As the calendar turned to August, the state budget in Pennsylvania is one month overdue. Gov. Josh Shapiro and leaders in the General Assembly have said they are continuing to make progress, but have not reached an agreement.

“We all understand the issues that need to be resolved in order to reach a final agreement,” Shapiro said to reporters in Philadelphia on Friday. “I think we’re working together respectfully to get that done.”

Shapiro said both sides know what the key issues are and it’s frustrating that they have yet to come to an agreement.

“But I also acknowledge that we’re working at a time where we not only have a divided legislature, we’ve got a lot of division in our society, and finding that common ground — that’s critically important,” Shapiro said. “It’s taken longer than I would like, but I think we’re going to get there and we understand the important issues that need to be resolved.”

On July 14, the Democratic-controlled state House advanced a $50.6 billion proposal to the GOP-led state Senate. Since then, House Democrats have maintained that it is up to the Senate for the next step in the process.

Senate Majority Leader Joe Pittman (R-Indiana) wrote on social media on Wednesday, “We have different visions for the future of the Commonwealth, but we’re working together across the aisle to move this budget forward. Regardless of divided government or political philosophy, some of these issues are just extraordinarily complex & need to be done correctly.”

House Minority Leader Jesse Topper (R-Bedford) told Newstalk 103.7 FM on Friday that “it is moving very slowly,” but said the reason why leaders are saying it’s been positive is because “nothing has blown up to a point (that) sides aren’t talking yet.”

“The reason why this is so difficult is because the issues we’re talking about are so transformational in terms of our future, and the two sides simply see it so differently,” he added.

Topper said they want to work towards a compromise, but warned “if we don’t get some of the policy initiative changes in terms of parental empowerment and school choice reform, in terms of entitlement reform and benefit integrity, economic growth and changing our regulatory policy in Pennsylvania, then in three years, we’re going to be looking at either massive … cuts that will significantly affect a lot of people in their everyday lives, or a massive tax increase, which nobody’s going to want to see.”

One of the issues that has taken center stage during negotiations is funding for mass transit agencies, as service cuts and fare hikes loom the longer the impasse continues. In June, the House passed a transportation funding package that would provide nearly $300 million of new funding into mass transit and a half-billion dollars to repair roads and bridges.

Senate Minority Leader Jay Costa (D-Allegheny) said during an update on budget negotiations Friday that mass transit funding is “high” on the list of priorities.

“Our Senate Democratic Caucus stands ready with 23 votes to support Gov. Shapiro’s proposal with respect to mass transit funding for the whole commonwealth,” Costa said.

Costa also highlighted funding for roads and bridges, education and protecting social and human service programs as important.

At least two Republicans in the Senate would need to support funding for mass transit, even if every Democrat voted for the package.

On Thursday evening, Pittman said, “Our state is faced with a structural deficit just like SEPTA. Along with the discussion of any additional dollars for mass transit, this reality necessitates meaningful reforms and accountability measures must be implemented to ensure the long-term success of mass transit.”

Shapiro told reporters on Friday he understands “how critically important” mass transit funding is for the state, noting that he proposed it twice in his budget and that he previously flexed federal highway funds in November to stave off immediate fare hikes and increases for SEPTA.

“We’re going to keep working at that issue,” Shapiro said.

Last week, three Republican Senators introduced a package of bills that would provide additional oversight and new accountability measures over SEPTA. However, the package did not include funding.

When asked if he supported the proposals, Shapiro said he wants to “make sure that we fund mass transit, and we will have a broader dialogue of other legislation that may or may not accompany that.”

“I’m not going to get into that here in this setting,” Shapiro said.

SEPTA has been placing signs at bus stops throughout the Philadelphia area warning riders that if funding does not come to the agency, service cuts will begin on Aug. 24.

“If that person lives in Northeast Philadelphia, call Senator (Joe) Picozzi, who’s a Republican in the state Senate, and tell him to go back to Harrisburg and vote to pass transit funding the way the House Democrats did,” Shapiro said.

Picozzi, who is one of the GOP authors of the SEPTA accountability package, has said he supports funding mass transit. Following Shapiro’s comments, the Republican lawmaker told NBC Philadelphia that “the people of the Great Northeast want to see a better SEPTA. We want funding and accountability for results on fare evasion, safety and cleanliness.”

On Tuesday, Spotlight PA reported Pennsylvania Secretary of the Budget Uri Monson warned that the state wouldn’t be able to make at least $2.5 billion in payments to schools, counties and others amid the ongoing budget impasse.

Topper criticized that move, claiming that he thought it was “premature for the governor to send that message out,” arguing the state treasurer “can release funds to those, if needed.”

“But at the end of the day, it’s my responsibility and others to ensure that this budget is sustainable and that we’re doing everything we can to get a quality product,” Topper said. “And if the governor wants to try and use some of these tactics to push for any kind of an agenda of his, then I’d like to know…what that agenda is, other than being on TikTok.”

Senate President Pro Tempore Kim Ward (R-Westmoreland) also seemed to ramp up the criticism of Shapiro on Friday, telling the Pittsburgh Post-Gazette that those letters are an effort to “just trying to get people all riled up.” She added “this is the biggest gaslighting administration I have ever worked with.”

Costa, the Democratic leader in the Senate, seemed to echo Shapiro’s sentiment saying that “we are moving slowly, slower than I would like of course, but I think at the end of the day, we’re making progress, and I think that’s what’s important for the people of Pennsylvania.”

Shapiro said there is one thing both sides can agree on.

“We all have to compromise, and that’s what we’re doing right now,” he said.

As of Friday afternoon, neither chamber has session days scheduled for the following week, although that could change on short notice.