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Pennsylvania Governor Josh Shapiro unveiled his 2025-26 budget proposal on Tuesday (February 4) in Harrisburg, calling for a $51.5 billion spending plan. The proposal includes increased funding for public education and mass transit, as well as the legalization of recreational marijuana as a new revenue source. The governor's plan aims to boost the state's economy and address workforce development, while also maintaining fiscal responsibility. Shapiro's budget suggests a $3 billion increase in spending, which would be partially funded by legalizing recreational cannabis and implementing a 20% tax on its wholesale price. This move is expected to generate approximately $536.5 million in the 2025-26 fiscal year. The governor also proposes expunging criminal records for nonviolent cannabis possession offenses.
While Democrats largely support the proposal, Republicans have expressed concerns about the increased spending and reliance on policy changes that are not yet law. Senate President Pro Tempore Kim Ward criticized the plan for depending on unapproved measures like legalized cannabis and skill games legislation. Despite these concerns, there is some bipartisan agreement on regulating skill games, which could generate additional revenue for the state. Shapiro's budget also calls for tapping into the state's Rainy Day Fund and surplus to balance the budget, leaving a projected $6.4 billion in reserves by the end of the fiscal year.
The proposal has sparked debate among lawmakers, with Republicans warning of a growing structural deficit and Democrats advocating for continued investment in the state's future. Shapiro urged lawmakers to prioritize Pennsylvanians over political disagreements, emphasizing the need for collaboration to solve the state's challenges.