Shapiro: Budget progress being made and ‘will land very, very soon’
Speaking at the Harrisburg YMCA on Monday, Gov. Josh Shapiro said that he anticipates that the FY26 Pennsylvania budget “will land very, very soon.”
With the minutes counting down to the deadline of June 30 to pass a budget, it is apparent that the Commonwealth will misfire on that legal requirement for a third consecutive budget cycle.
The state budget allows the Commonwealth to pay its bills and send out its funds. In a budget stalemate, the state is still legally bound to make debt payments, cover Medicaid costs for millions of Pennsylvanians, issue unemployment compensation payments, keep prisons open and ensure state police are on patrol. Those hurt most include vendors, counties, public schools and grant applicants.
The governor proposed a $51.5 billion budget in February that would increase spending for Medicaid and education, among others, while proposing to pay for the additional spending by legalizing marijuana and regulating skill games.
Shapiro’s budget proposal passed the State House by a 102-101 vote, but the State Senate has yet to act. The chamber is controlled by Republicans by a 27-23 count and Senate Majority Leader Sen. Joe Pittman (R-Indiana) has said that supporting an increase to the state’s Medicaid program would limit new investments that Pennsylvania could make. House Majority Leader Rep. Matt Bradford (D-Montgomery), along with Shapiro, has made funding mass transit a priority, especially for SEPTA in the duo’s home region.
The good news, at least according to the governor, is that the temperature of negotiations “is way down.”
“I think we made real progress, and we’re going to continue to make progress. We understand what the issues are, and we are working through the solutions on those issues,” he said. “I’m determined to help everyone find a way to have wins for their communities, just as I’ve done in the last two budgets. I’m confident we’re going to get there.”
The State Senate leadership of President Pro Tempore Kim Ward (R-Westmoreland), Senate Majority Leader Joe Pittman (R-Indiana) and Senate Appropriations Committee Chair Scott Martin (R-Lancaster) also issued a statement on the progress of the budget talks.
“Standing up for families and taxpayers remains our focus as work to finalize the 2025-26 state budget continues to advance. Over the last two weeks we have taken actions on several key components of the budget, to fund certain government functions.
“Pennsylvania is facing a multi-billion-dollar structural deficit that we must address this year to prevent a financial crisis and tax increases in the future. Better aligning revenues with expenditures remains our top priority.
“We will continue to work with all parties to reach a final agreement on a spending plan that respects taxpayers, while allowing Pennsylvania to grow.”
Steve Ulrich is managing editor of Politics PA.
