5 Big Takeaways From PA's Budget Address

PENNSYLVANIA - The Keystone State will see increased funding to public schools and higher education institutions, economic development programs, transit and even legal weed under a budget proposal outlined in Gov. Josh Shapiro's “ambitious” $483 billion plan for the 2024-25 fiscal year.

The governor's hour and a half-long Tuesday address in Harrisburg’s Capitol Rotunda did not propose new tax increases but did put an emphasis on education, with Shapiro calling for a $1.1 billion increase in K-12 school funding, including an $872 million down payment next year to poorer schools.

Related: New PA Budget To Be Released Tuesday: What You Can Expect

Shapiro’s remarks come on the heels of a court ruling last year that found the state’s school funding formula unconstitutionally discriminates against poorer schools.

The proposed education boosts are in line with recommendations dolled out by the Basic Education Funding Commission last month, which noted Pennsylvania K-12 schools are underfunded by $5.4 billion and should work to close the gap immediately over the next seven years. That report also included a recommendation to funnel $1.3 billion more next year to public schools, including subsidies for school construction and high-tax districts. Read more: PA Schools' $5B Funding Gap Detailed In New Commission Report

Here are five other big takeaways from Shapiro's 2024 budget address:

Economic Development

In order to attract commercial and industrial business to the Keystone State, Shapiro has proposed borrowing $500 million for developing sites in five key industries: agriculture, energy, life sciences, manufacturing and robotics and technology.

The funds will go towards a program that provides grants to make Pennsylvania sites "shovel-ready" for new and expanding businesses.

"Ohio has one-and-a-half million fewer people than Pennsylvania, yet they’ve invested over seven times more in economic development than we have," Shapiro said. "Their investment is paying off, and I’m sick and tired of losing to friggin’ Ohio!"

Education

The governor’s expanded education plan includes more monies set aside for mental health counseling, school construction, student-teacher stipends and recruitment, special education, preschools and more.

“We also need to repair the pipeline of professionals who go into teaching,” Shapiro said, noting the 5,500-teacher vacancy gap in the state. “That’s in large part because fewer people are choosing to become teachers.”

Shapiro also renewed support for the Republican-backed private school voucher program and emphasized his proposal last month to consolidate the oversight of two- and four-year state-owned institutions under a new governance system and bolster investment in state and community colleges.

Marijuana

Shapiro expressed his support for legalizing marijuana in Pennsylvania, citing $250 million in additional annual revenue lost for the state as a result of its slow process to legalize.

The governor also advocated for expunging the records of individuals incarcerated for marijuana and funneling $5 million to restorative justice.

“Our failure to legalize and regulate marijuana only fuels the black market and drains much needed resources for law enforcement,” Shapiro said. “It’s time to catch up.”

Minimum Wage

The governor has renewed his call to double the minimum wage to $15 from $7.25, dubbing the current minimum a “shanda."

“It’s time we raise our minimum wage to 15 dollars an hour because we’re falling behind,” Shapiro said. “It’s anticompetitive and it’s hurting our workers,” adding that “every single one” of Pennsylvania’s neighboring states has already raised the minimum wage.

“Pennsylvania workers living in border counties would rather drive into another state for work so they can earn a higher wage than take a job at home in Pennsylvania,” he said. “Let’s finally get this done.”

Transit

As expected, Shapiro set forth a $282.2 million investment in transit (a 1.75% increase), the first increase in Pennsylvania’s public transit funding in over 10 years. The funding boost is set to generate $1.5 billion in the next five years, Shapiro said.

Despite pandemic-era funds set to expire in July, Shapiro called for a $161 million boost to SEPTA funding and vowed service and fares won’t be affected in 2024-25. His remarks come less than a month after New Jersey Transit announced a proposed 15% rate increase this summer.

If cleanliness and safety requirements are met by SEPTA, a 15% match from local counties will be automatically dolled out, amounting to $24 million in extra funds for the transit system.

“I insisted they address concerns about cleanliness and safety — and I asked the local counties whose residents benefit from that system to meet this moment with additional support,” Shapiro said. “I can now report that SEPTA has presented plans to address cleanliness and safety, and county officials have entertained a willingness to increase their financial support.”

Motorists are also slated to see a boost in the budget this year, with an additional $125 million now available for road and bridges repairs.

What’s next?

Budget hearings will begin in two weeks to address departmental-level spending plans outlined in Shapiro’s address. Following budget negotiations, the governor plans to sign the final 2024-25 budget by June 30.