Pennsylvania lawmakers remained without a budget agreement Monday, one day before the state’s June 30 deadline, as negotiations continued behind closed doors over education funding, spending levels, and other issues.House Majority Leader Matt Bradford, a Democrat, met privately with House Minority Leader Jesse Topper, a Republican, in Gov. Josh Shapiro’s office but offered little update afterward on the status of negotiations.The budget deadline arrives after last year’s spending plan was finalized 135 days late.House Appropriations Committee Chairman Jordan Harris, a Philadelphia Democrat, said Democratic priorities remain unchanged, including increased public school funding and protecting healthcare funding.”We’ve been very clear that we are not moving away from our commitment to public education,” Harris said. “We’ve been very clear that we’re not in favor of removing people from healthcare.”Republicans have raised concerns about the proposed $53.3 billion budget, arguing the spending plan would deplete state reserves and could eventually require tax increases.One area of apparent bipartisan agreement is eliminating the state’s gross receipts tax on electricity, a move lawmakers estimate would save Pennsylvania consumers about $1.7 billion on electric bills.Rep. Tom Jones, a Lancaster County Republican, called the proposal “a direct discount” for Pennsylvania residents facing high utility costs.However, eliminating the tax would also reduce state revenue, potentially increasing reliance on reserve funds, including the state’s Rainy Day Fund, to help balance a larger budget.Another unresolved issue is whether lawmakers will legalize and tax skill game machines following a recent Pennsylvania Supreme Court ruling, a move that could generate additional revenue for the state.Negotiators are also grappling with legislation involving data centers, which has emerged as a key sticking point in recent budget talks. Lawmakers are weighing proposals that would regulate or restrict future development amid growing concerns about electricity demand and impacts on local communities.Rep. Joe Ciresi, a Montgomery County Democrat, said public concern over data centers has increased dramatically in recent years as developers have acquired land across the state.Rep. Tom Kutz, a Cumberland County Republican, said constituents are worried about the potential strain data centers could place on the electric grid as utility costs continue to rise.As negotiations continued Monday, legislative leaders had not indicated when a final budget agreement might be reached. Even if lawmakers miss the June 30 deadline, Pennsylvania can continue operating temporarily, although prolonged delays can eventually affect payments to schools, counties and other state-funded entities.
HARRISBURG, Pa. —
Pennsylvania lawmakers remained without a budget agreement Monday, one day before the state’s June 30 deadline, as negotiations continued behind closed doors over education funding, spending levels, and other issues.
House Majority Leader Matt Bradford, a Democrat, met privately with House Minority Leader Jesse Topper, a Republican, in Gov. Josh Shapiro’s office but offered little update afterward on the status of negotiations.
The budget deadline arrives after last year’s spending plan was finalized 135 days late.
House Appropriations Committee Chairman Jordan Harris, a Philadelphia Democrat, said Democratic priorities remain unchanged, including increased public school funding and protecting healthcare funding.
“We’ve been very clear that we are not moving away from our commitment to public education,” Harris said. “We’ve been very clear that we’re not in favor of removing people from healthcare.”
Republicans have raised concerns about the proposed $53.3 billion budget, arguing the spending plan would deplete state reserves and could eventually require tax increases.
One area of apparent bipartisan agreement is eliminating the state’s gross receipts tax on electricity, a move lawmakers estimate would save Pennsylvania consumers about $1.7 billion on electric bills.
Rep. Tom Jones, a Lancaster County Republican, called the proposal “a direct discount” for Pennsylvania residents facing high utility costs.
However, eliminating the tax would also reduce state revenue, potentially increasing reliance on reserve funds, including the state’s Rainy Day Fund, to help balance a larger budget.
Another unresolved issue is whether lawmakers will legalize and tax skill game machines following a recent Pennsylvania Supreme Court ruling, a move that could generate additional revenue for the state.
Negotiators are also grappling with legislation involving data centers, which has emerged as a key sticking point in recent budget talks. Lawmakers are weighing proposals that would regulate or restrict future development amid growing concerns about electricity demand and impacts on local communities.
Rep. Joe Ciresi, a Montgomery County Democrat, said public concern over data centers has increased dramatically in recent years as developers have acquired land across the state.
Rep. Tom Kutz, a Cumberland County Republican, said constituents are worried about the potential strain data centers could place on the electric grid as utility costs continue to rise.
As negotiations continued Monday, legislative leaders had not indicated when a final budget agreement might be reached. Even if lawmakers miss the June 30 deadline, Pennsylvania can continue operating temporarily, although prolonged delays can eventually affect payments to schools, counties and other state-funded entities.