Pennsylvania Governor Signs $47.6 Billion Budget Focusing on Education, Economic Growth, and Transit Enhancements

Governor Josh Shapiro Signs $47.6 Billion Budget for Pennsylvania

In Harrisburg, Governor Josh Shapiro has signed into law a $47.6 billion budget that encompasses public education spending, economic development, transit systems enhancement, and a novel college scholarship program. Education particularly defined the budget conversations, resulting in a substantial increase in K-12 education funding by over $1 billion.

Budget Advancements

The newly approved budget focuses primarily on enhancing the state’s education sector and economic development. A significant portion of the increased funding has been allocated to the state’s poorest school districts. In his official statement, Shapiro noted that the budget aims to invest in students, create safer communities, grow the economy, reduce taxes and costs, responsibly spend taxpayer dollars, and build a more promising future with freedom and opportunity for all Pennsylvanians.

Signed after countless late-night discussions, the budget does not cut the personal income tax or provide taxpayer money for private school vouchers. Additionally, it does not approve the revenue-generating ideas proposed by Governor Shapiro, such as legalizing recreational cannabis or regulating slot-like skill games.

Budget Impact on Transit and Economic Development

The budget also addresses the issue of public transit systems, which have warned of a potential fiscal crisis as federal stimulus dollars begin to dwindle. Large systems such as Philadelphia’s SEPTA and Pittsburgh’s PRT, which threatened service cuts without additional state money, are anticipated to benefit from this budget. The final deal provides a one-time boost of $80.5 million to transit agencies.

An inclusion that Shapiro championed is the $500 million aimed at providing grants or loans to developers or local government agencies to prepare sites for industrial or mixed-use projects. The program is expected to boost the state’s competitiveness in relation to other regions in terms of economic projects.

Investment in Solar Schools and Implementation of Electric Vehicle Fee

The budget also encompasses a grant program to assist schools, community colleges, and technical schools in paying for solar energy projects. The $25 million grant program will administer funds for equipment, permitting fees, and other related costs. Furthermore, the legislature approved an annual electric vehicle fee, presenting a new revenue source for road maintenance.

Improvements in Higher Education Funding

Significant changes to Pennsylvania’s higher education system made it into the final deal. Lawmakers approved a new scholarship program that grants students in an approved course of study up to $5,000 per academic year, provided they remain in Pennsylvania to work following graduation. The introduction of a new State Board of Higher Education will allow the strategic planning for the system and recommendations for school coordination.

Reduction in Infrastructure Tax Burden

The budget features several tax cuts and credits aimed at improving the state’s economy. Companies will be able to curtail their tax liabilities by increasing the percentage of annual operating losses they can carry forward. Further, the tax system will offer employers credits if they assist employees in paying for child care expenses or match an employee’s contribution to a state-run college savings plan. Lower-income tenants will be shielded from evictions through $2.5 million aimed at funding legal protections.

Author: HERE Memphis