Emptying PA’s Financial Tank Will Lead to Torrential Fiscal Downpours
Every year, the Legislature is tasked with passing a budget to ensure our core services are funded appropriately so they can help Pennsylvanians. The budget is to be passed by June 30, which marks the end of the fiscal year.
We are now officially two weeks past that deadline and sit in a budget impasse.
Today, House Democrats rushed a $50.61 billion budget bill for the 2025-26 fiscal year through the House, a spending amount not agreed to by all parties. The Independent Fiscal Office estimates revenue growth for next fiscal year at 1.4%. That means only $700 million in new revenues would be generated to go along with $2.9 billion in new spending.
There is no plan in place to address any tax changes and how to direct spending. The Regional Greenhouse Gas Initiative (RGGI), as well as burdensome regulations and a complicated government permitting process, continue to remain in place.
When Gov. Shapiro came into office, the state had over $13 billion in reserves. By the time this fiscal year ends, that number will be cut in half.
There is a stark difference in philosophies from both a funding and initiative perspective. House Democrats want to aimlessly spend without accountability and reliable revenue resources, all while supporting RGGI and identical initiatives that hamstring the Commonwealth’s economy from reaching its full potential. My House Republican colleagues and I believe we should live within our means, similar to how families plan their expenditures.
While this budget proposal would spend less than Gov. Josh Shapiro’s original $51.47 billion ask in February, this misses the mark by a wide margin.
What does draining our reserve funding do?
Well, for starters, hardworking Pennsylvanians will lose more of their money to new taxes or tax hikes. Having no financial wiggle room would inevitably force the Commonwealth to rip more money out of paychecks at a time when families are experiencing high prices.
Core public services would be slashed to accommodate overspending to prevent a worst-case scenario for Pennsylvania’s fiscal outlook.
If any emergencies were to arise, we would not have a safety net of funds to keep essential services – such as public safety, health care and education – going without interruptions. Dipping into these precious dollars for non-emergency reasons defeats the purpose of this fund.
That is just to name a few.
Simply put, gambling on Pennsylvania’s fiscal future is not a risk I am willing to take. We cannot be spending everything we have. Instead, our mindset should solely be on growing the economy.
If we do not exercise caution, we will face torrential fiscal downpours with nothing left in sight to keep us dry.
It is well known that good things come in threes. We must continue to find ways to make government more efficient, unleash our energy potential and maintain fiscal responsibility. This budget fails to address that.
Rep. R. Lee James represents the 64th District in the Pennsylvania General Assembly comprising Venango County and parts of Crawford County.
Representative R. Lee James
64th Legislative District
Pennsylvania House of Representatives
Media Contact: Nate Temple
717-260-6396
Ntemple@pahousegop.com
www.repjames.com