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State Budget Deadline Approaches with Little Optimism

  • Governor Josh Shapiro and Pennsylvania’s divided lawmakers failed to meet the state’s legal deadline of July 1, 2025, for approving the budget for the 2025-2026 fiscal year.
  • This delay occurred amid closed-door talks to resolve deep philosophical differences on issues like Medicaid cost increases and taxing skill games, continuing a pattern of late budgets.
  • Shapiro put forward a $51.5 billion balanced budget plan that raises state operations spending by 9%, adding roughly $3.8 billion overall and allocating an additional $230 million for expenditures in the current fiscal year, with a focus on increasing support for public schools and transit systems.
  • At a July 1 news conference, Shapiro said talks went through the weekend and expects negotiators to agree on a plan "very soon," while Senate Majority Leader Pittman noted significant challenges ahead.
  • Without the governor's signature, the state lost some discretionary spending authority affecting payments to schools and vendors, though mandatory obligations like debt and Medicaid continue during the stalemate.
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Tioga PublishingTioga Publishing
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State budget late third year in a row

(The Center Square) – It’s three strikes for the divided Pennsylvania legislature and its leader, Gov. Josh Shapiro.

·Pennsylvania, United States
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Penn Live broke the news in Harrisburg, United States on Sunday, June 29, 2025.
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