Yesterday, Gov. Josh Shapiro unveiled his proposed 2025-2026 state budget and legislative priorities. The proposal would spend $51.5 billion in state funds to operate the commonwealth services for the new budget year, a 7.5% increase from the current 2024-2025 adopted budget. Here are the items of most interest to townships: 

Shapiro called again for an additional $292.5 million for mass transit funded by reallocating an additional 1.75% of the commonwealth’s current sales and tax receipts to dedicated transit funding. While calling for support for all modes of transportation, he pointed to the continued decrease in Motor License Fund revenues to support the Pennsylvania State Police as freeing up an additional $50 million each year for PennDOT. None of these funds go to townships. 

The governor called for an additional $30 million in competitive grant funding for fire companies. He pushed for legalization of recreational marijuana, with license fees and taxes going to the commonwealth. He promoted regulation and taxing of games of skills, with funds going to the commonwealth with an unspecified local share. 

Shapiro discussed his Executive Order to create a Housing Action Plan, which is expected to be finalized later this year. He proposed $50 million in funds to help repair existing homes, $10 million to help first-time home buyers with closing costs, creation of an Interagency Council on Homelessness, and additional funding for affordable housing through existing programs.  

The governor proposed to help local communities fix their permitting, zoning, and code enforcement issues by fully staffing the State Planning Board so that homes can be built more quickly. Shapiro stated that the commonwealth has improved its permitting processes and it should now help its local partners do the same for local processes. It is unclear what specific local processes the governor believes need fixing or what improvements should be made. (Note: If your township has experienced improvements in state permitting in recent months or faced setbacks, please share your experience with PSATS staff.) 

PSATS will provide additional details on these proposals in the coming days. Generally, the proposal was received with mixed reviews and is seen as a starting point for negotiations and an expected final spend of significantly less. For those who would like to learn more, click here for the budget in brief and here for the governor’s 2025-2026 budget proposal page.