Article Summary –
The $47.6 billion Pennsylvania budget signed by Gov. Josh Shapiro on July 11 includes significant increases in funding for education, mental health resources, small businesses, and public transportation. These changes follow a Commonwealth Court ruling deeming the state’s school funding system unconstitutional and represent a 6.2% increase over the previous year’s budget, aiming to provide more equitable education funding and address mental health challenges among students. Additionally, the budget allocates substantial funds to job creation programs like PA SITES and new initiatives to support small businesses, while also increasing public transit funding to help bridge gaps caused by decreased ridership during the pandemic.
The $47.6 billion Pennsylvania budget signed by Gov. Josh Shapiro on July 11 includes significant changes in education, millions for a new program aiding small businesses, and funding for mental health, public transit, and tourism.
Comprising 14 bills, the budget, passed with bipartisan support, represents a 6.2% increase over the 2023-24 budget. Lawmakers focused heavily on public school funding during intense negotiations after the June 30 deadline.
“This budget is a major victory for the people we were all elected to serve, the good people of Pennsylvania,” Shapiro, a Democrat, said.
Here, the Pennsylvania Independent outlines what residents can expect from the new budget.
Impact on Education
A Commonwealth Court judge ruled last year that Pennsylvania’s school funding system was unconstitutional. Now, the budget includes a $1.3 billion increase for public K-12 schools and higher education, using a new formula to allocate more money to poorer districts.
The Education Law Center and the Public Interest Law Center, which sued the state, believe the funds fall short but will allow districts to hire teachers, tutors, and counselors. The budget also includes $100 million for mental health resources in K-12 schools, enabling districts to hire additional mental health workers.
Jobs and Small Businesses
The budget allocates $400 million for the Pennsylvania Strategic Investments to Enhance Sites program (PA SITES), aimed at attracting commercial and industrial sites. Another $100 million supports other site development work. The pilot PA SITES program received 102 applications for more than $236 million in funding.
The budget also includes $20 million for the Main Street Matters program, which offers grant funding to support small businesses in downtown areas. Another $20 million is allocated for the Historically Disadvantaged Business Program, aiding minority, women, and veteran-owned businesses.
Fifteen million dollars for tourism marketing will also generate jobs, industry experts said.
Public Transportation
While Shapiro initially proposed a $283 million boost for public transportation, the final budget provides an $80.5 million increase. This aims to bridge a funding gap due to a drop in ridership during the pandemic. Southeast Pennsylvania Transportation Authority officials warn of potential service cuts without additional funding in the fall.
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