Pennsylvania Passes $47.6B Budget, Education Funding Falls Short

Tom Wolf

Nearly two weeks after the July 1 deadline, Pennsylvania lawmakers agreed on a $47.6 billion budget for 2024-25 late Thursday night. Gov. Josh Shapiro touts the budget as a bipartisan product of hard work with compromise, saying, "Since my first day in office, I've been focused on getting stuff done for the good people of Pennsylvania, solving the most pressing problems we face, and bringing people together in a bipartisan manner to deliver results — and I'm proud to sign this budget into law that makes historic investments in education and economic development while continuing investments in public safety and violence prevention, all while cutting costs and reducing taxes."
The passage comes as Pennsylvania is the only state in the country with a divided legislature as Republicans hold control of the Senate and Democrats have the majority in the House.

Increases to school funding fall short

The new legislature lays out how more than $526 million new dollars will be distributed to Pennsylvania's public school districts after a court ruling found the state's system of school funding to violate the constitutional rights of students in impoverished districts. It falls short of the nearly $870 million investment Democrats first proposed but is more than what Republicans wanted to spend. It does not meet the $6.2 billion increase meant to be phased over five years that aligns with the court's orders.
In the case, the judge found lawmakers "not meeting their constitutional duties" to ensure equitable education but did not say how to achieve that. Conversations surrounded what data to use to designate poor school districts as well as alternative options to public schools like tuition vouchers to private schools or online charter schools.
Erie City School District will see an increase in funding of $18.9 million, with some escalation thanks to an adequacy grant.
In a statement, Rep. Bob Merski emphasized that this year's budget is a major step in ensuring every student receives high-quality education. "For far too long, our education system has suffered from inadequate and unequal funding, resulting in uneven outcomes from one district to another," Merski said in a statement. "Together, we have taken a decisive step towards nurturing the minds and spirits of our children, ensuring they have the opportunity to thrive and contribute to our society in meaningful ways."
Early education funding maintained the proposed $2.7 million for Head Start supplemental assistance, but Pre-K Counts programs will see $15 million instead of the proposed $30 million.
Making higher education affordable was a priority of Shapiro's as well, as he increased aid to state universities and the Pennsylvania Higher Education Assistance Agency to subsidize in-state tuitions and expand grants at Lincoln, Penn State, Pitt, and Temple universities. There is also a $30 million increase in Career and Technical Education programming and equipment to invest in apprenticeship programs. This year's budget also secures an additional $10 million for the Educator Pipeline Support Grant Program that Shapiro signed into law last
year. It provides up to $15,000 to eligible student teachers in the state as a shortage continues.

Economic development puts Erie on the map

Economic development ranks among top priorities for Shapiro, and to help Pennsylvania compete, he created the first Economic Development Strategy in about 20 years with investments to match. It includes $500 million in business site development and $20 million in-state funding for small minority-owned businesses.
The budget also contains a designation that puts Erie on the map for economic development.
Pennsylvania's City Revitalization and Improvement Zone (CRIZ) program has been used to redevelop abandoned properties in an area up to 130 acres using state and local taxes to repay debt and invest in new projects. Erie received its CRIZ designation after years of advocacy on parts of Erie City Council, city government officials, local development agencies, and Sen. Dan Laughlin (R-49th). Now, the City of Erie Revitalization and Improvement Zone Authority can begin the application process to seal the deal on securing tax revenue and begin work.
The CRIZ zone includes the 12th Street industrial corridor and portions of Erie's east and west bayfront and downtown.
Vocal in his advocacy, Laughlin released a statement after the budget passage, saying, "For Erie, this doesn't just mean growth, this means a resurgence — a chance to reclaim our vibrant, thriving community."
In addition, there will be reduced tax liability due to an increase in the percentage of annual operating losses that a business can carry forward. Republicans argued that the increased deductions, which will match what is allowed under federal law, will help businesses fare through their first few years.

Public transit, infrastructure, and safety also a priority

Another area where Shapiro sought more money was for public transit as he maintains that ridership numbers are still down drastically from COVID-era restrictions. He proposed about $280 million — about a 20% increase from previous funding — and Republicans agreed to $80 million.
The budget is set to sustainably fund the Pennsylvania State Police (PSP) by reducing its reliance on the Motor License Fund, delivering an additional $125 million for road and bridge projects.
There is $16 million going toward creating four more new cadet classes, which will give PSP 400 more troopers. It invests $45 million in proven community-based programs to reduce violence through the Pennsylvania Commission on Crime and Delinquency, including a $5 million increase for the Violence Intervention and Prevention program, which supports the reduction of community violence and relies on community groups in tune with local needs. Just in March, Reps. Ryan Bizzarro, Merski, and Pat Harkins announced that the Erie County District Attorney's Office was awarded an $835,978 grant as part of the Violence Intervention and Prevention program to address youth and individuals with mental health issues at risk for engaging in violence.
The budget also includes $11.5 million to create a statewide Building Opportunity through Out of School Time program which aims to reduce community violence by providing more after-school learning opportunities for young residents.

Chloe Forbes is a local journalist. She can be reached at chloeforbes14@gmail.com.