April 9, 2026
Pennsylvania’s FY 2026–27 proposed budget raises spending while leaving core tax rates largely unchanged, despite a growing structural deficit. To stay balanced, it relies heavily on one-time Rainy Day Fund dollars and assumes major new revenues from proposals like adult-use cannabis, skill games, and corporate tax changes that have not yet been enacted. That means the budget may reduce pressure in the short term, but it does not provide a fully sustainable or certain long-term revenue solution.