Three Things Missing from Shapiro’s Budget

Most commentary about Gov. Josh Shapiro’s budget address focuses on what’s in his proposal. But what did the governor leave out?

School Choice

Shapiro, once again, omitted any reference to educational choice.

The governor made no guarantees to increase funding for Pennsylvania’s two tax-credit scholarship programs: the Educational Improvement Tax Credit (EITC) and Opportunity Scholarship Tax Credit (OSTC) programs. Moreover, he didn’t address the statewide bottleneck that denied about 80,000 EITC and OSTC applicants.

Shapiro also didn’t include Lifeline Scholarships in his address. As a candidate, Shapiro pledged to support such scholarships and promised “every child of God” the opportunity to a high-quality education. The Lifeline Scholarship Program, which would provide scholarships to students attending Pennsylvania’s lowest-achieving schools, could be that opportunity. But the governor refuses to make this transformative policy a reality.

Shapiro refuses to offer an educational alternative to 200,000 Pennsylvania students trapped in failing schools.

Fiscal Responsibility

Pennsylvania has a budget problem. The state’s budget faces a $3.6 billion structural deficit. If left unaddressed, this deficit will drain the general fund. Shapiro made zero references to this pending fiscal dilemma.

Instead, the governor promised more spending. Shapiro’s $51.5 billion plan—an 8 percent increase from last year’s budget—only makes matters worse. The governor’s reckless plan will likely add another $1 billion to the current deficit.

Depleted state coffers leave lawmakers with only two options: raid the state’s savings or raise taxes. Neither of these choices is optimal.

Shapiro recommended illegally transferring $1.6 billion from the state’s Rainy Day Fund. These reserve funds are for emergencies and cannot be appropriated for new spending.

This leaves lawmakers with no choice but to raise taxes. If Shapiro and his fellow lawmakers don’t act quickly, Pennsylvania households can expect a tax hike of $1,900 per family of four.

Shapiro’s reckless and irresponsible spending threatens taxpayers statewide. 

Union Handouts

Shapiro didn’t specifically mention unions in his address. But no group benefitted more from the governor’s plan than government unions. Follow the money for each of the governor’s big-ticket items, and you’ll find a union behind it.

• Who benefits from the governor’s proposed increase in education funding? The Pennsylvania State Education Association and other teacher unions.
• Pay increases for in-home health care? The Service Employees International Union.
• Bailout funding for SEPTA? Transport Workers Union Local 23.

Government unions are Shapiro’s biggest, most well-funded allies. In 2022, Shapiro received more political donations from government unions—$4.5 million to be exact—than any other candidate nationwide.

The governor’s address, as usual, handpicked winners and losers.

The winners, coincidentally, donate large sums of cash to Shapiro’s gubernatorial campaign—and the governor won’t bite the hand that feeds. Meanwhile, the losers—students stuck in failing schools and taxpayers footing the bill for Shapiro’s reckless spending—will find little reprieve in the governor’s budget.

As budget negotiations ramp up in the coming months, Pennsylvanians must remain vigilant and read between the lines of the governor’s budget proposal. Shapiro’s omissions are likely intentional, and voters and taxpayers must hold him accountable.