pa budget deficit

Pennsylvania’s running out of money

Originally published at Pittsburgh Post-Gazette

Stacy Garrity recently issued an urgent warning: This year’s budget will determine the commonwealth’s economic future — so lawmakers must plan wisely. Garrity, reelected in November to her second term as Pennsylvania state treasurer, cautioned that, if elected leaders don’t act swiftly, the commonwealth’s pending budget deficit will likely, in Garrity’s words, “squander” the Rainy Day Fund.

Years of uncontrolled government spending have caught up to Pennsylvania. Over the past five years, General Fund expenditures have increased by $12.55 billion while revenues only increased by $9.47 billion. Now, Pennsylvania faces a $3.6 billion structural deficit.

Worse yet, the deficit is expanding. A recent report from Pennsylvania’s Independent Fiscal Office (IFO) forecasts the deficit will reach $4.6 billion in fiscal year (FY) 2025–26. The IFO sees disparate growth for the rest of the decade, with expenditures up 18% and revenues 11%. According to the IFO’s projections, this culminates in a $6.8 billion budget deficit in FY 2029–30.

Read more at Pittsburgh Post-Gazette