Pennsylvania
The budget surplus is projected to soon run dry in Pennsylvania
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.
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.
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.
“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.
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.
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.
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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Pennsylvania
Federal government sues Pennsylvania, others over SNAP data
(WHTM) — Pennsylvania is one of four states facing a lawsuit from the federal government over SNAP applicant data.
The U.S. Department of Justice filed suit against Pennsylvania, Kentucky, Michigan, and Minnesota. They are seeking the last five years of SNAP applicant data in the respective states.
The DOJ alleges that the four states refused to turn over data to the U.S. Department of Agriculture “so that USDA could ensure that states are properly administering and enforcing their determinations of residents’ eligibility.”
“The American people deserve a government that is transparent about how it spends their hard-earned tax dollars,” said Acting Attorney General Todd Blanche. “These four states are thwarting USDA’s efforts to ensure that the billions of dollars in SNAP benefits they distribute every year are not lost to fraud.”
“Stopping the rampant theft of taxpayer money demands a whole-of-government response, including strong participation at the state level,” said Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division. “These states are happy to take hundreds of millions of federal tax dollars—much of which is exploited by fraudsters—but want zero transparency over how those tax dollars are spent.”
The Department of Justice said 28 states promptly provided data and such indicated “there are billions of dollars per year in SNAP funds going to overpayments and fraud.”
The USDA has been seeking data for the past year or so, leading to a legal battle over concerns about how the data would be used.
Pennsylvania
House Republicans stall activity, Pennsylvania Rep. Meuser calls tactics ‘foolish’ | Fox Business Video
Maria Bartiromo reports on House Speaker Mike Johnson sending representatives home early as Republican hardliners stall floor activities, refusing votes without action on the SAVE America Act.
House Speaker Mike Johnson sent representatives home early as hardline Republicans stalled floor activities, demanding action on the SAVE America Act. President Donald Trump posted on Truth Social, urging House Republicans to unify and avoid giving power to Democrats. Rep. Dan Meuser (R-PA) labels the stalling tactics ‘foolish,’ emphasizing the need for legislative progress and appropriations.
Pennsylvania
Measles detected in two more counties in Pennsylvania as health department recommends early vaccination
Pennsylvania health officials have now detected measles cases in York and Northumberland Counties as cases in Lancaster County, the center of an ongoing outbreak, continued to rise.
And the state health department is now recommending early measles vaccinations for infants beginning at 6 months in affected areas in an effort to protect them against the spread of the highly contagious disease, which is particularly risky for young children. The same precautions should be taken by families with infants traveling to these areas.
Six Pennsylvania counties have now seen measles cases since an outbreak was first confirmed in Lebanon County in April. In all, the state has reported 81 measles cases across eight counties in 2026, more than five times the cases reported in 2025.
State health officials said it was too early to tell how the latest cases in York and Northumberland Counties are connected to others in the region, but that contact tracing investigations are continuing. All cases were among people who had not received at least two doses of the measles, mumps, and rubella (MMR) or whose vaccination status was unclear.
As of Wednesday, six cases had been confirmed in Northumberland County, to the north of Dauphin County, and one case had been detected in York County, along Lancaster’s western border.
Lebanon County has reported 20 cases and Dauphin and Berks Counties have reported two cases each.
Lancaster County has seen 38 cases of measles since late April, with health officials confirming seven cases in the last two weeks. The area was at the center of a prior measles outbreak in January, when state health officials confirmed eight cases in Lancaster County and an additional four between Chester and Montgomery Counties.
Vaccination rates among kindergarteners have decreased across Pennsylvania in recent years, and some counties affected in the current outbreak have particularly low rates, including Lancaster, where about 88.5% of kindergarten students are vaccinated. Health experts say that 95% of a community must be vaccinated to prevent the spread of the disease.
Health officials have been conducting contact tracing to detect as many cases as possible. In the current outbreak, they have twice warned Lancaster residents that they could have been exposed to measles.
Shoppers and employees at a local Kohl’s were potentially exposed to the virus over four days after a staffer tested positive in late May, LancasterOnline reported. And a person with measles visited the Lancaster County Courthouse on June 3.
But doctors in Lancaster County say they fear some measles cases are going unreported, either because patients don’t understand the importance of tracking measles cases or because they fear repercussions.
No cases have been confirmed in the Philadelphia region during this outbreak. But Delaware County health officials said last week that they had detected measles in two wastewater samples, indicating that someone with measles had used a bathroom connected to the county’s public water supply. It was unclear if that person lived in the county or was passing through.
Early vaccination recommended
On Wednesday, a statewide health alert urged physicians to accelerate vaccination schedules to protect children against measles. Officials had said they were considering the measure earlier this month as cases continued to rise.
Measles can infect nine in 10 unvaccinated people who are exposed to it, and can linger in the air for up to two hours and incubate in patients for three weeks. The disease typically presents with a fever and a rash but can cause brain inflammation and pneumonia in serious cases.
Typically, children receive the first of two MMR vaccines at 1 year old, then a second between 4 and 6 years old.
But children as young as 6 months can receive an additional “dose zero” to protect them from the disease amid an outbreak. In its alert, the state health department said parents should vaccinate infants between 6 and 11 months with the “dose zero” if they live in affected areas or if they’re planning to travel there.
Those children should then receive additional MMR doses at 12 to 15 months and 4 to 6 years.
This “dose zero” is less effective than doses given at 1 year old, officials cautioned. But it’s 58% effective against measles when given at 6 to 8 months, and 83% effective when administered at 9 to 11 months.
“Early MMR vaccination is safe and provides modest protection when measles is spreading,” officials wrote in the alert.
Children older than 12 months who haven’t been vaccinated should get an MMR dose immediately, and a second 28 days later, health officials said. Unvaccinated adults, or those without evidence of immunity, should also get two MMR doses.
And anyone who has received one dose of the MMR vaccine in the past should get a second at least 28 days after their first, officials said.
Usually, children who received a first dose at around 12 months wait to get their second dose until they’re 4 to 6 years old. But in an outbreak situation, those children should get their second doses early — at least 28 days after their first shot.
Adults born before 1957 are typically considered immune, but healthcare workers in that age group who don’t have lab evidence of immunity or prior infection should consider getting vaccinated, state officials said.
Adults who received an inactivated measles vaccine between 1963 and 1967 are considered unvaccinated during an outbreak, and should also get two doses of the current MMR vaccine.
Pregnant people, people with severely weakened immune systems, and people who have a history of experiencing severe allergic reactions, like anaphylaxis, to a vaccine ingredient or to a previous dose of MMR cannot receive the vaccine.
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