HARRISBURG -- State House Republicans this morning unveiled a $27.3 billion proposal that would keep spending at current levels and make up for declining revenues by cutting discretionary spending, leasing state land to energy companies for oil extraction and going after tax scofflaws.

The most encouraging thing about the plan is that it adequately funds necessities without raising taxes, said state Rep. Mike Turzai, R-Bradford Woods.

The budget restores hospital funding that would have been cut under a Democrat-backed plan, but reduces spending in many other areas, Republican Leader Sam Smith said during a press conference this morning.

He couldn't say whether the cuts would result in the loss of state jobs. That would depend on how departments prioritize spending, he said.

The plan includes an amnesty program expected to bring in milions in back taxes by reducing interest by half and waiving penalties for those who pay up now. Those who don't would incur an additional 5 percent penalty.

Meanwhile, Democrats who control the House say they plan to put to a vote the Senate GOP budget -- a proposal they've fought at every turn but now say is the best option. That budget is at least $1 billion out of balance because of declining revenue, if it were to pass, it would be up to Gov. Ed Rendell to reduce spending through line-item vetoes.

The Legislature then could add back spending through a supplementary appropriation.

Republican Appropriations Committee Chairman Mario Civera and other GOP leaders have said it's irresponsible to pass a spending plan that revenues won't support.

"They gotta examine their conscience here," Mr. Civera said. "They're going to pull this so the governor could have access to [the Senate bill] and do what he wants with it. The danger is if they pull this they're going to jeopardize [federal] stimulus money" that is contingent upon the state maintaining spending in certain areas, including social services.

One thing is clear: Neither side is talking about a personal income tax increase, something the governor and House Democrats had been advocating.