On Tuesday, February 4, Governor Josh Shapiro delivered his third budget address, proposing a $51.5 billion spending plan—a 7% increase from last year’s budget. His proposal draws $1.6 billion from the state’s $7 billion Rainy-Day Fund and $3 billion in leftover funds.
Shapiro highlighted key accomplishments, including licensing reform, permit fast-tracking, Main Street funding, and industrial site expansion. He also noted that Site Selector Magazine ranked Pennsylvania as the Northeast’s top state for economic competitiveness.
Among his key proposals:
- Accelerating the Corporate Net Income Tax reduction by 24 months while closing the Delaware Loophole.
- Advancing his new energy "Lightning Plan", a six-part legislative package aimed at cutting carbon pollution, expanding energy jobs, diversifying the state’s energy portfolio, and lowering utility costs.
- Raising the minimum wage to $15 per hour.
- Investing in economic growth, including $65 million for innovation and life sciences and $20 million in hospital relief.
- Increasing education funding, with $75 million more for basic education and $40 million for special education.
Speaking before a joint session of Pennsylvania’s Democrat-controlled House and Republican-controlled Senate, Shapiro emphasized bipartisanship, stating:
"Despite all that changed in D.C., the voters here in Pennsylvania returned a Republican-controlled Senate and a Democratic-controlled House—with the same margins—to continue working with me to get stuff done."
He added:
"Each of the last two years, both Democrats and Republicans have voted for common-sense budgets that solve real problems."
However, Republican lawmakers criticized the proposal for what they see as excessive spending, particularly voicing concerns over the cap-and-trade component of his energy plan.
The next step in the budget process is a series of House and Senate Appropriations Committee hearings, where lawmakers will scrutinize the plan before negotiations begin in earnest.
The state legislature faces a constitutionally mandated June 30 deadline to pass a balanced budget.
Click here for more details on the proposal.
A full budget line-item appropriation can be accessed here.
