HARRISBURG, Pa. (AP) — Democratic Gov. Josh Shapiro is trying to wrap up his first budget by Saturday's start of the new fiscal year, as he works to balance Pennsylvania's politically divided Legislature in perhaps the biggest test yet of his political skills under the Capitol dome.
The last few days have become particularly contentious, as a constellation of public school advocates have organized to oppose an emerging agreement between Shapiro and Republicans who control the Senate majority.
The contention is primarily around what Republicans call “lifeline scholarships,” using taxpayer dollars to pay for schoolchildren to go to private schools. Shapiro supports it.
But top Democratic lawmakers have long opposed what they call “private school vouchers” — including this program — and that has sowed doubts about whether Shapiro can secure a deal in the coming days.
The budget is being negotiated against the backdrop of two forces: billions of dollars in reserve and a landmark court decision that found that Pennsylvania’s system of funding public schools violates the constitutional rights of students in poorer districts.
The massive reserves are easing spending decisions, while the court decision has emboldened Democratic lawmakers to demand far more money for public schools out of this year’s spending plan.
Republicans, meanwhile, warn of the possibility of a recession and long-term deficits to argue that the state must restrain spending.
Here’s what to watch for in the coming days:
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WHAT WE KNOW
Shapiro is holding private meetings with lawmakers at the governor's official residence, including with leaders of the Senate's Republican majority and the House's Democratic majority.
No final draft of an agreement has become public and top lawmakers are saying little about the discussions.
Senate President Pro Tempore Kim Ward, R-Westmoreland, said there is still jockeying around certain elements, but hoped work will wrap up in a few days.
“We’re not too, too far apart on some of the big things,” Ward said in an interview Wednesday.
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SPENDING
Budget negotiators expect the final spending figure to be slightly lower than what Shapiro proposed in March for the 2023-24 fiscal year that starts July 1.
Shapiro proposed a $45.3 billion spending plan, or a 6% increase over the approved budget for the almost-ended fiscal year. It would require perhaps $1 billion in surplus cash to balance, and leave roughly $13 billion in reserve.
That spending level is well below what House Democrats passed in their budget plan in early June.
The plan envisions no increases in income or sales taxes — the state’s two main revenue sources — and most of the new money in it would go to education, health care and social services.
Republicans have sought to tamp down spending in Shapiro’s plan and to include more money for private schools, including $100 million for the “lifeline scholarships."
Shapiro had sought roughly $1 billion in new or one-time cash for public schools — well below what public school advocates had sought.