Pennsylvania approves $50.8 billion FY 2026‑27 budget without tax hikes

The Pennsylvania General Assembly passed a $50.8 billion budget for fiscal year 2026‑27 and Governor Josh Shapiro signed it on July 12. Lawmakers avoided any new taxes and left the $8 billion Rainy Day Fund untouched by cutting more than $1.1 billion from the governor’s original proposal and repurposing $4.5 billion in unused funds.

The plan adds roughly $900 million in new education spending, including a $565 million increase in adequacy funding, over $150 million for basic and special education, $121 million for school safety and mental‑health grants, and new career‑technical‑education and teacher‑stipend funds. It also provides a cost‑of‑living pension boost for retired teachers, police and firefighters who left service before July 2001.

Infrastructure investments include $775 million for PennDOT highway projects and $10 million for fruit growers damaged by a spring freeze. Funding for rape‑crisis centers is nearly doubled with a $12 million increase, and a $5 million boost supports child‑care worker recruitment. Philadelphia receives an additional $157 million for its schools.

Several proposals were omitted, notably legalization and taxation of recreational marijuana, a minimum‑wage increase, and a tax on skill‑game machines. The budget earned bipartisan praise for affordability while drawing criticism from a few legislators who called the accounting tactics a “charade.”