2026-27 State Budget

Senate Republicans Standing with Taxpayers

Senate Republicans will work to reduce spending and produce a more fiscally responsible 2026-27 budget than the $53.3 billion plan presented by Gov. Josh Shapiro.

Shapiro’s proposal would increase spending by $2.7 billion, a 5.4% increase over the current year. That rate of spending growth would ultimately take more money out of the pockets of taxpayers at a time when many Pennsylvania families are still dealing with the affordability crisis caused by Biden-era inflation.

The growth in spending is primarily from the Department of Human Services (nearly a $1.4 billion increase) and the Department of Education (more than a $900 million increase). Costs for the Department of Corrections would also increase by $140 million under Shapiro’s budget despite the closure of two state correctional facilities.

The spending plan would take $4.6 billion out of the state’s emergency reserves in the Rainy Day Fund.

Senate Republicans’ work to limit spending increases and enact pro-growth policies over the past three years was the only reason Shapiro’s budget did not include a broad-based tax increase this year.

The budget signed into law in November achieved key Senate Republican priorities, including eliminating the $1.5 billion RGGI electricity tax on consumers, improving Pennsylvania’s broken permitting process and making the state’s business tax structure more competitive.

Shapiro’s 2026-27 budget proposal does not include the new energy taxes originally envisioned in his “Lightning” energy plan. The budget also uses a portion of the multi-billion-dollar balance in the Public Transportation Trust Fund to support the state’s largest transit agencies, which is the fiscally responsible approach identified by Senate Republicans during last year’s budget debate.

“This is the fourth budget from Gov. Shapiro that spends more than we take in as a commonwealth, is contingent on non-existent revenue streams and guarantees a massive tax increase next year. It is essential that we put the interest and needs of Pennsylvanians first and continue to build on our work started in last year’s budget. Senate Republicans will be fiscally responsible on behalf of the people of Pennsylvania as our families, our economy and our future depend on it.”

“Gov. Shapiro’s budget proposal spends too much money without protecting Pennsylvania’s future fiscal stability. As we begin our work on this year’s budget, looking for more government efficiencies and respecting taxpayers by controlling the growth of state spending are key priorities of our Senate Republican Caucus.”

“The only reason why this budget did not include a broad-based tax increase is because Senate Republicans have stood up to the governor’s spending demands and insisted on pro-growth policies that move our commonwealth forward. We can’t lose sight of the tremendous financial challenges we face in the years ahead. If we approve a spending increase of this magnitude, hardworking Pennsylvania families will be saddled with billions of dollars in new taxes next year at a time when they’re still dealing with affordability concerns driven by Biden-era inflation. We can and MUST do better.”

Senate Republicans Respond to the Shapiro Budget Proposal

Senate President Pro Tempore Kim Ward, Majority Leader Joe Pittman, Appropriations Committee Chair Scott Martin, Majority Whip Wayne Langerholc and House Republican Leader Jesse Topper

Championing Pro-Growth Policies, Preventing Massive Tax Increases

Senate Republicans have stood with taxpayers to fight against spending demands from Democrats over the last decade. Without those efforts, Gov. Shapiro’s budget would have included a massive tax increase on Pennsylvania families.

Senate Republicans have consistently fought for fiscally responsible budgets and pro-growth economic strategies to address the economic and demographic challenges facing our commonwealth.

These include key steps to make Pennsylvania more efficient with taxpayer dollars and more attractive to employers, such as eliminating the $1.5 billion RGGI electricity tax on consumers, improving Pennsylvania’s broken permitting process, making the state’s business tax structure more competitive to attract new jobs, and building the state’s emergency reserves.

We continue to fight for these policies to create new opportunities for hardworking Pennsylvania families.