PENNSYLVANIA (WFMZ-TV) — The Pennsylvania Legislature finalized the state budget for the 2026–2027 fiscal year on Sunday, 12 days past the deadline.
The $52.2 billion deal is more than a billion dollars less than Gov. Josh Shapiro’s record spending proposal, but still spends billions more than projected revenue, according to a news release from the Commonwealth Foundation.
“I am pleased that the House of Representatives has approved a budget for 2026-2027. Once again, this budget continues the work of the Democratic House majority to deliver fair and adequate funding for public schools,” State Rep. Mike Schlossberg, D-Lehigh, said in a statement. “I am proud to see that state funding for Parkland and Allentown schools will increase by $316,000 (1.5%) and $22,799,000 (8.2%) respectively. Over the last four years of our majority, these historic investments in education have increased state funding to our community’s schools by over $4,681,000 (28.2%) and $98,122,000 (48.8%). Our schools will also benefit greatly from grants aimed at increasing student security and providing resources for mental and behavioral health.”
Schlossberg added that the 2026–2027 budget includes the first cost-of-living adjustment in 20 years for State and Public School Employees’ Retirement System recipients, as well as eligible municipal firefighters and police officers.
“This is a massive boost to public servants who retired before pension increases, ensuring public servants can afford to continue to retire with dignity,” Schlossberg said.
The final budget also includes $1.7 billion pulled from state special funds—often referred to as “couch cushions”—as well as lapsed appropriations from state agencies, according to the Commonwealth Foundation.
This marks the fifth-straight year that state lawmakers missed the June 30 budget deadline.