Press Release

Governor Shapiro’s Massive Budget Brings Excessive Spending, New Taxes, and Future Tax Hikes
Video statements for broadcast media are available here.
Harrisburg, Pa., February 4, 2025 — Today, Gov. Josh Shapiro delivered his 2025 Pennsylvania budget address, proposing a $3.9 billion spending increase. Shapiro called for rash spending hikes, big bailouts for mass transit, more corporate welfare subsidies, and new energy taxes. In total, Shapiro proposes a $51.47 billion general fund budget, an 8.1 percent increase from last year.
Commonwealth Foundation Chief Policy Officer Nathan Benefield issued the following statement in response:
“Governor Shapiro’s massive spending proposal imposes new taxes and creates a massive deficit that will inevitably lead to even more tax hikes on working families. His proposal exacerbates the existing budget deficit with dramatic spending increases and unrealistic revenue assumptions.
“The only things ‘on the rise’ in Pennsylvania are new taxes, energy costs, and the budget deficit. Shapiro’s proposal rehashes the same failed policies of the past, combined with proposals he knows are dead on arrival.
“Last year, the governor spent $3.5 billion more than revenue—under Shapiro’s 2025 proposal, this deficit balloons to $4.65 billion.
“As residents continue to flee the Keystone State for better opportunities, lawmakers need to address the imbalanced budget and focus on the promotion of energy expansion and economic growth.
“Pennsylvania families should be wary of Shapiro’s budget. It would necessitate tax hikes on hardworking families and result in a less prosperous Commonwealth.
“Lawmakers should reject Shapiro’s extreme spending schemes and embrace fiscal responsibility to respect their constituents’ hard-earned money. A commonsense budget would unleash energy production rather than tax it, provide educational options to low-income households, protect working families from new taxes, and deliver on the promise of a better Pennsylvania.”
Gov. Shapiro’s 2025 budget address focused heavily on programs like mass transit bailouts, new taxes and expanded corporate welfare. It notably lacked funding for his distant bipartisan campaign promises like educational choice—neither through Lifeline Scholarships nor tax credits.
Commonwealth Foundation President and CEO Andrew Lewis issued the following statement in response to today’s budget address:
“While his rhetoric suggested a spirit of collaboration, Shapiro’s promises of bipartisanship fell flat once again. Gov. Shapiro continues to miss the mark, choosing to force his own political agenda at the expense of common-sense, fiscally-sound policies that will help Pennsylvania families thrive. Gov. Shapiro vowed to work across the aisle yet keeps failing to deliver on the bipartisan initiatives he promised, from Lifeline Scholarships, to energy affordability, and meaningful regulatory reform, which would improve millions of lives across the Commonwealth.
“To be a public servant means to advocate tirelessly for the needs of the people you serve. As we head into what looks like yet another budget battle, I hope Governor Shapiro will finally make right on his promise to work constructively with both parties and produce a budget that delivers the results Pennsylvanians need.”
Commonwealth Foundation experts are available for further comment. For more context regarding the state budget, please view the resources below.
Background Resources:
Download video statements here.
###
The Commonwealth Foundation transforms free-market ideas into public policies so all Pennsylvanians can flourish.