Gov. Josh Shapiro this week proposed a $51.5 billion spending plan that includes increases in several LAMPa priority areas, including hunger, housing, education equity and violence prevention, while calling for an increased minimum wage and proposing changes intended to spur energy production.

The budget proposal would tap about $4.5 billion in the state’s reserve cash while holding personal income and sales tax rates steady. The governor also looks to raise almost $1.2 billion through legalizing adult-use marijuana, taxing skill games of chance and expanding the application of the corporate net income tax.

The governor’s budget proposal includes a $8 million combined increase for the state’s two major anti-hunger programs – the State Food Purchase Program (SFPP) and the Pa. Agriculture Surplus System (PASS), while maintaining funding to support delivery of food boxes to seniors. All three programs are major sources of food distributed by our congregational and community pantries and assistance programs.

“Rising food prices related to climate change, global conflict and labor shortages have been making it more difficult for Pennsylvanians to put nutritious food on the table,” said LAMPa Director Tracey DePasquale. “Because most of our congregations either host or support some sort of ministry with people experiencing hunger and food insecurity, we see the difficult choices our families and neighbors have to make – often putting their health further at risk. We are happy to see the governor’s recognition of this need and support for addressing it.”

The proposed increases would bring SFPP funding to $24.188 million and PASS to $9.5 million.

Minimum Wage

Shapiro once again attacked Pennsylvania’s minimum wage of $7.25 an hour, which is below that of all neighboring states. He proposed raising it to $15/hour over three years — a measure that passed the state House last session.

“There’s much in Gov. Shapiro’s budget proposal that would help struggling Pennsylvanians,” DePasquale said. “We look forward to working with the governor and lawmakers on both sides of the aisle to build a more healthy and prosperous Commonwealth that generations will want to call home.”

Education

Shapiro would continue the Commonwealth’s commitment to address the unconstitutional inequities in school funding among districts, proposing an additional $75 million increase to basic education funding and an additional $526 million through the bipartisan adequacy formula created in response to a court order to remediate the inequity. His proposal also includes an added $40 million in special education funding and cyber charter reform intended to align payments to actual costs, saving school districts an estimated $378 million. Schools would see continued support for safety and mental health grants as well as $3 million to continue the program launched last year to provide period hygiene products in schools.

Addressing a crisis in health care access, Shapiro proposed an additional $20 million in state funds to draw down federal dollars to help with structural challenges facing rural hospitals, which he said are “stretched to the breaking point.” He also called on the legislature to work to address the curb the closures of hospitals and nursing facilities related to profit-taking by private equity.

Reflecting uncertainty in Washington, the governor called for making the protections of the Affordable Care Act (ACA) state law, in case the ACA is ended as federal law. Today, 1.2 million Pennsylvanians get their health care through the ACA, Shapiro said.

Housing

While awaiting the finalization of a first-ever Housing Action Plan for Pennsylvania, Shapiro included some preliminary measures for addressing the Commonwealth’s housing crisis in the budget.

The plan proposes more than $1 billion in property tax relief through the homestead and farmstead exclusions, which he said would cut property taxes for the average Pennsylvania homeowner by more than $160 this year – a 71 percent increase in savings.

He proposed $10 million to help first-time homeowners cover closing costs and continue the progress made last year by increasing Pennsylvania’s largest and most flexible affordable housing tool — the PA Housing Affordability and Rehabilitation Enhancement Fund (PHARE) — by an additional $10 million to reach $110 million by the end of 2028. In the last two years, these tax credits have been used to begin construction on 2,000 new homes and apartments and repair another 3,200.

In addition, Shapiro proposed investing $50 million to create a new statewide housing repair fund to help homeowners struggling to make needed repairs to their aging homes.

He also supported legislation to seal eviction records for people who were not actually evicted. Right now in Pennsylvania, as soon as an eviction is filed, it becomes a permanent mark on someone’s background, even if that case eventually gets ruled in the tenant’s favor. Eviction records can prevent vulnerable Pennsylvanians from securing housing or employment — this will help increase housing security and improve access to affordable housing and employment opportunities.

His plan would also staff the State Planning Board to help local communities adjust their permitting, zoning, and code enforcement issues and build more homes and create an Interagency Council on Homelessness to improve support and coordination for the unhoused in Pennsylvania.

Energy

In addition to a proposal to create a system to fast-track siting and permissions for energy-production facilities, Shapiro promoted his alternatives to a regional greenhouse gas emissions system.

The Pennsylvania Climate Emissions Reduction Act (PACER) would establish a Pennsylvania-specific cap-and-invest program that allows Pennsylvania to determine its own cap on carbon and invest directly in lowering consumers’ electricity bills. Under PACER, 70 percent of the revenue generated would be directed back to Pennsylvania residents as a rebate on their electric bill.

The Pennsylvania Reliable Energy Sustainability Standard (PRESS) would build a more diverse, energy sector. Shapiro’s updated version of this proposal would update our energy portfolio standards and incentivize companies to invest in new forms of energy, including nuclear energy, as well as battery storage.

Violence Prevention

The spending plan would also build on community-based violence prevention efforts that have helped reduce gun violence across Pennsylvania by 42 percent since 2022, including a 52 percent drop in gun violence in Philadelphia, according to the Gun Violence Archives.

Read Gov. Josh Shapiro’s budget address here.