Overview
- Gov. Josh Shapiro signed the plan after bipartisan votes of 156-47 in the House and 40-9 in the Senate, unlocking delayed payments to schools, counties, and nonprofits.
- The $50.1 billion package marks a roughly 4.7% spending increase over last year, driven largely by Medicaid obligations and K-12 education boosts.
- Public schools receive more than $665 million in new funding, about $562 million of it through adequacy and tax equity formulas, with additional changes to cyber charter payments.
- Democrats agreed to cease Pennsylvania’s pursuit of RGGI to secure Republican support, and the deal includes a new earned-income tax credit for lower-wage workers.
- The budget relies on surplus cash, leaves the rainy day fund untouched with roughly $200 million in reserves, and adds no new recurring mass-transit funding as SEPTA draws on capital funds.