Pa. Budget Talks Near Deadline Amid Marijuana, Tax Disputes

Pennsylvania Gov. Josh Shapiro and state lawmakers are in a critical phase of negotiations to finalize the state's $51.5 billion budget for the 2025-2026 fiscal year, with just two weeks remaining before the new fiscal year begins on July 1. Key issues include legalizing marijuana for adult use, raising the minimum wage, and imposing taxes on slot machine-like skill games increasingly found in various establishments. Democrats, controlling the state House, prioritize increased funding for public schools and transit, while Republicans, controlling the Senate, focus on controlling rising Medicaid costs and regulating skill games. Shapiro's budget proposes a 9% increase in spending, including a significant $2.5 billion rise in Medicaid expenses partly due to post-pandemic care costs. The budget plan maintains current personal income and sales tax rates but relies on $4.5 billion in reserve funds and potential revenue from marijuana legalization and expanded corporate tax applications to balance. Legislative talks remain slow, with divisions over these priorities and possible impacts from federal aid reductions under observation.