In order to move the state budget process forward after Pennsylvania started its new fiscal year on July 1 without a budget in place, Gov. Josh Shapiro said Wednesday he would veto a $100 million appropriation for a scholarship program he supports because it has created an impasse between the Republican-led Senate and Democrat-controlled House of Representatives.
On Friday, Senate Republicans approved a $45.55 billion budget that they said holds the line on taxes while investing in education and job growth, and setting aside money to prevent future tax hikes. The plan also increases the state’s Rainy Day Fund by $500 million, legislators said, bringing the state’s reserves up to the national average.
“Last Friday, the Senate passed a responsible budget that delivers critical funding to our shared priorities and sent it to the House for its consideration,” the governor said. “Now, we stand at an impasse largely over one provision of this budget, PASS Scholarships, a proposal I support that has been passed by the Senate but one that Leader [Matthew] Bradford has made clear does not have the support of the House, where it was voted down in committee on Friday.”
The Pennsylvania Award For Student Success (PASS) scholarship program would provide funding for children in kindergarten through the 12th grade in the lowest 15 percent of schools in statewide performance standards.
“Knowing that the two chambers will not reach consensus at this time to enact PASS, and unwilling to hold up our entire budget process over this issue, I will line-item veto the full $100 million appropriation and it will not be part of this budget bill,” Shapiro said.
The governor urged Democrats and Republicans in the House to now pass the budget bill that has been sent to them by the Senate and send it to his desk to be signed into law.
Budget negotiations are scheduled to continue this week, but without a budget in place, the state must rely on the $15 billion it currently has in the bank.
Even without a set budget plan in place, the state must legally make payments on its debts, as well as cover Medicaid costs, issue unemployment benefits and keep the state police on patrol. If a budget deal is not reached, the Shapiro administration may have to postpone some payments and put off paying for discretionary items like tax credits and some public school aid.