HARRISBURG — Sen. Lisa Baker (R-20) supported a fiscally responsible state budget today that stands up for taxpayers, doesn’t raise taxes on Pennsylvania families, and supports affordability and job growth.
“Families across Pennsylvania continue to make tough financial decisions every day, and state government should do the same,” Baker said. “Throughout this process, I remained focused on keeping costs down for taxpayers and preventing policies that would make it harder for people to get ahead.”
Gov. Josh Shapiro originally proposed a budget that would have increased spending by $2.7 billion, a 5.4% increase, and withdrawn approximately $4.6 billion from the state’s Rainy Day Fund. His plan would have required massive tax increases as soon as next year.
The final agreement negotiated by Senate Republicans reduced the governor’s proposed spending increase by more than $1.1 billion, requires no withdrawals from the Rainy Day Fund and keeps Pennsylvania on a more sustainable fiscal path while helping avoid potential bond downgrades and higher borrowing costs.
“Pennsylvania’s Rainy Day Fund exists for emergencies, not to cover ongoing government spending,” Baker said. “Preserving those reserves ensures we’re prepared for future challenges without asking taxpayers to make up the difference.”
The budget keeps Pennsylvania on track with scheduled reductions to the Corporate Net Income Tax, supporting continued economic growth, encouraging business investment and helping create jobs across the commonwealth.
Senate Republicans identified more than $1 billion in proposed overspending within the Department of Human Services throughout two years, along with more than $100 million in unnecessary spending proposed for the Department of Corrections in the 2026-27 budget.
During the last two years, Senate Republicans have reclaimed $4.5 billion from prior-year budgets, special funds and other accounts, ensuring those dollars can support state government programs instead of remaining idle.
The budget improves efficiency and oversight at PennDOT and requires the agency to deploy an additional $775 million in Motor License Fund surpluses including more than $53 million for highway projects in Engineering District 4-0, which covers northeastern Pennsylvania.
Career and technical education funding will increase by $10 million, and the agreement restores $15 million to a key workforce development line-item Shapiro proposed eliminating in his February budget proposal.
An additional $12 million for Pennsylvania’s rape crisis centers nearly doubles state support for organizations that provide critical services to survivors of sexual violence.
“As chair of the Judiciary Committee, I know the lifesaving work these centers offer survivors, and the importance of increased funding so they can continue to support individuals during horrific times,” Baker said.
The plan maintains funding for the Educational Improvement Tax Credit program and rejects legislative changes proposed by House Democrats that would have eliminated scholarships for students and limited future donations to the program.
Long-term care providers will also receive rate increases and additional funding is included to support Pennsylvania’s nursing homes.
“The people of Pennsylvania expect us to treat their tax dollars with the same care they use to manage their own household budgets,” Baker said. “That responsibility guided every decision I made during these negotiations.”