The 2026-27 Pennsylvania Budget was signed by Governor Josh Shapiro last night after weekend sessions of both the house and senate.
The $50.8 billion spending plan includes $900 million in education spending, including an additional $58 million to basic education and $55 million to special education funding. It will also transfer $125 million from the Commonwealth Financing Authority to a program to improve school facilities. An additional $565 million will go to school districts that are historically underfunded or have high property tax burdens.
The budget will also provide a bump in pension to retired school teachers, emergency response workers and state employees, many of whom retired before 2001. It also addresses a concern with AI data centers, as they will be required to report their annual energy and water consumption to the state. The plan did not address the legalization of recreational marijuana or the legalization and taxation of skill games. Lawmakers have until the State Supreme Court-mandated deadline of October to act on the legalization of skill games before they are seized.
In a joint statement, Senate President Pro Tempore Kim Ward, Majority Leader Joe Pittman and Appropriations Committee Chair Scott Martin called the budget “fiscally responsible” as it did not dip into the $8 million rainy day fund for the state, nor does it raise taxes. The final agreement negotiated by Senate Republicans cut more than $1.1 billion from the governor’s spending request. Pittman added that “The ultimate long-term solutions to our budgetary challenges are economic opportunity and growth, and I am proud that the agreement includes numerous policies to support families, invest in our local communities, and foster needed growth.”
We’ll have State Representative Jim Struzzi on the air live at 7:45 on Indiana in the Morning to get his reaction to the new budget.
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