if $200 million is to be generated.

House Republicans, who rarely agree with Democrat Rendell, also opposed the $27.9 billion plan. House GOP leader Sam Smith said it spends too much money and raises too many taxes. House Republicans stuck to their original bottom line of $27.5 billion.

"There is plenty of economic pain and suffering to go around in this budget, including the job-killing Capital Stock and Franchise Tax and a 25-cent per pack increase in the cigarette tax," complained Rep. Daryl Metcalfe, R-Cranberry. He also didn't like the plan's use of the entire $755 million Rainy Day Fund to help erase last year's budget deficit.

Supporters of the budget plan noted it's about halfway between Mr. Rendell's original $29 billion proposal and a $27.1 billion plan suggested by Senate Republicans.

The $27.9 billion plan will be voted on Monday by the six-member, House-Senate conference committee. Later in the week it could go to the full House and Senate for action, said Mr. Eachus. Senate approval seems assured, since both parties agree, but the outcome in the House isn't certain. If all 99 House Republicans vote no on the budget, it would take at least 102 of the 104 Democrats to approve it.

As for Mr. Rendell's unhappiness, Mr. Eachus said, "None of us is completely happy with this. All of us are a little disappointed. No one got everything they wanted. We will talk to the governor over the weekend. We are still reviewing the revenue projections."

He didn't address whether the Legislature would be able to override a Rendell veto.

Senate Republicans said it meets their goal of spending less this year than the $28.2 billion spent last year, which ended June 30. Supporters also boasted that the proposal avoids any increases in the personal income tax or the state sales tax -- ideas that were a sore point for many taxpayers.

Mr. McCall noted the budget calls for increasing basic education spending by $300 million, as called for by Mr. Rendell.

The proposed budget also continues the Capital Stock and Franchise Tax, a levy on a business' capital assets, which was supposed to be phased out. The tax would raise $374 million this year, supporters said.

Other recurring revenues include: increasing the state's $1.35 per pack cigarette tax by 25 cents per pack, generating almost $100 million; leasing more state forest land for Marcellus shale natural gas drilling, raising another $100 million; eliminating $75 million in tax credits (possibly including the film tax credit program); and telling the Department of Public Welfare to reduce "eligibility errors," saving $60 million.

It would also increase the limits on prizes for "small games of chance" used by many private clubs and increase taxes on such games, generating perhaps $100 million.

A major environmental group, Penn Future, criticized the idea of opening up more state land for natural gas drilling, calling it "a sweetheart deal" for gas companies. Penn Future also noted that state officials recently dropped a plan to enact a wellhead tax on the gas taken from the ground, which the gas industry had opposed.

Speaker McCall apologized to state residents for the delay in enacting a new budget -- it's 73 days late so far and could still be days away from final adoption.

He said the state has never faced such difficult economic conditions, with a sharp decline in revenue, since the 1930s. The state ended fiscal 2008-09 with a $3.2 billion deficit, which this plan would erase by using $2 billion in one-time revenues (including the $755 million from the Rainy Day Fund) plus $1.2 billion in federal Medicaid funds.