Gov. Josh Shapiro and Pennsylvania’s politically divided legislature appeared Thursday to begin the state’s fiscal year without a set spending plan, with closed-door talks that drew optimism from Republicans but dismay from Democrats.
For Shapiro, getting his first budget across the finish line is perhaps the biggest test yet of his political skills under the Capitol dome.
Republicans have spoken positively of their discussions with Shapiro, but discussions with Shapiro’s fellow Democrats they have tensed — in part by Shapiro’s side with Republicans on a plan to send $100 million to private schools.
Many Democratic lawmakers have muted their criticism of an emerging budget deal between Republicans and Shapiro, but say it is not being implemented. almost enough money for public schools and oppose the proposed new private school “voucher” program.
The 2023-24 fiscal year begins Saturday, and Shapiro’s signature on a new budget bill is required to maintain full spending authority.
Budget negotiators have revealed little about their private discussions.
“We would like the budget to arrive on time. But more than anything, we would like a budget to make significant investments in the commonwealth that are necessary and needed,” House Appropriations Committee Chairman Jordan Harris, D-Philadelphia, told reporters.
Shapiro has not appeared publicly at the Capitol, instead holding meetings at his official residence in Harrisburg. In a statement Thursday, he acknowledged the division for the first time and pointed the finger at lawmakers.
“After a dozen years of total Republican control of the Legislature, Senate Republicans are having to give more than they’re used to,” Shapiro said. “And after a dozen years in the minority, House Democrats can’t expect to get everything they have. I’ve wanted for the last decade in a budget.”
The state’s massive reserves, built up from inflationary tax collections and federal pandemic subsidies, have made spending decisions easier.
But the past few days have become especially contentious, as a constellation of public school advocates, including school boards and unions, have organized to oppose the $100 million program to pay children to attend private or religious schools.
Under this, a family would get $10,000 to use for private school tuition and fees for grades 1-12.
An eligible student must attend one of the lowest-performing schools in the state’s 15%, based on math and reading scores on standardized tests, and come from a family that achieves less than 250% of the grade level of federal poverty, or $75,000 for a family of four.
The plan passed the Senate Thursday night, 29-21, with all Republicans in favor and all but one Democrat opposed.
Republicans say it will provide better educational options for students in failing schools. Democrats say it will further drive inequality in schools and empower unaccountable, unaudited private and religious schools to choose the students they want and discriminate against the students they don’t.
House Majority Leader Matt Bradford, D-Montgomery, said emphatically Thursday night that Democrats are united against the private school bill and that it will not pass the chamber.
“There are no upvotes, he’s not coming, and if he comes out, he’s going to be defeated,” Bradford told reporters.
Democratic lawmakers also say Senate Republicans’ yet-to-be-released budget bill doesn’t adequately fund public schools, just months after a historic judicial decision which found that Pennsylvania’s public school funding system violates the constitutional rights of students in poorer districts.
Another irritant in budget talks is a House Republican bloc that maintains hundreds of millions of dollars in annual aid to Penn State, Temple University and the University of Pittsburgh.
Without new spending authority by Saturday, the state will be legally barred from making some payments, though a shutdown typically has to last weeks before an effect on services is felt.
In a long-term standoff, the state is legally required to pay down the debt, cover Medicaid costs for millions of Pennsylvanians, issue unemployment compensation payments, keep prisons open and ensure state police are on patrol.
All state employees under Shapiro’s jurisdiction will continue to report to work and be paid under the program, an administration spokesman said.
