NOTE: This story has been updated to reflect a vote in the House. The original is further below. This a developing story and will be updated.
HARRISBURG — Pennsylvania’s long-awaited budget proposal cleared the state House on Wednesday and advanced to the Senate for a forthcoming vote later today that could bring an end to a protracted stalemate in the State Capitol.
State House members voted 156-47 to approve the budget and send it for consideration of the upper chamber. Presuming a successful vote in the Senate, it would move to the desk of Gov. Josh Shapiro for his signature.
The Senate is voting on related code bills that must be returned to the House for final approval and also advance for the governor’s approval. Those votes are also expected later today.
The annual budget is due June 30 and has dragged on since then for varied issues including transportation funding, exiting the Regional Greenhouse Gas Initiative, education spending and reforms and the overall spend.
Reps. Aaron Bernstine, Tim Bonner, Stephanie Borowicz, Jamie Flick, Dallas Kephart, Kathy Rapp, Brad Roae and Joanne Stehr, all Republicans, were among those who voted in opposition.
Voting in favor were Democrat Rep. Frank Burns and Republican Reps. Marla Brown, R. Lee James, Carl Metzgar, Jim Rigby, David Rowe, Michael Stender and Parke Wentling.
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HARRISBURG — Pennsylvania lawmakers are moving toward an end to the monthslong budget stalemate as a $50.1 billion negotiated proposal is put to the test Wednesday in the General Assembly.
Members of the House Rules Committee amended Senate Bill 160 this morning to add the pending budget language for 2025-26 — a fiscal year already in its fifth month — that includes no new revenue streams and nearly exhausts existing budgetary reserves. It does, however, avoid dipping into Pennsylvania’s $7 billion-plus Rainy Day Fund.
Though the committee vote was unanimous, that was simply to push the bill to the floor of the state House. Opposition is expected from at least some of the more conservative Republican Representatives in a chamber that has a one-seat majority split favoring Democrats.
Should the bill advance, the state Senate is prepared to take it up for consideration later today. The upper chamber has already set the necessary code bills up for votes. Code bills authorize spending within the budget. The Human Services Code bill cleared the full chamber Wednesday morning with pending votes on codes for education, capital projects and taxes.
The budget proposal represents a $2.27 billion increase in spending, up about 4.7% compared to the $47.8 billion budget for 2024-25.
While spending would round up to $50.1 billion, actual revenues are projected at $45.6 billion, leaving a $4.6 billion hole. Attempts to legalize recreational marijuana and regulate digital skills games — something the industry favors — ultimately failed.
Almost all of the deficit is filled with the general fund’s beginning balance of $4.1 billion, with another $500 million transferred from another account.
The plan would leave just $200 million in budgetary reserves, far less than the $8.1 billion balance that had been in place at the start of the 2023-24 budget season, Gov. Josh Shapiro’s first.
The negotiations will likely bring an end to Pennsylvania’s contentious participation in the Regional Greenhouse Gas Initiative, a cap-and-trade program that was a priority target for legislative Republicans seeking fewer restrictions on the commonwealth’s energy industry.
There’s currently no language in the proposed revisions to the education code that would authorize a school voucher program, another priority initiative sought by the GOP in both chambers.
Education spending will climb should the budget pass as presently constructed. An additional $565 million would be split among public schools as part of the adequacy initiative sought to ease the burden on less wealthy school districts. Basic education funds would grow by $105 million, or 1.3%, while special education spending would climb by $40 million, or 2.7%.
Shifts in the charter school funding formula, one proposed without an $8,500 cap once sought by legislative Democrats, would collectively save public schools approximately $178 million in tuition payments. Another $100 million in cyber charter transition funding would be eliminated.
In higher education, state-owned universities, state-related universities, including Penn State and Pitt and community colleges all would be flat-funded. PHEAA would maintain the $5,750 maximum state grant amount.
There are proposed increases for Medicaid Managed Care, PENNCARE and early interventions for newborns and toddlers. A $25 million initiative to stabilize the child care workforce is also included.
State parks would see 3.1% less funding, while state forests would lose less than 1%. Spending on state police would rise 4.1%, while corrections would see a 2.6% increase, including 3% more for state prisons.