Central PA News

The proposed budget for Pennsylvania's 2025-26 fiscal year, amounting to $51.47 billion, has sparked criticism from Representative Perry Stambaugh. Governor Josh Shapiro's plan increases spending by 7.5% compared to the current fiscal year, which Stambaugh argues does not align with the needs of Pennsylvania families and small businesses.

Stambaugh expressed concern over the state's financial health, stating, "The governor’s spending plan isn’t rooted in reality." He questioned why Governor Shapiro did not address the growing structural deficit or compare Pennsylvania's policies with those of neighboring states like Ohio and West Virginia.

According to the Pennsylvania Independent Fiscal Office (IFO), the state faces a projected deficit of $3.675 billion for the 2024-25 budget year. This shortfall is expected to grow in subsequent years, reaching $6.5 billion annually after 2027-28 if unchecked.

To manage this gap, it is anticipated that funds from the General Fund surplus and Rainy Day Fund will be used until depleted by 2026-27. Additionally, nearly $70 billion in unfunded pension obligations could further strain finances.

Stambaugh warned that tax increases might follow if no action is taken: “What’s next after that? Tax increases, of course!” He remains hopeful that this fiscal challenge will prompt a collaborative effort to alter Pennsylvania's economic path.

Governor Shapiro presented his budget proposal to the General Assembly ahead of upcoming State House and Senate budget hearings set for July 1.