HARRISBURG, Pa. (KYW Newsradio) — Lawmakers in Harrisburg appear to have a budget deal that could bring the budget impasse to an end with both chambers expected to vote Wednesday.
The $50.1 billion spending plan would be 4.7% higher than last year’s budget.
It would also pull Pennsylvania out of the multi-state emission-reduction program, the Regional Greenhouse Gas Initiative.
Budget talks had been stuck as majority Republicans in the state Senate had balked at the price tag, pointing out it’s about $5 billion higher than expected revenues and will blow through Pennsylvania’s cash reserves in a couple years.
State House majority Democrats and Gov. Josh Shapiro said the plan would use some of Pennsylvania’s $10 billion surplus to invest in programs that would expand revenue without raising taxes.
The state Constitution mandates budgets must be finalized by June 30. Both sides said during the summer that talks were progressing, but partisan bickering ramped up last month. Party leaders accused each other of using the budget for political gain as school districts and nonprofits that rely on state funding began sounding the alarm.
The collapse of those talks forced SEPTA to enact significant cuts, prompting a plan to fund mass transit for two years outside of the budget.
Closed-door talks resumed at the end of October.
Republicans have been battling RGGI in courts since former Gov. Tom Wolf enrolled Pennsylvania through executive order in 2019.