Fiscal Policy

Pennsylvania Budget Crisis Exposes Fiscal Mismanagement Under Gov. Shapiro

By Economics Desk | June 30, 2025

Governor Josh Shapiro and Pennsylvania lawmakers miss crucial budget deadline again, risking financial chaos as taxpayer dollars hang in the balance amid unchecked Medicaid spending and gaming tax disputes.

The Commonwealth of Pennsylvania finds itself once again tangled in a budget impasse, with Gov. Josh Shapiro and a politically fractured Legislature failing to meet the constitutionally mandated July 1 deadline. This marks the third consecutive year that the state has stumbled into fiscal uncertainty under Gov. Shapiro’s watch.While closed-door negotiations continue, the absence of an approved budget means Pennsylvania loses discretionary spending authority immediately. Payments to critical services—including vendors, counties, public schools, and grant recipients—are placed on hold, threatening disruption that will ripple through communities by August.What drives this stalemate? The governor’s expansive $51.5 billion spending proposal for fiscal...

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