Budget Hearings Wrap in Hburg; Long March to June 30 Begins

Pennsylvania lawmakers wrapped up their annual budget hearings today—with the governor’s budget secretary giving the final testimony.
In the past three weeks there has been a total of 42 hearings from 23 different state departments, all defending their past spending and future fund requests.
The hearings gave lawmakers on the appropriations committees in the House and Senate a chance to check in on long standing trends in how departments operate their budgets. It also gives state entities the chance to sell the governor’s budget proposal announced at the start of February.
Governor Josh Shapiro proposed a $51.2 billion budget.
In these hearings, some agencies came with different spend requests than what is in Shapiro’s budget—like community colleges or the attorney general office
“You do scratch your head at times and wonder why are they putting money here and not money there?” Rep. Jim Struzzi said, Republican appropriations chair in the House. "Is it simply for a talking point or a headline? Or is it actually based on some some data or need?"
Lawmakers have until June 30th to iron out the specific budget details. While the past three weeks saw many nit pick exchanges, the largest partisan policy divides come down to revenue estimates and what that final spend number should be.
Shapiro’s budget includes almost $1 billion in new revenue from policy like adult use cannabis and regulated skill games—that is not actual law yet.
A report published Tuesday by the Independent Fiscal Office estimates the new revenue generators, if passed into law, would generate less than what the Governor’s Budget Office estimates.
Assuming the revenue policies pass the general assembly… Shapiro’s budget spends $4 billion more than what the state makes in revenue.
“We have to start to close the structural deficit,” Sen. Scott Martin said, Republican appropriations chair for the Senate. "I don't think we can do it all in one year… but we have to at least start heading that direction to cut back on spending."
Pennsylvania has $10 billion in one time funds to cover the difference in revenue and spending right now. $7-8 billion of that is specifically set aside in an emergency account (called a rainy day fund).
Budget Secretary Uri Monson says spending now will lead to increased revenues to close the structural gap in coming years. He also says the state’s aging and shrinking population are already an emergency.
“When you have nearly $8 billion in a rainy day fund and you..- it's raining. We have an aging population,” Monson said.
Democrat lawmakers also embrace that investments in the economy, education, and healthcare will spur economic growth to cover current spending.
“What we've seen over the last couple of years is that we have outperformed all of our projections, I think the last five of the last six years,” Rep. Jordan Harris said, Democrat appropriations chair in the House. “Education? Medicaid? When you look at the big chunks of money in the budget, that’s what it is. I think it’s worth the investment."