Gov. Josh Shapiro’s 2025 budget: By the Numbers

On Tuesday, for the third time as governor, Josh Shapiro presented his budget proposal to the state legislature as part of an effort to bring in new tax revenues while putting the state in a solid financial position. 

Shapiro’s proposed budget estimates $51.5 billion in expenditures, more than 6% higher than his $48.3 billion proposal last year. It is, in part, a continuation of last year’s commitment, showing increased investment in education and rural health and a proposition to legalize and regulate both skill games and recreational cannabis. 

Here are some key figures: 

A $51.5 billion General Fund spending plan

$75 million increase in basic education funding

$526 million investment in the bipartisan adequacy formula

A 20% tax on adult-use cannabis, which would result in $536 million in revenue in the 2025-26 fiscal year under the proposed regulatory framework

$10 million investment in rural hospitals

$368 million in revenue in 2025-26 from the regulation and taxation of skill games

A 1.75% increase in the amount of Sales and Use Tax receipts transferred to the Public Transportation Trust Fund, resulting in an additional $292.5 million for mass transit in 2025-26

4.99% - what the state's Corporate Net Income Tax would be in 2029 if lawmakers agree to expedite the CNIT rate reduction by two years

$36.5 million for the state’s Tourism Promotion Fund to plan and execute 2026 events, including the 250th anniversary of the signing of the Declaration of Independence and the 2026 FIFA World Cup, as well as $15 million for regional event security costs

$1.6 billion transferred from the Rainy Day Fund to the General Fund to cover 2025-26 costs and balance the budget, which would leave roughly $6.4 billion in the Rainy Day Fund if Shapiro’s budget is approved as presented