Commonwealth Foundation Releases Analysis on Governor Shapiro’s 2026 Budget Plan 

Harrisburg, Pa., February 4, 2026 —Governor Josh Shapiro’s 2026 budget proposal, totaling $53.26 billion, is “completely unaffordable and will cost $2,100 per family of four in looming tax hikes” according to analysis by Nathan Benefield, Commonwealth Foundation’s Chief Policy Officer. 

Benefield, a budget expert with over two decades of experience studying and analyzing the Pennsylvania state budget, writes: 

The Governor’s Unaffordable Spending Triggers Tax Hikes and Drains Reserves 

“Gov. Josh Shapiro’s $53.3 billion budget proposal, a 6.3 percent increase over last year’s enacted budget, radically overspends projected revenues and exacerbates what is already a massive budget deficit. 

“[The governor’s] proposal would require unaffordable tax hikes on working families in 2027. The cost to cover Shapiro’s taxes and deficit equals a tax hike of nearly $2,100 per family of four.

“Shapiro claims his proposed tax increases aren’t really ‘taxes,’ that the state will receive substantial revenue from these ‘non-taxes’, and assumes the next governor will freeze spending for four consecutive years to avoid any ‘real taxes.’ Not only are these claims entirely untrue, but they also vastly misrepresent the true cost of his unaffordable budget.  

“Further, [he] proposes transferring $4.6 billion from Pennsylvania’s Budget Stabilization Reserve Fund, or Rainy Day Fund, to fuel deficit spending—in defiance of current state law.” 

Gov. Shapiro’s ‘Lightning Plan’ Equals Higher Electricity Bills and Less Reliable Energy 

“The budget proposal rehashes Shapiro’s plan to tax energy via the Pennsylvania Climate Emissions Reduction Act (PACER), aka RGGI by a different name. Likewise, his Pennsylvania Reliable Energy Sustainability Standard (PRESS) mandate would drive up costs and result in less reliable energy, resulting in blackouts and shortages. 

“Combined, PRESS and PACER would result in a $157.2 billion increase in Pennsylvania electricity costs over the next decade, and more than double residential electricity costs. 

“If the governor is serious about protecting consumers from high energy prices, he would champion policies prioritizing affordability and reliability—not energy taxes and mandates.” 

Despite Campaign Promises, the Governor Proposes Cutting Funding to Educational Options for Low-Income Families 

“Governor Shapiro once again broke his promise to students, failing to expand educational opportunities and instead choosing to cut scholarship funding to thousands of low-income students. 

“Shapiro’s proposal includes reducing the amount available through education tax credits for scholarship organizations, despite the fact that current caps turned away nearly 70,000 scholarship applicants last year.” 

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 transforms free-market ideas into public policies, empowering all Pennsylvanians to thrive.