Pennsylvania Perspective Special Edition: Gov. Shapiro Signs FY25 Budget
July 12, 2024
July 12, 2024
Shortly before midnight on Thursday, July 11 — and nearly two weeks past the June 30 deadline — Governor Josh Shapiro signed the $47.6 billion FY25 Pennsylvania state budget following extensive negotiations among legislators in Harrisburg. The budget represents a more than 6% increase over last year’s and includes significant changes to higher education and K-12 public school funding, as well as key investments in economic development, public safety, health care, human services, and infrastructure, without raising sales or income tax rates. Budget highlights are included below.
The budget includes a more than $1 billion increase in spending for K-12 public schools, aiming to provide equitable and adequate education across all districts. While the total investment in education is less than what Gov. Shapiro initially requested and below what advocates deemed necessary for substantial change, the increased funding is seen as a critical step towards addressing long-term underfunding. The budget also includes reforms to the cyber charter school tuition, which is expected to provide $34.5 million in savings to school districts in the 2024-25 academic year.
K-12 education investments in the budget include:
The budget introduces several new higher education policies, including the establishment of the Grow Pennsylvania Scholarship Program, which will offer $5,000 grants to Pennsylvania residents who commit to working in the state post-graduation, and the creation of the Grow Pennsylvania Merit Scholarship Program, which will allow nonresident students at the Pennsylvania State System of Higher Education (PASSHE) to pay in-state tuition if they agree to work in Pennsylvania after graduation. The budget also establishes a Performance Based Funding Council to recommend fund distribution for major state universities, mandates transparency in student fees, and creates a Dual Credit Innovation Grant Program.
Funding increases include:
The budget includes investment in several key components of the Shapiro Administration’s Economic Development Strategy, including:
The budget also included several key tax code changes aimed at stimulating economic growth and supporting businesses, including:
Cozen O’Connor Public Strategies, an affiliate of the international law firm Cozen O’Connor, is a bipartisan government relations practice representing clients before the federal government and in cities and states throughout the country. With offices in Washington D.C., Richmond, Albany, New York City, Philadelphia, Harrisburg, Chicago, and Santa Monica, the firm’s public strategies professionals offer a full complement of government affairs services, including legislative and executive branch advocacy, policy analysis, assistance with government procurement and funding programs, and crisis management. Its client base spans multiple industries, including healthcare, transportation, hospitality, education, construction, energy, real estate, entertainment, financial services, and insurance.
Established in 1970, Cozen O’Connor has over 775 attorneys who help clients manage risk and make better business decisions. The firm counsels clients on their most sophisticated legal matters in all areas of the law, including litigation, corporate, and regulatory law. Representing a broad array of leading global corporations and middle-market companies, Cozen O’Connor serves its clients’ needs through 31 offices across two continents.
October 31, 2024
October 31, 2024
October 30, 2024