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How to Fix Pennsylvania’s Looming Budget Dilemma
Originally published at RealClearPennsylvania
Pennsylvanians just elected 228 state senators and representatives. These candidates-turned-lawmakers spent the past several months doing all the challenging work of campaigning: giving speeches, knocking on doors, and fundraising. However, their most challenging work lies ahead.
A few weeks after lawmakers take their oaths of office, Gov. Josh Shapiro will give his fiscal year (FY) 2025–26 budget address. The governor’s budget address formally begins the multi-month process of state budget negotiations. Last year’s FY 2024–25 negotiations created a $47.6 billion state budget that spent $3.6 billion more than revenues, creating a structural budget deficit.
Last year, the state had enough money in the General Fund balance, its version of a personal checking account, to cover $3.6 billion in overspending. Pennsylvania’s Independent Fiscal Office (IFO) projects the General Fund balance to hit zero during FY 2025–26 as the budget deficit expands to $4.7 billion.
Read more at RealClearPennsylvania