Feb. 03, 2026

HARRISBURG – Today, Gov. Josh Shapiro delivered his state budget address to outline his $53.26 billion proposal for Fiscal Year 2026-27 – a 5.4% increase in spending over the current fiscal year. Rep. Joe Kerwin (R-Dauphin) released the following statement, stressing the importance of addressing the affordability crisis:

“Similar to last year, the budget proposal looks to spend well beyond our capabilities. While this is just a start to a long process of negotiations, it will be important for both sides to come together to reach a number that makes sense for taxpayers.

“This state budget needs to put affordability first. Pennsylvanians are feeling the pressures of higher costs at the grocery store and on their utility bills, and this budget should deliver real, tangible relief to hardworking families, seniors and small businesses. By emphasizing smart, prudent investment and policy strategies, people can keep more of their dollars and we can attract businesses to the Keystone State in our mission to boost the Commonwealth’s economy.

“Unfortunately, the initial proposal would place a steep financial burden on everyone. For starters, this current proposal would transfer $4.58 billion from the Rainy Day Fund to the General Fund to cover the costs of Gov. Shapiro’s priorities. That is a 60% reduction in the fund’s balance. The purpose of the Rainy Day Fund is to have money available in case an emergency strikes, not to use as cover for overspending.

“He is also calling for new taxes and changes to the current tax structure totaling $1.88 billion in new revenue, primarily generated through taxing skill games and recreational marijuana, while also calling for a minimum wage increase to $15 an hour.

“The numbers simply don’t align and would hurt taxpayers. Affordability is not a partisan issue. It’s a fundamental aspect to economic stability and quality of life, something that impacts everyone in the Commonwealth. This is something we cannot ignore any longer. For us to reach this commonsense goal, we must have honest, tough conversations based on the facts before us. I’ll be ready to sit down with my colleagues and hammer this out in a bipartisan manner.”

For more information, visit PABudget.com.

Representative Joseph Kerwin
125th Legislative District
Pennsylvania House of Representatives

Media Contact: Nate Temple
717-260-6396
ntemple@pahousegop.com
RepJoeKerwin.com / Facebook.com/RepJoeKerwin
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