As the state budget remains at an impasse and state workers' paychecks slowly diminish, Republicans and Democrats are struggling to find a middle ground for their ideas about the state budget.

The budget has been amended and passed back and forth between Republicans and Democrats, resulting in a three-week delay of an operating budget. The GOP's budget proposal is $27.1 billion -- $2 billion less than Gov. Ed Rendell's proposed spending number.

Sen. Jake Corman, R-Centre, said the Republicans' amended budget proposed 3.6 percent less in spending than last year.

Rendell's spokesman, Chuck Ardo, said the senate's version of the bill was sent to the house Monday.

Tuesday evening House Bill 1416 was defeated in the House by a vote of 151-49, according to a press release.

Tor Michaels, chief of staff for Rep. Scott Conklin, D-Centre, said both parties need to compromise and develop a budget that would please both sides.

"We have enough people shouting on both sides of this issue, and each day that picks by is yet another day the people of Pennsylvania are not served," Michaels said. "We need to find leadership in the middle. There are 77,000 state employees that need a paycheck."

Sen. Jane Orie, R-Allegheny, said the governor needs to make cuts in the budget because everyday families are making cuts in their daily budgets and state workers are being used as "pawns."

"The governor shouldn't be putting peoples lives at risk like this for his political agenda," Orie said. "It's the seventh year in a row that he has not had a budget on time. For the past three years, he has used the state employees as pawns, hostages."

Orie said the GOP could make even more cuts to the proposed state budget and the state should engage in less spending because revenues are decreasing. If the state doesn't spend less, the Commonwealth is going to build in futures taxes that will never get rid of, she said.

Sen. Wayne Fontana, D-Allegheny, said he didn't approve of the House's version of the state budget and not every Democrat wants to see a tax increase.

Fontana said the Democratic Party was not given the opportunity to debate alternative ways of balancing the budget such as taxing smokeless tobacco and closing the "Delaware Loophole," which allows businesses to avoid paying taxes on intangible assets.

Fontana said these are possibilities that could generate revenue to help maintain programs that create jobs and create new revenue.