pa budget 2025

Commonwealth Foundation’s Nathan Benefield Releases Analysis of the Governor’s 2025 Budget Proposal

Harrisburg, PA, February 4, 2025 – Massive spending increases proposed by Gov. Josh Shapiro in his recently released 2025 budget proposal “will force extreme tax hikes on working families in the coming years,” according to  analysis by Commonwealth Foundation Chief Policy Officer Nathan Benefield.

Benefield, bringing 19 years of experience to his study and analysis of the Pennsylvania state budget, related economic policies, and consequent impact on Pennsylvanians, writes:

 Shapiro’s proposed budget puts the burden of his spending binge on Pennsylvania families

Shapiro proposes nearly $51.5 billion in general fund spending, an 8.1 percent increase over the 2024-25 enacted budget. With a budget this size, Shapiro’s long-term plan fails to ever bring the budget into balance. The $4.85 billion deficit will cost a family of four $1,900 in tax hikes.

To fill the gap, the Governor proposes drawing down Pennsylvania’s Rainy-Day Fund. However, those funds cannot be used for ongoing spending or new programs and would need a two-thirds vote from the legislature. In addition, using these funds will result in credit downgrades.

Shapiro’s budget does nothing to remedy Pennsylvania’s outmigration problem or make Pennsylvania open for business. Shapiro’s radical spending, new regressive taxes, and mandates on business would exacerbate Pennsylvania’s economic woes.  

Shapiro’s “Lightening” plan would increase energy costs, reduce production, and subsidize special interest groups and political donors.

Electricity prices are rising in Pennsylvania, thanks, in part, to Shapiro’s numerous energy tax proposals and support of the Regional Greenhouse Gas Initiative (RGGI) carbon tax. RGGI alone would raise electricity rates by at least 30 percent

The budget proposal rehashes Shapiro’s plan to tax energy. Likewise, his Pennsylvania Reliable Energy Sustainability Standard (PRESS) mandate would drive up costs and result in less reliable energy, resulting in blackouts and shortages. 

Instead of fulfilling his campaign promise to provide more educational options, the governor proposes taking options away from parents.

Shapiro proposed slashing funding to cyber charter students to just $8,000 per student—or 36 percent of what school districts spend per student. This disinvestment in kids exacerbates inequity and treats some students as second-class citizens. 

While families saw no increase in funds for more educational options, including Lifeline Scholarships, Shapiro’s proposal adds another $824 million to state support of public schools, to $17.7 billion—on top of the $4.1 billion in increases over just the past four years. 

View Benefield’s full analysis here.

To schedule an interview with Benefield, please contact Giana DePaul at (215) 859-0384 or gmd@commonwealthfoundation.org.

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The Commonwealth Foundation turns free-market ideas into public policies, fostering prosperity for all Pennsylvanians.