Governor Shapiro’s First Budget Falls Short
Originally published at RealClearPennsylvania
Gov. Josh Shapiro’s first state budget proposal perpetuates unsustainable spending and fails to address the most promising ideas he put forward during his campaign. For starters, his budget calls for $45.9 billion in ongoing General Fund spending – but the state has only $43 billion in net revenues, so the governor is positioning us for a nearly $3 billion annual deficit.
Spending that exceeds revenue is unsustainable and fiscally irresponsible for individuals, businesses, and certainly for government.
In November 2022, the Pennsylvania Independent Fiscal Office (IFO) released revenue and spending projections, showing that the state faces a structural deficit over the next several years. Shapiro’s budget spends even more than IFO projections, exacerbating the structural deficit.
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