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Governor Shapiro’s 2025-26 Budget Proposal

Published February 12, 2025

Gov. Shapiro’s Priorities

Budget Address as Prepared

2025-26 Budget Proposal Overview

2025-26 Line Item Budget

  • Public Education
    • Increasing historic investments in Basic Education and Special Education Funding
    • Vo-Tech funding
    • Student Teacher Stipends
    • School building repairs
    • Student Mental health and school safety grants
    • Menstrual Hygiene product for free in schools
    • Continuing Universal Free Breakfast
  • Solving Problems for Pennsylvanians
    • Regulating Skill Games
    • Legalizing Marijuana
  • Government Efficiency
    • Streamlining Tax Credits to create high-paying jobs
    • Expedite Corporate Net Income Tax cuts by two years
    • Closing Delaware Loophole
  • Cutting Costs for Pennsylvania
    • Transparency in Health Care pricing
    • Enshrining ACA protections into state law
    • Energy Sector initiatives & reforms
    • Affordable housing reforms
  • Workforce Development
    • Investing in Apprenticeships
    • Adult Literacy & GED Support
    • Office of Vocational Rehabilitation support
    • Child and Direct Care worker stipends
    • Area Agencies on Aging support
    • Rural Health improvements
    • Increasing Minimum Wage to $15/hour
  • Economic Development
    • Attracting Life Sciences businesses
    • Major reorganization within DCED, consolidating agency resources to form the BusinessPA Team.
    • Agricultural legacy
    • Investments in Mass Transit
    • Connecting more Trails and State Parks
  • Health Care
    • Funding Alzheimer’s Disease Research
    • Addressing structural challenges at rural hospitals
    • Getting private equity out of health care system
    • Supporting moms with postpartum depression
    • Mental Health insurance coverage reforms
  • Public Safety
    • Supporting first responders
    • Reducing crime and gun violence
    • Supporting victims of violent crime

Legislator Responses

Senate Republicans

Senate Republicans criticize Governor Shapiro’s budget for excessive spending without solid revenue sources, emphasizing the need for fiscal responsibility.

  • Highlights
    • Increased Spending: Governor Shapiro’s budget proposes billions in spending based on reliance on unpassed legislation (e.g., recreational marijuana) for budget forecasts is irresponsible.
    • Structural Deficit: There’s a growing concern over Pennsylvania’s structural deficit and fiscal instability.
    • Education Concerns: Emphasis on failing schools despite increased education funding; accountability needed.
  • Key Insights
    • Fiscal Responsibility is Crucial: The budget’s reliance on inflated projections can lead to future financial crises, stressing the importance of realistic budgeting approaches.
    • Educational Opportunities Must Improve: Despite funding increases, many students remain in failing schools, highlighting the urgent need for educational reform and accountability.
    • Tax Revenue from Uncertain Sources: Basing budget numbers on unapproved revenue sources (like recreational marijuana) is risky and could result in significant shortfalls.

House Republicans

House Republicans criticized the governor’s budget proposal, emphasizing unsustainable spending and the need for energy policy reforms to boost Pennsylvania’s economy.

  • Highlights
    • Unsustainable Spending: Governor’s budget proposal increases spending by $3.6 billion, raising concerns about sustainability.
    • Economic Growth: Proposal lacks effective policies to stimulate economic growth in Pennsylvania. Emphasizes the importance of unleashing the energy sector to ignite economic growth. Calls for Pennsylvania to exit the Regional Greenhouse Gas Initiative to promote energy production.
    • Job Market Concerns: Highlights declining job growth and business startups under the current administration.
    • Education Funding: Advocates for a comprehensive approach to education, not just increased funding.
  • Key Insights
    • Budget Proposal Critique: The proposed budget is criticized for its significant spending increase without a clear plan for revenue growth, raising fears of future deficits.
    • Education Reform Needs: There is a call for transformational education policies that provide quality options beyond just funding increases, aiming for better outcomes for students.
    • Revenue Estimates Caution: Concerns are raised about overly optimistic revenue projections from new taxes and industries not yet regulated, emphasizing prudent fiscal management.
    • Collaborative Governance: There is a need for bipartisan cooperation to address these issues effectively, with the governor playing a crucial role in facilitating agreements.

House & Senate Democrats

Governor Shapiro’s budget address emphasizes continued investments in education, housing, and community safety, with a call for bipartisan collaboration.

  • Highlights
    • Continued investment in public schools strengthens education.
    • Bipartisan cooperation is essential for effective governance.
    • Commitment to avoid disinvestment in Pennsylvania communities.
    • Focus on strategic investments for long-term economic health.
  • Key Insights
    • The emphasis on education funding reflects a commitment to future generations, acknowledging the constitutional obligation to provide adequate resources for schools. This sets a foundation for a well-prepared workforce.
    • The call for bipartisan efforts signals a desire for collaborative governance, which is crucial for overcoming partisan divides and achieving long-term policy goals.
    • By prioritizing strategic investments, the budget aims to balance immediate needs with sustainable growth, ensuring Pennsylvania remains competitive in attracting talent and businesses.

Published in Budget