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$53.2 Billion | Breaking Down Shapiro's Proposed Budget

Shapiro’s budget plan aims to close a structural deficit and address underfunded schools and housing, with $500 million added to K-12 education, officials said.

  • At 11:30 a.m. Tuesday, Shapiro will set out priorities for housing, energy, and unfinished budget items during his final budget address to a joint session.
  • Faced with a structural deficit and limited one-time fixes, lawmakers expect modest new spending after revenues totaling $46.7 billion fell short of last year’s $50.1 billion budget.
  • The proposed budget totals $53.2 billion, with a $15 minimum wage starting on Jan. 1, 2027, and a plan to transfer 1.75 percent of sales tax revenues for $300 million to SEPTA.
  • Facing reelection and recent impasses, Shapiro's budget address begins months of hearings amid a split legislature where Democrats hold a one-vote majority in the House and Republicans control the Senate.
  • Shapiro may again seek revenue from recreational marijuana legalization and regulating skill games, which is pending before the state Supreme Court, and previously proposed a 52% tax on skill games' gross revenue, with corrections savings from two prison closures potentially allowing the corrections budget to be flat-funded.
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Gov. Shapiro unveils budget proposal

Harrisburg, Pa. — Governor Josh Shapiro presented his $53 billion 2026-27 budget proposal on Tuesday, highlighting a call for a $15 minimum wage, an increase for education funding, and a framework for legalizing and taxing marijuana.

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The Indiana Gazette Online broke the news in Indiana, United States on Monday, February 2, 2026.
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