PA's Proposed 2026-27 Budget: 6 Things To Know

HARRISBURG, PA — Pennsylvania Gov. Josh Shapiro has released a preliminary $53.3 billion 2026-27 state budget that marks a 5.4 percent in spending.

The plan focuses on a nearly $1 billion increase for education, substantial funding for human services, public safety, and economic development without raising broad-based taxes.

"This budget builds on the progress we've made by making smart, responsible investments that strengthen our schools, keep our communities safe and grow our economy," Shapiro said Tuesday in his budget address before the General Assembly.

"At a time when dysfunction and division seem to dominate elsewhere, here in Pennsylvania we've shown that we can still work together to get stuff done and build on what's working - because Pennsylvania is on the rise."

Shapiro's address came less than three months after the 2025-26 budget was approved more than four months after its July 1 passage that is required under state law.

Among the spending plan's highlights:

More Education Funding

The budget proposal calls for an additional $565 million in public education money in an attempt to bring more adequacy to school districts that were significantly underfunded for many years. Much of the money would be used to establish, maintain, or expand after-school tutoring, full-day kindergarten, social and health services and continuing professional development.

More Law Enforcement And Public Safety Funding Funding

The budget proposal includes $68.3 million for the Pennsylvania Commission on Crime and Delinquency's Violence Intervention and program; a $30 million investment to support recruitment, retention and capital needs for volunteer and professional fire companies; and a $16.2 million investment for four additional Pennsylvania State Police cadet classes.

Money To Battle Federal Interference In State Affairs

Shapiro proposed creating a $100 million Federal Response Fund that will enable the state to respond quickly to federal actions or inactions that threaten health, safety or essential services for Pennsylvanians.

Generating Revenue Through Legalized Adult-Use Cannabis

Shapiro contends the state can pocket $200 million annually in tax revenue and $656 million in licensing fees by legalizing recreational marijuana.

Generating Revenue Through Skill Games Taxation

Shapiro asserts that the stake can rake in an estimated $2 billion annually by implementing a 52 percent levy on terminal venues.

Providing Additional Money For Public Transit

Shapiro wants to transfer an additional 1.75 percent of sales and use tax revenues to the Pennsylvania Transportation Trust Fund, which would provide $300 million to transportation services. The majority of the money would go to Philadelphia's SEPTA system.