Pennsylvania’s state budget stalemate has now stretched past 100 days – making the Commonwealth the only state in the U.S. without a budget in place – and there’s little sign of a breakthrough, even as House Democrats advanced a new $50.25 billion spending plan last week.
The Democratic-led House approved the proposal (Senate Bill 160) Wednesday evening in a 105-98 vote, with three Republicans joining all Democrats in support. It would increase state spending by about five percent over last year’s level, and its total is more than $1 billion below Gov. Josh Shapiro’s original February proposal.
“We know we’re not getting everything we want,” House Majority Leader Matt Bradford (D-Montgomery) said at a news conference Wednesday. “We break hearts every day in this caucus, but we know we have divided government.”
But Senate Republicans, who favor holding spending closer to last year’s $47.6 billion budget, dismissed the new plan as unsustainable. Senate Majority Leader Joe Pittman (R-Indiana) said Democrats’ approach “has taken this budgetary process … steps backward,” and added the Senate will not return to session until a “reasonable proposal” is on the table.
The two chambers appear far apart on how much the Commonwealth should spend, despite last month’s resolution of a major point of contention regarding mass transit funding. Both sides continue to trade blame publicly and talks between top leaders seem to have stalled at the moment.
Meanwhile, the budget impasse is creating ripple effects across the state. Without a spending deal in place, billions in payments to schools, counties, nonprofits, and contractors are on hold. Some local governments and businesses that provide services to state agencies have warned they are under growing financial strain.
In response, State Treasurer Stacy Garrity, a Republican who has announced she will challenge Shapiro in next year’s gubernatorial election, has stepped in with a temporary loan program to help affected entities cover delayed payments. The state Senate also passed legislation (Senate Bill 1040) last week that allows her office to forgive interest on those loans.
With negotiations at a standstill and partisan rhetoric heating up, Spotlight PA reported last week that Capitol observers are speculating the impasse could drag into the winter months.