July 12, 2026<\/p>\n
HARRISBURG \u2013 Rep. Marci Mustello (R-Butler) on Sunday voted for a $50.85 billion 2026-27 state budget, noting House Republicans led the way in making sure this budget balanced without raiding the state’s Rainy Day Fund or resorting to new or increased broad-based taxes.<\/p>\n
“No budget is perfect. However, this avoids new or higher taxes on Pennsylvania families and businesses, and protects our Rainy Day Fund,” Mustello said. “Generally, it\u2019s a win for taxpayers given what was in the governor\u2019s initial proposal.”<\/p>\n
The final 2026-27 budget spend total is nearly $2.5 billion less than the $53.3 billion spending plan sought by legislative Democrats and Gov. Josh Shapiro, which would have relied on spending down the Rainy Day Fund and other reserves.\u00a0<\/p>\n
Mustello added that much of the budget’s positives are defined by what House Republicans kept out of the final agreement, including:<\/p>\n
\u2022 No use of the Rainy Day Fund, unlike the original $53.3 billion proposal.
\n\u2022 No legalization of recreational marijuana.
\n\u2022 No combined reporting, which would have discouraged business investment and hurt economic growth in Pennsylvania.
\n\u2022 No digital ad tax, which would have ultimately been passed on to mom-and-pop businesses and put the Commonwealth at a competitive disadvantage.
\n\u2022 No cuts to the Educational Improvement Tax Credit (EITC) or Opportunity Scholarship Tax Credit (OSTC) programs, preserving scholarship opportunities for middle-class families.<\/p>\n
The budget also increases education funding across the Commonwealth \u2013 every school district gets an overall increase in funding \u2013 and includes a cost-of-living adjustment (COLA) for pre-Act 9 retirees and retired municipal police officers and firefighters, some of whom have not received a COLA in over 20 years.<\/p>\n
The agreement also includes $775 million for shovel-ready rural road and bridge projects, along with continued support for career and technical education centers and school facility improvements across the Commonwealth.<\/p>\n