Pennsylvania Budget Surplus Likely Depleted in 2025 

The Independent Fiscal Office published an updated brief examining the impacts that the recently passed state budget spending and tax law changes will have on General Fund revenues. The IFO updated its revenue estimates and is projecting deficits for the 2023-2024 through 2025-2026 fiscal years. The IFO is estimating increased budget deficits due to newly enacted policies that impact spending and revenues, such as transfers, tax credits, and exemptions. Due to these changes, and transfers of the General Fund ending balancing into the Rainy Day Fund, a projected $1.6 billion General Fund ending balance for 2025-2026 is projected, which must be addressed. Click here for the brief.