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Around The Region

Governor’s Budget Address: Spending Surge on Horizon as Revenue Falls Short

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Pennsylvania Governor Josh Shapiro speaks with the press. Today, Governor Josh Shapiro signed an executive order establishing the Pennsylvania Office of Transformation and Opportunity within the Governor’s Office and the Economic Development Strategy Group. This newly created office will be a one-stop-shop for businesses looking to grow and will work to aggressively reignite Pennsylvania’s economy – fostering innovation, supporting transformational economic development, and creating real opportunity for businesses and workers alike in our Commonwealth, particularly in communities that have too often been left behind. As part of this announcement, Governor Shapiro named Pennsylvania business leader and entrepreneur Ben Kirshner to the role of Chief Transformation and Opportunity Officer. HARRISBURG, PA – Tuesday, January 24, 2023
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WAYNESBORO- Gov. Josh Shapiro will deliver his 2024-25 state budget address this Tuesday, Feb. 6, before a joint session of the General Assembly. The session begins at noon and the address at 12:30 p.m. Watch the live stream at www.PAHouseGOP.com.

Based on a series of press events and statements from the governor, it is clear this budget is going to propose a significant amount of increased spending. Pennsylvania has been spending more money annually than we take in for several years. This has been made possible by depleting money held in reserve in special funds and money from the federal government under the COVID-19 relief program. Both of those wells are running dry.

Halfway through the current fiscal year, General Fund revenue is falling more than $70 million below estimate, and tax revenue by more than $150 million. I will not support any additional spending without a corresponding cut to existing programs.

The governor’s annual budget address offers the governor the opportunity to list his priorities for the year. The actual budget is drafted by the House majority, which is a Democrat majority at this time. After the House releases its proposed budget, negotiations with the Senate and governor’s office refine the proposal into an end product, which can obtain support from all three.

Article provided by Rep. Paul Schemel.

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