Pennsylvania Has Balanced Its 2024-25 State Budget without Raising Taxes

The Commonwealth of Pennsylvania has balanced its budget for the 2024-25 fiscal year, without raising taxes after the Democratic-controlled state House of Representatives and Republican-led state Senate came to an agreement with the Democratic Governor. The budget carries over some business tax cuts and allows students to deduct loan interest. At over $48 billion, Pennsylvania’s budget spends $700 million less than the Governor proposed, but still uses $3 billion of the nearly $11 billion surplus from one-time revenues, instead of reserving it for the structural deficit. The budget increases public education spending, but also more for tuition for private and cyber charter schools, while making the state higher education system more affordable. Pennsylvania’s is one of the least affordable in America. Among other provisions, the budget also increases mass transit funding. It did not address “skill games” or relay on legalizing recreational marijuana, as the Governor had proposed.