The 2024-25 General Fund budget spends a total of $47.6 billion, increasing state appropriations by $2.7 billion (or 6 percent) over the prior fiscal year.
The $47.6 billion spend included in this budget is $740 million less than the amount proposed by Governor Shapiro in his budget address given this past February.
The Primary Theme of This Budget? Spending Today Without Regard for the Future
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This budget spends $3.3 billion more than anticipated revenues to be received within the fiscal year, adding to the structural deficit the Commonwealth already faces. |
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Governor Shapiro inherited an $8.1 billion General Fund surplus when he took office. With passage of this year’s state budget, he will have already spent this down by more than half, leaving a surplus of just $3.5 billion after just 19 months. |
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With just under $7 billion in our Rainy Day Fund, the level of spending included in this budget will require the need to dip into the Rainy Day Fund in just two budget cycles in order to continue to balance Pennsylvania’s finances. |
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In addition to the massive spending increase, this budget will add more than half a billion dollars in new debt to the Commonwealth. This will take decades to pay off. |
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The budget adds more than $1.3 billion in spending for PreK-12 Education, of which $1 billion in new money will be allocated toward school districts. The problem is that this funding comes without any additional accountability measures or opportunities for children stuck in failing schools.
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This budget spends with no regard to the future. House Republican efforts over the last several years focused on the basics:
- bringing spending in line with incoming revenue.
- increasing the saving in PA’s Rainy Day Fund to help blunt the effect of future economic downturns.
- avoiding the practice of deficit spending. |
On the Plus Side – Pennsylvania Students Get Wins
This budget makes a historic investment in all levels of Pennsylvania’s education system:
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Historic increase for PreK-12 funding |
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Increases for Community Colleges, PA State System of Higher Education Schools, and Pennsylvania Higher Education Assistance Agency (PHEAA) Grants
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Significant reforms to our higher education system to help prepare students for the workforce of today and tomorrow. A win for students and employers! |
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Invests in economic development through the Pennsylvania Strategic Investments to Enhance Sites Program to entice more businesses to Pennsylvania. |
Education funding in this budget makes responsible investments in education and puts students on paths to good jobs… at a lower price than what Gov. Shapiro pushed for.
Associated Documents
2024-25 State Budget General Fund Appropriations
Basic Education, Special Education, & Ready to Learn Block Grant Funding in the 2024-25 Budget
Pennsylvania Structural Deficit Chart