HARRSBURG – The Senate approved a fiscally responsible state budget today that only increases spending from $50.1 billion to $50.8 billion from the previous year, a far cry from Gov. Josh Shaprio’s proposed $53.3 billion dollar budget, according to Sen. Chris Gebhard (R-48).
“Gov. Shapiro started this budget process by proposing a budget which increased state spending by more than 5% at a time when Pennsylvanians are still reeling from rising costs, created in part by overspending by government,” Gebhard said. “Over the course of many months, Senate Republicans worked hard within the constraints of a divided government to create a responsible plan that protects taxpayers, prevents new tax hikes and safeguards our financial future. This budget only increases spending by approximately 1.4%, well below the 3.9% rate of annual inflation as measured by the Consumer Price Index.”
The fiscal year 2026-27 budget that was adopted represents a massive reduction from Gov. Shapiro’s proposal in February. The budget also preserves the state’s Rainy Day Fund, setting the state on a more sustainable path and avoiding potential bond downgrades and higher debt costs.
Over the last two years, Senate Republicans have taken action to safeguard taxpayer funds by reclaiming $4.5 billion from prior-year budgets, lapsed funds and other accounts, ensuring this money can be utilized to support state government programs instead of sitting idle in government accounts.
Senate Republicans have also identified and cut more than a billion dollars in overspending proposed in the Department of Human Services over two years, and more than $100 million in unnecessary spending in the Department of Corrections. The Senate’s operating lines were flat funded and nearly half of government agency line items were either level funded or reduced.
Other highlights include:
- The plan maintains funding for the Educational Improvement Tax Credit program and rejects legislative changes proposed by House Democrats that would have taken away scholarships.
- Career and Technical Education funding is also increased in the budget by $10 million and $15 million was restored to a key workforce development line-item Gov. Shapiro proposed to cut in his budget.
- $10 million in new funding for Grow PA, a successful program to provide grants of up to $5,000 for students who pursue education training for careers in high-demand industries in Pennsylvania and agree to live and work in Pennsylvania.
- Long-term care providers would also see rate increases in the budget, and additional funding is included to support nursing homes.
- A supplemental appropriation of $10 million is included for fruit growers who experienced crop losses after this year’s historic spring freeze.
- Additional $12 million for rape crisis centers, nearly doubling funding levels from the previous year.