Budget Cycle

Governor Submits Budget
February (1st full week)
Fiscal Year Begins
July 1 

Governor Signs Budget 
By June 30

Budget Links

FY2025 (proposed)
FY2024 (enacted)
FY2023 (enacted)
FY2022 (enacted)
FY2021 (enacted)

FY2020 (enacted)

Proposed Budget - Fiscal Year 2025

On February 6, Pennsylvania Governor Josh Shapiro proposed his budget for fiscal 2025. The proposal calls for total operating expenditures from all funds of $125.3 billion (a 6.1 percent increase compared to fiscal 2024). This includes $48.3 billion in general fund spending (an 8.4 percent increase compared to fiscal 2024). The budget is based on a beginning balance of $7.1 billion and forecasted general fund revenue of $46.3 billion after tax changes but before refunds (a 2.2 percent increase over revised estimates for fiscal 2024). After tax refunds, general fund revenue for fiscal 2025 is estimated at $44.8 billion. After accounting for a transfer to the Budget Stabilization Reserve Fund (the state’s rainy day fund), the general fund ending balance is projected at $3.45 billion. With a rainy day fund balance projected at $7.55 billion, the state’s total ending balance in the governor’s budget for fiscal 2025 is estimated at $11.0 billion.

Proposed Budget Highlights 

The governor’s spending plan for fiscal 2025 builds on last year’s budget by increasing funding for early childhood and K-12 education; restructuring the state’s higher education system; investing in economic and workforce development; supporting law enforcement and public safety; and strengthening access to housing, health care, and human services. Key spending initiatives in these areas are highlighted below.


Early Childhood and K-12 Education

  • $1.1 billion increase in basic education funding, building on the historic increase adopted last year. This amount includes $872 million as a first-year adequacy investment recommended by the Basic Education Funding Commission (BEFC) and $200 million to be distributed through the Basic Education Funding Formula. 
  • $50 million increase in special education funding.
  • $50 million continued annual investment in school safety and security improvements.
  • $300 million in sustainable funding for environmental repairs in school facilities.
  • $10 million for the Educator Talent Recruitment Account and $450,000 for the Talent Recruitment Office.
  • $5 million increase ($15 million total) for student teacher stipends.
  • $30 million additional funds for the Pre-K Counts program and $2.7 million for the Head Start Supplemental Assistance Program
  • $17 million increase for Early Intervention services.

Higher Education

  • Proposes a new governance system that unites Pennsylvania State System of Higher Education and Community Colleges, with $975 million in funding for this new system (a 15 percent annual increase).
  • 5 percent increase in support for the Commonwealth’s state-related universities.
  • Increased financial aid beginning in 2025-2026 so state residents making up to the median income will pay no more than $1,000 in tuition and fees per semester.

Workforce Development

  • $2.2 million increase in Industry Partnerships funding to support workforce development.
  • $2 million to help businesses transition from degree requirements to skills-based hiring.
  • $2 million to build a one-stop-shop for career pathways.
  • $2 million for Career Connect to connect employers with talented workers.
  • Proposes to increase the minimum wage from $7.25/hour to $15/hour.

Economic Development

  • Supports the state’s first Economic Development Strategy in more than 20 years.
  • $500 million in bond funding to fund on-site development for priority industries.
  • $283 million in additional funds for mass transportation across the Commonwealth.
  • $20 million to incentivize the deployment of additional private venture capital to support large-scale innovation.
  • $25 million to establish a new Main Street Matters program to improve local government capacity and support neighborhood revitalization.
  • $18 million in additional funding for tourism and marketing.
  • $10.3 million in agriculture innovation.
  • Calls for the legalization of adult use cannabis, with $5 million investment in proceeds from sales for restorative justice initiatives.


  • $50 million to continue the Whole Home Repairs program that provides direct assistance to homeowners.
  • Increases the cap for the Pennsylvania Housing Affordability and
  • Rehabilitation Enhancement Fund (PHARE) by $10 million each year for the next four years.

Health & Human Services

  • $50 million for the state’s reinsurance program to help low- and middle-income residents afford health insurance.
  • $4 million for medical debt relief for low-income residents.
  • $215 million state ($266 million federal) to provide more resources for home and community-based service providers.
  • $36 million to increase access to home and community-based services.
  • $11.7 million for initiatives to support the state’s senior population.
  • $100 million to continue student mental health services for K-12 schools previously supported with one-time federal funds.
  • $20 million increase in community-based mental health services, with additional increases in subsequent years.
  • $10 million for 988 crisis line operations.

Public Safety & Corrections

  • $100 million increase in initiatives to reduce gun violence, including a new statewide Office of Gun Violence.
  • $16 million for four additional state trooper cadet classes.
  • $30 million increase for emergency medical services and firefighter funding.
  • $5 million to ensure those facing eviction have access to legal counsel.
  • $5 million to hire additional staff and reduce use of extended restrictive housing in correctional facilities.
  • $4 million to implement changes made through recent probation reform and fund services that reduce recidivism and increase the use of evidence-based practices.