Governor Shapiro's $51.4B Budget Pushes Cannabis Legalization, Faces GOP Challenge Amid Deficit Concerns
February 4, 2025
The budget is projected to spend approximately $4.5 billion more than the anticipated revenue, raising concerns about potential deficit spending.
Shapiro is facing pressure to increase wages for caregivers amid a growing budget deficit and economic challenges, including a slow-growing economy.
To address financial struggles, Shapiro is working to prevent cuts to the Southeastern Pennsylvania Transportation Authority (SEPTA), which has seen ridership losses post-pandemic.
While advocacy groups have praised the budget for its focus on education and health, Republican lawmakers have expressed skepticism about the sustainability of the proposed spending.
The final budget will require compromise as it moves through a legislature with significant Republican control.
Democratic Governor Josh Shapiro has proposed a $51.4 billion budget for Pennsylvania, which includes plans to legalize recreational cannabis and tax gaming terminals.
SEPTA is set to receive an additional $165 million in state funding to help cover a $213 million budget shortfall and avoid fare increases.
Key proposals in the budget include $20 million for local agencies caring for senior citizens and $5 million to recruit healthcare workers in rural areas.
Throughout his term, Shapiro has highlighted economic progress, including job growth and significant private investments, while urging bipartisan collaboration to tackle longstanding issues.
Shapiro's budget proposal faces potential challenges in the Republican-controlled State Senate, where leaders have criticized the plan as overly ambitious.
The budget also emphasizes increased funding for basic and special education, alongside reforms for online charter schools.
Shapiro aims to address a court ruling mandating equitable funding for public schools, proposing an additional $526 million to close the funding gap for poorer districts.
Summary based on 12 sources
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Sources

CBS Philadelphia • Feb 4, 2025
Pennsylvania governor expected to reprise support for recreational marijuana, seek money for SEPTA, schools
AP News • Feb 4, 2025
Pennsylvania governor expected to seek more money for schools and transit
The Philadelphia Inquirer • Feb 4, 2025
4 things to watch in Gov. Josh Shapiro’s third budget address