Dauphin News

Senator Chris Gebhard (R-48) has voiced significant concerns regarding Governor Josh Shapiro's proposed 2025-26 state budget. The proposal, which outlines spending over $51.5 billion—a 7.5% increase from the previous year—has been labeled by Gebhard as "reckless and fiscally irresponsible."

The governor's plan appears to suggest a balanced budget at first glance; however, further analysis indicates potential issues. According to Gebhard, the Rainy Day Fund could be depleted by 2029 due to optimistic revenue assumptions that are higher than those of the Independent Fiscal Office by $5.1 billion for the five-year period.

A point of contention is Shapiro’s reliance on revenue from sources not yet in place, such as nearly $2 billion annually from the legalization and taxation of recreational marijuana and skill video gaming machines. "The assumptions in the governor’s budget plan are not just optimistic, they are completely unrealistic," stated Gebhard.

Based on more conservative spending and revenue assumptions, Shapiro’s plan could result in a $27.3 billion deficit by the end of the forecast period.

Additionally, details about Shapiro's new Lightning energy plan were absent from the budget proposal, leaving uncertainties about its impact on household budgets and state finances. Furthermore, for a third year running, no strategy was presented to fund Lifeline Scholarships aimed at assisting students in underperforming schools.

"The bottom line is we need a budget that will lead Pennsylvania forward rather than recycle old ideas that lead to bigger government," said Gebhard.

The Senate Appropriations Committee will conduct hearings starting February 18 through March 6 to scrutinize the administration's spending plans thoroughly. As part of this committee, Gebhard expressed his eagerness to evaluate funding requests carefully: "In this economy, Pennsylvanians don’t need the added financial pressure of tax increases."

Gebhard emphasized that addressing Pennsylvania’s fiscal challenges requires practical solutions: "Solving Pennsylvania’s problems will take more than wishes and dreams."