Seems to me you have the Democrats in Philadelphia asking for pretty much the same thing in this "no state budget" idea.
"W" should act now to withdraw all American forces from Philadelphia (Army/Navy recruiters, Air National Guard jet fighters and transports at PHL, federal reserve bank, USPS facilities, and so forth) so that the insurgents are no longer provoked to anger.
The Governor should probably pull out any state government elements as well.
Then the various posses and street militia in the city should be allowed to settle this issue among themselves.
This should save both the US and Pennsylvania governments a small fortune. It will no doubt make everyone happy provided the refugees can be kept inside the city limits.
Air Force Reserve flying units in PA are at Pittsburgh(C-130H) and Willow Grove NAS/JRB (C-130E). (northern part of metro Philly). Air Guard units are at Willow Grove(A-10s), Harrisburg (EC-130), and Pittsburgh (KC-135). Nothing at Philadelphia. Pretty sure Navy Reserve doesn't have any flying units there either. Navy and Marine Reserves also have flying units at Willow Grove, which is about 25 miles from the Philadelphia airport.
Still 25 miles might be too close, better withdraw to Harrisburg, or maybe to one of the BRACed bases in the Dakotas. :)