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Shapiro to Propose $50 Billion Budget Focused on Education and Public Transit
HARRISBURG, Pa. — Pennsylvania Governor Josh Shapiro is set to present his third budget proposal to the state legislature, aiming for additional funding for public education and transit services. His proposals on Tuesday are also expected to include a push for the legalization of marijuana and new taxes on skill gaming, which many argue are competitors to traditional casinos and lottery offerings.
The governor’s budget for the 2025-26 fiscal year may reach nearly $50 billion. Shapiro is scheduled to address a combined session of the General Assembly in the House of Representatives at 11:30 a.m. as he shares this proposed budget with lawmakers.
For the budget to pass, it will need the backing of Pennsylvania’s Democratic-led House as well as the Republican-controlled Senate.
Pressure is mounting on Shapiro from various education stakeholders and Democratic legislators who are advocating for a significant increase in funding for public schools. This follows a court ruling that determined that the current public school funding system in Pennsylvania infringes upon the constitutional rights of students in underfunded districts.
In his last budget proposal, Shapiro allocated a notable increase for schools. However, advocacy groups representing the schools involved in the lawsuit are now calling for an additional $1.3 billion for the upcoming fiscal year, which would mean an increase of nearly 13%.
Additionally, Shapiro is expected to propose tax incentives aimed at reducing the costs associated with new power plant constructions, alongside calls for increased funding for rural healthcare services. He will once again advocate for marijuana legalization, though he may face skepticism from Republican lawmakers regarding this initiative.
Shapiro has maintained a firm stance against potential service cuts from the Southeastern Pennsylvania Transportation Authority (SEPTA), the public transportation agency in the Philadelphia area, which has struggled with ridership recovery in the wake of the pandemic.
Last year, Shapiro faced resistance from Republicans regarding his full funding requests, which forced him to redirect one-time federal highway funding to avoid immediate service reductions and fare hikes. An approach Shapiro is endorsing involves taxing skill games popular in various establishments like bars and convenience stores across the state, which could help finance public transit needs.
The governor’s proposals come amidst a multitude of challenges.
He faces numerous calls to enhance wages for workers in the elder and disability care sectors, all while addressing rising deficit forecasts and a sluggish state economy coupled with a dwindling workforce.
Counties report an imminent crisis in the mental health services they oversee, with nursing homes cutting back on bed availability due to staffing challenges. Concurrently, home care agencies are struggling to recruit and retain staff, complicating access to essential services for those in need.
Despite these budgetary challenges, Shapiro can leverage a reserve of approximately $10.5 billion, bolstered by federal COVID-19 relief funds and increased tax collections influenced by inflation over recent years.
Nonetheless, the existing budget of $47.6 billion necessitated the use of about $3 billion in surplus funds for balance, prompting warnings from GOP legislators regarding the sustainability of the state’s finances if spending continues at this pace.
For the 2025-26 fiscal year, state revenue is projected to fall below $47 billion, indicating that Shapiro’s proposed expenditures may significantly exceed incoming tax revenues, particularly after accounting for any refunds issued by the state.
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Source
abcnews.go.com