Gov. Josh Shapiro and a top Pa. lawmaker say they’re getting closer to reaching a state budget deal
The Democratic-controlled state House took the first step toward a budget deal Monday. But the bill does not have the Senate GOP’s support, and leaders say they want to reduce spending further.
HARRISBURG — Top state leaders who are meeting in closed-door negotiations to pass Pennsylvania’s state budget said Monday they are hopeful a deal is within reach — two weeks after their June 30 budget deadline.
Democratic Gov. Josh Shapiro, House Majority Leader Matt Bradford (D., Montgomery), and Senate Majority Leader Joe Pittman (R., Indiana) have been meeting in private negotiations for weeks, attempting to hammer out a final deal while facing a significant budget shortfall. The state is set to spend $5.5 billion more than it brings in this fiscal year. Shapiro has proposed using the state’s $3 billion in surpluses and tapping into its rainy day fund to make up the difference, a maneuver that Senate Republicans have protested.
The narrowly Democratic-controlled state House took the first step toward a budget deal on Monday, approving a $50.6 billion spending plan, reduced from Shapiro’s $51.5 billion budget proposal. However, the bill does not have the Senate GOP’s support, and leaders have expressed desire to reduce the total spending number even further.
Now that the spending bill is in the Senate’s hands, lawmakers will likely amend the measure when a final deal is reached.
Still, Shapiro told reporters on Monday that the bill represents an important step forward in negotiations. The leaders still must reach a final deal, and are deliberating over how to handle key issues in the budget such as funding Pennsylvania’s ballooning Medicaid program, whether to tax and regulate skill games, recreational marijuana legalization, and funding for the state’s mass transit agencies, including SEPTA.
» READ MORE: How a ballooning Medicaid program in Pa. is looming over state budget talks
The House voted 105-97 to pass the spending bill on Monday afternoon, with support from Democrats and three Republicans. It includes $50.6 billion in spending — $3 billion more than last year’s budget, but $900 million less than the budget Shapiro proposed in February.
Speaking on the floor, House Appropriations Committee Chair Jordan Harris (D., Philadelphia) said the bill needed to pass the House, even though it didn’t include all that Democrats wanted, because schools and nonprofits expecting their first payments from the state are facing uncertainty without a budget deal.
Down the Capitol hallway, Pittman told The Inquirer as he left a roughly hour-long meeting in Shapiro’s office Monday that he believes “there’s a real path forward.”
“I feel very good. I think we’re moving along,” he said. “We continue to understand the disagreements we have.”
» READ MORE: Not just SEPTA: Public transit is in trouble all across Pennsylvania, including in GOP districts
Shapiro, after meeting with the House Democratic caucus for a private meeting, told reporters he is “feeling optimistic” a final deal will be reached soon, but said he could not provide a timeline.
“Everybody’s working together with a common purpose, even if we disagree on a particular way to handle an issue,” Shapiro said, acknowledging the House bill does not yet have support from Republicans.
Kate Flessner, a spokesperson for the Senate Republican Caucus, said there is “still much work to do” but added Pittman is “very upbeat and is actively engaged in discussions.”
House Minority Leader Jesse Topper (R., Bedford), who voted against the bill, still called the legislation a “positive sign,” indicating the negotiations held behind closed doors had moved forward.
“We know this is not the final negotiated product. This is not agreed to, but we are pleased that talks are continuing,” Topper said, adding that he believes the Democratic proposal is still too expensive. He did not provide detail on what areas negotiations have progressed in.
He said negotiations will continue for a “budget that is sustainable, not just this year, but years into the future.”
The state Senate will return to session Wednesday, another signal that negotiations are inching closer to a budget deal.
A late state budget has little impact on most Pennsylvanians, and lawmakers often blow past the deadline with little consequence.
However, the later the state goes without a budget, the more issues it causes. For example, if school districts do not receive their state subsidy by July 15, they will likely need to borrow funds to cover payroll and other state-mandated obligations, a spokesperson for the Pennsylvania School Boards Association said last month.
» READ MORE: William Penn is borrowing money due to the delayed state budget. Other school districts may, too.
State-owned universities and state-related schools, such as Pennsylvania State University, could also soon be setting tuition rates for the forthcoming academic year without knowing a major piece of the pie: how much funding they will receive this year from the state.
Staff writer Gillian McGoldrick contributed to this article.
Vincent DiFonzo is an intern with the Pennsylvania Legislative Correspondents’ Association. He can be reached at [email protected].