Spends $740 million less than what gov. Total general fund spending of $47. 6 billion for fiscal year 2024 -25, representing a six percent increase in state spending over last year. This budget spends $3. 3 billion more than anticipated revenues to be received within the fiscal year, adding to the structural deficit the commonwealth already faces. The 2024 -25 budget builds on prior year investments with another $100 million available for student mental health services and an additional $20 million increase for county mental health services. · key points pennsylvania ’s $47. 6 billion 2024 –25 budget creates a $3. 6 billion structural deficit. Shapiro proposed in february. This proposed budget carries over the dramatically increased projections for federal funding from fy 2023- 2024 – it is still unclear whether those projections for federal revenue for fy 2023- 2024 came to fruition, as we are still in the budget cycle. After criticizing a 2023– 24 budget that included the right priorities but inadequate funding for them, we wrote that the budget presented by governor shapiro today not only has the right priorities but provides the funding needed to meet them This will exhaust general fund reserves, which will require draining from the rainy day fund—illegally—or raising taxes in 2025–26. As a refresher, the commonwealth has carried a budget surplus in recent fiscal years due to an influx in federal funds from various federal covid-19-related spending programs, not exceptional economic growth or overtaxing hardworking pennsylvanians. · a pennsylvania budget to celebrate. Spending today without regard for the future. Governor shapiro inherited an $8. 1 billion general fund surplus when he took office.

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