Governor Josh Shapiro of Abington Township signed off on a $50.1 billion state budget deal this afternoon. The compromise ends a 134-day impasse that had delayed state funding.
From Shapiro’s remarks from today:
This day has been a long time coming. I proposed my budget 281 days ago. A budget laser-focused on continuing the progress we made over our first two years of this Administration — on fueling Pennsylvania’s rise by investing in great schools and creating more opportunity for our kids. By expanding our workforce and growing our economy… By cutting taxes and reducing costs for Pennsylvanians who work so hard, and so much more.
I would have loved to have stood here with all of you and signed a budget into law on June 30th of this year. But Pennsylvania is one of just a handful of states with a divided legislature, and it takes a majority of votes in the Republican-led Senate and the Democratic-led House to get a budget to my desk. It requires all of us to compromise, have tough conversations, and ultimately, find common ground.
“We did that here,” the remarks conclude, adding that “as a result of our collective work, the good people of Pennsylvania are better off.”
The Philadelphia Inquirer reported yesterday that the closed-doors negotiations “would mark a 4.7% increase in spending over last fiscal year” and signals “that school districts, counties, and social service providers will soon see relief.”
Shapiro proposed a $51.5 billion state budget in February that would have increased state spending by 8% over the prior year, much of it going towards Medicaid costs and public education. Pennsylvania expects a $4.5 billion revenue shortfall this year, so Shapiro suggested several new revenue streams, including the taxation of recreational marijuana and gambling skill games.
The Inquirer noted that Pennsylvania “is the only state in the country that has not approved a spending plan for the fiscal year that began July 1. … Now, with an end to the federal shutdown in sight, Pennsylvania may soon see a functional government at both the state and federal levels for the first time since June.”
More from their coverage:
The deal, according to budget documents obtained by The Inquirer, includes more than $665 million in new funding for public schools, approximately $562 million of which would be funneled through the state’s adequacy and tax equity formulas as part of the state’s effort to close what experts call a $4 billion “adequacy gap.“ These formulas were created last year in response to a 2023 court ruling that found Pennsylvania’s public education funding system unconstitutionally deprives students from poorer districts from an adequate and equitable education.
Shapiro’s remarks provide more details about where funds will be allocated. WGAL’s video coverage is below:
Screengrab: WGAL