Gov. Josh Shapiro signs state budget into law after more than 4 months

HARRISBURG, Pa. — After a more than 130-day-long impasse, the Pennsylvania state budget has been signed into law.

After multiple sessions and discussions, the state Senate voted 41-9 to pass the state budget bill on Wednesday for the fiscal year that began on July 1.

Within a few hours of the $50.09 billion budget clearing the Senate, Gov. Josh Shapiro signed it into law.

“This day has been a long time coming. I proposed my budget 281 days ago...” Gov. Shapiro said. “And today, because we held the line — alongside my colleagues here in the House and Senate – and stayed at the table, and demanded a serious budget that addresses our needs. Today I am about to sign into law a budget that delivers for Pennsylvanians and builds on the progress we’ve made so far."

Why did the budget pass after all this time? It has a lot to do with removing Pennsylvania from the Regional Greenhouse Gas Initiative.

The initiative is essentially a co-op among a number of states attempting to lower carbon emissions, which Republicans referred to as an unfair carbon tax that stifled job growth.

“No budget is ever perfect. Some people like to say it’s a perfect agreement when no one leaves happy,” Democrat State Rep. Abigail Salisbury said. 

Lawmakers on both sides of the aisle told Channel 11 it was time to compromise. 

“It was worth waiting for. I do think there were a lot of twists and turns, but the compromise was very important that got us to this point in time,” Democrat State Sen. Jay Costa said. 

Democrats tell Channel 11 they were willing to give the Regional Greenhouse Gas Initiative up for the sake of the rest of the bill. 

“I think RGGI being taken out is huge. I think it’s one of the most important factors in this budget. It’s signaling to the world that Pennsylvania is open for business,” Republican State Sen. Devlin Robinson said. 

The bill did not pass unanimously in either chamber. Republican State Rep. Aaron Bernstine represents part of Butler and Lawrence Counties. He voted ‘no.’

“This is a budget Pennsylvanians cannot afford,” he said, despite fellow republicans saying leaving RGGI will help close the financial gap. “I think that’s one step in the process. That being said, we still have a spending problem in Pennsylvania,” he said. 

Governor Shapiro was asked about that. 

“Go look at the comments of your leaders who understand this is a balanced budget that makes critical investments, doesn’t touch the rainy-day fund and leaves $8 billion in reserves,” Gov. Shapiro said. 

The months-long budget impasse had widespread impacts on local government, schools, nonprofit groups and more. It forced furloughs, spending cuts, hiring freezes and cuts to programs that serve the region’s most vulnerable residents.

And the impact of the long impasse will be felt even now that the budget has passed.

For example, cost-saving measures like a discretionary spending pause and program cuts will remain in place in Allegheny County through the end of the year.

Fayette County Commissioner Scott Dunn told us similar, that hiring and spending freezes will remain in place until the county receives payments due by the state.

Westmoreland County officials said they’re waiting to get the money to establish a timeline for reversing furloughs.

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