Governor Shapiro and the state legislature are continuing to negotiate the state’s budget following the June 30th deadline.
Mass transit, Medicaid, and skill games are some of the issues holding up the Pennsylvania state budget.
The state legislature has passed the June 30th deadline without passing a budget for the fiscal year beginning on July 1. While new funds have not been appropriated, most state agencies have enough money to continue operating for several weeks without a budget in place.
Governor Josh Shapiro said at a Monday press conference, “The temperature is way down, we respect one another, and we respect what each party has to bring back to their constituents.
The state Senate is held by Republicans, while the state House is controlled by Democrats. The two chambers will have to work together to pass the necessary appropriations bills for Shapiro’s spending plan totaling $51.5 billion.
Shapiro’s previous budget was $47.6 billion. This year’s budget would run a multi-billion dollar deficit that would require the use of the state’s “rainy day” fund, which currently holds about $11 billion.
Shapiro said, “As we work to try and finalize the final pieces of our state budget, we’re communicating effectively, bringing Republicans and Democrats together. We all understand the issues. We all understand that compromise is the name of the game.”
All three of Governor Shapiro’s budgets have been passed late and under a divided state legislature.
Republicans are criticizing the budget proposal because of the billions it will add to the state’s deficit.
“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,” Senate GOP leadership said in a statement.
“This really isn’t just about this year’s budget,” but about the deficit trajectory, said House Republican Leader Jesse Topper of Bedford County.
Shapiro’s proposal calls for legalizing recreational marijuana, reforming taxes, and regulating “skill games” to increase state revenue.
In June, Senate Majority Leader Joe Pittman of Indiana County said the outstanding unresolved areas of the budget were an agreement on skill games and a resolution for the state’s Medicaid spending.
The state Senate adjourned on Monday and has not yet announced planned session days prior to September of this year.
While many state agencies can function for several weeks without new appropriations bills being passed, school districts and counties with thinner budgets might not have as long at their current level of funds.
According to the Pennsylvania School Boards Association, the state treasurer would need to see a budget formula by July 15 to provide the July state subsidy payment to school districts across the Commonwealth.
