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State Budget Deadline Approaches with Little Optimism

  • Governor Josh Shapiro and Pennsylvania’s deeply split Legislature were unable to finalize the 2025-2026 budget before the mandated July 1 deadline.
  • The deadlock stems from major disagreements about how to manage the rising expenses of Medicaid and a Republican effort to impose regulations and taxes on the rapidly expanding slot machine-style skill games.
  • Governor Shapiro introduced a $51.5 billion budget for the 2025-2026 fiscal year that would raise state spending by 9%, emphasizing increased investment in public education, transportation, and the life sciences sector to strengthen the state's economic position.
  • At a news conference Monday, Shapiro noted that discussions over the budget continued throughout the weekend, and he expects a consensus on a proposal to be reached shortly.
  • If a new budget is not approved, Pennsylvania will face restrictions on discretionary spending beginning Tuesday, which could postpone payments to vendors, schools, and local governments, with service disruptions likely by August.
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  • 75% of the sources are Center
75% Center
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Penn Live broke the news in Harrisburg, United States on Sunday, June 29, 2025.
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