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Shapiro Unveils $53.2 Billion Pennsylvania Budget Using Reserves and New Revenue Plans

The proposal enters negotiations in a divided legislature with a June 30 deadline.

Overview

  • The spending plan increases outlays by 6.2% and would draw roughly $4.6 billion from the Rainy Day Fund to close the gap.
  • K-12 education would receive a $565 million adequacy boost targeted to underfunded districts, with additional increases across schools and rising human-services costs.
  • New revenue proposals include legalizing and taxing adult-use cannabis, regulating and heavily taxing skill games, and tightening corporate tax rules.
  • The plan creates a $1 billion bond-backed Critical Infrastructure Investment Program to support housing, energy generation projects, and school building upgrades.
  • Shapiro proposes a $15 minimum wage starting Jan. 1, 2027, shifts 1.75 percentage points of sales tax to transit beginning in 2027 for about $300 million annually, and meets Wednesday with caucus leaders as Republicans warn about depleting reserves.