HARRISBURG -- State Reps. Rod Wilt and Dick Stevenson share conflicted feelings about the governor's tax-and-spend proposal to steer Pennsylvania through tough financial times.

On one hand, the two Republican lawmakers who represent sections of Mercer County are pleased that Gov. Mark Schweiker's budget proposal restrains the growth of state spending. They had urged zero growth funding during the budget debate a year ago.

But Wilt and Stevenson are concerned about some of the spending priorities in Schweiker's $20.9 billion budget, namely cuts in several economic development programs that are important to businesses and industries in Mercer County.

The opportunity grant program, infrastructure development program and machinery and equipment loan fund in the Department of Community and Economic Development would all take a funding hit.

This dichotomy presents some challenges for Wilt and Stevenson as they look to influence the final state budget.

Stevenson, R-Grove City, 8th District, likewise thinks Schweiker is on the right track in tamping down spending.

But Stevenson says local businesses rely on state economic development aid when times are tough.

The specific proposals would cut opportunity grants that help fund business expansion projects from $40 million to $28 million, cut the infrastructure program that finances road and utility work at business parks from $33.5 million to $28 million and provide no money for the fund that provides loans to help firms upgrade machinery and equipment.

In addition, Schweiker proposes borrowing against a $280 million surplus in the Pennsylvania Industrial Development Authority to finance a long-term state bond issue. The bond issue would replace general fund money earmarked for debt service. This strategy would free up state revenues to support a planned-for cut in a state business tax on stock values, homeland security and job training programs.