Shapiro presents a budget proposal in the amount of USD 51.4 billion

Governor Josh Shapiro He provided his third budget address at the joint session of the General Assembly of Pennsylvania and asks for over $ 51 billion in expenses.

This number is USD 3.5 billion, i.e. 7.3 percent more than FY25, with revenues, USD 49.8 billion was expected for a deficit expenses of around USD 1.6 billion. Shapiro also believes that “cooperating in support of the principles of Commonsense Pennsylvania”, the community can stop $ 6.4 billion on a rainy day of state until the end of June 2026.

The governor supported the legalization of the apply of adult hemp as an unused source of income for the state.

“We lose revenues that go to other states, instead of helping us here,” he said that applause from other democrats. “We lose an industry that will bring $ 1.3 billion in new revenues to our nations community over the first five years. I am asking for a meeting and sending a law to my desk, which will legalize cannabis for adults and removes the provisions of people who have been convicted of not using violence in small amounts of marijuana. “

Shapiro also called for the regulation of “skill games”-casino-like devices at gas stations and local stores around the community of nations.

“Every time someone puts a zloty into one of these unregulated machines, undermines the lottery and critical financial services for our seniors, such as prescriptions and meals,” said the governor. “Pennsylvania lottery has lost about $ 200 million in the last 5 years, mainly because of these unregulated skill games. Our seniors deserve something better. “

Marshal of the house Rep. Joanna McClinton (D-Delaware/ Philadelphia) He wrote on Twitter: “Our task is to invest in our neighbors. In the case of too long financing education, providing our students with free breakfast and the protection of our most sensitive neighbors has been neglected. In 2024, we proceeded and in 2025 we will continue working on investing in our future !!! “

Here are some details of the budget proposal. 36-page FY26 budget summary can be found here.

Education

The budget proposal requires $ 526 million in accordance with the report of the Committee on Financing Basic Education. Increases funds for basic education by $ 75 million, proposing a total of over $ 8.2 billion to support public schools in Pennsylvania. The proposal increases the financing of special education by $ 40 million. The budget for 2025–26 recommends establishing a nationwide cybernetic rate of USD 8,000 per student per year and will better adapt tuition fees with the actual costs of ensuring online education. This reform will save school districts about $ 378 million a year.

  • Solar for schools – $ 25 million a year
  • Mental health of students and safety at school – $ 111 million
  • Pre-k-15 million dollars program
  • Scholarships of students’ teachers – an boost of USD 20 million to USD 40 million
  • Higher education – USD 60 million at Penn State, Temple and Pitt
    • Passhe receives an boost of $ 40.4 million

Hands

Shapiro once again called for Pennsylvania to boost the minimum wage from USD 7.25 to USD 15 per hour. The conclusion claims that the boost will generate business activity and boost the purchasing power of the PA residents to add about $ 100 million annually increased revenues

  • Subsidies on recruitment and retention in the field of childcare – $ 55 million
  • Repayment of the basic loan at DOH – extension of $ 10 million
  • Encourage healthcare providers to service rural communities – $ 5 million

Economic development, job creation and innovations

The budget for 2025–26 repeals the tax relief on the waterfront, tax relief for game development and production relief and creates Advancep’s tax relief, a up-to-date tax relief in the amount of USD 10 million to ensure greater flexibility in securing critical offers and encouraging high payments. Creating jobs in a community.

The proposal also requires the community of nations to legalize adults. In addition to the immediate disclosure of the entries of persons imprisoned only for the crime related to the possession of cannabis attributed, the budget proposes to invest $ 10 million in initiatives regarding justice in repair matters from influence of cannabis for adults. The proposal also includes $ 25 million to support up-to-date petite and petite various companies trying to enter the up-to-date market.

Mass Transit is also observable in the proposal, calling for depositing 9.43 percent of the entire sales and apply tax to the Public Transport Fund. This boost would introduce an additional 292.5 million dollars for mass transport throughout the community of nations.

  • PA innovation program – $ 50 million
  • Innovations in agriculture – $ 13 million
  • 250. America celebration – $ 64 million

Tax reductions

Pursuant to the current law, the CNIT rate in Pennsylvania is to decrease by 0.5% each year until it reaches 4.99% in 2031. In the Shapiro proposal, tax reductions will be accelerated by two years, reducing the current tax rate by 0.75 each year % reaching the 4.99 percent threshold in 2029.

The governor predicts that companies from Pennsylvania will implement $ 10.5 billion savings as a result of tax reduction proposals.

Energy

  • Good clogging – $ 13 million
  • Infrastructure and trail improvements in the field of outdoor recreation – $ 5 million

Reduction of costs for Pennsylvania

  • Restoring aging PA – $ 50 million
  • Helping the cost of closing the house for the first time-10 million dollars
  • Health insurance subsidy for Pennsylvania with low and medium income- $ 4 million

Healthcare

  • Medical assistance program – $ 2.5 billion
  • Direct employees’ remuneration – $ 21 million
  • Subsidies on neurodegenerative diseases – $ 5 million
  • 988 Crisis helpline operations – $ 10 million
  • Mental health stabilization centers – $ 5 million
  • Help for district agencies in the field of aging – an boost of $ 20 million
  • DOH Long-term Care Transformation Office-7.5 million dollars
  • Commonwealth hospitals – $ 10 million
  • Support from a village hospital – $ 10 million
  • Patient safety and support for hospital partners – $ 20 million

Public security

  • Violence intervention and prevention program – an boost of USD 10 million
  • Building possibilities under the subsidy program outside the school – $ 10 million additional dollars
  • State police – $ 14.5 million
  • Firefighter subsidies – $ 30 million
  • Communes Act on financial recovery – an additional $ 10 million
  • Closing two state correctional institutions for annual cost savings in the amount of $ 100 million

Efficient government

  • Commonwealth Office of Digital Experience (Code Pa) – $ 6.9 million additional
  • Cybersecurity updates – $ 10 million
  • The plan to optimize space and apply hopes to save $ 45 million in the next 10 years

Total expenses (USD 51.47 billion)

  • Human services – USD 21.17 million
  • Education – USD 19.76 million
  • Corrections – USD 3.3 million
  • State Treasury – USD 1.48 million
  • State police – USD 1.33 million

Expected revenues (USD 49.87 billion)

  • Corporate taxes – USD 7.97 billion
  • Consumer taxes – USD 16.04 billion
  • Other taxes – USD 22.28 billion
  • Revenues from Nontax – USD 2.1 billion

“Today’s budget proposal is a very solid plan to ensure critical growth, freedom and possibilities of every Pennsylvania,” he said Democratic leader of the Senate Jay Costa (D-Allegheny). “Shapiro governor’s plan is a reasonable approach to progress in our state, balancing fiscal responsibility with a bold vision of improving the lives of our families and employees.”

Senator Vincent Hughes (D-D-Liladelphia), chairman for democratic means, said: “This budget is a testimony to the involvement of the Governor Shapiro in the hardworking Pennsylvania. He finances teachers and schools, childcare providers, direct care for employees and opportunities for young people and adults to develop new skills and obtain high -paid jobs. It introduces new money for inexpensive apartments, lower utility costs and tax relief for home owners. We want the inhabitants of Pennsylvania to know that we are listening and fighting about them. We serve the residents of Pennsylvania, not a handful of millionaires and billionaires. “

Rep. Seth Grove (R-york) He did not hide his dissatisfaction with what the governor had to offer.

“Shapiro entered the office with a budget $ 42.7 billion and a surplus of the budget of $ 8 billion. In his third budget, he looked for a budget surplus of $ 8 billion and proposes to balloon the state budget by $ 9 billion from the moment of taking office at the rains of the Rainy Day fund. This level of improper financial management, even in Pennsylvania, is unheard of.

“What are the results of all these expenses? Do we have a growing population? Did our students’ test results improve drastically? Is our economic growth out of letters? What exactly is our return on investment?

“It’s simple, taxpayers receive a status quo. A larger row, greater expenses and no improvements. Garbage and rubbish. “

Rep. Tim O’Neal (R-WASHINGTON) said that the proposal is more.

“It spends too much, eliminates our budget surplus and creates taxes. The current budget required $ 3.3 billion from the budget surplus. Instead of tightening the reins over the coming financial year, the governor wants to increase expenses by 7.5%. It doesn’t make sense and is not balanced.

“The only two options is to boost taxes or develop our economy. It was complex for me to find anyone who thinks that taxes are an answer. Fortunately, this is only the beginning of the annual budget process. In the coming months I will work demanding to talk behind the plan that will determine the foaming on the road to development. “

The governor’s proposal also claims that it is expected that the actual gross state (GSP) in Pennsylvania will boost at an average annual rate from 1.5 percent to 2029. In the same period, personal income will boost by 4.4 percent per year.

Updated with quotes from Costa and Hughes

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