HARRISBURG — Sen. Dawn Keefer (R-31) voted against the 2026-27 Pennsylvania state budget, saying that while the final spending plan is an improvement over Gov. Josh Shapiro’s irresponsible $53.3 billion proposed budget, it continues a pattern of spending beyond the commonwealth’s projected revenues and fails to address Pennsylvania’s growing structural deficit.
“I’m pleased the General Assembly rejected the governor’s $53.3 billion spending proposal, protected taxpayers from broad-based tax increases, preserved the Rainy Day Fund for true emergencies and rejected a minimum wage increase that would have placed additional burdens on employers,” Keefer said. “Those are important victories, but they do not outweigh the budget’s fundamental fiscal problems.”
The enacted budget totals approximately $52.2 billion, while the Independent Fiscal Office projects General Fund revenues of $49.56 billion for the 2026-27 fiscal year. The spending plan exceeds projected recurring revenues by more than $4 billion and increases state expenditures by over 4% from the previous fiscal year, surpassing the 3.1% growth permitted under the Taxpayer Protection Act index.
To cover this gap, the Republican-led Senate effectively “flipped the couch cushions” by identifying one-time funding sources, including previously unspent money held by state bureaucracies that otherwise would not have been returned to the budget, as well as available funds outside the General Fund. These efforts helped utilize existing taxpayer dollars to reduce the shortfall in this year’s budget. However, the budget does not include lasting reforms to ensure unused funds are returned in future years or to prevent similar budget challenges from recurring.
The budget also relies on gimmicks, including deferring approximately $1.3 billion in Medicaid payments to next year. This action may provide short-term relief, but it does not resolve the underlying financial challenges that will have to be addressed in the future.
Additionally, the budget creates a new long-term financial obligation by increasing cost-of-living adjustments (COLA) for retired government employees. Both of the state’s pension funds have a combined unfunded liability in excess of $79 billion. This new COLA compromises the stability of the system for all participants.
The budget adds another $896 million in state funding for public education, bringing total state support for public schools to $18.6 billion. Despite a 41% increase in state funding over the past five years, school enrollment continues to decline as well as student performance metrics. Investing in students is a priority, but must come with accountability to ensure it is producing results.
“Pennsylvania families have to live within their means, and state government should do the same,” said Keefer. “I will not support a budget that spends beyond our state’s revenue and leaves future taxpayers responsible for today’s decisions. Fiscal responsibility is not optional — it is our obligation as representatives of the people.”
CONTACT: Crystal Patterson, 717-432-1730