By: Tracy Pennycuick
I heard it said recently that it’s great politics to be all things to all people. Unfortunately, it’s not good government. As a public official, I’ve always tried to be straight with the people of Pennsylvania. Last week, the Governor presented his budget proposal for fiscal year 2025-2026 that provided all things to all the people.
Here’s the hard reality. Governor Shapiro’s budget proposal totals approximately $51.5 billion – an increase of 7.5% ($3.6 billion) from the current year’s budget – and does not include a realistic path to close the state’s multi-billion-dollar structural deficit.
Plainly stated, if we pass the Governor’s budget as is, next year we will have a $3.5 billion deficit with no Rainy Day Fund left for emergencies. That means tax increases on Pennsylvania families, and I won’t stand for that.
Every week, I meet with families and businesses struggling to make ends meet. As costs rise, we must do more to protect taxpayers from excessive spending.
Unlike the Federal government, Pennsylvania cannot simply pass an unbalanced budget. We are required by the state constitution to ensure expenditures and revenues are balanced.
In order to make it appear as if his budget is balanced over the next five years, Governor Shapiro’s budget includes unrealistic revenue projections and vastly understated expenditures.
Pennsylvanians deserve an honest accounting of the state’s financial position and a clear picture of what the governor’s spending plans would mean for hardworking families throughout the Commonwealth. This budget does not provide that clarity.
As an example, the Governor’s budget projects an increase in Human Services spending of around $330 million a year. These increases have traditionally been closer to $1 billion annually. The increase this year is approximately $2 billion.
When we add up the overstated revenue growth, the suppression of future Medicaid costs, unrealistic new revenue projections, it adds up to a math problem of approximately $27 billion over the next five years.
I was encouraged by the Governor’s discussion of permitting reform and growing our economy. The budget would accelerate the phase-down of the Corporate Net Income Tax rate from 0.5% reductions to .75% reductions annually, but also institutes combined reporting, resulting in a net $3.7 billion in new taxes on job creators over five years.
I am also strongly supportive of funding our basic education system and empowering families to ensure they have a say in where to send their kids to school. No parent should have to send their child to a failing school. Funding should be tied to a measure of accountability. Unfortunately, no new money was proposed for EITC/OSTC programs, leaving these very successful programs level funded. I recently had the real pleasure of visiting Saint Francis Academy in Bally, a recipient of EITC funding. They, and other schools like them, need more support to help families and kids get the good education they deserve.
Yet, another hard reality is that Pennsylvania is educating fewer kids. Our most recent kindergarten class was the smallest class size in recent history. Funding should be based on per pupil costs, not simply providing the same funding to shrinking schools.
The budget renews the Governor’s call for an additional $292.5 million annually for mass transit. Any new funding must include additional resources for all transportation infrastructure, including our roads and bridges.
Throughout February and March, as a member of the Senate Appropriations Committee, I will meet with department heads to discuss the details of the Governor’s spending plan. While there is much work to be done, I firmly believe that we must respect taxpayers and acknowledge the reality that state government cannot spend more money than we’re bringing in. In addition, we must address the structural deficit and focus on what we can do to grow our Commonwealth’s economy. Now it’s time for our full budget review process to take place, as we do our due diligence fighting for taxpayers.
CONTACT: Lidia Di Fiore (215) 541-2388