WILKES-BARRE — Sen. Lisa Baker (R-Lehman Township) on Tuesday said that Gov. Josh Shapiro’s proposed budget comes at a crossroads moment.
“If the rate of spending increase is not supported by new and reliable revenue streams, it is unsustainable for very long,” said Baker. “As this is a non-election year, it is the best time traditionally to seriously address the structural deficit that threatens budget balancing in the years to come.”
Baker added that the governor’s budget proposal is problematic right out of the box.
“The new revenue sources are highly controversial from the standpoint of policy and have failed to gain sufficient support in the past,” Baker said. “Last year’s budget was balanced by tapping into $3 billion of reserves. A repeat of that will ignore all the warnings of nonpartisan budget analysts and forecasters.”
Shapiro’s proposal tops $50 billion for a state budget in Pennsylvania for the first time — requesting $51.5 billion for the 2025-2026 fiscal year beginning July 1 as Shapiro gears up for his re-election campaign.
Rep. Haddock: Gov. Shapiro rolled out an interesting budget proposal
Rep. Jim Haddock (D-Pittston Township) said Gov. Shapiro’s has several staple items included, like increased school funding, job creation and public safety.
“It also was innovative by including new proposals to cut costs in Pennsylvania and increase funding sources within the state,” Haddock said.
Haddock said the budget includes:
• $526 million increase of the Ready to Learn Block Program.
• $75 Million increase in Basic Education funding and 40 million increase in Special Education funding.
• $20 million for the Main Street Matters program to provide resources to revitalize communities.
• $1 million to provide Veterans Small Business Assistance to support veterans starting a business.
• $10 million for First-Time Homebuyers Grants for closing costs assistance.
• $14.5 million for four new State Police cadet classes with a goal of 432 new state troopers.
• $300,000 dollars for Camp Cadet and Law and Leadership programs.
• $36.5 million for the Fire and Emergency Medical Services Grant Program (an increase).
• $30 million to provide supplemental grants to fire companies (new).
Haddock said the governor also proposes a cut to current programs that he can support, including $378 million in annual savings to school districts from instituting a statewide $8,000 per-student base tuition rate for charter schools.
“He also proposed closing the Delaware Loop Hole that allows Pennsylvania large corporations to have a post office box in Delaware and operate their business in Pennsylvania and not pay Pennsylvania taxes,” Haddock said. “This tax loophole has been talked about for years and I am glad to join with the Governor to get this done.”
Haddock said Shapiro proposed closing two State Correctional Institutions and two Community Corrections Centers for an anticipated savings of $100 million.
“I would like to look at this proposal more closely, along with several other items he has in the budget,” Haddock said. “It is budget season in Harrisburg and a lot more work has to go into this budget, but this gives us all a definite starting point to go forward with for the good of Pennsylvanians.”
The budget hearings will begin Feb. 18, and run through March 6.
Rep. Pugh reacts to Shapiro’s proposed 2025-26 budget
Rep. Brenda Pugh (R-Dallas Township), offered her reaction to Gov. Shapiro’s budget, opposing the $51.47 billion spending plan — an increase of 7.5% from the current fiscal year.
“Today, Gov. Shapiro tried to convince us that we need to increase our spending by $3.57 billion over the current year, even though he projects our revenue will increase by just $1.3 billion,” Pugh said. “State expenditures cannot — and should not — outpace our income. His solution to make up the difference is to drain the remaining $2.89 billion of General Fund surplus — money that House Republicans have built up over the years to protect our citizens in times of economic downturn. This is not the answer.”
Pugh said residents must live within their means, and she said it is time Pennsylvania state government does also.
“Continuing to increase spending is just putting Pennsylvania further in debt,” Pugh said. “Now is the time to grow our economy — not to raise our taxes.”
Pugh said the governor continues to call for economically damaging energy taxes that will directly tax coal and gas power units, and will be passed to consumers in the form of higher energy bills.
“This must stop,” Pugh said. “Know that I will stand against this unaffordable, irresponsible and misleading spending plan to protect taxpayers. The people of Pennsylvania deserve a balanced budget that funds the programs we need, and none of those we don’t.”
Pugh said the governor’s address is just the beginning of the annual state budget process. The House Appropriations Committee will conduct a series of hearings to examine the details of the Governor’s plan and how state agencies are spending their funding. The hearings begin Feb. 18.
Rep. Ryncavage: Families and businesses cannot spend more than they earn, and our state government should be no different.
Rep. Alec Ryncavage (R-Hanover Township), said Gov. Shapiro’s budget plan increases spending by nearly 8%, while state revenues are projected to grow by only 2.8%.
“To bridge this gap, the governor is banking on a 57% tax on ‘skill games’ found in our local bars and retailers, the legalization and taxation of recreational marijuana at 20%, and additional revenue from personal income taxes tied to raising the minimum wage to $15 per hour,” Ryncavage said. “These are policies that must first pass both the House and Senate. Additionally, he is proposing to drain Pennsylvania’s Rainy Day Fund — money set aside for economic downturns and emergencies.”
Ryncavage noted that this budget proposal is just the beginning of the process.
“In the weeks ahead, we will be examining the programs and policies proposed as the legislature navigates the next few weeks of budget hearings,” Ryncavage said.
Sen. Flynn: I think it was a very aggressive plan
Sen. Marty Flynn (D-Scranton), said he feel it’s great to see Gov. Shapiro so motivated to get a lot of things done for Pennsylvania.
“As everybody knows, we’re facing structural deficits,” Flynn said. “We saved for a rainy day, but at the same time, Pennsylvania needs new revenue. Skilled games and marijuana legalization are ways we can generate money for Pennsylvania without raising taxes on people.”
Flynn said Pennsylvania is losing to neighboring states, and the governor sees that.
“He is urging us to come together and pass common-sense legislation to bring things over the finish line,” Flynn said. “I’m very happy about that. I’m also happy to see the Governor wanting to uncap the complement on the state police, secure more state police funding for additional troopers, and provide more funding for our fire departments. That kind of support is always great to see.”
Flynn added that he feels it’s great for the middle class — helping to build Pennsylvania from the inside out.
“Some of the investments the Governor wants to make in the human services sector are really promising,” Flynn said. “I think it’s all great, but it will be a challenge to get everything across the finish line.”
However, Flynn said he believes legislators and the governor need to start focusing on running Pennsylvania more like a business.
“We always hear that from the other side of the aisle, but the reality is, we need new revenue,” Flynn said. “The governor sees that, and I think that’s a great way to move Pennsylvania forward.
For his district, Flynn said school funding has been a huge issue.
“Leveling up the funding for children’s education and the basic education formula has made a real difference,” Flynn said. “The Scranton School District and the Wilkes-Barre Area School District have seen an increase, which is really starting to move the needle and improve our scores. Education funding remains a challenge, but I support an increase across the board and stand with the governor in working to get things done.”
Sen. Argall: Gov. Shapiro’s games lead to tax increases
Sen. Dave Argall (R-Pottsville) said the state has many opportunities to invest in our communities in this budget — childcare centers, career and technical education, new and repaired housing.
“But we must spend within our means,” Argall said. “The governor’s budget proposal plays games with numbers to hide future tax increases.”
Argall said Pennsylvania cannot follow California and New York down the road of irresponsible spending.
“If we do, we’ll either have to cut key programs, or raise taxes on hardworking Pennsylvanians — neither of which are acceptable to my constituents in Schuylkill, Carbon, and Luzerne counties,” Argall said.
Argall said he found one of Gov. Shapiro’s decisions especially insulting to rural Pennsylvania.
“This proposal would give hundreds of millions of dollars to mass transit without any extra funding to repair our roads and bridges, while his state bureaucracy continues to waste tens of millions of taxpayer dollars a year maintaining vacant properties,” Argall said. “The governor has given us his proposal. Now, the Senate and the House must improve upon it — with honest, bipartisan numbers, not gimmicks — to guide Pennsylvania towards prosperity, away from financial ruin.”