$53.2 Billion | We broke down Gov. Josh Shapiro’s proposed budget
GOALS FOR THE UPCOMING YEAR. TOM. YES, SUSAN. GOVERNOR SHAPIRO DELIVERING THAT $53.2 BILLION SPENDING PROPOSAL TO LAWMAKERS. REALLY, JUST ABOUT THREE MONTHS AFTER HE SIGNED THE BUDGET FROM LAST YEAR. AND REALLY, AGAIN, SOMETHING THAT A LOT OF LAWMAKERS ARE HOPING THAT THEY’LL BE ABLE TO IMPROVE UPON. THIS PROPOSAL TODAY IS THE FIRST STEP IN THAT PROCESS, TAKING A LIVE LOOK FROM INSIDE THE CHAMBER. GOVERNOR SHAPIRO UNVEILING A LOT OF THE POLICY PROPOSALS FOR THIS UPCOMING BUDGET YEAR. AND ON THE REVENUE SIDE, SOME OF THE REVENUE GENERATORS, SO TO SPEAK. IF THEY SEEM FAMILIAR, IT’S BECAUSE THEY ARE. HE IS CALLING FOR THE LEGALIZATION AND TAXATION OF ADULT USE CANNABIS HERE IN THE COMMONWEALTH, AS WELL AS TAXING AND REGULATING THE SKILL GAME TERMINALS THAT YOU SEE THROUGHOUT PENNSYLVANIA. THEY WOULD HAVE A CAP FOR THEM AS WELL AS THE VIDEO GAME TERMINALS THAT YOU OFTEN SEE AT TRUCK STOPS. FOR INSTANCE, AT ABOUT 40,000 AROUND THE ENTIRE COMMONWEALTH, THERE’S GOING TO BE A 52% TAX ON THE REVENUE FROM THOSE SKILL GAMES. HE’S ALSO PROPOSING $565 MILLION FOR PUBLIC EDUCATION. THIS IS ALL NEW SPENDING, PART OF AN EFFORT TO TRY AND BRING MORE ADEQUACY TO SCHOOLS THAT HISTORICALLY WENT UNDERFUNDED FOR MANY YEARS, AT LEAST ACCORDING TO HIM AND HIS SUPPORTERS. AND THEIR PROPOSAL HERE. THEY’RE ALSO SEEKING TO TRY TO OFFSET IN MANY WAYS, SOME OF THE DEMAND ON THE TAX BASE IN PLACES LIKE LANCASTER OR HARRISBURG, WHERE THEY MAY HAVE POORER TAX BASES THAT MAY NOT BE ABLE TO SUPPORT A SCHOOL DISTRICT AS EASILY. NOW, THE GOVERNOR IS ALSO EXPECTED TO TALK ABOUT SOME OF THE BIG POWER PROPOSALS THAT HAVE TO DO WITH THINGS LIKE DATA CENTERS IN PARTICULAR. ONE OF THE THINGS WE’RE EXPECTING TO HEAR FROM HIM IS THAT HIS ADMINISTRATION WANTS TO WORK WITH A LOT OF THESE BIG CORPORATIONS THAT WANT TO BRING DATA CENTERS, FOR INSTANCE, TO PENNSYLVANIA, BUT WITHOUT DOING IT IN A WAY THAT’S GOING TO SUCK A LOT OF POWER DEMAND FROM THE GRID. AND AS A RESULT, POTENTIALLY LEAD TO HIGHER PRICES. HE SAID. HIS ADMINISTRATION IS GOING TO BE USING WHATEVER THEY CAN TO TRY TO GET SOME OF THESE DATA CENTER CREATORS TO BUILD THEIR OWN POWER SOURCES. ESSENTIALLY, AGAIN, TO TRY AND OFFSET THE DEMAND ON THE GRID BACK HERE IN THE CAPITOL ROTUNDA, WE’RE EXPECTING TO HEAR MORE OF THIS PROPOSAL. AS THE GOVERNOR DELIVERS IT. WE HAVE A LOT MORE INFORMATION AS WEL
$53.2 Billion | We broke down Gov. Josh Shapiro’s proposed budget
Updated: 1:19 PM EST Feb 3, 2026
WGAL broke down Pennsylvania Gov. Josh Shapiro’s proposed budget for 2026. Here are the highlights:TOTAL SPENDING | $53.2 billion (the current budget is $50.1 billion).Proposals$15 minimum wage starting on Jan. 1, 2027. Legalizing adult-use cannabis (estimated $200 million annually in tax revenue on fully implemented and $656.6 million for licensing fees).52 percent gross terminal venues on skill games (est. $2 billion a year in revenue).Closing the “Delaware Loophole” for multi-state corporations. The loophole is a tax strategy some companies use by establishing holding companies in Delaware to avoid Pa. state taxes.Starting in July 2027, transfer an additional 1.75 percent of sales and use tax revenues to the Pennsylvania Transportation Trust Fund, providing $300 million to transportation services (the large majority of this would go to SEPTA). An additional $565 million for public schools, which will be used to continue helping schools that historically have not been funded as equally. A lot of money the money would be used to establish, maintain, or expand after-school tutoring, full-day kindergarten, social and health services, continuing professional development, evidence-based reading instruction and science.Additional cyber charter funding reforms aimed at reducing inflated tuition rates and expenses – an estimated $75 million annually, bringing total savings from those reforms up to $250 million a year.$111 million more for school safety and mental health support.$5 million increase for student teacher stipends to $35 million annually.Enacting a “False Claims Act” to help reduce waste, fraud, and abuse of Medicaid.$100 million for a “Federal Response Fund” to mitigate harmful actions by the federal government.$16.2 million for four additional PSP cadet classes, and eliminating a statutory cap that limits the number of troopers.Continuing Working Pennsylvanians Tax Credit (the Shapiro administration says this delivers $193 million in tax relief for Pennsylvanians).The links below take a deeper dive into the budget.Budget fact sheetKey excerpts from the governor’s addressFull text of addressCharts, detailed breakdown of the 2026-2027 Pa. budget
HARRISBURG, Pa. —
WGAL broke down Pennsylvania Gov. Josh Shapiro’s proposed budget for 2026.
Here are the highlights:
TOTAL SPENDING | $53.2 billion (the current budget is $50.1 billion).Proposals$15 minimum wage starting on Jan. 1, 2027. Legalizing adult-use cannabis (estimated $200 million annually in tax revenue on fully implemented and $656.6 million for licensing fees).52 percent gross terminal venues on skill games (est. $2 billion a year in revenue).Closing the “Delaware Loophole” for multi-state corporations. The loophole is a tax strategy some companies use by establishing holding companies in Delaware to avoid Pa. state taxes.Starting in July 2027, transfer an additional 1.75 percent of sales and use tax revenues to the Pennsylvania Transportation Trust Fund, providing $300 million to transportation services (the large majority of this would go to SEPTA). An additional $565 million for public schools, which will be used to continue helping schools that historically have not been funded as equally. A lot of money the money would be used to establish, maintain, or expand after-school tutoring, full-day kindergarten, social and health services, continuing professional development, evidence-based reading instruction and science.Additional cyber charter funding reforms aimed at reducing inflated tuition rates and expenses – an estimated $75 million annually, bringing total savings from those reforms up to $250 million a year.$111 million more for school safety and mental health support.$5 million increase for student teacher stipends to $35 million annually.Enacting a “False Claims Act” to help reduce waste, fraud, and abuse of Medicaid.$100 million for a “Federal Response Fund” to mitigate harmful actions by the federal government.$16.2 million for four additional PSP cadet classes, and eliminating a statutory cap that limits the number of troopers.Continuing Working Pennsylvanians Tax Credit (the Shapiro administration says this delivers $193 million in tax relief for Pennsylvanians).
WGAL
The Pennsylvania State Capitol was built between 1902 and 1906.
The links below take a deeper dive into the budget.