The Senate has reached some sort of deal with the Governor. They are going to screw the Speaker. Not sure what it is, but think of the Gimp in Pulp Fiction.
The House and Senate have reached a deal on the 2008 budget. The 20007 budget is still in the air.
BTW, as Political Insider notes, it is not up for the Senate to decide whether or not the House got a proper transmittal from the Governor.
The Senate is in constitutional error to proceed as it is without taking up a veto override vote.