HARRISBURG – Sen. Chris Gebhard (R-48) expressed utter shock and dismay over a multitude of issues in Gov. Josh Shapiro’s proposed 2025-26 state budget address today.
“Primarily, spending more than $51.5 billion, a 7.5% increase from last year’s historically large budget, is reckless and fiscally irresponsible,” Gebhard said.
At first glance, Shapiro’s plan seems to promote a balanced budget, but a cursory analysis reveals some startling revelations. The entirety of the Rainy Day Fund, which took years of work by Senate Republicans, would be completely drained by 2029. Additionally, the administration is using wildly optimistic revenue assumptions. To illustrate this point, the baseline revenue estimates Shapiro uses are $5.1 billion higher than those prepared by the Independent Fiscal Office for the five-year budget planning period.
The governor also uses astonishingly high numbers from revenue sources that don’t currently exist: nearly $2 billion a year from the legalization and taxation of recreational adult use marijuana and skill video gaming machines. Interestingly, since last year’s address, the estimated revenues for the new marijuana tax doubled while his projection for skill gaming figure quadrupled without any explanation.
“The assumptions in the governor’s budget plan are not just optimistic, they are completely unrealistic,” Gebhard said.
Using genuine spending and revenue assumptions, Shapiro’s plan would leave the commonwealth with a $27.3 billion deficit at the end of the five-year budget forecast.
“Unfortunately, the governor’s budget did not include any details, new revenues or expectations related to his new Lightning energy plan, leaving all of us in the dark about how it will impact our household budgets or the state’s finances,” Gebhard said.
Also absent, for the third consecutive year, Shapiro failed to include how he plans to fulfill his promise to fund Lifeline Scholarships to help our students stuck in failing schools.
“The bottom line is we need a budget that will lead Pennsylvania forward rather than recycle old ideas that lead to bigger government, higher taxes, higher energy costs and the continuation of our younger generation fleeing the state,” Gebhard said.
Today’s budget address is only the first step in the process. In the weeks ahead, the Senate Appropriations Committee will hold a series of hearings to closely examine the administration’s spending plan. The hearings will begin Feb. 18 and run through March 6.
“As a member of the Appropriations Committee, I am eager to thoughtfully consider funding requests from all state agencies to make sure that the final budget mindfully uses taxpayer dollars,” Gebhard said. “In this economy, Pennsylvanians don’t need the added financial pressure of tax increases to pay for unnecessary, unchecked spending.”
“This year, we are at a pivotal point in the commonwealth’s fiscal future. Solving Pennsylvania’s problems will take more than wishes and dreams, but rather adult conversations, a realistic approach and a lot of hard work in the coming months,” Gebhard said.
CONTACT: Alex Gamble