Trending
Gov. Josh Shapiro's budget proposal, while lauded by some lawmakers, business and industry leaders, was panned by others for its huge spending increases that would wipe out the state's Rainy Day Fund.
Shapiro's second budget proposes significant increases to education and economic development and would regulate adult use marijuana, while leaning heavily on Pennsylvania's flush reserves to underwrite his vision.
The governor's admittedly "ambitious" $48.3 billion plan marshals billions more for underfunded public schools, public transit, higher education and major industrial and high-tech projects to invigorate a slow-growing economy. He says the budget does not call for a tax increase, or require one for at least five years.
State Sen. Judy Ward, R-Blair, said she has serious concerns about the $3.2 billion increase in spending.
"The budget the governor proposed today is outrageous and puts Pennsylvania on an unsustainable and dangerous path for the future," Ward said. "Because of the fiscal responsibility championed by the Senate Republican Caucus, Pennsylvania has received better bond ratings and national recognition for the financial stability it has achieved. At a time of high inflation, rising prices and economic instability, state government must enact fiscally responsible policies to counteract those negative trends."
The new spending includes more than $500 million in one-time federal stimulus funds. Including those dollars, the governor's budget represents a 7.1% increase in spending, Ward said in a statement.
According to the governor's own projections, the proposed budget would spend more than $3.4 billion beyond what it expects to collect in revenue. This spending trajectory would cause Pennsylvania to almost completely exhaust the Rainy Day Fund in the next five years, Ward said.
"The governor's proposed budget needs work," she said.
State Rep. Lou Schmitt, R-Altoona, agreed the budget as proposed is too expensive.
"Should the governor get everything he asked for today in the most expensive budget proposal in the history of Pennsylvania, the state will deplete its savings account and rely solely on tax increases on hard-working Pennsylvanians to fund the type of spending the governor wants," Schmitt said in a statement.
The governor's plan "is completely unsustainable and would leave the state and its taxpayers in the wake of financial ruin," Schmitt said. "What we heard today was the governor's wish list. It was not based on the reality that people are paying higher prices for basic necessities like groceries, gas and utilities. We simply cannot afford to fulfill the governor's list of wants and desires.
Shapiro's "wish list included proposed spending for important programs but failed to acknowledge dramatic overspending that would decimate the state's savings," said state Rep. Jim Gregory, R-Blair.
"The governor's proposed budget would undo the important work of House Republicans, who set aside money to avoid tax increases during future economic downturn," Gregory stated, adding "Shapiro's proposal would blow through nearly $16 billion of General Fund surplus and Rainy Day Fund balances."
The budget, as proposed, is "not based on reality," said state Rep. Rich Irvin, R-Huntingdon.
"The Commonwealth -- like the people who call it home -- needs to live within its means," Irvin said. "I expect better from our state's top leader and am hopeful he will be flexible on his wish list and work with the General Assembly to draft something more reasonable and realistic that focuses on the core functions of government."
State Rep. Jesse Topper, R-Bedford, too said Shapiro's proposal spends well beyond the state's means.
"(Shapiro) is seeking to increase spending by $3.7 billion to $48.34 billion and that is simply unsustainable moving forward," Topper said. "The programs the governor wants to create will not be retired when economic conditions worsen and at that point, they will lead to a massive tax increase."
School funding plan
Topper, though, said he was encouraged by Shapiro's school funding proposal.
"I was also cautiously optimistic when the governor called on the House and Senate to create a school funding model that not only included recommendations of the Basic Education Funding Commission, but also an endorsement of a school scholarship plan, similar to the Lifeline Scholarships that were proposed in last year's budget," Topper said. "All students, especially those in schools that are in crisis, need a path to a brighter future. I look forward to working with my colleagues to tackle the difficult issues and have the tough, but necessary conversations about transforming our educational system in Pennsylvania."
A statewide coalition, led by Teach Plus and the National Center on Education and the Economy, praised Shapiro's budget for including funding for student teacher stipends.
#PANeedsTeachers, which is focused on addressing Pennsylvania's teacher shortage crisis, said Shapiro recognizes "that we need to rebuild our teacher pipeline."
"Our schools are struggling to find and retain high-quality teachers, and if we do not act urgently to fix this problem, Pennsylvania students will suffer," the group said in a statement.
"Overall, we are encouraged that the governor is taking the teacher shortage crisis seriously and putting real solutions on the table. We look forward to working with the legislation and the administration on solutions that will get more high quality teachers into our classrooms," the coalition stated.
Legalized marijuana
The state already has a medical marijuana program where residents can legally use the drug for medical purposes, stated Dan Bartkowiak, Director of Communications for Pennsylvania Family Institute. By calling for legalization of marijuana for recreational use, the governor is putting the "addiction-for-profit marijuana industry above the health and well-being of Pennsylvania families," he said.
"Pennsylvania communities do not want a pot shop in their neighborhood," added Bartkowiak. "Lawmakers should reject this policy proposal, which would increase teen marijuana use, increase traffic fatalities, and create further burdens on mental health.
"Governor Shapiro, in his call for education reform, stated if we do this right, we will set our young people up for success. With a call to legalize marijuana for recreational use, you're setting young people up for failure," Bartkowiak said.
Gregory said Shapiro thinks his spending spree could be funded, in part, by a new sales tax on legalized marijuana.
It's a proposal Gregory said he cannot support.
"My promise to a family whose son died of overdose mixing suboxone and Xanax with his marijuana is why I will not support legalizing marijuana," he said.
While he is against the marijuana proposal, Gregory did praise Shapiro for addressing a cause supremely important to the representative -- ensuring the statute of limitations is removed for survivors of sexual abuse seeking a voice through civil lawsuits. Gregory said the added spotlight is necessary to keep momentum behind the cause.