HARRISBURG – State Sen. Gene Yaw (R-23) issued the following statement in response to Gov. Josh Shapiro’s proposed 2025-26 state budget, which would increase state spending by $3.6 billion, an increase of 7.5% over the current year’s budget:
“I’m concerned about the governor’s excessive increase in state spending, his overly optimistic future revenue projections and wildly inaccurate future expenditure assumptions. Estimates show his proposal could eliminate the state’s Rainy Day Fund and create the need for a multi-billion-dollar tax increase on Pennsylvania families within a year and a half.
“Foremost, I’m disappointed in the lack of details surrounding a tangible plan for Pennsylvania’s energy sector, failing to address concerns over grid reliability and leaving ratepayers in the dark about their already rising utility costs. It is difficult to take seriously any statement from the governor claiming he wants to help ease the burden of rising costs and maintain Pennsylvania’s position as an energy powerhouse while he remains fixated on RGGI. Under RGGI, no baseload generation facility on the planet will consider doing business here.
“Revenue estimates show that over the next five years, Shapiro’s spending plan would leave a $27.3 billion hole in the state’s finances. We have an opportunity before us to generate a possible $300 million in new revenue through legislation I sponsored to tax and regulate skill video games. I strongly oppose the governor’s suggested 52% tax rate, which will lower revenue projections and impact thousands of small businesses who rely on the games to pay their staff, pay their bills, maintain their establishments and pay for donations that help their communities. In fact, the main victim of the governor’s skill proposal will be our veterans’ organizations such as VFWs and American Legions.
“Lastly, while I’m pleased to see the governor propose additional funding for the Pennsylvania College of Technology to support technical education, workforce development and trade programs, quite frankly, it is not enough. Penn College is setting the standard for quality education and technical training around the world, but many of their programs are beyond capacity and have waitlisted applicants. We need to reign in unnecessary spending and invest more dollars in these programs so that we can ensure we have workers ready to fill the jobs that are available.
“Today’s proposal is only the first step in the process. In the weeks ahead, the Senate Appropriations Committee will hold a series of hearings to closely examine the spending plan to determine how it can be improved.”
CONTACT:
Elizabeth Weitzel
717-787-3280