Governor Josh Shapiro's budget address for the 2024-25 fiscal year has ignited both optimism and ske

Governor Josh Shapiro's budget address for the 2024-25 fiscal year has ignited both optimism and skepticism across Pennsylvania

With a proposed budget of$48.3 billion, Governor Shapiro presented an ambitious vision for the state's future, spanning a broad spectrum of initiatives aimed at tackling systemic inequities, fostering economic development, and enhancing social welfare, and marking a significant increase from previous budgets.

At the core of Shapiro's budget proposal lies a substantial increase in funding for public education. With a proposed $1.1 billion boost for public school operations and instruction, he’s aiming to narrow the gap between affluent and underserved school districts, a disparity underscored by a recent court ruling. Notably, approximately $872 million of this funding is earmarked for poorer schools, drawing commendation from advocates and educators alike.

Additionally, Shapiro's budget allocates $200 million to higher education institutions, acknowledging the imperative to make post-secondary education more accessible and competitive. This investment is accompanied by a redesigned state-owned higher education system aimed at distributing aid transparently and based on performance metrics.

Shapiro also pledged millions to bolster public transit agencies across the state, addressing a looming budget shortfall as pandemic relief funds diminish for many transit systems by July. With nearly a million Pennsylvanians reliant on public transit daily, Shapiro's proposed 1.75% increase in transit funding, totaling $282.8 million, marks the first significant rise in state funding for public transit in over a decade.

In a departure from previous administrations, Shapiro's budget proposal includes a plan to legalize adult-use marijuana, leveraging a new revenue stream while addressing social justice concerns through measures such as expunging records of marijuana-related offenses and investing in restorative justice programs. However, this initiative is expected to face resistance, particularly from conservative lawmakers wary of the social and health implications of legalization.

Governor Josh Shapiro's budget proposal for the 2024-25 fiscal year features significant investments partially financed through a newly proposed revenue source—legalized and regulated video skill games. These games, commonly found in bars, convenience stores, and standalone parlors across Pennsylvania, have operated in a legal gray area but may soon be legalized under Shapiro's plan. While there is support for regulating the skill games industry, some lawmakers express concerns about the legitimacy of the Governor’s revenue projections. The debate over skill games regulation adds complexity to budget negotiations, with differing opinions on taxation and the extent of regulation within the Pennsylvania Senate.

One of the most contentious aspects of Shapiro's budget is its reliance on the state's reserves to fund proposed initiatives. While Shapiro argues that Pennsylvania's surplus justifies this approach, critics, especially Republicans, have raised concerns about the sustainability and fiscal responsibility of depleting reserves in this manner.

While Shapiro's budget addresses pressing issues such as education funding and social welfare, some advocates argue that it falls short in areas like healthcare and infrastructure.

The Governor’s budget address is the starting point of the 2024-2025 Fiscal Year budget process. Last week the House and Senate Appropriations Committees began to hold hearings with each state agency to explore the finer details of the Governor’s proposal. Budget hearings will wrap up in mid-March and then work begins in earnest on coming to an agreement by the June 30^th deadline.

The Governor’s Budget in Brief expands upon proposed mental health funding:

Ensuring Pennsylvanians Have Access to Mental Health Resources

• Invests $100 million in mental health funding for K-12 schools, which builds upon one-time federal funds to ensure schools have the resources to provide mental health services to students and staff.
• Increases funding for community-based mental health services by an additional $20 million this year and calls for additional funds in successive years (reaching an overall increase of $60 million per year increase by 2025-26).
• Includes $1.6 million for Community Hospital Integration Projects Program (CHIPP) discharges to reduce state hospital populations.
• Provides $5.8 million to create five community-based programs to serve people with serious mental illnesses who end up in the criminal justice system but who do not require the level of forensic treatment provided at a state hospital or who are being discharged from these institutions.
• Enables Pennsylvania to enhance its crisis intervention services, expand mental health resources, and ensure competent and resilient 24/7 staffing is maintained by including $10 million in funding for 988 crisis line operations and capacity building.
• Includes $5 million for establishing and maintaining walk-in mental health crisis stabilization centers, with a focus on geographic areas that may not have a center.

This link includes all the Governor’s budget-related documents.