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Shapiro Proposes $53.2 Billion Pennsylvania Budget With School Boosts and New Cannabis, Skill-Game Revenues

The plan closes a roughly $4.6 billion gap with Rainy Day withdrawals before negotiations in a divided legislature.

Overview

  • The spending blueprint exceeds projected revenue by about $4.6 billion and would draw heavily from the state’s Rainy Day Fund.
  • New revenue relies on legalizing adult-use cannabis with a 20% tax and significant first-year license fees, plus taxing and regulating skill games at a 52% rate.
  • K‑12 funding would increase with a $565 million adequacy boost, added support for special education and school safety, and further cyber charter cost controls.
  • Shapiro seeks a $1 billion bond program for energy generation, housing and repairs to aging school buildings, alongside a $100 million Federal Response Fund.
  • The proposal includes a $15 minimum wage starting Jan. 1, 2027, a sales-tax shift to bolster transit beginning in 2027, and immediate talks with all four caucus leaders to avoid another prolonged impasse.