With the June 30 deadline fast approaching, Pennsylvania lawmakers appear increasingly unlikely to pass a state budget on time. Despite ongoing negotiations, legislative leaders acknowledge that key issues remain unresolved, with little sign of a breakthrough.
The divided political landscape—Democrats controlling the governorship and House, and Republicans holding the Senate—has again led to slow progress on a spending plan for the upcoming fiscal year. Senate Republicans say talks have not moved quickly enough, and major obstacles still stand in the way of an agreement.
Among the most contentious issues is Medicaid spending. Governor Josh Shapiro’s proposed \$2 billion increase has drawn criticism from Senate Republicans, who argue that such a jump would limit the state’s ability to fund other priorities. They are considering measures to reduce the projected costs, including limiting coverage of certain medications and increasing cost-sharing requirements.
At the same time, lawmakers are exploring ways to boost revenue, including potential regulation and taxation of so-called “skill games”—unregulated gambling-style machines found in gas stations and convenience stores across the state. While many agree the machines need oversight, consensus on how to regulate them has yet to emerge.
A separate priority for House Democrats—legalizing recreational cannabis—also remains a point of contention. Though Governor Shapiro’s proposed budget includes revenue from cannabis sales, Senate Republicans have pushed back, casting doubt on the measure’s viability this year.
Transit funding is another flashpoint. A House-passed bill would increase state support for public transit and infrastructure by \$800 million. Senate Republicans have criticized the bill’s focus on urban systems, such as Philadelphia’s SEPTA, without a proportional investment in rural infrastructure.
If lawmakers fail to reach a deal by June 30, leaders have floated the idea of a short-term budget to avoid a government shutdown while negotiations continue. Though delays are not unusual in Harrisburg, the scope of disagreement this year could mean a longer wait before a final compromise is reached.
source: PA Capital-Star