HARRISBURG — Pennsylvania’s multibillion-dollar surplus will soon be halved according to a projection by a state budget watchdog, the result of a long-running structural deficit combined with a growing list of obligations competing for public dollars.
The commonwealth’s recent $47.6 billion budget increased spending by 6%, with more than $1 billion in new money going to public schools in response to a court ruling that found Pennsylvania underfunds poor districts.
However, the state brought in just $44 billion in net revenue last fiscal year. So to afford the spending plan, lawmakers are reaching into the state’s sizable cash reserves, which sat at roughly $13.6 billion as of June 30, according to the Independent Fiscal Office.
That total was roughly split between the state’s rainy day fund — the equivalent of a long-term savings account — and the state’s General Fund. The latter is essentially Pennsylvania’s checking account.
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Lawmakers used $3.3 billion from the General Fund to balance the recent budget, according to the IFO. That money will be spent over the course of this fiscal year.
Pennsylvania will completely deplete the General Fund surplus by the next fiscal year, the IFO estimated based on expected spending, in-progress tax cuts, and revenue projections.
That will force lawmakers to tap into the rainy day fund to balance the budget due less than a year from now if they don’t find new revenue or cut spending.
While fiscal good fortune built the current surplus, Pennsylvania’s policymakers have historically struggled to create new revenue sources as the state’s budget increases annually. This year, Gov. Josh Shapiro pitched regulating slot-like skill games and legalizing recreational marijuana to raise millions in needed dollars, but the divided General Assembly didn’t adopt either.
The rainy day fund currently contains more than $7 billion, up from just $22 million only a few years ago. This meets the level that experts say states should keep on hand. Pulling money out of that fund would require a level of bipartisan support that’s been elusive.
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The IFO’s estimate assumes a 4% increase in state spending in the 2025-26 plan, much of which would pay for contractually required increases in state workers’ wages and benefits and federally mandated human services spending. It assumes education would get only a modest, 2.4% increase in line with inflation.
No one who helped draft the spending plan is saying much about what’ll happen next year to sustain the state’s spending.
Christina Fonseca, spokesperson for state House Appropriations Committee Chair Jordan Harris (D., Philadelphia), said in an email that the IFO report made “certain assumptions to arrive at its conclusions regarding the status of both the Rainy Day and General Fund balances” that the caucus disagreed with.
Fonseca said the caucus supports a financial statement from the Governor’s Budget Office. However, she did not send the statement when asked and did not respond to follow-up questions about what assumptions the caucus disputed.
Matt Knittell, executive director of the IFO, acknowledged the gap between his agency’s projections and the governor’s. Either way, the difference is a matter of degree and not of substance.
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“We both agree there is a substantial deficit,” Knittel said in an email.
For months, Democrats have downplayed the IFO’s recent projections by arguing that the state’s revenue has consistently grown. Speaking to lawmakers during a spring budget hearing, Budget Secretary Uri Monson said the state has averaged almost 4% annual revenue growth over the past 25 years.
“We are very conservative on the projections of where we’re going to be but the actual results have been growing surpluses,” Monson said.
Further spending is likely. Legislative Democrats wanted to appropriate $5.1 billion to underfunded school districts over several years in this budget but only secured $500 million.
Addressing a brewing crisis in public transit funding is a top priority for Shapiro and Democrats this fall. Systems received a one-time boost of $80 million in the recent budget; Shapiro had called for $1.5 billion over the next five years.
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To afford these priorities, they’ll need a lot of new cash — either from new taxes, a booming economy, or another source — or make cuts elsewhere in the budget.
Spending down the surplus has short-term implications as well, said state Rep. Seth Grove (R, York), minority chair of the Appropriations Committee.
The state collects interest on its big surplus — by spending those dollars, that revenue will disappear. The state earned almost $780 million in interest from its cash reserves in the just-finished fiscal year, according to the Department of Revenue — nearly double projections.
Meanwhile, if the general fund gets too low during the year, the state will have to borrow money to pay employees and run other key government functions. While the state isn’t currently in danger of running out of operating money, it has in the recent past. That came with consequences, including a downgraded credit rating.
Grove noted that deficits are less manageable for states than they are for the federal government. “Unfortunately at the state level, we can’t print money,” Grove told reporters early this month.
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The structural deficit — where annual costs exceed annual revenue — isn’t new.
For a decade-plus, Pennsylvania has consistently spent more than it brings in under Democratic and Republican leadership alike. Neither party has mustered the political will to find the right combination of spending cuts, tax increases, or growth-inducing policies to correct the issue.
Instead, the commonwealth’s budget has raised one-time revenues by expanding gambling, taking on debt, or using budgetary tricks that shift costs around to balance the books each year.
Even the current surplus — built on stimulus dollars and unexpectedly high tax revenues — hasn’t led to consistently smooth budgetary sailing, with three straight late budgets in a divided Harrisburg.
State Senate Republicans are typically more open to increased spending than their GOP colleagues in the state House. That dynamic played out again this year, with the upper chamber passing the budget deal with more than two-thirds support. The plan fell a dozen votes shy of the mark in the lower chamber amid widespread GOP opposition.
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Grove, along with his fellow York County Republicans, called the spending plan “reckless” in a news release soon after it passed.
But fellow Republican and chief budget negotiator state Senate Majority Leader Joe Pittman said the budget was a compromise — a product of the realities of divided government.
Pittman had a recommendation for unhappy state House Republicans: “I think they need to get a seat at the table by retaking the majority.”
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A stunning four-bedroom work of art designed by late Italian architect and loft pioneer Giuseppe “Beppe” Zambonini has just hit the market in Pennsylvania for $625,000—listing for the first time in more than two decades.
The upside-down 1987 trapezoid-style dwelling in Dingmans Ferry boasts a barrel vaulted ceiling supported by eight interior columns and is surrounded by expansive windows and decks to soak in the tranquil views of nature.
Each of the rooms was designed, not as a traditional rectangle, but as a trapezoid, a technique that was meant to maximize the amount of natural light inside the home, ensuring that each window has ample opportunity to let the sun shine through.
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It was a design method that Beppe came up with while working in New York City, where he was renowned for his work creating stunning loft spaces with “theater set” walls. He then brought that technique to Pennsylvania, where he sought to design his own weekend retreat, using the hallmarks that had turned him into a legend of Big Apple architecture.
The result is a home that appears, from the outside, almost like a stack of unevenly placed shipping containers—but on the inside is a stunning, light-filled dwelling, with enormous windows that offer beautiful views of the surrounding area from every room.
A stunning four-bedroom work of art designed by late Italian architect and loft pioneer Giuseppe “Beppe” Zambonini has just hit the market in Pennsylvania for $625,000—listing for the first time in more than two decades.HomeTourVision
The upside-down 1987 trapezoid-style dwelling in Dingmans Ferry, PA, boasts a barrel vaulted ceiling supported by eight interior columns and is surrounded by expansive windows and decks to soak in the tranquil views of nature.HomeTourVision
The result is a home with enormous windows that offer beautiful views of the surrounding area from every room.HomeTourVision
“There are numerous instances in the construction where hallways, rooms, and decks are not perfectly rectangular but rather are all trapezoid in shape,” says listing agent Shaun Burger of Keller Williams Real Estate Milford.
Beppe purchased the 2.44-acre land on which the home now sits in the 1980s, before crafting a home that would be used full time by his wife and their daughter—but was close enough to New York City that he could join them on weekends.
The idyllic parcel is perched above Nyce Lake in a development that would later become known as Traces of Lattimore.
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“It is only 90 minutes away from Manhattan but is a world away in terms of peacefulness and nature,” Burger noted. “There are a lot of properties here being used as second homes, but it could also be used as a primary residence.”
The unique home—which was constructed by Beppe and a team of his best students from his design school, Open Atelier of Design—drew immediate attention from design aficionados, even featuring in a play entitled “The Upside Down House” in New York and a feature film called “A Picture of You.”
In a nod to this heritage, the garage door features a design by one of Beppe’s students resembling a theater curtain that a local artist created using shades of Chinese red, gray, and white.
Burger says that with so much cultural and architectural history, the property feels as much like a piece of art as it does a residential dwelling, one that the current owner has taken great care to preserve and maintain.
“The seller is very much into the arts and feels more of a custodian of the home,” Burger shares. “He is looking to pass it along to the next steward.”
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What makes the dwelling so unique is that only one column is exposed on each floor, which is highlighted by a different color in each room. In the home office, the column is red while the primary bedroom features a blue support, and a yellow column can be found in the dining room.
In the 40 years since the property was built, it has changed hands on only one occasion, in 2005—when it was sold by Beppe’s wife, Claudia, to the man who owns it now for $396,000.HomeTourVision
The property is located just 90 minutes from Manhattan.HomeTourVision
“There are a lot of windows and sitting areas, so when you are inside, you feel like you are outside,” the listing agent says.HomeTourVision
A third-floor loft boasts Zambonini’s signature theater set walls.
“The home itself is so unique, which is what originally attracted the seller,” he added. “There are so many Colonials, ranches, and cookie-cutter homes in the area, so it is infrequent to find a home like this where there has been so much thought put into it.”
In the 40 years since the property was built, it has changed hands on only one occasion, in 2005—when it was sold by Beppe’s wife, Claudia, to the man who owns it now for $396,000.
“I scrupulously maintained the original colors of the house, inside and out, and kept the kitchen and bathrooms as I found them,” the seller writes in the listing. “After 21 years, it is time for a new custodian to live in this significant work of art.”
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According to Burger, the property would be the perfect retreat for someone who likes their privacy but also enjoys entertaining guests, offering ample room across its 2,850-square-foot design.
“It has four bedrooms and four bathrooms so it would be a nice home for someone who loves to entertain,” Burger adds. “There is plenty of space for guests.”
What’s more, the property offers the best of both worlds—surrounded by nature, but with all the convenience of proximity to nearby cities and towns.
“There are a lot of windows and sitting areas, so when you are inside, you feel like you are outside,” the listing agent says. “Dingmans Ferry is very quaint and has lots of lakes, waterfalls, hiking trails, and skiing. It’s a naturally beautiful area.
“I envision the next buyer to be an artist who will totally appreciate this work of art. The area has highly rated public schools for someone who has children. I think it will be someone who will want a getaway where they can reconnect and recharge with nature and will not want to change or renovate the home.”
CENTER VALLEY, Pa. (WFMZ) — 59 creameries across the Commonwealth are serving up a sweet summer connecting dairy lovers with Pennsylvania farms.
June 4 kicked off the Ninth Annual Scooped Ice Cream Trail.
Ice cream lovers can register online and fill out a digital passport as they visit participating creameries. Each visit earns points towards various prizes.
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The owners of Batch Microcreamery in Center Valley tell 69 News they’re excited to be part of the trail for the third year in a row, attracting visitors locally and out-of-state.
“This is the third location of the ice cream trail that I’ve been on,” said Kamden Acevedo.
Acevedo is originally from Staten Island and said he’s motivated to try other locations on the trail throughout the state.
“I love ice cream. I’m going to try, I’m going to try my hardest honestly,” Acevedo stated.
Dana Reibman and her daughter are just happy for the sweet treat.
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“We’re all up for ice cream all the time. We come here probably about once a month because we like trying the different flavors. As you can see, she really enjoys the cookie monster flavor,” Reibman explained.
Here’s what we know now about school cellphone bans
More states are implementing or considering phone bans in schools following guidance from the U.S. Surgeon General on children and social media.
Pennsylvania’s House of Representatives passed a bill requiring schools to create policies restricting student cellphone use.
Pittsburgh Public Schools already has a policy banning student cellphone use during the school day, which was approved in late 2025.
Under Pittsburgh’s policy, students must turn in their phones to school personnel for the duration of the school day.
If Pennsylvania sees statewide restrictions on cellphones in schools, would anything change in Pittsburgh?
It’s too early to say for sure.
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On June 1, the Pennsylvania House of Representatives passed legislation that would require school districts to adopt phone restrictions, leaving the details of the exact policy’s implementation up to individual districts, according to USA TODAY. Now, if cleared by the Senate — which already passed another version of the proposal with almost unanimous support — it will go to Gov. Josh Shapiro, who has repeatedly said he supports getting cellphones out of classrooms with a bell-to-bell ban.
“Here in Pennsylvania, Democrats and Republicans agree: We need to let our kids be kids again,” Shapiro said in a June 4 post to his X account.
But Pittsburgh’s already ahead of the curve when it comes to banning cellphones during school hours because of a school board policy approved in late 2025.
Here’s what to know.
Are cell phones banned in Pittsburgh schools?
Yes, cellphones are banned during the school day at Pittsburgh Public Schools.
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In December 2025, Pittsburgh Public Schools Board voted to ban the use of phones by students during the school day, Pittsburgh’s Action News 4.
Under the policy, the possession of phones by students is prohibited. While they may bring cellphones to school, the devices must be turned in to school personnel during the school day.
There are exceptions to the policy in cases where a student may need a phone for instructional activities, an Individualized Education Plan, a Section 504 Plan or for other reasons approved by a school administrator.
Why are schools banning cellphones?
Numerous states have already banned cellphones in schools, including Alabama, Arkansas, Florida, Indiana, Kentucky, Louisiana, Missouri, Nebraska, New Hampshire, New York, Oklahoma, Oregon, South Carolina, Tennessee, Texas, Virginia and others, according to ABC News.
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This year, Indiana and Kansas banned phones during the day, implementing policies that require students to keep their phones in inaccessible locations through the entire school day, USA TODAY reported.
Recently, Delaware, Georgia, Maine, Maryland, Michigan, Oklahoma, Utah, Virginia and Wyoming passed or updated less restrictive legislation on phones in schools, according to an analysis by the Becca Schmill Foundation, the Institute for Families and Technology, Smartphone-Free Childhood US and Jonathan Haidt’s The Anxious Generation.
Illinois, Massachusetts and Pennsylvania may follow suit.
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Do cellphone bans work?
Yes and no.
Cellphone bans keep kids off their devices, but they don’t appear to impact test scores, attendance, self-reported classroom attention or perceived online bullying, according to a study published in April by the National Bureau of Economic Research. Additionally, researchers found that during the first year of a cellphone ban, disciplinary incidents rose and students’ reported well-being fell, though the effects subsided as the years passed.
Still, there’s a push for bans nationally, with the U.S. surgeon general’s office warning on May 20 that “compulsive” screen use is linked to poor sleep, substance abuse, developmental disruptions and social, mental and behavioral issues. The office suggested that cellphone bans in schools are a way to help put excessive screen time in check.
Finch Walker is the Pittsburgh Connect Reporter for the USA TODAY Network. Contact Walker at FWalker@usatodayco.com. Instagram: @finchwalker_. X: @_finchwalker.
