HARRISBURG — Gov. Josh Shapiro unveiled his $44.4 billion price range proposal Tuesday, establishing the investments he needs to make over the subsequent 4 years — a cautious spending plan as Pennsylvania approaches a fiscal cliff following an inflow of one-time federal aid funds in the course of the COVID-19 pandemic.
Shapiro’s price range proposes lawmakers make investments a whole bunch of thousands and thousands of {dollars} in new packages addressing the state’s psychological well being, public security, and workforce improvement. He additionally needs to safeguard funding for State Police by creating its personal fund, quite than counting on the Motor License Fund, which is meant for use to repair Pennsylvania’s roads and bridges.
His plan requires an nearly 4% spending enhance over final 12 months’s 2022-23 $42.7 billion price range settlement signed by former Gov. Tom Wolf.
Shapiro made his price range tackle earlier than a joint session of the state Home and Senate — beginning his remarks by noting the historic second, with each of the primary girls to carry the highest spot of their chamber: Home Speaker Joanna McClinton (D., Philadelphia) and Senate President Professional Tempore Kim Ward (R., Westmoreland).
“But it surely’s additionally value noting that amongst these two distinguished girls leaders, one is a Democrat and one is a Republican,” Shapiro stated, noting that Pennsylvania is one among solely two states with a divided authorities. “And nothing will get performed until a majority in her chamber and in her chamber agree.”
Shapiro’s first price range pitch proposed a $567.4 million enhance in fundamental training, a $104 million particular training enhance, and a $60 million greater training enhance throughout schools and universities — although at far more conservative charges than his predecessor Wolf, who in his final price range tackle proposed a $1.25 billion enhance in fundamental training funding.
The price range pitch consists of no new tax will increase, and proposes chopping state taxes on cell phones, which he stated would save Pennsylvanians $124 million every year.
Shapiro administration officers informed reporters in a press briefing forward of his tackle that they acknowledge the upcoming downturn and can doubtless must dip into the state’s “wet day” fund by 2026-27 to maintain up with elevated spending that outpaces state income.
The 2023-24 price range plan doesn’t contact the greater than $5 billion within the state’s “wet day” fund. As well as, Pennsylvania has greater than $6.7 billion of a income surplus this 12 months, principally credited to billions in federal assist and infrastructure funding deposited in the course of the COVID-19 pandemic. And regardless of this optimistic monetary outlook, the state’s Unbiased Fiscal Workplace initiatives that spending will outpace income beginning on this 12 months’s price range and proceed to develop every year after that.
Shapiro stated his price range pitch was “so conservative” that it used projections $3 billion much less over 5 years than what the often cautious Unbiased Fiscal Workplace initiatives.
He referred to as on lawmakers to boost the minimal wage to $15 an hour by 2023, a long-held want greater than a decade within the making for state Democrats.
“That’s why so a lot of [businesses] aren’t sitting again and ready for us to boost the wage,” Shapiro added, noting that almost all companies have already got wages above the state’s $7.25 minimal wage.
Shapiro additionally listed points he’s not keen to barter on: whether or not Pennsylvania is a “proper to work” state for union staff, LGBTQ rights, voting rights, and abortion entry.
“These are non-starters for me, so as an alternative of arguing about that, let’s as an alternative concentrate on this price range,” Shapiro stated. “Let’s concentrate on the challenges it seeks to handle.”