HARRISBURG – Senate Republicans will closely examine Gov. Josh Shapiro’s 2025-26 budget plan during the next several months to find improvements that will ensure greater long-term fiscal stability for the Commonwealth, according to Sen. Lisa Baker (R-20).
“The governor’s budget proposal is problematic right out of the box,” said Baker. “The new revenue sources are highly controversial from the standpoint of policy and have failed to gain sufficient support in the past. Last year’s budget was balanced by tapping into $3 billion of reserves. A repeat of that will ignore all the warnings of nonpartisan budget analysts and forecasters. If the rate of spending increase is not supported by new and reliable revenue streams, it is unsustainable for very long. We need to address the structural deficit that threatens budget balancing in the years to come.”
The $51.5 billion budget plan Shapiro presented to the legislature today would increase state spending by $3.6 billion, an increase of 7.5% over the current year’s budget.
Senate Republicans raised concerns that the governor’s overly optimistic future revenue projections and wildly inaccurate future expenditure assumptions could eliminate the state’s emergency savings – also known as the Rainy Day Fund – and create the need for a multi-billion-dollar tax increase on Pennsylvania families within a year and a half.
During the next five years, using realistic spending and revenue estimates, Shapiro’s spending plans would leave a $27.3 billion hole in the state’s finances, Senate Republicans said.
The bulk of the new spending – about $2 billion – is proposed for human services programs. The budget also proposes to increase funding for Basic Education Funding by $75 million and the Ready-to-Learn Block Grant Program by $526 million.
“Locally, we have learned that the current approach to fairness funding has not provided much relief to schools in smaller communities and rural areas,” Baker said. “With larger districts in urban and suburban districts getting substantially more in real dollars, they can poach experienced teachers, administrators and support personnel from districts already struggling to fill vacancies. In this regard, equity funding widens the gap between school districts rather than closing it.”
Shapiro’s budget proposal includes a controversial plan to close two state correctional institutions and two community corrections centers, a move that raises serious concerns about public safety, job losses and the well-being of vulnerable populations. While the proposal does not specify which facilities would shut down, it outlines a review process aimed at cutting costs rather than prioritizing community needs. The Department of Corrections reports that facilities currently operate at 84-92% capacity, yet they still face significant fixed costs, including staffing, utilities and maintenance. Additionally, more than 400 corrections officer positions remain unfilled, and reducing the number of operational facilities could worsen staffing challenges, strain remaining institutions and put both employees and communities at risk.
“The closure of two more correctional facilities is extremely concerning,” said Baker. “We know from experience that the anticipated savings were never realized when Gov. Tom Wolf closed SCI-Retreat.”
The plan also includes level funding of $25 million for the Grow PA program championed by Senate Republicans in last year’s budget to help more young people attend college and complete job training programs to meet the needs of Pennsylvania’s workforce.
The governor’s budget plan also did not include any new revenues or expenditures related to his new “Lightning” energy plan, leaving Pennsylvanians in the dark about how it would impact their household budgets, grid reliability or the state’s finances.
Shapiro’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 spending plan to determine how it can be improved. The hearings will begin Feb. 18 and run through March 6.
CONTACT: Jennifer Wilson