Pennsylvania Gov. Tom Corbett took 10 days to sign into law the $29.1 billion proposed budget July 10.

The tug-of-war played out in the capital was largely over finding a solution to a deficit swollen by increasing pension costs.

But Corbett cut $7 million in line-items (such as Harrisburg-area government parking expenses) and did not increase taxes. However, he also once again rebuffed attempts to apply a tax to natural gas drilling companies and balanced a reduction in the overall education budget with an increase to some early education programs.

Some local officials have shared their thoughts during the process, which is as yet not completely resolved, as a possible Moody's Investment Service rating decrease in the state has Corbett considering a special pension reform session of the general assembly.

"Pensions are definitely my priority, and I think the priority of most mayors," said Mayor Bob Donchez via phone interview July 10. "Next year alone we're looking at plus-$3 million in pension increases, and it's straining the fiscal stability of the city."

Donchez said there are currently many plans for consideration on the pension front, but he admitted he isn't certain which is best. "I think it's important the legislature tackles pensions because all municipalities are facing the issue." He said he's participated in many forums recently with Allentown Mayor Ed Pawlawski and Easton Mayor Sal Panto and it's generally agreed pension increases are way outpacing economic development. "Cities in California are filing for bankruptcy over the issue," he said.

Donchez lauded the previous administration's modifications to salary and longevity in new hire contracts for fire and police departments, but said the issue of legacy payments is the continuing concern the state must fix.

Bob Freeman (D-136) via phone while at his Harrisburg office July 2, said he feels the governor's budget is once again falling short on basic needs, especially education, which has never made up for his initial cuts and is resulting in many local tax increases.

"I think he has really shortchanged the people of Pennsylvania," Freeman said. He said he is frustrated that the governor continues to evade affecting severance taxes on wealthy natural gas drilling companies – which even very conservative states such Texas and Wyoming have instituted – which could help restore adequate education funding.

The strain to education is impacting some school districts more heavily than others, and unfortunately Bethlehem is on a list of those most affected.

Bethlehem Area School District Superintendent of Curriculum Dr. Jack Silva said via email, "The difference between what the governor originally proposed and what he actually signed in the Pa. budget is approximately a $1 million loss for the BASD. We had, as in prior years, included the governor's original appropriations as anticipated revenue in our 2014-15 budget.

"Now, we have $1 million less revenue in our budget – which is approximately $242 million. The effect is not too dramatic, but it will slow (not stop) some of our plans to replace aging equipment and to aggressively expand full-day kindergarten," Silva explained.

"Please remember that to balance the budget, we had already reduced staff through attrition, terminated our after school programs in the middle schools and tightened elective course offerings at the high school – and other reductions that we wished we could have avoided.

Silva concluded, "We will make up for the $1 million loss by tightening our belts across departments, use some of the budgetary reserve as necessary, and extend program development timelines – all of which affect students and teachers."

Silva did not offer examples of specific consequences.