WILKES-BARRE — Sen. Lisa Baker on Friday said the $47.6 billion 2024-25 budget approved late Thursday night is a fiscally responsible budget that is honest with taxpayers, creates new job opportunities for state residents, includes no new taxes and addresses the economic and demographic challenges the state faces in the years ahead.
“The new state budget finds a responsible middle ground between community demands for expanded services and funding and the taxpayer interest in avoiding state overspending,” said Baker, R-Lehman Township. “There has been a concentrated effort to differentiate between meeting defined public needs and putting money toward untested or extravagant fixes.”
Baker said the spending plan is $740 million less than the proposal Gov. Josh Shapiro presented in February, and also adds $740 million to the state’s Rainy Day Fund, a key priority of Senate Republicans to prevent painful tax hikes or service cuts in future years.
“Overall state spending increases by far less than what the governor sought,” Baker said. “The general feeling was that it was too much all at once for plans that were insufficiently detailed and justified.”
Baker said the budget includes key measures to boost Pennsylvania’s economy. The plan continues to phase out the Corporate Net Income Tax, a critical barrier to business expansion in the commonwealth. It also begins the process of eliminating the Start-Up Penalty that makes it more difficult for businesses to relocate to Pennsylvania.
Baker said lawmakers also addressed the persistent problem of permitting delays that have chased jobs and investment to other states. A new Streamlining Permits for Economic Expansion and Development (SPEED) Program will be created to establish permit review timelines by the Department of Environmental Protection and conservation districts.
Additionally, a new permit tracking system will be implemented, and applicants will now have the option for third-party review of air, earth disturbance and water permit applications.
“A common complaint of job creators and advocates of community development projects is the extensive time and associated cost required by the permitting process,” Baker said. Important reforms are included with the budget that will keep projects on track.”
The plan also increases K-12 education funding by more than $1 billion, one of the largest funding increases in Pennsylvania’s history. New funding for the Basic Education subsidy ($285 million), Ready to Learn Block Grant program ($526 million) and school facility improvements ($100 million) will help meet Pennsylvania’s Constitutional mandate to provide a thorough and efficient system of education.
Baker said Senate Republicans fought to ensure these dollars are allocated fairly in a manner that benefits students throughout the commonwealth, not just those students who attend a small number of select schools.
Additional funding is also included for:
• Special education ($100 million increase).
• School safety and security and mental health ($50 million increase).
• Career and technical education (CTE) ($25 million increase).
• CTE equipment grants ($5 million increase).
School districts will also see reduced cyber charter school special education costs of approximately $34.5 million by transitioning to a state-funded reimbursement system that preserves educational options for families.
An additional $25 million is also included for career and technical education programs to ensure more young people are prepared for the challenges of today’s workforce. Community colleges will receive a 6% increase.
“From the beginning, everyone realized that spending for public education was going to rise substantially after the state formula was ruled unconstitutional. However, there are many components to the education budget and care is taken to ensure that school districts with failing enrollments do not take a big hit all at once,” Baker said. “To achieve both equity and effectiveness across our public schools, a series of policy and management changes must be implemented in tandem with funding reforms.”
Significant new resources will also be available for transportation infrastructure. The budget continues the process to phase out the State Police from the Motor License Fund and includes an additional $80.5 million in one-time dollars, making more resources available to help repair our roads and bridges.
Additional funding is also included to empower law enforcement and ensure healthier communities.
New funding is included for county mental health ($20 million) and rate increases for nursing facilities ($134 million), intellectual disability/autism services ($278 million) and LIFE providers ($16.7 million). Funding is also included to ensure nursing facilities receive reimbursement for care from day one ($11 million increase) and for a new initiative to provide intellectual disability/autism services to an additional 1,500 Pennsylvanians ($76 million).
“Across human services, we receive regular reports of people in need having to wait to access crucial programs, assistance and treatments,” Baker said. “More money for programs such as county mental health, nursing care and intellectual disability/autism services will help reduce waiting lists and provide care earlier than is normal now.”
Sen. Flynn celebrates major wins in new budget
Sen. Marty Flynn, D-Scranton, said the historic budget delivers significant investments in education, economic development, public safety and support for vulnerable populations in Pennsylvania.
“This budget reflects our commitment to creating opportunities for all Pennsylvanians without imposing new taxes,” Flynn said.
Flynn listed key achievements of the new budget:
Education
• Over $1 billion increase for Pre-K to 12 education funding:
• $526 million increase for Ready to Learn
• $285 million increase for Basic Education Funding
• $100 million increase for Special Education
• $100 million in new funding for Cyber Charter Transition
• Over $35 million increase for PASSHE schools, a 6% rise from last year.
• Over $140 million allocated for grants, scholarships, and programs to make higher education more affordable.
• A new $3 million investment to provide menstrual products in schools, addressing period poverty.
Housing and Community Development
• $70 million for affordable housing through the PHARE Housing Program, with a $10 million increase this year and further increases planned.
• $20 million for student teacher stipends, doubling last year’s funding.
• Over $550 million in economic development programs via the Department of Community and Economic Development.
• Millions for new programs supporting economic opportunities and job creation, including PA SITES, Main Street Matters, and Agricultural Innovation Development.
Public Safety
• $16.5 million increase for anti-violence investments in community and after-school programs.
• $75 million for skilled nursing facilities to meet staffing requirements and maintain services.
• Over $25 million to support state parks, forests, and environmental protection.
“This budget marks a pivotal moment for Pennsylvania, investing significantly in education, public safety, and economic growth while avoiding new taxes,” Flynn said. “These investments provide a strong foundation for our families, businesses, and communities to thrive. Education remains a top priority, with over $1 billion in new funding to support our students from Pre-K to higher education. We are addressing essential needs in public safety and making strides in economic development to ensure Pennsylvania remains a beacon of opportunity.”
Sen. Flynn invites constituents to review the detailed budget and join in the ongoing efforts to build a stronger, more equitable Pennsylvania.
“While we celebrate these wins, we recognize the work ahead,” Flynn said. “This budget is a down payment on our commitment to fully funding education and supporting all Pennsylvanians. We will continue to advocate for increased investment in infrastructure, fair wages, and comprehensive support for vulnerable populations.”
Rep. Eddie Day Pashinski, D-Wilkes-Barre
Pashinski said the budget addresses many of the key issues that needed improvement for the betterment of students and educators, taxpayers, workers and businesses, as well as the health and welfare of all constituents.
“This budget has attempted to address the inadequate funding of our public schools by appropriately investing approximately one billion dollars to begin correcting the decades of under-funding of our public school system,” Pashinski said. “Not only is it our constitutional responsibility to appropriately fund public education, but it benefits everyone by balancing our investment in our children and the future of Pennsylvania.”
Pashinski said the budget also relieve the local tax burden and some municipalities will experience a property tax decrease.
“From a business standpoint, we will be attracting more businesses to invest in PA, resulting in more jobs and more income for our Commonwealth, resulting in countless benefits for our citizens,” he said. “Considerable dollars were also invested in improving our human services programs — focusing on the mental health problems that many communities experience by investing in increased counseling and violence prevention programs.”
Rep. Alec Ryncavage, R-Plymouth
“It’s common sense to balance a budget. Spending in excess of $3.3 billion more than what the Commonwealth is anticipated to collect in revenues over the coming fiscal year will require spending some of the state’s reserve funds to balance, which is not sustainable and is highly likely to lead to a tax hike in the near future, raise taxes and will continue to put a strain on our already financially strapped families here in NEPA.”
Rep. Jim Haddock, D-Pittston Township
“This bipartisan budget is a compromise and hard work of all sides and delivers for economic development, K-12 education along with higher education, public safety, helping seniors and workforce development just to name a few highlights.
“There is a new funding formula that drives more money in Luzerne and Lackawanna counties schools which will help take the property tax burden off our homeowners and will help properly fund our children in schools. This 1.11 billion infusion is the largest increase in the history of Pennsylvania.
“Our military and veterans affairs were a big winner in the budget. Community and economic Development also received sizable investments to create more jobs and economic growth.
“This is compromised product and am glad to support education and the creation of jobs and spurring economic growth which this budget surely does while containing many tax cuts for businesses.”
Rep. Mike Cabell, R-Butler Township
“This budget spends 6% more than last year, which unfortunately exceeds the Commonwealth’s anticipated revenue collections over the coming fiscal year by about $3.3 billion. That means it requires spending some of the state’s reserve funds to balance, which is not sustainable and is highly likely to lead to a tax hike for Pennsylvania residents in the near future.
Rep. Aaron Kaufer, R-Kingston
“Our investment in this year’s budget sets us on a long-term trajectory for success and budget stability by generating billions of dollars in recurring tax revenue annually while also showing that Pennsylvania is open for business. Likewise, we were able bring money back to Luzerne County, in particular with increases in education funding and through the funding of the Pennsylvania Strategic Investments to Enhance Sites Program (PA SITES), which isn’t just a game-changer for our region but the whole Commonwealth.”