The state began its new fiscal year Wednesday with no budget in place and events in the House — a testy faceoff on one education-related bill, but bipartisan passage of another — made it unclear if a deal will occur anytime soon.

Closed-door negotiations failed to produce a 2026-27 budget by the Tuesday deadline, the fifth year in a row the June 30 deadline has been missed. On Wednesday, state Rep. Jesse Topper of Bedford County, the top Republican in the Democratic-controlled House, raised his voice in irritation after Democrats in a committee scuttled language in a bill related to school choice that had been passed by the Republican-controlled Senate.

“There is a path to get this budget done,” Topper said. “This is not it.”

Later in the day, though, members of both parties supported a major, budget-related bill that would fund Penn State, Pitt, Temple and Lincoln universities in the coming year. The bill for doling out money to the so-called “state-

related” schools required a two-thirds majority for passage and received it, with a count of 155-47.

Soon afterward, the House was discharged, with members told to be ready to return on six hours’ notice. The day before, the Senate was discharged, also with instructions to be ready to return on short notice.

Officially, though, the public-facing schedule for both chambers indicates the next voting session days will be in late September.

The university-funding bill provides for unchanged funding in 2026-27 for Penn State University at $242,096,000; for “general support” of Temple at $158,206,000; and for Pitt at $151,507,000. The bill gives Lincoln University a 5% increase at $22,985,000.

It now goes to the Senate for consideration.

The Senate in late June voted 44-6 to approve a bill that would have eliminated the gross receipts tax on consumer electric bills and provided an increase in funding for the Educational Improvement Tax Credit Program. On Wednesday, though, the House Rules Committee, led by House Democratic Majority Leader Matt Bradford of Montgomery County, made significant changes via an amendment.

What followed were a pair of party-line votes, with all Democrats voting “yes” and all Republicans voting “no” — first on the amendment, and then on the question of passing the amended bill.

Topper and other Republicans were distressed by the changes. The EITC program, which has had strong support from Republicans, gives tax credits to businesses that contribute to organizations that help students attend schools of their choosing.

Students are eligible to receive a scholarship if they are from a house with income no higher than $116,055 plus $20,428 for each dependent in the household. The businesses can apply the credit to their taxes in the year they contribute.

On Wednesday, Topper lashed out at the changes. He said they would weaken an incentive for businesses to locate in Pennsylvania.

“This is a bad bill. We will be voting ‘no,'” he said.

Bradford, seated next to Topper, repeatedly said the Republican leader had shown his dedication to budget negotiations by being present.

In a thinly veiled reference to the Republican-led Senate’s departure the previous day, Bradford said it should be noted “who is not here” in the state Capitol on the first day of the new fiscal year.

Bradford said the House was taking budget-related actions but, because of the absence of senators, there “is no response from the other side.”