The overdue state budget provides significant relief for Pennsylvania school districts — some of which feared they’d soon close their doors without state money. In the 134 days the state went without a budget, school districts used borrowed money to make payroll, canceled field trips and delayed hiring teachers.
Gov. Josh Shapiro signed the $50.1 billion budget Wednesday afternoon.
Leaders at Northwest Area, a small rural district in Luzerne County, feared they’d be forced to close soon without state funds. Northwest Area will receive $432,939 more for this fiscal year, according to the Democratic House Appropriations Committee.
“This vital support helps us address potential deficits moving forward,” Superintendent Joseph Long said. “While it doesn't completely resolve all our challenges, we are actively working on more permanent solutions. We are grateful that the legislators have heard our voices and are making efforts to support our district.”
Pa. education budget details
The education budget includes, according to the appropriations committee:
- Full funding for the second installment of adequacy and tax equity payments ($565 million increase).
- $105 million, or a 1.3% increase, for basic education funding.
- $40 million, or a 2.7% increase, for special education funding.
- $28.5 million, or a 6.7% increase, for early intervention.
- $125 million for school facilities, with no less than $25 million set aside for Solar for Schools.
- $100 million for school safety and mental health grants.
- $9.5 million more for Pre-K Counts, which will be used to increase the per-student reimbursement rate for full-time students from $10,500 to $10,748, or 2.36%.
- $5 million, or a 7.1% increase, for the public library subsidy.
- $50 million increase in the Educational Improvement Tax Credit (EITC) program, for supplemental scholarships for students attending economically disadvantaged schools.
For higher education, the student teacher stipend is level-funded at $30 million. The budget provides level funding for Pennsylvania State System of Higher Education schools and state-affiliated universities — Penn State, Pitt and Temple.
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)
Cyber charter school reform
Superintendents have called for funding reform for cyber charter schools for years. The budget includes an estimated savings to school districts of $178 million, or 14.6%, from the reform.
During remarks after signing the budget, Shapiro said overfunding cyber charter schools should not be at the expense of school districts.
"[Cyber schools] have been taking an amount of money that was not needed for them to operate their schools. That number was artificially high, we believe. And so ... we've returned in this case $175 million — to start — back to our public schools,” he said. “[We did it] so that students who are going to those traditional, brick and mortar public schools would be able to get their fair share of the funding and cyber charter schools could continue to operate effectively."
The governor and other legislators have said the schools should receive tuition that more fairly represents the cost of cyber education. Details about the funding reform were not immediately released Wednesday.
This year’s budget negotiations show that public cyber charter school students and families continue to be pawns in state-level politics, according to Timothy Eller, chief branding and government relations officer for Commonwealth Charter Academy. The largest charter school in the state, CCA had an enrollment of 35,000 students last year.
“The funding cuts to public cyber charter schools included in the 2025-26 state budget are irresponsible, inappropriate and unjustifiable. They send a clear message that the General Assembly views cyber charter students as far less worthy of investment than their peers in traditional school districts,” Eller said. “While state lawmakers continue to pour hundreds of millions of new taxpayer dollars into traditional school districts — a system that has failed tens of thousands of families and continues to see declining enrollment — they have chosen to penalize those who have found success in innovative schools that listen to and work closely with families.”
School districts respond
The months-long delay placed real strain on school districts across the commonwealth, Wilkes-Barre Area Superintendent Brian Costello said. The district postponed critical staffing and program decisions that directly impact students.
"While we welcome this renewed investment, future budgets must be passed on time so our district can plan responsibly and deliver the stability our students deserve. This year’s outcome reinforces the progress made through the fair funding decision and the shared belief that every child, regardless of ZIP code, deserves a world-class education," Costello said.
Wilkes-Barre Area and others filed the fair funding lawsuit more than a decade ago. Since the 2023 Commonwealth Court decision that ruled Pennslyvania’s school funding system unconstitutional, advocates have pushed for a multiyear plan that dramatically increases state money for the most underfunded districts.
"Our district will continue to advocate for predictable, timely funding that allows us to attract talented educators, expand student supports and maintain safe, modern learning environments," Costello said.
As reserves disappeared this fall, Old Forge, in Lackawanna County, secured a tax anticipation note for $1.5 million. The district will see $717,572 more this school year under the new budget.
“The budget includes the second installment of adequacy and tax equity payments which helps move us closer to fair funding for all students. We’ll also see increases in both basic and special education funding, along with new resources for school safety, mental health and facilities,” Superintendent Christopher Gatto said. “For Old Forge, these investments will directly impact our ability to maintain programs, support our growing special education and English learner populations and strengthen school safety without placing the entire burden on local taxpayers. While we’re still operating under fiscal pressure, this budget is a positive step toward closing the long-standing gaps between well-funded and underfunded districts across the commonwealth.”
Hazleton Area, the largest district in Luzerne County and across the region, will see an additional $15 million.
“While we were able to navigate the challenges and keep programs running, a prolonged delay would have required us to make adjustments to programming in order to finish the year. The passage of the state budget provides much-needed stability, allowing us to move forward with planned initiatives, maintain staffing levels and support programs that directly benefit our students,” Superintendent Brian Uplinger said. “The finalized budget ensures that Hazleton Area can continue focusing on its mission to provide a safe, clean learning environment with diverse educational opportunities for all students.”
At Schuylkill Haven Area, the lack of a state budget has caused the district to delay repairs, freeze hiring and deplete fund reserves. The school board authorized borrowing money next month.
“The passage of the state budget can’t come soon enough for school districts like Schuylkill Haven Area. We’ve been operating without state funding since July and are currently owed more than $5 million in subsidies that would normally support our day-to-day operations,” Superintendent Shawn Fitzpatrick said. “Once the budget is finalized and those dollars are released, it will stabilize our operations, allow us to lift our discretionary spending freeze, and help us refocus on educational priorities rather than short-term financial survival.”
WVIA News' Isabela Weiss contributed to this report.
