Enacted Budget – Fiscal Year 2025
Pennsylvania Governor Josh Shapiro signed the state’s budget for fiscal 2025 into law on July 11. The enacted budget provides for $47.6 billion in general fund appropriations for fiscal 2025, representing a 6 percent increase over fiscal 2024 spending. The Independent Fiscal Office’s general fund revenue estimate for fiscal 2025, issued in June 2024, is $46.0 billion, representing 1.1 percent growth over fiscal 2024. According to the revenue forecast, federal fund revenue is projected to total $45.7 billion in fiscal 2025 (a 9.7 percent increase), lottery fund revenues are projected at $2.2 billion (4.9 percent increase), and Motor License Fund revenue is projected at $3.1 billion (3.1 percent decrease). The enacted budget leaves a projected total balance (surplus) of $10.6 billion at the end of fiscal 2025.
The fiscal 2025 budget invests in key priorities, including education, economic development, public safety, workforce development, affordable housing, and public transit. The budget increases K-12 funding by $1.11 billion as well as implements a new, more equitable school funding formula, while also directing additional funding towards special education, environmental repairs in school facilities, online education, student and staff mental health services, and early childhood programs. For postsecondary education, the budget creates a State Board of Higher Education, establishes a performance-based funding formula for public universities, and increases funding for community colleges as well as scholarship and grants programs. For economic development, the budget invests $500 million in site development among other initiatives. To support law enforcement and public safety, the budget makes additional investments in state police and gun violence prevention. For workforce development, the enacted spending plan increases funding for career and technical education, dual enrollment, and nursing apprenticeships. The budget also invests in affordable housing programs and homeless assistance, and delivers an increase in operating support for public transit and new funding for road and bridge repairs. For health and human services, the budget makes a significant investment in services for individuals with intellectual disabilities and autism, including a 7 percent rate increase for community-based providers, while also providing additional support for rural hospitals, skilled nursing facilities, and maternal mortality prevention. Additionally, the budget puts more money towards agricultural and environmental innovation.