Governor Shapiro Presents His First Budget Proposal

March 15th, 2023

On March 7, 2023, Governor Josh Shapiro presented his 2023-24 Commonwealth Budget proposal before a joint session of the General Assembly. 
To read Governor Shapiro’s Budget Address, click here.

To watch Governor Shapiro’s Budget Address, click here.
Governor Shapiro’s 2023-24 executive budget presents a combined total operating budget of $117.5 billion, an increase of $4.2 billion or 3.7 percent across all funds and sources. The total operating budget consists of:
  • $44.4 billion in state General Fund expenditures, an increase of $3.3 billion, or 8 percent, after adjusting for proposed supplemental appropriation changes that reduce current year state appropriations.
  • $45.8 billion in federal funds, a decrease of $1.1 billion or 2.3 percent.
  • $3.2 billion in Motor License Fund expenditures, an increase of $52.2 million or 1.7 percent.
  • $2.1 billion in Lottery Fund expenditures, a decrease of $32.7 million or 1.6 percent.
  • $22.1 billion in other special fund expenditures, augmentations and restricted accounts, an increase of $2.0 billion, or 9.9 percent.
The executive budget proposal projects that 2022-23 General Fund revenues will finish $347.5 million higher than the official estimate certified in July 2022, for a total of $43.9 billion. Through the end of February, year-to-date total General Fund revenues were $649.2 million, or 2.6 percent, above estimate.
The General Assembly enacted reductions to the corporate net income tax rate in the 2022/23 budget package. Under current law, the tax rate decreased from 9.99 percent to 8.99 percent effective January 1, 2023, with gradual decreases to ultimately reach 4.99 percent by 2031. The 2023/24 budget does not propose any changes to this rate reduction schedule.
While 2023/24 base revenues are projected to increase by $454 million or 1.0 percent, the proposed tax and revenue modifications would reduce General Fund revenues year-over-year by $697.8 million, or 1.6 percent.
Specific items of interest for municipalities in this year’s budget proposal include:
  • The Pennsylvania State Police would be funded at $1.6 billion for 2023-24, a $93.3 million or 6.2 percent increase over 2022-23. 
  • No PSP Municipal Services Per Capita Fee.
  • The Department of Community and Economic Development (DCED) is proposed to be funded at $191.4 million.
  • $1.5 million, or a 266.3 percent increase, for the Municipal Assistance Program (MAP) to assist local governments with community planning and exploring shared service opportunities.
  • $1.3 million, or a 52.8 percent increase, for the Strategic Management Planning Program and $2 million, or a 44.4 percent increase, in the transfer to the Municipalities Financial Recovery Revolving Aid Fund, both to provide financial assistance to local governments to avoid financial distress.
  • $8.6 million investment in the Keystone Communities program which supports the Main Street/Elm Street programs across Pennsylvania. This represents a 59% decrease over last year’s appropriation.
Source: House Democratic Appropriations Committee