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.
Housing
- $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.