HARRISBURG -- Budget negotiations among Democratic and Republican leaders have gone from productive, to disappointing, to non-existent in fewer than three days after they did not meet Saturday.

But the negotiators don't seem worried.

Although they reiterated their displeasure with the other side's budget, each also said Saturday's absence of talks doesn't shake their optimism that a "handshake" agreement can be reached by Monday's June 30 deadline.

Gov. Ed Rendell's (D) chief of staff, Greg Fajt, said negotiations continue, just among staff.

"All of us understand the significance of the responsibility we have to have a balanced budget that best serves all Pennsylvanians," Fajt said. "The fact we are not working at a table with all five parties there does not mean we are not talking."

He also said a framework for a budget is almost compete even with a few outstanding issues, meaning the governor will likely not furlough nearly 25,000 "non-essential" state workers on July 1.

Senate Majority Leader Dominic Pileggi (R-Delaware County) said talks have not broken down or reached an impasse.

"I'm frankly optimistic we will agree in principle by Monday," he said.

But despite the optimism, Saturday was still the second straight day talks stalled. That sets up a critical leadership meeting Sunday at noon.

"Obviously, tomorrow's meeting remains paramount," Fajt said.

Spending continues to separate the two sides. Democrats say they have offered $600 million in cuts after bringing an additional $79 million reductions to the table Friday night. Their total spending, they say, is below the $27.9 billion budget passed by Senate Republicans.

Republicans counter that budget was not balanced. They continue to look for an additional $200 million to $250 million in cuts, which they say is necessary as tax revenues dwindle in a struggling economy.

Their request isn't unrealistic considering it constitutes a fraction of a $28 billion budget, said Senate President Pro Tempore Joe Scarnati (R-Cameron County).

"Reasonable people could close that gap," he said.

Fajt agreed the disagreements between the two sides can be overcome.

"The differences," he said, "are not insurmountable by any stretch of the imagination."

SUNDAY on PolitickerPA.com: 

• LIVE BLOG: Budget Battle 2008, Lawmakers try to make third time a charm