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What to expect when Shapiro pitches his budget priorities for a 3rd time

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What to expect when Shapiro pitches his budget priorities for a 3rd time


HARRISBURG — Gov. Josh Shapiro is expected to propose legalizing recreational marijuana, taxing popular gaming machines, and sending more money to Pennsylvania’s poorest schools when he unveils his budget pitch to state lawmakers Tuesday.

The Democrat proposed many of these ideas during his first two years in office, but was stymied by the divided legislature.

Pennsylvania faces both a mandate to reform its education system and a looming structural deficit, issues Shapiro’s budget pitch is expected to respond to with ideas for increasing revenue. Without new money, the commonwealth is on track to drain its sizable budget reserves and its rainy day fund by the end of the 2026-27 fiscal year, according to the Independent Fiscal Office.

Lawmakers do more than negotiate a spending plan ahead of the June 30 deadline. They also battle to get seemingly unrelated priorities — from overturning Pittsburgh’s rodeo ban to eliminating cash benefits for the poorest Pennsylvanians — into the final deal or agreed to at the same time.

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For Shapiro, one of those priorities is a sweeping energy plan that targets carbon emissions while offering industry tax credits — a balance aimed at getting both Democrats and Republicans on board.

More money to fix inequitable schools

Hanging over this budget, as it has every year since 2023, is a ruling from a Commonwealth Court judge that found Pennsylvania’s public education system unconstitutionally inequitable and ordered lawmakers to fix it.

Last year’s budget acknowledged the size of the problem, putting the “adequacy gap” to properly fund poor schools at about $4.5 billion. Lawmakers agreed to send nearly $500 million to those schools, but did not guarantee additional funding.

Public school advocates want to make sure officials don’t drag their feet to cover the rest.

Investing an additional $500 million annually would put the state on track to close the gap in nine years. Public education advocates, some of whom helped bring the initial lawsuit and could take the state back to court, have said they support that timeline.

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Sources involved in talks over education policy told Spotlight PA they expect Shapiro to propose similar adequacy spending in this new budget.

All told, last year’s plan featured more than $1 billion in new education spending, including for special education, mental health, and school safety.

It also included some new transparency measures and funding tweaks for cyber charter schools, which are governed by virtually the same 25-year-old law as brick-and-mortar charter schools.

Critics still say cyber charters need to be more transparent and are sucking up too much state money. Public education advocates say that’s another area they expect Shapiro to revisit.

Sarah Anne Hughes / Spotlight PA

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Pennsylvania skill game machine at a business near Harrisburg.

Broad sales or income tax increases are unlikely to win support given the partisan divide of the General Assembly, leaving policymakers with so-called “sin taxes” to immediately boost revenue.

A Shapiro spokesperson told Spotlight PA last month that the governor again plans to pitch oversight of skill games, slot-like devices that have proliferated at tens of thousands of state bars, convenience stores, and social clubs.

Shapiro called for their taxation and regulation in last year’s budget, projecting that the effort would bring in $150.4 million in its first fiscal year, and more after that.

A wave of lobbying by monied gambling interests killed the effort last year. Top GOP leaders in the upper chamber have already signaled that they plan to take up the issue anew this session, arguing that skill games’ lack of rules and restrictions has become a public safety issue.

Shapiro is also expected to reprise his call to legalize and tax recreational cannabis. While at least some members in both chambers and parties support the move, they disagree about how a legal marijuana industry should be organized and regulated.

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Some lawmakers support creating a system of state-owned cannabis stores; others want established medical marijuana sellers to be allowed to expand.

Complicating the debate is state Senate leaders’ preference for the federal government to take the lead on legalization.

State Rep. Dan Frankel (D., Allegheny) leads a key committee that will likely handle marijuana legislation, and he is sponsoring a legalization bill. He said he has spoken with Shapiro and members of the administration on the issue, calling the governor “somewhat agnostic” as to how lawmakers choose to legalize cannabis.

But legalization is something that Shapiro “wants to get done,” he said. Shapiro’s 2024 proposal projected that the legal marijuana industry would bring in $250 million annually once fully up and running.

The state government has a lot of extra cash on hand: roughly $10 billion built up during the pandemic due to federal aid and higher-than-expected tax returns. However, the recent increase in spending on education and economic development in Shapiro’s first two budgets was paid for using the surplus.

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Pennsylvania is expected to spend $3.4 billion more than the revenue it brings in to cover the $47.6 billion budget. If spending doesn’t slow down, or if new revenue isn’t raised, the state is projected to blow through almost all of its budget reserve and rainy day fund in the next two budget cycles, meaning the money would be mostly gone by 2027 at the latest.

In December, state Senate Majority Leader Joe Pittman (R., Indiana) told Spotlight PA that the coming budget should be “austere,” pointing to slowing revenue, the court-ordered increases in state education spending, and inflationary pressures driving up human services spending.

“We’re hoping that revenues increase over time, but we’re going to have to get the expense side of the equation tamped down in the upcoming fiscal year,” Pittman said.

Speaking to reporters, state House Majority Leader Matt Bradford (D., Montgomery) said he agreed with Pittman that legislators must deal with the structural deficit, which has escaped a solution for almost two decades.

But he countered that the state could address the deficit by passing pro-business policies to spur growth, like speeding up the decline of the state’s corporate tax rate and changing how permits are issued.

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“We need to double down on that and say ‘Pennsylvania is open for business,’” Bradford said.

An alternate climate change program

Shapiro laid out the vision for his energy-focused “Lightning Plan” in Pittsburgh last week. Lawmakers are already familiar with many of the plan’s key elements, which Shapiro introduced last year. These include:

  • A state-based alternative to the Regional Greenhouse Gas Initiative (RGGI), an interstate cap-and-trade program that forces power producers to pay to emit carbon. The Pennsylvania Climate Emissions Reduction Act (PACER) would allow the commonwealth to set its own cap on carbon emissions, and the administration says most of the resulting revenue would go to electric bill rebates.

  • A rewrite of the state’s alternative energy standards, known as the Pennsylvania Reliable Energy Sustainability Standard (PRESS). It would require electric companies to buy more renewable energy.

  • The repurposing of an existing $2.6 billion tax credit that has gone unused to benefit “reliable energy sources,” hydrogen projects, and producers of sustainable aviation fuel.

Shapiro positioned his proposals as an alternative to the state participating in RGGI.

Former Democratic Gov. Tom Wolf moved to bring Pennsylvania into the multistate effort to address climate change, but faced immediate opposition from legislative Republicans, business groups, and the state’s powerful building trades unions. A state appellate court later blocked the state’s participation, a ruling that has been appealed to the state Supreme Court.

Shapiro has said he’s skeptical of the initiative, though his administration is challenging the appellate ruling in court because it tests the governor’s executive powers. His repackaged energy platform is the “quickest way out of RGGI,” Shapiro said Thursday, calling for the General Assembly to pass a plan like his own.

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“If the legislature does that, I will sign it into law and immediately remove the commonwealth from RGGI,” he added.

The Lightning Plan also includes some new ideas, or spins on older ones.

One is the creation of a board that would make decisions about which sites to choose for new energy projects, like power plants. Those decisions are currently made by the Department of Environmental Protection, and in a news release, the administration said Pennsylvania is one of just 12 states without a board dedicated to siting.

The entity would be known as the Pennsylvania Reliable Energy Siting and Electric Transition (RESET) Board, and its mission would be to “speed up permitting, reduce red tape, and support the next generation of energy projects.” The proposal echoes one supported by state Senate Republicans last year; that legislation passed the chamber along party lines but never advanced in the state House.

Shapiro also wants to update Act 129, a 2008 law that incentivizes purchasing energy-efficient appliances; it hasn’t seen its standards updated since being enacted. The goal, the administration said in its news release, is to lower electricity use and electric bills.

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Many environmental groups said they were generally happy with the proposal, which they characterized as pragmatic for a fossil fuel-rich state that is attempting to usher in cleaner energy producers.

The Environmental Defense Fund called the plan “forward-thinking” in a statement, saying it “strengthens Pennsylvania’s leadership in the energy sector while prioritizing a cleaner, healthier future for all residents.”

Katie Blume, the legislative director of the environmental group Conservation Voters of Pennsylvania, called it an ambitious plan that “has something for everyone.” She was impressed by the proposal to update Act 129, but added that she also would have liked to see more tax credits for producing clean energy.

“Not everybody is going to like 100% of the package,” Blume said. “But it addresses concerns from multiple types of stakeholders.”

Rob Bair, who leads the Pennsylvania Building and Construction Trades Council, which lobbies on behalf of tens of thousands of unionized construction workers, echoed Blume.

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“We have a golden opportunity this session if people want to come to the negotiating table,” Bair said. “We get fixated on RGGI and we’re not looking at the big picture.”

State Senate President Pro Tempore Kim Ward (R., Westmoreland) criticized Shapiro’s RGGI alternative on social media, calling it “just a rebranded carbon tax.”

In a statement, Luke Bernstein, CEO of the Pennsylvania Chamber of Business and Industry, said that permitting reform and tax incentives would attract “private-sector investment.”

But he decried Shapiro’s continued insistence on capping carbon from power plants, saying that such a policy would “undermine these efforts by discouraging reliable energy production, eliminating jobs, and driving up costs for families and businesses.”



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Pennsylvania

What the war with Iran could mean for gas prices in western Pennsylvania

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What the war with Iran could mean for gas prices in western Pennsylvania


The war with Iran could start impacting your wallet as soon as today.

Jim Garrity from AAA East Central says oil prices are up.

“They’re hovering around $72. They were pretty consistently around $65, $66 for a while,” he said.

Nationally, AAA said the average for a gallon of regular sits at about $3, up approximately six cents from last week.

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In Pennsylvania, it’s around $3.12 a gallon, and in the Pittsburgh region, it’s around $3.24 a gallon. That’s actually down about four cents from last week.

Garrity added that gas prices this time of year would already be increasing, usually because of higher demand for the warmer months and the production of the summer blend of gas used for those months.

The impacts of what’s happening in Iran may not be immediate, which could be part of why our region and the state overall have not seen a spike yet, he said.

“It could be a couple of days later. It could be up to a week later,” Garrity said.

A lot of people are watching what happens with the Strait of Hormuz. Iran borders it to the north, and 20% of the world’s oil goes through it.

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Iran is one of the world’s biggest oil producers, and China gets a lot of that oil.

“If there is an impact there, you could see oil start to come in from other parts of the world, which has a downstream effect on [the United States],” Garrity said.

One way you can save on gas if prices increase in our area is by slowing down.

“When you drive faster every five miles, over 50 miles an hour, your fuel efficiency is going down,” Garrity said. “You’re making the car work harder, making the gasoline consumption less effective.”

Garrity added that in 2022, when our area and many others saw some of the highest gas prices ever recorded, people changed their driving habits.

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“We saw people make seemingly permanent changes to their driving behaviors, driving less in general, consolidating trips,” he said.



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Iran vows revenge after the killing of its top leader

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Iran vows revenge after the killing of its top leader


With energy affordability and reliability dominating headlines, state lawmakers peppered Pennsylvania Environmental Protection Secretary Jessica Shirley about the administration’s strategy to speed the addition of new power sources to the electric grid. Members of the Senate Appropriations Committee asked Thursday about the administration’s plans to ensure Pennsylvanians’ lights stay on as the commonwealth courts tech […]



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The 10 Friendliest Little Towns In Pennsylvania

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The 10 Friendliest Little Towns In Pennsylvania


Some Pennsylvania towns make it easy to feel included within a day of arriving. In Lititz, summer concerts at Lititz Springs Park turn into informal reunions, with families setting up lawn chairs side by side and local shop owners joining once they lock their doors for the evening. In Boiling Springs, the path around Children’s Lake doubles as a daily check-in point where walkers greet each other by name before drifting into the cafés along Front Street. And in Ligonier, the Diamond and its bandstand pull residents downtown for markets and community events that rely on volunteers rather than outside organizers. The same pattern carries through the rest of the towns on our list.

Lititz

Lititz, Pennsylvania: Exterior view of the Julius Sturgis Pretzel Bakery, via George Sheldon / Shutterstock.com

Lititz is in Lancaster County, about 6 miles north of the city of Lancaster. Founded in 1756, the town was named after a castle in Bohemia and initially served as a Moravian congregation settlement. Lititz is home to the Julius Sturgis Pretzel Bakery, established in 1861 as the first commercial pretzel bakery in the United States.

4th of July Parade in Lititz, Pennsylvania
4th of July Parade in Lititz, Pennsylvania. Editorial credit: George Sheldon / Shutterstock.com.

Lititz Springs Park, a historic community hub since 1756, hosts various yearly events, notably the well-known Lititz Fourth of July Celebration. For dining, the Appalachian Brewing Company provides locally brewed beers and a distinctive menu showcasing regional dishes. The Wilbur Chocolate Factory, a landmark since the late 1800s, includes a museum and shop where visitors can explore chocolate-making processes and buy unique confections.

Boiling Springs

A historical building in Boiling Springs, Pennsylvania.
A historical building in Boiling Springs, Pennsylvania.

Boiling Springs, in Cumberland County, owes its name to the natural artesian springs that maintain a constant temperature and were crucial to early ironworks in the area. Established in the 18th century, it is also part of the Appalachian Trail community, underscoring its long-standing connection to nature and history. The town’s historic district includes the Iron Furnace, dating to 1760 and a testament to Boiling Springs’ early industrial role.

The town features a variety of attractions for visitors and residents. Allenberry Resort and Playhouse, a historic venue since the mid-20th century, provides entertainment, dining, and lodging options. The Boiling Springs Tavern, founded in 1832, offers classic American cuisine in a historic environment. For outdoor enjoyment, Children’s Lake is perfect for fishing and relaxing walks, and the Appalachian Trail runs through the center of the community, offering great hiking opportunities.

Jim Thorpe

Landmark buildings in the historic town of Jim Thorpe, Pennsylvania.
Landmark buildings in the historic town of Jim Thorpe, Pennsylvania. Image credit Dan Hanscom via Shutterstock

Jim Thorpe sits in the Lehigh Gorge in eastern Pennsylvania, and was originally known as Mauch Chunk and played a pivotal role in the coal and railroad industries. Renamed in 1954 to honor the legendary athlete Jim Thorpe, the town retains a Victorian era charm, with much of its architecture preserved and celebrated. This heritage is evident in attractions such as the Asa Packer Mansion, built in 1861 by a philanthropist and railroad magnate, which now serves as a museum.

The historic downtown Jim Thorpe, Pennsylvania.
The historic downtown Jim Thorpe, Pennsylvania. Editorial credit: Alizada Studios / Shutterstock.com.

Visitors to Jim Thorpe can choose from various recreation and dining options. The Lehigh Gorge Scenic Railway provides a scenic ride through the mountains, perfect for enjoying the area’s natural beauty. Dining choices include Moya, famous for its upscale American dishes, and Stone Row Pub & Eatery, offering a relaxed atmosphere with local ingredients. Outdoor lovers can enjoy boating and hiking at Mauch Chunk Lake Park, making the town an attractive destination.

Ligonier

The Heritage United Methodist Church in Ligonier, Pennsylvania.
The Heritage United Methodist Church in Ligonier, Pennsylvania. Image credit woodsnorthphoto via Shuterstock.

Ligonier was established in the 1760s and features a rich colonial history highlighted by Fort Ligonier, a British fortification from the French and Indian War. The town square, known as the Diamond, is circled by original structures and a bandstand from the 19th century, reinforcing its historical ambiance.

The rural countryside town of Ligonier, Pennsylvania
The rural countryside town of Ligonier, Pennsylvania. Image credit Gage Goulding via Shutterstock

Fort Ligonier functions as both a museum showcasing 18th-century artifacts and a venue for reenactments and educational activities. The Southern Alleghenies Museum of Art enriches visitors with American art exhibitions. Dining options in Ligonier include the historic Ligonier Tavern, known for its local cuisine, and The Wicked Googly, famous for its vibrant atmosphere and live music. For outdoor leisure, Ligonier Beach offers a distinctive swimming experience with a historic pool from 1925.

Wellsboro

The downtown streets of Wellsboro are still illuminated with authentic gas street lamps
The downtown streets of Wellsboro are still illuminated with authentic gas street lamps. Image credit George Sheldon via Shutterstock

Wellsboro, located in Tioga County, was established in 1806 and acts as the gateway to the Pennsylvania Grand Canyon, also known as Pine Creek Gorge. The town exudes nostalgic charm with its gas-lit streets and historic Victorian buildings, offering a window into its storied history. A prime example of this history is the Penn Wells Hotel, which has been serving visitors since the early 1900s.

For those wanting to explore Wellsboro, the restored 1920s movie theater, The Arcadia Theatre, regularly features films and performances, serving as a cultural center for locals and visitors. The Native Bagel offers a relaxed dining atmosphere with dishes made from locally sourced ingredients. Outdoor lovers can enjoy Leonard Harrison State Park, which offers stunning views of the Pennsylvania Grand Canyon, along with trails and picnic spots. Furthermore, the annual Pennsylvania State Laurel Festival attracts crowds with its parade, arts and crafts, and local food stalls, honoring the area’s cultural traditions.

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Foxburg

Foxburg, Pennsylvania as seen from the old Foxburg Bridge
Foxburg, Pennsylvania as seen from the old Foxburg Bridge

Foxburg, situated along the Allegheny River in Clarion County, was founded in 1870. It is famous for being home to the oldest golf course still in operation in the United States, the Foxburg Country Club, established in 1887. This historical feature adds to its charming and distinctive character, blending small-town American charm with a deep golf tradition.

The Foxburg Wine Cellars offers tastings of locally produced wines, complemented by a scenic setting. For dining, the Allegheny Grille provides riverfront views alongside a menu featuring regional cuisine, emphasizing the town’s picturesque location. Culture enthusiasts can explore the American Golf Hall of Fame, located within the Foxburg Country Club, which houses a collection of golf memorabilia and artifacts. For outdoor activities, the nearby Allegheny River Trail offers miles of biking and walking paths, making Foxburg a destination with diverse appeal.

Honesdale

Colorful buildings on Main Street in Honesdale, Pennsylvania
Colorful buildings on Main Street in Honesdale, Pennsylvania. Editorial credit: Nina Alizada / Shutterstock.com.

Honesdale serves as the county seat for Wayne County and was founded in 1826. It has historical significance as the terminus of the Delaware and Hudson Canal, pivotal in the transport of coal to major markets in the northeast. Notably, Honesdale is credited with being the site of the first commercial steam locomotive run on rails in the United States, the Stourbridge Lion, adding a rich layer to its industrial heritage.

The Wayne County Historical Society presents exhibits on canal and railroad history, shedding light on the town’s growth. For dining, visitors can choose the upscale Hotel Wayne, known for its fine dining and bistro bar, or the more relaxed Trackside Grill, offering views of the historic railroad. Outdoor lovers can visit Honesdale Park, which has walking paths and recreational facilities, serving as a popular venue for community events and gatherings.

Milford

Downtown Milford, Pennsylvania.
Downtown Milford, Pennsylvania. Image credit: DenSmith via Flickr.com.

Milford is situated at the crossroads of the Delaware River and the Pocono Mountains’ foothills. Established in 1796, it rapidly gained popularity as a resort in the 19th century, thanks to its scenic landscape and fresh mountain air. The town is also renowned for the Milford Historic District, which features a range of well-preserved buildings that reflect its prosperous history.

The Columns Museum houses the famous Lincoln Flag, believed to be stained with Abraham Lincoln’s blood from the night of his assassination, providing a profound historical experience. For dining, Bar Louis at the Hotel Fauchère offers a contemporary menu in a stylish setting, while the Waterwheel Café provides a rustic atmosphere with live music and local cuisine. Additionally, Grey Towers National Historic Site, the former home of Gifford Pinchot, founder of the U.S. Forest Service, offers guided tours and scenic grounds.

Mount Joy

Twisted Bine Beer Co. is a small-scale microbrewery of craft beer with an onsite tasting room and farm to table restaurant that is located in Mount Joy, Pennsylvania
Twisted Bine Beer Co. is a small-scale microbrewery of craft beer with an onsite tasting room and farm to table restaurant that is located in Mount Joy, Pennsylvania, via Raymond C. Eichelberger / Shutterstock.com

Mount Joy was founded in 1759 and has a name derived from an old Irish ship, the “Mountjoy,” which played a pivotal role in breaking a siege during the Irish Confederate Wars. This town, nestled among the rich, rolling farmlands of the county, has historically been a hub for agriculture and today melds historic charm with modern vibrancy, evident in its revitalized downtown area.

Bube’s Brewery, an intact historic 19th-century brewery and museum, offers unique dining experiences in its catacombs and regularly hosts murder mystery dinners. The Country Table Restaurant is known for its comfort food and welcoming atmosphere, reflecting the town’s friendly spirit. For outdoor activities, Little Chiques Park provides scenic walking paths and picnic areas, perfect for family outings. Additionally, the annual “Mount Joy Winterfest” brings the community together with craft vendors, food, and entertainment, showcasing the town’s lively community spirit.

Lewisburg

The Campus in Lewisburg, Pennsylvania.
The Campus in Lewisburg, Pennsylvania. Editorial credit: George Sheldon / Shutterstock.com

Lewisburg is a vibrant town established in 1785. It is home to Bucknell University, established in 1846, which adds a youthful energy and cultural richness to the town. Lewisburg’s downtown is listed on the National Register of Historic Places, featuring well-preserved 19th-century architecture and a tree-lined main street that enhances its historic charm.

A kiosk along Main Street in downtown Lewisburg, Pennsylvania.
A kiosk along Main Street in downtown Lewisburg, Pennsylvania. Editorial credit: George Sheldon / Shutterstock.com

In terms of activities and dining, Lewisburg offers a variety of choices that cater to both residents and visitors. The Campus Theatre, one of the few remaining single-screen art deco movie theaters in the country, offers a unique cinematic experience. For dining, Elizabeth’s American Bistro provides a fine dining experience using local ingredients, while the Bull Run Tap House offers a more casual atmosphere with a comprehensive selection of craft beers. For outdoor enthusiasts, Hufnagle Park offers a green retreat in the heart of the town, complete with walking paths and garden areas, making it a popular gathering place for community events and casual recreation.

As we journey through Pennsylvania’s coziest corners, we discover that these small towns do more than just charm visitors with their picturesque settings and historical backdrops. They invite us into a world where community spirit thrives and every street and alley tells a story. These towns, from Lititz’s pretzel-perfumed air to Lewisburg’s university vibes, showcase the true heart of Pennsylvania through their unyielding warmth and hospitality. Whether you’re seeking a serene retreat or a peek into America’s storied past, these towns offer a refuge where friendliness is the native language.

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