Gov. Josh Shapiro’s First Budget Sheds Light on Priorities for Pennsylvania

The budget address by Josh Shapiro of Pennsylvania on Tuesday set out his vision for policies that he prioritized in his $44.4 billion budget. It also attempted to bring together those watching.

“Let’s work together,” He urged the members of both House and Senate to listen to his plans. And, “believe in us,” Shapiro was a Democrat and asked about those who had not voted for him.

He suggested ideas for bipartisan support, such as improved police funding and an expansion of the property rent rebate program for seniors or disabled residents. The maximum rebate could also be increased from $650 per year to $1,000.

“Let’s focus on that,” Shapiro spoke at the end about his priorities. “Because we all know that there are certain debates that will go nowhere with me.”

He said that Pennsylvania would not become a state where people can work, but LGBT Pennsylvanians have the right of marriage and access to abortions.

“I personally was very excited to hear the many Republican initiatives that Governor Shapiro has covered,” Bryan Cutler, Republican House Leader. “If Gov. Shapiro tried to implement many of the promises he had made during his campaign, he will find many of our members eager to work with him to lower taxes, improve our economic climate, and make the government less burdensome.”

However, Shapiro plans to use money taken from surplus state funds and rainy day funds. This has Republicans concerned about excessive spending.

Shapiro demanded a $1B increase in education funding. In the five-year plan, Shapiro proposes spending half a million dollars to repair and upgrade school buildings and to provide tax relief for new teachers. “connect the dots” between students, trade unions and students; providing free universal breakfast for all students

“We need to feed our kids,” Shapiro said. “And for those who choose to pursue college, I think it’s on us to rethink our system of higher education, because right now it is not working.” In order to create plans for next year’s higher education, he will convene a small group of university leaders.

New spending structures

The motor license fund originally intended to support transportation infrastructure has become the source of funding for state police. Shapiro proposed that these funds be used to repair and protect roads and bridges and create a new 100 million Public Safety and Protection Fund for state police. It would fund four new police training classes as well as nearly 400 state troopers.

“Policing is a noble profession and good people want to do it,” Shapiro said.

Shapiro proposes to give $2,500 tax incentives for new state employees over three years in order to attract nurses, teachers and police officers.

Rep. Seth Grove of Texas, the GOP chair of the Appropriations Committee said that the budget was unacceptable and that it made him happy. “defund the police” Bewegung and greater investment in technical and career education, however, he expressed concern about Shapiro’s source of the money.

“I am extremely concerned we are draining our reserves and rainy day fund over the next five years. Using one-time revenues for recurring costs will only add to our structural deficit,” Grove added.

Tim O’Neal (Minority Whip) stated that the proposed budget represents a 6 percent increase year-overyear.

“That’s a gigantic spending increase on the back of Pennsylvanians,” O’Neal said. “State government should not be looking to spend more, and more, and more. Under this budget, our state’s structural deficit only gets worse. Gov. Shapiro is creating a rainy day. That means that we will need to dip into our hard-earned surplus and rainy day fund—our reserve accounts that are supposed to help keep us from raising taxes in the future. Under the spending plan announced today, the surplus would be eliminated in three years and the rainy-day fund eliminated in five.”

Businesses and consumers

He also promised that he would provide state funding to sustain the Historically Disadvantaged Business Program. “provide long overdue funding to minority-owned businesses,” Shapiro said. “They chose Pennsylvania. Now we have to help them succeed and boost the local economy.”

The plan received a lot of applause from the members of the Democratic House.

Shapiro’s administration will be looking into the complicated permitting processes for business start-ups and building projects. The Shapiro administration has instructed all state agencies to prepare a catalog of all licenses and certifications they have issued before May 1. After that, the executive will set a time frame for each application. The agencies are expected to follow those times. Failure to provide permits within the deadline will result in applicants losing their application fees.

According to the spending plan, the State Cell Phone Tax will be eliminated. Consumers feel this tax in monthly bills. Corporate income tax will also be lowered. The minimum wage for an hour of $7.25 would almost double.

“I’m asking you, respectfully, to work with me to finally raise the minimum wage to $15 an hour,” Shapiro said. “This feels like one of those fights that has gripped our politics for so long that some people entrenched on the other side don’t even know why they’re opposing Pennsylvania workers anymore. Enough is enough. Let us raise the minimum wage.”

A child care program that is affordable to low-income parents would cost him $66.7 million.

The state will be more vigilant about businesses.

Shapiro stated that this budget will provide funding for the hiring of a new group labor law compliance investigators. “so we can make sure every employer follows the law and treats their workers with dignity and respect. I would say to those employers who choose to lobby against this funding, I’ve got a simple question for you: what are you afraid we might find when we investigate? When it comes to dignity and respect, all workers should have the right to organize and bargain collectively.”

Shapiro also aims to draw at least one regional hub for hydrogen in the state.

Double SNAP Benefits

The federally-funded Supplemental Nutrition Assistance Program, (SNAP) was lowered to preandemic levels last week. This included emergency benefits, which padded the program’s Supplemental Nutrition Assistance Program (SNAP). When businesses closed or fewer people worked, benefits were increased. The benefits that SNAP beneficiaries received before COVID are still available to them.

Shapiro would like them to have more.

“Last week, those emergency benefits ended, leaving families once again wondering where their next meal would come from,” Shapiro said. “And let me be very, very clear about something: we didn’t create this problem. None of us did in this room.”

Shapiro recommends that the Pennsylvania Department of Human Services set up a new state fund to support SNAP. The minimum monthly benefit will be increased by half a percent.