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Governor Shapiro’s 2026-27 budget proposal is a commonsense plan that builds on
three years of progress by continuing to do what’s working and keeping Pennsylvania
on the rise — growing the economy, supporting students, strengthening public safety,
lowering costs, creating jobs, and positioning Pennsylvania for long-term growth.
The Governor’s proposed budget places a special emphasis on affordability, cutting
costs for Pennsylvanians across the energy and housing sectors; investing in public
safety; spurring economic development; and advancing bipartisan solutions to support
Pennsylvania students.
The 2026-27 budget proposal maintains a balanced budget, continues cutting taxes,
and saves taxpayers millions of dollars while keeping Pennsylvania moving forward.
See the full announcement of Governor Shapiro’s 2026-27 budget proposal here.
Harrisburg, PA – Today, Governor Josh Shapiro presented his 2026–27 budget
proposal to the General Assembly and the people of Pennsylvania — building on
three years of historic progress by continuing to do what’s working across the
Commonwealth to lower costs, create economic growth, strengthen public safety,
support students, and continue Pennsylvania’s rise. The Governor’s budget proposal
maintains fiscal responsibility, continues to cut taxes, and ensures taxpayer dollars are
spent wisely.
“From day one, my Administration has been laser-focused on delivering results for the
people of Pennsylvania — and what we’re doing is working,” said Governor Shapiro.
“By listening to Pennsylvanians and working together, we’re solving problems and
proving that government can be a force for good in people’s lives. This budget builds on
the progress we’ve made by making smart, responsible investments that strengthen our
schools, keep communities safe, and grow our economy. At a time when dysfunction
and division seem to dominate elsewhere, here in Pennsylvania we’ve shown that we
can still work together to get stuff done and build on what’s working — because
Pennsylvania is on the rise.”
Since taking office, Governor Shapiro has made historic investments in education,
strengthened public safety, raised wages for workers who care for
Pennsylvania’s most vulnerable neighbors, and driven economic development
that has created over 21,500 good-paying jobs and attracted more than $39 billion
in private-sector investment across the Commonwealth. Under his leadership,
Pennsylvania has increased education funding by nearly 30 percent,
kept unemployment below the national average for 31 straight months, and
become the only state in the Northeast with a growing economy. The Governor
has cut taxes seven times — delivering relief for seniors, families, and small
businesses — while making Pennsylvania more competitive and affordable.
At the same time, the Shapiro Administration has strengthened public safety by
putting securing funding for nearly 2,000 additional police officers on the
beat and expanding afterschool and community-based violence intervention
programs. These efforts are delivering results — violent crime is down 12 percent
statewide and fatal gun violence has dropped 42 percent, helping communities
across Pennsylvania feel safer and more secure.
This progress has been anchored by a strong commitment to fiscal responsibility.
Through the first seven months of the current fiscal year, Pennsylvania
has collected $417 million above revenue projections — reflecting an economy that
is growing as a result of strategic investments made by the Shapiro Administration.
This budget is balanced, does not raise taxes, and does not rely on any broad
based tax increase over the next five years, ensuring long-term stability while
continuing to deliver results for the people of the Commonwealth.
Under Governor Shapiro’s leadership, the Commonwealth has earned two credit
rating upgrades — saving taxpayers more than $200 million in borrowing costs — with
benefits that extend to school districts and local governments that can now borrow at
lower rates. By protecting the Rainy Day Fund, maintaining a balanced budget, and
making smart, forward-looking investments, the Shapiro Administration is
strengthening Pennsylvania’s financial foundation while continuing to deliver results for
the people of the Commonwealth.
Part of that work also requires modernizing Pennsylvania’s revenue structure.
The Governor’s budget proposal notes that regulating skill games and legalizing
adult-use cannabis together could generate approximately $2 billion annually,
providing long-term, recurring revenue to support schools, public safety, and taxpayer
relief.
“This budget builds on real progress by staying focused on the people we serve,”
said Lieutenant Governor Austin Davis. “I’ve had the privilege of meeting
Pennsylvanians who are making their communities safer, teaching our youngest
learners, and fighting for victims’ voices to be heard. This budget has their back —
investing in afterschool programs, community organizations addressing gun violence,
early childhood education and child care, and support for victims of crime. These
investments will give every Pennsylvanian the tools to succeed today and build a
stronger future.”
As the Governor begins his fourth year in office, the 2026–27 budget proposal builds on
that momentum — continuing to invest in proven strategies, putting the people of
Pennsylvania first, and positioning the Commonwealth for long-term growth.
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