The state’s fiscal watchdog office has called into question various aspects of Gov. Shapiro’s 2025-26 budget proposal, affirming criticism from conservative state leaders.
PA Gov. Josh Shapiro’s budget proposal for the upcoming 2025-26 fiscal year is facing renewed criticism after an independent analysis revealed discrepancies when held up against the governor’s revenue estimates.
According to the newly released report from the state’s Independent Fiscal Office (IFO), controversial provisions of the governor’s proposed budget will likely not accrue the revenue promised by the Shapiro administration. The IFO, for example, estimates that expanded skill games gambling machines would bring in only about half of what the governor plans.
“The IFO’s projections confirm what we have been saying since the governor proposed his budget: the math doesn’t work,” said Republican state Rep. Jim Struzzi, who serves as chairman for the House Minority Appropriations committee. “The governor is grossly overestimating state revenues while at the same time underestimating predictable spending increases in future years to hide the fact he is raiding the Rainy-Day Fund to balance this and future budgets.”
The IFO report comes on the heels of the state legislature’s budget hearings, in which members of both the House and Senate have grilled Shapiro administration representatives on the proposed budget’s shortcomings. The budget hearing process has only exacerbated political tensions on fiscal policy; one estimate from Senate Republican leadership anticipates the Shapiro budget to cause a funding shortfall of over $27 billion over the next five years.
“The governor’s proposal inflates revenue estimates to disguise the true cost of his unsustainable budget,” stated Nathan Benefield, chief policy officer for the Commonwealth Foundation (CF), in a press release. “By using unrealistic revenue numbers, Shapiro minimizes the devastating deficit his proposal would create.”
“It is irresponsible to deceive citizens with a phony budget full of inflated projections from new taxes. Pennsylvanians deserve a balanced budget and honesty from their leaders. It’s shameful that Shapiro produced neither,” Benefield concluded.
🧵1/ Did you know that @GovernorShapiro has spent more than $1,000,000 of YOUR tax dollars to promote himself on social media?
While families struggle to put food on the table, he's been busy riding jet skis, declaring himself a “Barbie guy,” and making TikTok viewers cringe. pic.twitter.com/SloLhsnedo
— Commonwealth Foundation (@Liberty4pa) March 12, 2025
CF has expressed concerns on numerous occasions that the Shapiro spending proposal would negatively impact taxpayers, with one estimate concluding the cost to cover the governor’s impending deficit would equate to a tax hike of nearly $2,000 per family of four.
The organization also recently took to social media to criticize Shapiro’s controversially lax handling of taxpayer dollars, including $1 million for his personal public relations efforts, $92,000 on upgrades to the governor’s mansion, and $270,000 on air travel.
The topic of Shapiro’s questionable spending habits did not escape notice during legislative budget hearings, as Uri Monson, state budget secretary, faced repeated questioning on matters ranging from Shapiro’s aircraft use to his decision to more than double gubernatorial communications staffers from 12 to 26.
Lawmakers also pressed Monson on Shapiro’s proposed revenue from expanded games of skill and legalized adult recreational marijuana, of which the secretary claimed, “It’s happening already. It’s here.” According to the IFO’s estimates, however, the stream of revenue from marijuana in the upcoming fiscal year would bring in nearly $295 million fewer dollars than the Shapiro budget promises.
