Pennsylvania’s budget was once again late this summer, the second consecutive summer that Democratic Gov. Josh Shapiro and the divided legislature ran over the June 30 deadline. The $47.6 billion budget passed through the Republican-controlled state senate and the Democrat-controlled state house on July 12 after months of negotiations. 

While the budget pours money into many high-priority areas on both sides of the political aisle, it’s starting to drain Pennsylvania’s budget surplus. In the coming years, lawmakers may have to find alternative sources of revenue. 

Highlights of the budget

Education spending dramatically increased in this year’s budget, a move that was expected by many. The cash goes back to a 2023 Pennsylvania Commonwealth Court ruling declaring the state’s school funding model unconstitutional and requiring lawmakers to find a fix. The current model funds public schools using property taxes from their district, a problem in low-income communities. 

Money for K-12 education went up by $1 million. Half of the money went to existing line items, but some addressed new concerns. A new funding formula puts around $526 million towards grants for schools with a high student poverty rate, low property values and a high rate of students with English as a second language. The model will use census figures to award the money as opposed to data self-reported by the districts, a model championed by some Democrats. 

Public schools have long struggled to pay the bill for students to attend cyber charter schools, and this year’ budget sets aside $100 million to reimburse schools for those payments. It also puts $3 million towards free menstrual hygiene products at schools. Student teachers in Pennsylvania also may be eligible for a stipend in a $20 million program that encourages future educators to stay in the state. 

Another big winner of the budget, at least for Shapiro, is $500 million in grants and loans for economic projects and a quicker process for permitting. Businesses also got a boost with the inclusion of several tax credit programs, including one for employers who help pay for employee childcare. 

The Department of Community and Economic Development also got a $550 million check for several economic development programs. Other areas, like special education and mental health funding, got boosts in programs across the age spectrum. 

Gone, but not forgotten

There are some common themes each year during budget negotiations, and three particular items got left out of this year’s budget that advocates were hoping would finally pass. 

School vouchers were once again left out of the budget, even after backing from Shapiro and strong support from Republicans in both chambers. School vouchers put public tax dollars towards scholarships to help the state’s K-12 students go to private schools. Proponents have said that it will help get children out of dangerous situations, but those opposed say it will hurt the public school system. Regardless, Shapiro does not have the support of his party, and political pundits have speculated that it may have been a factor in Shapiro getting bypassed for the vice presidential nomination.

Marijuana legalization was also left out of the budget, although the governor’s original budget included legalizing this drug, which is still illegal at the federal level, to help raise revenue. While support has grown, legalizing the drug would require hefty code bills to specify how the industry would be regulated. There was simply not enough time. 

Pennsylvania’s minimum wage, sitting at the federal minimum of $7.25, will stay the same after failing to be lumped into budget negotiations. Democrats have brought the bill to the House floor nearly every session but are met with roadblocks along the way. All six states that border Pennsylvania have a higher minimum wage. 

Looking forward

Lawmakers split for the summer after the budget, but there are still around two weeks of voting days left before the end of the year. Pennsylvania operates on a two-year schedule, meaning that bills which aren’t passed before January must be scrapped and restarted. It’s unlikely that big ticket, highly partisan issues will be passed in the short time before the end of the year, but pay attention to issues that parties can work together on.