Overview

• State lawmakers and Gov. Shapiro failed to pass the constitutionally required balanced budget by July 1, halting discretionary payments to schools, counties, vendors and grant programs.
• Closed-door negotiations between top House and Senate leaders and the governor focus on closing a $5.5 billion shortfall through reserves, spending cuts and new revenue measures.
• Key disputes revolve around covering massive Medicaid cost increases, securing funding for mass transit agencies and regulating and taxing slot machine-style skill games.
• Despite the impasse, the state remains legally bound to fund debt payments, Medicaid benefits, unemployment compensation and state police patrols.
• Lawmakers are considering a six-month stopgap budget to sustain operations while Congress finalizes a federal tax and spending package.