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Pennsylvania is flush with surplus cash, but it still faces a looming budget problem

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Pennsylvania is flush with surplus cash, but it still faces a looming budget problem


This story originally appeared on Spotlight PA.

Gov. Josh Shapiro wants to spend $3.5 billion of Pennsylvania’s surplus to stabilize transit systems, fund a court-mandated K-12 education overhaul, and expand the state’s economic development programs as part of his second budget proposal.

The state can afford such an expense. It has built up roughly $14 billion in financial reserves over the past four years, thanks to stimulus dollars and strong tax returns.

But if Pennsylvania had to rely solely on the tax revenue the Shapiro administration projects to bring in over the next few years, it wouldn’t be able to cover the tab.

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That’s because Pennsylvania has a structural deficit. The state’s annual costs, such as paying public servants and providing health care to people who can’t afford it, consistently exceed the state’s annual tax revenue.

No government can avoid tax revenues periodically dipping, analysts noted. But long-term budget challenges like Pennsylvania’s can hollow out public services and burden local governments with covering unmet costs.

“Even without new initiatives, you have rising costs,” said William Glasgall, senior director of public finance at Volcker Alliance, a good-government group. “And if the projection of revenues does not match that, you have a structural deficit.”

Unlike the federal government, Pennsylvania cannot go into debt to cover its annual operating expenses. The state constitution prohibits the commonwealth from taking on debt except in a few specific scenarios, such as for disaster relief.

That essentially leaves lawmakers with two choices: spend less or bring in more money.

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Instead, Pennsylvania’s divided executive and legislative branches have employed a variety of techniques that experts say hide the real cost of government. That includes accounting gimmicks, delaying payments to state contractors, leaving job openings unfilled, or flat funding key programs to make the numbers work.

“If you’re serving a larger population with the same number of workers, or if you have costs that are going up and your budget stays flat, often that means that effectively public services have been reduced,” said Josh Goodman, a fiscal health researcher with the Pew Charitable Trusts.

When the state punts on funding increases for education and other services, those costs are passed to counties, school districts, and nonprofits that rely on state dollars, Glasgall said.

Pennsylvania’s failure to meaningfully deal with its structural deficit may also have serious consequences if it needs to borrow money. Glasgall said lenders would “catch on” and see the state as a bad fiscal bet, and increase the cost to borrow.

As lawmakers begin negotiating this year’s budget deal in earnest, few are talking about the tax hikes or spending cuts that would be necessary to permanently bring the commonwealth’s finances in order.

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And while the state has extra money available now, those dollars could quickly disappear if Pennsylvania continues spending at its current rate.

Pennsylvania’s primary revenue sources are broad-based taxes on sales and income for individuals and businesses, but so far Shapiro hasn’t proposed increasing these. In fact, he’s argued that Pennsylvania should more quickly implement cuts to its corporate net income tax.

Shapiro has avoided talking about the structural deficit while pitching his spending ideas, instead emphasizing the size of the state’s surplus and the need to invest it in communities.

“Look, it is not a badge of honor, nor is it something to be politically proud of for some lawmakers out there to say, ‘I took more money from the good people of Pennsylvania than I needed and then bragged about how I just kept it in some bank account here in the Capitol,’” Shapiro said in his budget address.

Republicans in the state legislature have pushed back, saying that the state should cut spending rather than tap its savings. They also argue that sitting on money is fiscally prudent.

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State Senate Appropriations Chair Scott Martin (R., Lancaster) noted that Pennsylvania earns interest on its surplus and that spending it down would decrease returns. He added that spending surplus funds would not be a sustainable solution to the state’s structural deficit.

“We’re going to be in big trouble if we think that we can spend this entire surplus,” Martin told Spotlight PA. “We would just create a much bigger hole.”

How did we get here?

The commonwealth’s surplus is split between its rainy day fund, which is essentially a long-term savings account that requires a two-thirds vote of the legislature to tap, and its general fund. The latter is effectively its main checking account and accrues most state tax revenue.

Experts have said that states should keep about 12% to 15% of their total annual costs in a rainy day fund; this year, the target would be about $7 billion in Pennsylvania. But just five years ago, it contained only $22 million — enough to run the state government for just a few hours.

The fund was depleted during the Great Recession under Democratic Gov. Ed Rendell. After federal stimulus dollars ran out, lawmakers struggled during Republican Gov. Tom Corbett’s four years in office and Democrat Tom Wolf’s first term to balance the budget.

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Corbett, who had pledged not to raise taxes, largely tried to deal with the financial situation by supporting spending cuts.

The enacted cuts included a 10% reduction in funding for county human services, and, most significantly, a $1 billion reduction in funding for education. Corbett and his allies argued the latter was necessary because the Rendell administration had used stimulus money to prop up the budget. Regardless, the strategy made Corbett unpopular and he lost his reelection bid to Wolf.

New taxes or increases to existing ones have played a small role in solving recent budget woes. Wolf proposed increasing the state’s flat income tax rate and taxing natural gas drillers by the volume of gas extracted, but the then-GOP-controlled legislature didn’t bite.

Instead, Wolf and the legislature balanced the books and raised one-time revenue through a mix of temporary solutions, like issuing new casino licenses and borrowing against the state’s share of tobacco settlement revenue.

The state has also delayed payments or purposefully undercounted projected Medicaid expenses to appear to balance annual budgets.

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In 2017, for instance, Republicans agreed to a budget that was underfunded by hundreds of millions of dollars, and gave Wolf the authority to fill the gap by drawing money from the state’s special funds for things like transportation.

Wolf, who opposed that approach, instead borrowed money from a venture capital company against the Pennsylvania Farm Show Complex in Harrisburg, leaving the state on the hook to pay back $191 million in interest for decades to come.



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Were ICE agents at the Pa. Farm show? Here’s what officials say

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Were ICE agents at the Pa. Farm show? Here’s what officials say


Online speculation about the presence of U.S. Immigrations and Customs Enforcement (ICE) agents at the 2026 Pennsylvania Farm Show has sparked a growing spread of misinformation.

Multiple posts on Facebook and TikTok have stated that undercover or plain clothes ICE agents are walking around the farm show and staying at local hotels without naming a source for their information.

“These rumors are false,” Pa. Department of Agriculture Press Secretary Shannon Powers told PennLive on Sunday. “The Department of Agriculture has not found any ICE personnel working on or near the Farm Show complex.”

A PennLive reporter walking around the complex on Saturday did not see any ICE agents.

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Powers also said ICE has not rented or reserved event space or an exhibit booth in the Pennsylvania Farm Show Complex for the Farm Show.

There are law enforcement personnel on the property, but they are focused on safety and security of Farm Show visitors, Powers said.

Pennsylvania State Police troopers are stationed and patrolling the Farm Show complex and parking lots to keep visitors safe, working in conjunction with the Pennsylvania Emergency Management Agency, Farm Show Security, Capitol Police, local municipal police departments and Harrisburg Fire Police.

Discourse about ICE has ramped up since Renee Good was fatally shot by an ICE officer in Minneapolis last week. Good was a 37-year-old mother of three.

In the last several months, the Department of Homeland Security has heavily increased immigration enforcement, characterized by arrests of undocumented immigrants, a social media campaign and crackdowns on protests.

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Small Pennsylvania town battles billionaire buying up homes and shops

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Small Pennsylvania town battles billionaire buying up homes and shops


Residents of a wealthy Pennsylvania village confronted developers this week after learning that a billionaire has quietly bought up much of the town’s commercial core, fueling fears that one family now wields outsized control over its future.

The backlash centers on Jeff Yass, Pennsylvania’s richest man, whose family has spent more than $15 million acquiring homes, storefronts, and civic properties in Gladwyne, a community of just under 5,000 residents and where median home prices top $2.3 million.

At a packed public meeting in a school auditorium, developers working with Yass unveiled their first detailed redevelopment plans for the village center.

The moment that drew both applause and skepticism from residents alarmed by shuttered businesses, rising rents, and unanswered questions about the scope of the billionaire-backed project.

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Standing before the crowd, Andre Golsorkhi, founder and CEO of design firm Haldon House, unveiled a sweeping redevelopment plan crafted in partnership with Yass and his wife, Janine. 

Golsorkhi framed the effort as a ‘community impact project,’ insisting the billionaire family’s intentions were rooted in preservation rather than profit.

But for a town already rattled by closed storefronts, the presentation drew plenty of suspicion and unease.

Over the past several years, Haldon House and the Yass family have acquired multiple properties clustered around the intersection of Youngs Ford and Righters Mill Roads – effectively Gladwyne’s commercial heart.

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Gladwyne, Pennsylvania, a village of just under 5,000 residents, is suddenly at the center of a high-stakes fight over its future

Controversy erupted after Jeff Yass quietly bought up much of the village's commercial core. Yass is pictured alongside his wife Janine Coslett

Controversy erupted after Jeff Yass quietly bought up much of the village’s commercial core. Yass is pictured alongside his wife Janine Coslett

The redevelopment plans promises historic architecture, green space, and independent retailers - but no chains or hi-rise apartments

The redevelopment plans promises historic architecture, green space, and independent retailers – but no chains or hi-rise apartments

Those purchases include the former Gladwyne Market, the Village Shoppes, residential property on Youngs Ford Road, the Gladwyne Post Office building, and the former OMG Hair Salon, which was leased and later vacated.

Two longtime fixtures, the OMG Salon and Gladwyne Market, closed last year after the acquisitions sent ripples through the community fueling rumors about what was coming next.

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Gladwyne has long prized its small-town feel and locally owned businesses, even as it sits among some of the wealthiest ZIP codes in the state. 

The idea that one billionaire family now controls much of the village center has left some residents uneasy, particularly as redevelopment plans remained opaque until now.

‘There’s been a lot of justified, warranted concern,’ Golsorkhi acknowledged during the meeting, as reported by the Philadelphia Inquirer. 

Renderings presented by Haldon House show a carefully curated version of Gladwyne’s future: preserved late-1800s stone architecture, wraparound porches, ivy-covered walls, Adirondack chairs, hydrangeas, and signage branded ‘Gladwyne Square.’ 

The plan calls for new green space, pedestrian-friendly footpaths, and a mix of small, independent retailers.

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Golsorkhi stressed there would be no residential development, no national chain stores, and no high-rise buildings. 

The renderings emphasize Adirondack chairs, hydrangeas, and pedestrian-friendly walkways meant to evoke a timeless village square

The renderings emphasize Adirondack chairs, hydrangeas, and pedestrian-friendly walkways meant to evoke a timeless village square

Wide green lawns, picnic tables, and open gathering spaces feature prominently, projecting a calm, upscale community hub

Wide green lawns, picnic tables, and open gathering spaces feature prominently, projecting a calm, upscale community hub 

Gladwyne Pharmacy is slated to remain, with developers helping 'reimagine' its layout and customer experience

Gladwyne Pharmacy is slated to remain, with developers helping ‘reimagine’ its layout and customer experience

Gladwyne Market, a longtime community staple, was shuttered after its building was acquired by the developers

Gladwyne Market, a longtime community staple, was shuttered after its building was acquired by the developers

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Andre Golsorkhi, the CEO of Haldon House, has emerged as the public face of the project, insisting the billionaire-backed overhaul is a community-focused effort rooted in preservation rather than profit

Andre Golsorkhi, the CEO of Haldon House, has emerged as the public face of the project, insisting the billionaire-backed overhaul is a community-focused effort rooted in preservation rather than profit

Existing tenants like the local café Homeroom and Gladwyne Pharmacy would remain, while the former Gladwyne Market site would become a ‘casual, but elevated and approachable’ restaurant.

‘This is a place that we grew up, that we love, that we care for tremendously,’ Golsorkhi told those at the meeting. 

‘It has been protected for all the right reasons, but it has also not evolved. It needs a revitalization.’

Golsorkhi and his wife, Autumn Oser, co-owner of Haldon House, are both from the Gladwyne area, a point he emphasized repeatedly as residents questioned the motivations behind the project.

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But not everyone remains convinced. 

‘I just wonder what the end game is,’ one resident said during the question-and-answer session. 

‘There’s always a price for this, having someone come in and say, ‘I’m going to make your community really, really cool and don’t worry about the money.’

Golsorkhi said the Yass family is prepared to absorb the costs of redevelopment but that it was too early to project a timeline. 

He repeatedly described the effort as part investment, part philanthropy.

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The Gladwyne Post Office, also purchased as part of the redevelopment, has become a flashpoint after confusion over whether its services could eventually be reduced or relocated

The Gladwyne Post Office, also purchased as part of the redevelopment, has become a flashpoint after confusion over whether its services could eventually be reduced or relocated

OMG Hair Salon closed after its rent was sharply increased, becoming a flashpoint for critics of the project

OMG Hair Salon closed after its rent was sharply increased, becoming a flashpoint for critics of the project

Home Room café is expected to expand and remain part of the village’s future under the plan

Home Room café is expected to expand and remain part of the village’s future under the plan

They have already worked closely with Gladwyne Pharmacy helping ‘reimagine’ its design and customer experience with ‘no expectation of return.’

‘We’re doing that because we believe that the consistent experience and character of Gladwyne is really important,’ Golsorkhi said, adding that the pharmacy’s footprint had grown in ways that no longer best served the business or the community.

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The developers also floated ideas for expanding green space, adding picnic tables and lawns, and creating venues for community events. 

Independent bakeries, boutique fitness studios, and ice cream shops are among the businesses they hope to attract.

One flashpoint involved the Gladwyne Post Office, which Golsorkhi suggested was ‘retiring its services,’ raising the possibility of a consolidated shipping hub combining USPS, UPS, and FedEx.

But Paul Smith, manager of public affairs for the US Postal Service in the Philadelphia region, said the Gladwyne post office remains open for retail transactions, mailing services and that the post office itself is not closing.

Behind the polished renderings and talk of preservation, business owners say the transition has come at a personal cost.

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Other small shops around Youngs Ford and Righters Mill Roads now sit at the center of redevelopment uncertainty

Other small shops around Youngs Ford and Righters Mill Roads now sit at the center of redevelopment uncertainty

Gladwyne is prized by residents for its historic charm, tight-knit community, and small-village feel

Gladwyne is prized by residents for its historic charm, tight-knit community, and small-village feel

Longtime residents worry the village’s identity is being reshaped by one billionaire’s vision

Longtime residents worry the village’s identity is being reshaped by one billionaire’s vision

Maurice Tenenbaum, owner of OMG Hair Salon, said the building’s owners more than doubled his rent last fall, forcing him to give up the space.

Pete Liccio, the former owner of Gladwyne Market, said that he also felt pushed out after decades serving the community.

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Some residents left the meeting energized, calling the proposal long overdue.

‘What I’m seeing here is a center of gravity and an identity for Gladwyne that’s well-deserved and long been needed,’ one attendee said to the Inquirer.

Others walked away unconvinced, wary of a future shaped largely by one billionaire’s vision.

‘This is an investment and a philanthropic effort,’ Golsorkhi told the crowd. 

‘I understand and I recognize that that is a challenging thing to sort of believe.’

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Pennsylvania’s Deepest Inland Lake Is A Crystal-Clear Beauty East Of Pittsburgh For Camping And Fishing – Islands

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Pennsylvania’s Deepest Inland Lake Is A Crystal-Clear Beauty East Of Pittsburgh For Camping And Fishing – Islands






Pennsylvania is littered with more than 2,500 natural and manmade inland lakes. So when you find the deepest of these tucked among state forests 130 miles east of Pittsburgh, you’ve probably stumbled upon a gem. Raystown Lake’s rural location makes it one of Pennsylvania’s best-kept secrets, often overlooked for other lakes closer to the state’s cities and civilization. But those who commit to the three-hour drive are rewarded with 8,300 acres of tranquil and clear water that reaches a maximum depth of 200 feet. While it’s not as deep as Wazee, Wisconsin’s deepest inland lake and scuba diving gem, it still offers great fishing, swimming, boating, and other water sports.

Raystown Lake can thank Raystown Dam for its impressive depth, as this manmade reservoir only came to be when the Juniata River, just north, was dammed to control flooding. While natural lakes in Pennsylvania don’t exceed 85 feet in depth, Raystown’s significantly deeper and colder areas make it a better spot for anglers seeking deep-water fish species worthy of their trophy cabinets. These game fish range from striped bass (stripers) and trout to walleye and Atlantic salmon.

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Raystown Lake is also surrounded by over 21,000 acres of pristine forest covering the encircling Allegheny mountains in earthy greens and browns — a picturesque setting for a day on the water. The lake’s size and numerous fishing spots along its 118-mile shoreline also help it feel uncrowded when you’re sharing the water with other fishing boats, pontoons, kayaks, and houseboats. Fishing Booker recommends looking for the largest stripers in Raystown’s deepest sections, while largemouth and smallmouth bass can be caught in shallower spots. You can also reel in 20-pound trout during winter and fall when fishing depths beyond 80 feet. Trolling, jigging, and ice fishing are also all possible here during the year.

Peaceful camping at Pennsylvania’s Raystown Lake

After driving three hours here from Pittsburgh or 3.5 hours from Baltimore, no one expects you to turn around at the end of the day and drive all the way back. That’s why Raystown Lake has about 20 campgrounds for tents and RVs to choose from, as well as houseboats, glamping, B&Bs, hotels, and resorts. The campgrounds typically let you stay closest to the water and provide a serene setting to escape those everyday stressors for a while. They’re also generally more affordable.

If you love roughing it, Putt’s Camp is open year-round. This no-frills campground offers eight campsites for group bookings, including one waterfront spot. You also have a picnic shelter, fireplace, water pumps, and vault toilets. It’s close to state forest walking trails and a quiet section of the lake for swimming, fishing, and paddling. Seven Points Campground is another great option, especially for families and anglers wanting to catch largemouth and striped bass. Open from April to October, it has over 260 tent and RV sites, adjacent walking trails, and beach and marina access. Hot showers, electric and water hookups, playgrounds, a nearby grocery store, and picnic tables all make the camping experience much more comfortable.

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Raystown Lake is a year-round destination surrounded by natural scenery and charming towns, including Huntingdon, a picturesque Pennsylvania borough nestled along the Juniata River about 13 miles away. The borough also has the Lincoln Caverns, a small show cave where you can pan for real gems, in case you don’t have any luck fishing. Speaking of fishing, you’ll need to purchase a Pennsylvania fishing license online beforehand. And always stick to the state’s bag and size limits — it helps keep the lake well-stocked for everyone to enjoy.





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