Gov. Josh Shapiro signed Pennsylvania’s first $50 billion-plus budget Wednesday, ending a 135-day stalemate with a plan that cuts public funding for cyber schools and boosts it for public schools.
“Let me be clear, this is a balanced budget that cuts taxes, that makes critical investments, that protects 100% of Pennsylvania's Rainy Day Fund and still leaves us with $8 billion in reserves,” Shapiro said during a mid-afternoon news conference.
Agreed to after occasionally bitter exchanges that pitted the Democratic governor and his party’s legislative allies and Republican leaders, the $50.09 billion budget raises spending by 4.7% above the budget that expired June 30, according to a House Democratic analysis.
FULL COVERAGE:
2025 PENNSYLVANIA BUDGET
From WVIA
● Months-long budget stalemate ends as Gov. Josh Shapiro signs $50.1 billion state spending plan
● Overdue Pa. state budget provides 'vital support' to school districts, includes cyber charter reform
From around the state
● Pennsylvania ends budget stalemate, sealed with concession by Democrats on climate (AP)
● Pa. budget deal includes cyber-charter changes, other spending boosts, but no new revenue (WESA)
As part of the budget deal, Shapiro committed to abandoning the Regional Greenhouse Gas Initiative, a multi-state plan to control fossil fuels that foster planet-warming climate change.
The budget does not tap the state Rainy Day Fund, a key sticking point for Republicans, who repeatedly criticized Shapiro for proposing a 2025-2026 budget with $1.8 billion from the $7.5 billion fund.
Shapiro spoke during a mid-afternoon news conference with Democratic legislators surrounding him and not a Republican in sight.
That could be seen as a sign of the standoff’s divisive nature, but many Republicans voted in favor and Republican leaders offered praise.
The budget passed the House, which has a 102-101 Democratic majority, by 156-49. The Senate, which has a 27-23 Republican majority, approved by 40-9 with one Republican senator not voting.
In a statement, House Republican Leader Jesse Topper, R-Bedford/Fulton, said the budget isn’t perfect, but marks “signficant progress” for residents and the state’s future.
“From the beginning of this session, House Republicans have emphasized that no budget will truly balance unless we prioritize our economic growth in ways that capitalize on what we have, prepare our students for the future and make necessary government reforms particularly relating to benefit integrity,” Topper said. “I am proud to say this budget has major accomplishments in all these areas.”
Removing the state from the greenhouse initiative will jumpstart the state’s energy industry, Topper said.
Costa touts earned income tax credit
Senate Democratic Leader Jay Costa said the budget will make life more affordable for Pennsylvanians.
“This plan directly addresses many of the challenges facing Pennsylvania’s families: rising costs, expensive care, and inequitably funded education,” he said. “I am especially proud of the earned income tax credit, which puts money directly into the pockets of those trying to make ends meet. While this was a lengthy negotiation process, it yielded a responsible deal that positions Pennsylvania as a model for a government that works for working people. This budget not only meets many of our immediate needs of today, but it also makes key investments from which all Pennsylvanians will benefit for many years to come.”
Olsommer: Scrapping RGGI 'big, big win'
State Rep. Jeff Olsommer, R-Wayne, said he isn't happy about the budget's spending total, but voted for it because Shapiro committed to withdrawing Pennsylvania from the Regional Greenhouse Gas Initiative (RGGI), a multi-state effort to reduce greenhouse gases and commonly referred to as Reggie.
Republicans think that will unleash further development of the state’s natural gas and coal industries.
“Being able to scrap Reggie was a big, big win for the Commonwealth of Pennsylvania, in my opinion,” Olsommer said.
State Rep. Robert Leadbeter, R-Columbia, said he voted against the budget because he thinks the state shouldn’t keep paying Medicaid benefits to more than 1 million able-bodied adults.
But he voted for budget-related fiscal code bills because the greenhouse gas initiative will go away and save residents a lot of money eventually.
“That represents over a billion dollars in tax cuts,” Leadbeter said. “It's going to open Pennsylvania up to energy generation and hopefully set the stage - because of that increase of supply - for lower power bills for Pennsylvanians across the Commonwealth,” Leadbeter said.
School funding, tax credits and more
Democratic state Rep. Kyle Donahue of Lackawanna County voted yes because the budget provides the next installment of increased funding for underfunded public schools — required by a state Commonwealth Court ruling — and a new tax credit for working residents.
“The working Pennsylvania tax credit ... automatically qualifies people for the state level tax credit, 10% of the federal credit when they're filing their taxes," Donahue said.
In a statement, state Sen. Lynda Schlegel Culver, R-Columbia, said the budget will help grow the state’s economy, protects the Rainy Day Fund and relies on about $3 billion in lapsed funding to balance without new taxes.
“This year’s budget strikes an important balance between fiscal responsibility and investment in our people,” Culver said. “It supports families through the new Working Pennsylvanians Tax Credit, strengthens education opportunities for students, and continues to grow our workforce and economy without raising taxes.”
How they voted
Here is how state lawmakers representing Northeast and Northcentral Pennsylvania voted on Tuesday:
● YES VOTES
House
Rep. Jamie Barton, R-Schuylkill/Berks
Rep. Kyle Donahue, D-Lackawanna
Rep. Jonathan Fritz, R-Wayne/Susquehanna
Rep. Jim Haddock, D-Luzerne/Lackawanna
Rep. Doyle Heffley, R-Carbon
Rep. Bridget Kosierowski, D-Lackawanna
Rep. Maureen Madden, D-Monroe
Rep. Kyle Mullins, D-Lackawanna
Rep. Jeff Olsommer, R-Wayne/Pike
Rep. Clint Owlett, R-Tioga/Bradford
Rep. Eddie Day Pashinski, D-Luzerne
Rep. Tina Pickett, R-Bradford/Wyoming
Rep. Tarah Propst, D-Monroe/Pike
Rep. Brenda Pugh, R-Luzerne
Rep. Jack Rader, R-Monroe
Rep. David Rowe, R-Snyder/Union/Juniata/Mifflin
Rep. Alec Ryncavage, R-Luzerne
Rep. Michael Stender, R-Northumberland/Montour
Rep. Tim Twardzik, R-Schuylkill
Rep. Dane Watro, R-Schuylkill/Luzerne
Senate
Sen. David Argall, R- Schuylkill/Carbon/Luzerne
Sen. Lisa Baker, R- Luzerne/Pike/Susquehanna/Wayne/ Wyoming
Sen. Lisa Boscola, R-Lehigh/Northampton
Sen. Rosemary Brown, R-Monroe/Lackawanna/Wayne
Sen. Lynda Schlegel Culver, R- Columbia/Luzerne/Montour/Northumberland/Snyder
Sen. Marty Flynn, D-Lackawanna/Luzerne
Sen. Gene Yaw, R-Tioga/Bradford/Lycoming/Sullivan/Union
● NO VOTES
House
Rep. Stephanie Borowicz, R-Clinton/Union
Rep. Jamie Flick, R-Lycoming/Union
Rep. Joe Hamm, R-Lycoming/Sullivan
Rep. Robert Leadbeter, R-Columbia
Rep. Joanne Stehr, R-Schuylkill/Northumberland
Rep. Jamie Walsh, R-Luzerne
Senate
Sen. Cris Dush, R- Clinton/Cameron/Centre/Elk/Jefferson/McKean/Potter
