Politics

What to know as Pennsylvania’s state budget deadline passes

It marks the fifth time in as many years elected state officials missed the statutorily mandated June 30 deadline. Last year, it was not signed until Nov. 12.

The Pennsylvania House of Representatives added two session days to its calendar before the summer break while the Senate took off for an early Fourth of July holiday. A state budget will be late for a fifth straight year, with some hope that it could be resolved within weeks. (Photo: USA Today Network)

The Pennsylvania House of Representatives added two session days to its calendar before canceling one this week while the Senate took off for an early holiday to assure another state budget will not be finalized on time.

House Speaker Joanna McClinton added voting sessions for 11 a.m. July 1 and later canceled one that had been called for July 2. Senate Republicans voted to return at the call of President Pro Tempore Judy Ward, frustrating some Democrats.

Changes to the calendar throughout the year are routine, McClinton’s press secretary, Nicole Reigelman, told USA TODAY Network Pennsylvania. “Nothing specific led to it,” she said.

It marks the fifth time in as many years elected state officials missed the statutorily mandated June 30 deadline. Last year, it was not signed until Nov. 12.

“We’re walking out the door while the House is in session the next two days and the governor is in place to work with us here to get this done,” Sen. Vincent Hughes, a Democrat from Philadelphia, said on the Senate floor before voting against the recess that Republicans passed.

The Senate is not scheduled to return to session until Sept. 28. After July 1, the House’s next scheduled return is also Sept. 28. Both chambers could be called back at any time, and Senate Majority Leader Joe Pittman, a Republican who represents Indiana County, suggested that could be next week.

“I am highly confident we are well on track to deliver a responsible budget that will recognize our unique status as a divided government and deliver a responsible product to the people of Pennsylvania with no negative impacts,” Pittman said on the Senate floor. “There’s no reason we can’t conclude our work early next week.”

Minority Leader Jay Costa, a Democrat from Allegheny County, disagreed and said returning July 6 would be inappropriate.

“Some may characterize talks as hopeful and seem to be coming together,” Costa said from the floor. “Based on my recent conversations, that doesn’t seem to be the case.”

But a budget could be getting close, according to one Republican state representative who requested anonymity. “There’s going to be very little policy in the budget,” the representative told USA TODAY Network Pennsylvania. “I take it to mean that there aren’t going to be major policy changes and negotiations will center around dollars and cents.”

The House passed a $53.3 billion budget plan in April with a bipartisan vote, but the Republican-controlled Senate has not acted on it. It would cost roughly 5.6% more than the state spent in the fiscal year that ends June 30.

“The Senate hasn’t passed a budget,” Reigelman said. “We’re proud that we got them something more than two months ago.”

That budget was performative, according to Republican Senate Majority Caucus Chair Kristin Phillips-Hill, who represents York County.

“It was really cute,” Phillips-Hill told USA TODAY Network Pennsylvania. “There is not enough money from taxpayers to pay for the budget they sent us. To me, that’s completely unacceptable.”

Republican legislators have opposed Gov. Josh Shapiro’s proposal to use $4.7 billion of rainy day funds to balance the budget. GOP leaders in the House and Senate have said excessive spending could downgrade the state’s credit rating and lead to future tax increases.

Pennsylvania’s Independent Fiscal Office projects a worsening deficit for the state that could reach $8.3 billion in three years.

Pittman said in an interview earlier in June that this budget has a “much different feel” since it lacks a big issue hanging over lawmakers the way a debate over mass transit funding lingered in 2025.

“We have an opportunity to pay our bills and reduce the deficit we’re facing and hopefully not dip into reserves any more than is absolutely necessary,” Pittman said June 26 in an interview on Indiana County radio station WCCS 101.1FM.

Proposals in the budget include new revenue from legalizing recreational marijuana and skill games. The state Legislature has until mid-October to decide if Pennsylvania will allow skill games after the state Supreme Court ruled on June 15 that they are illegal.

“The question is, how, given the Supreme Court ruling where they said these are slot machines, how do you delineate that taxation approach?” Pittman asked during his interview. “If we don’t do anything, these machines are gone. Period.”

State oversight for skill games would include licensing and regulations through the state’s Gaming Control Board. Slot machines in a casino are taxed at 52%, Pittman said.

The Independent Fiscal Office maintains that Shapiro’s revenue estimates for recreational marijuana and skill games exceed their own estimates by $4.4 billion over the next three fiscal years.

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Patrick Berkery
Patrick Berkery Senior Newsletter Editor
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