Legislation intended to rescue municipal pension funds reeling from the global economic downturn could be part of the state budget proposal, a top state pension official said Tuesday.

"It is very, very probable that when the budget passes, you're going to see this as a part of that solution," Jim Allen, secretary of the Pennsylvania Municipal Retirement System, told about 200 municipal officials at a pension summit in PNC Park's Lexus Club arranged by Allegheny County Executive Dan Onorato and other county officials.

A state budget likely won't be approved by the June 30 deadline, as lawmakers and Gov. Ed Rendell debate ways to help close a $3.2 billion deficit. Rendell has proposed a 16 percent income tax increase.

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