A new report from the Commonwealth Foundation has found that Pennsylvania Gov. Josh Shapiro’s inaugural budget, while still incomplete, is already projecting a $900 million deficit.
On Wednesday, the Commonwealth Foundation released its analysis of the weeks old budget. The foundation said that while Shapiro approved a nearly $45 billion budget for general fund spending, approximately $1.1 billion of the proposed spending requires additional legislation to pass before programs can be funded, and that the budget is on track to spend $900 million more than ongoing revenue.
“Gov. Shapiro is already overseeing the least productive legislative cycle in the last 50 years,” said Nathan Benefield, Senior Vice President of the Commonwealth Foundation. “Not only does the budget remain woefully unfinished, but it lacks the expansion of educational opportunity that Gov. Shapiro promised. Pennsylvanians have every reason to be skeptical of the governor’s ability to lead effectively in divided government.”
While the state has passed the budget, basically a spending list, the foundation said, there is no legislation to implement much of the spending or directing the revenue side of the budget. Essentially, the state has no official “financial statement” or balance sheet.
The foundation said the state is still awaiting the passage of fiscal code, administrative code to reform regulations and permitting, welfare code and tax code. Without tax code, the governor’s proposal to accelerate the reduction of corporate net income tax (CNIT) rates, legislation to expand Net Operation Loss provisions and a proposal by the governor to eliminate taxes on cell phone usage are all in limbo, awaiting action.
“Gov. Shapiro is touring the state claiming ‘mission accomplished’ to cover up for an incomplete budget and his inability to deliver on campaign promises and break the dysfunction that has defined his tenure in Harrisburg,” Benefield said.