Notice
Governor Shapiro Unveils 2025-2026 Budget Proposal
February 10th, 2025Governor Josh Shapiro delivered his third budget address to the General Assembly on February 4, 2025. In the great hall of the House, Governor Shapiro outlined a $51.47 billion spending plan that included significant increases in public education, funding for four new cadet classes in the Pennsylvania State Police, and an additional $292.5 million for public transportation. This is a 7.5% increase over last year’s budget agreement.
The budget included two significant new sources of revenue that are no stranger to budget discussions, taxing and regulating skill games and recreational marijuana. The Governor, in his budget, projected $905.4 million in new revenue from these two sources. As there is not much consensus on these two issues between the three negotiating parties (House Democrats, Senate Republicans, and the Governor), it bears to be seen whether this additional revenue will make it into the final agreement.
Some of the highlights in the projected budget for boroughs across the Commonwealth include:
- $1 million for an initiative within the Center for Local Government Services under DCED for zoning, regulation, code enforcement, and other practices addressing housing creation and development
- $10 million increase for the Municipalities Financial Recovery Revolving Fund for communities that require Act 47 support
- $292.5 million increase for public transit
- A new $30 million Firefighter Grant Program to enable fire companies to purchase equipment, recruit and retain firefighters, and meet their unique needs.
- A projected $9.7 million decrease in Liquid Fuel Allocations
- A $19.1 million increase for the state highway maintenance budget
Of course, this proposal is just the starting point for negotiations that will intensify in June and likely bleed into July. The next step in the budget process will be Budget Hearings held by both the House and Senate Appropriations Committees where members of the General Assembly will be given the opportunity to ask specific questions to the various agencies.
The Governor’s spending plan was received with mixed reviews from each of the four caucuses. To see the responses from the respective caucuses, please use the links below:
To watch the Governor’s address, please visit the link here: https://www.pa.gov/governor/governor-shapiro-s-budget.html
