HARRISBURG, Pa. — Governor Josh Shapiro is pushing for major new investments in Pennsylvania’s poorest school districts and struggling public transit systems as part of a proposed $53.3 billion state budget for the upcoming fiscal year.
Shapiro’s plan calls for a roughly 5% increase in overall state spending, with a strong focus on education equity, public transportation stability, and raising Pennsylvania’s minimum wage — which has remained unchanged for more than a decade.
Speaking Tuesday inside the Pennsylvania State Capitol, Shapiro acknowledged last year’s prolonged budget standoff, which dragged on for more than four months.
“We all recognize it took too long last year, and that had real impacts on Pennsylvanians,” Shapiro said. “But we learned some valuable lessons through that process.”
Where the Money Would Go
Under the proposal, the state would send significantly more funding to under-resourced school districts, aiming to narrow long-standing gaps in classroom resources, staffing, and student support services.
Public transit agencies — many of which are facing budget shortfalls and service cuts — would also receive increased funding to stabilize operations and prevent fare hikes or route reductions.
Shapiro is also renewing his push to raise the minimum wage, arguing that many working families continue to struggle with rising costs of housing, food, and utilities.
How the State Would Pay for It
To fund the expanded spending plan, Shapiro is again urging lawmakers to:
- Tax and regulate slot-style skill games currently operating across the state
- Legalize recreational marijuana, generating new tax revenue
- Close a corporate tax loophole that allows large national companies to lower their Pennsylvania tax bills
The governor framed the revenue proposals as a way to modernize Pennsylvania’s tax system while easing pressure on working families.
Political Hurdles Ahead
Pennsylvania’s legislature remains divided, and many of the same issues that fueled last year’s 135-day budget impasse are expected to resurface — especially disagreements over new revenue sources and how to handle the state’s long-term structural deficit.
Still, Shapiro emphasized the need for cooperation this time around, urging lawmakers to move faster and keep essential services from being caught in political gridlock.
📊 Breakdown of Major Funding Priorities (WHAT’S MISSING)
To strengthen the article, include specific focus areas tied to the money:
🎓 Education investments
Shapiro’s proposal would direct hundreds of millions more toward:
- Low-income and underfunded school districts
- Special education services
- Teacher recruitment and classroom support programs
- Infrastructure improvements in aging school buildings
The goal is to reduce long-standing funding gaps between wealthy and poorer districts — an issue Pennsylvania courts have repeatedly flagged as unconstitutional.
🚌 Public transit funding boost
The budget would increase aid for:
- SEPTA and regional transit systems across Pennsylvania
- Bus and rail maintenance and safety upgrades
- Preventing service cuts and fare increases
Many agencies have warned without state help they may be forced to reduce routes that thousands of commuters rely on daily.
💵 Minimum wage push (context readers expect)
Pennsylvania’s minimum wage remains:
👉 $7.25 an hour — unchanged since 2009
Shapiro wants lawmakers to approve a gradual increase to help workers keep up with rising living costs.
💰 Estimated Revenue Impact (important detail to add)
Shapiro’s team projects:
- Skill game regulation could bring in hundreds of millions annually
- Recreational marijuana legalization could generate major new tax revenue while reducing illegal market activity
- Corporate tax reform would prevent large companies from shifting profits out of state
Together, these would help offset the 5% spending increase without raising broad-based taxes on residents.
