Bye. House approves Governor Shapiro’s proposed budget on a bipartisan vote

Three weeks after introducing an identical $53.2 billion spending plan to Gov. Josh Shapiro’s proposal, House lawmakers passed an unchanged budget on Tuesday, sending the bill to the Senate for further consideration.

A handful of Republicans joined all 102 Democrats to support the measure 107-94 voteswhich calls for part of the 5.4% escalate over last year’s plan to be financed with taxes on legalized recreational marijuana and electronic arcade games – which have been included in previous budgets and rejected by Senate Republicans every year.

Gov. Josh Shapiro begins the budget process with a $53 billion spending plan

“This budget continues our investments in public education, support for law enforcement and strengthening Pennsylvania’s economy, while giving money back to working families and not raising taxes,” House Appropriations Committee Chairman Jordan Harris (R-Philadelphia) said in a statement. “Our goal remains clear: to deliver a responsible, balanced budget on time that makes Pennsylvania more affordable and continues to deliver on our commitments to communities across the Commonwealth.”

Although Democrats hold the governor’s office and the House – the latter with a just one-seat majority – Republicans hold a slim majority in the Senate, meaning all parties need to come to a consensus. Negotiations last year dragged on beyond the June 30 deadline – as before six of the last ten years – and the budget was finalized 135 days delayleaving counties, schools and nonprofits in financial distress.

Harris previously promised to avoid delays this year, emphasizing in its statement the need for timely implementation of the budget.

Republican opinions

However, most Republicans are critical of the proposal’s spending, warning that a “day of reckoning” will come for the Keystone State, pointing to Structural deficit of $6.7 billionor the gap between projected government revenues and expenditures.

This figure does not include the novel taxes included in Shapiro’s proposal. Of particular concern to Republicans was the attempt to exploit dollars from the state’s $7.5 billion rainy day fund to balance the budget.

“If last year’s budget process was a fiscal crisis, this year’s budget process has the potential to be a fiscal nightmare,” said Rep. Tim Bonner (R-Mercer). “(Shapiro) is now proposing a budget that will cut 60% of the rainy day fund, bringing it down to about $3 billion. Our reserves will be completely depleted by the end of the next fiscal year, and then we will ask our citizens to support a tax increase.”

In a statement released shortly after the bill’s passage, Senate Republican leaders discussed the proposal in a joint statement from Senate President Pro Tempore Kim Ward (Westmoreland), Senate Majority Leader Joe Pittman (Bedford) and Appropriations Committee Chairman Sen. Scott Martin (Lancaster).

“We continue to have deep concerns about the level of spending in the budget proposed by Governor Shapiro and passed by the House today. Moving the budget plan forward is an important step in this process, but much work remains to reach a final agreement that respects taxpayers both now and in the future. We will continue to fight for a more fiscally responsible spending plan that better prepares our Commonwealth for growth and prosperity, without imposing undue financial burdens on Pennsylvania families and taxpayers.”

Senate leaders will now have the opportunity to present their version of the budget for the next fiscal year.

Almost 80% of budget expenditure are earmarked for just two state agencies: the Department of Human Services with $21.9 billion and the Department of Education with $20.6 billion. About $1 billion of the escalate to DHS will fund Medicaid increases, which Democrats say will decrease if the state raises its minimum wage from $7.25 an hour — the federal minimum — to $15.