This week’s top stories in Pennsylvania:
Pennsylvania State Budget Update: After months of negotiations, this week Pennsylvania leaders finalized a $50.1 B budget for fiscal year 2025-26m representing a 4.7% increase over last year. The agreement avoids using the Rainy Day Fund by repurposing roughly $3 B in lapsed or excess funds from state agencies and special accounts, while trimming $500 M from the Governor’s original Human Services proposal. Lawmakers also rebased agency budgets to reflect actual spending, helping contain overall growth without any broad-based tax increases or new revenues from gaming, tobacco or other alternative sources. READ MORE.
MORE State Budget News: A major centerpiece of the final deal is energy and economic reform. The budget withdraws Pennsylvania from the Regional Greenhouse Gas Initiative (RGGI) and includes new permitting reforms to streamline project approvals. It also continues to the Corporate Net Income Tax phase-dowm and maintains expanded business deductions – policies expected to save employers roughly $1.4 B compared to previous years. READ MORE.
LASTLY on the State Budget: On education and families, lawmakers added $50 M for school-choice scholarships and preserved cyber-charter options by rejecting a proposed statewide rate cap. The budget also boosts K-12 funding and introduces a new state Earned Income Tax Credit (10% of the federal EITC) for working Pennsylvanians. Additional investments support seniors, agriculture, and transit – all without tapping the state’s emergency reserves. Overall the 2025-26 State Budget reflects a compromise that curbs spending, protects taxpayers and strengthens Pennsylvania’s long-term fiscal stability. READ MORE.
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