Gov. Corbett said that despite a recent uptick in revenue, his administration will think long and hard before rushing to restore steep cuts proposed in next year's state budget.

Spending from the Education Trust Fund next year would drop as much as $141 million, 2.5 percent, compared to this year.

The budget needs another vote in each chamber, but lawmakers appear to be on track to meet Friday's constitutional deadline.

Gov. Jerry Brown is targeting a new part of the budget to close a widening deficit by seeking to reduce state worker costs in his revised spending plan, according to sources with knowledge of his plans.

Mayor Rahm Emanuel took his case for pension reform directly to rank-and-file members whose contributions he wants to raise and whose retirement benefits he's proposing to cut.

The Pennsylvania Senate on Wednesday passed a $27.7 billion spending plan that would erase many cuts proposed by Gov. Tom Corbett, setting the stage for negotiations over the state budget that must be in place by July 1.

The House remains at a standstill as a bloc of Republican representatives is calling for at least $250 million in cuts before they will consider next year's budget. The cuts, contained in two proposals presented to Gov. Bobby Jindal's administration, call for cuts across a series of departments as well as possible furloughs or decreases to state contracts.

The budget also closes a projected $200 million deficit in the current year and does not raise taxes beyond those that were raised last year in the largest tax increase in state history.

Iowa's three regents universities would receive $545 million if Branstad signs the legislation, which is $23 million more than the institutions got this year.

With fewer than two months before the state budget is due, Gov. Chris Christie said he wants the state Legislature to deliver laws changing the tenure system for public school teachers in a way that will result in decreased taxes for New Jersey residents.