HARRISBURG, PA — Pennsylvania Republicans sharply criticized Gov. Josh Shapiro’s proposed $53.2 billion state budget on Tuesday, arguing the plan relies on unrealistic revenue assumptions and sets the stage for future tax increases despite the administration’s pledge of fiscal restraint.
The budget, the largest in state history, represents a roughly 5.4% increase in spending over the prior year and includes about $2.7 billion in new expenditures. Shapiro has framed the proposal as fiscally responsible, but Republican leaders said the numbers do not add up as the state’s economy grows at a slower pace than the national average.
Republican Party of Pennsylvania Chairman Greg Rothman said the governor’s assurances that the plan will not result in new taxes ring hollow.
“Governor Shapiro can say this budget won’t lead to new taxes, but just by saying it doesn’t make it true,” Rothman said. “This budget explodes government spending and all but guarantees tax increases for working families across the Commonwealth. Pennsylvania deserves fiscal responsibility that ensures a prosperous future, not bloated spending and wishful thinking.”
Shapiro delivered his budget address on February 3, outlining a proposal that leans heavily on one-time resources to close projected gaps. The plan calls for using roughly $4.5 billion from the state’s Rainy Day Fund while avoiding broad-based tax increases. It also anticipates more than $2 billion in new revenue through the legalization of recreational marijuana and a 52% tax on so-called skill games.
Republicans questioned whether those revenue streams will materialize at the levels projected and accused the administration of prioritizing messaging over substance.
“This budget is packed with unrealistic programs that seem like they’re designed more for Shapiro’s 21-member, taxpayer-funded communications team to promote on TikTok than to actually help working families in Pennsylvania,” the party said in a statement.
GOP leaders also took aim at the governor’s energy proposals, including what Shapiro has branded as his “Lightning Plan.” Republicans described it as a rebranded cap-and-trade system similar to the Regional Greenhouse Gas Initiative, warning it would raise energy costs for households and businesses.
The Shapiro administration, however, has said the budget focuses on education equity, cost-of-living relief, and long-term economic stability. The proposal includes $565 million in additional funding for underfunded school districts, $111 million for school safety and mental health, and renewed efforts to raise the minimum wage to $15 per hour by 2027.
Other elements of the plan include a new $100 million Federal Response Fund to buffer against potential federal funding cuts, a $1 billion bond-funded housing and infrastructure initiative, expanded funding for public transit, and the elimination of the statutory cap on state police troopers.
Republicans said the governor’s address glossed over unresolved controversies and broader economic pressures facing residents, including rising insurance costs and energy prices.
“Talk is cheap,” Rothman said. “Talking about programs in a budget address doesn’t make them real, and Shapiro’s budget is full of unrealistic spending. Pennsylvanians deserve fiscal discipline and a prosperous future, not empty promises and higher taxes.”
The budget proposal now moves into negotiations with the Republican-controlled state Senate and Democratic-controlled House as lawmakers work toward a final spending plan for the 2026–27 fiscal year.
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