Opening Play of the PA State Budget

Feb 6, 2026

 

MAKE THE NUMBERS LINE UP FOR KIDS

In many ways, putting together a $53.2 billion state budget is like winning at Rubik’s cube – each twist toward matching patterns must be carefully planned or else you could get trapped in a losing game.   

Governor Shapiro released his 2026-27 fiscal plan this week, kicking off the twists and turns of the annual budget contest. He had to unscramble things to close the gap between revenues and expenditures to get each aspect of the budget to line up.

For example, meeting the costs of caring on the elderly and frail adults is rising faster than state revenues are projected to grow. He also had to factor in the devastating impact of President Trump’s “big beautiful bill” that, over ten years, cuts $20 billion in Medicaid funding and forces PA to absorb more of the costs of SNAP. Meanwhile, Governor Shapiro prioritized his own special move to continue to close the education funding gap between higher-income and lower-income school districts.

To be sure, the Governor’s budget Rubik’s cube lines up the dollars by drawing down $4.5 billion from prior years’ surpluses to close the a revenue gap, while leaving more than $3.3 billion in the state’s rainy day account for future years.

In his budget address on the House floor, the Governor also passionately called to raise the state’s measly $7.25/hour minimum wage, drawing bipartisan applause. In a rare display, two Republican senators joined their 23 Democratic senate colleagues in a standing ovation when Shapiro made his case for $15/hour minimum wage. It has been 7,150 days since PA’s 61,000 minimum wage workers received a raise.

Polls show that most Pennsylvanians want the state to meet these core urgent obligations – education, health care, and a livable minimum wage. But in a divided legislature, it’s sport to attack the opponent.

Republican lawmakers decried the Governor’s budget as irresponsible and bloated but proffered no alternatives to afford the services that their constituents value. In contrast, Shapiro proposed taxing video gambling happening in bars, gas stations, and convenience stores, with low-end estimates of $2 billion in new state revenue. He also proposed taxing and regulating adult-use recreational marijuana, which is expected to add another $200 million in recurring state revenue. 

With the budget contest now in full swing, Children First is relying on YOU to make sure our key priorities are in the final package passed in May:

  • $1 billion more for public schools, including school repairs and construction, career and technical education, mental health services, and school safety improvements, with a substantial investment in low-wealth school districts
  • $1 million more to expand access to afterschool and summer programs for children.
  • $47 million more for child care, pre-k, and Head Start, including $35 million to give every child care staff person a $650 bonus to boost their commitment to join and stay in this essential sector that makes it possible for parents to work and businesses to succeed. 

Big policy changes are, more often than not, negotiated in tandem with budget agreements because these are the moments of the most ambitious and intense horse trading. In that regard, Children First is prioritizing:

  • A statewide paid family and medical leave plan, that is already supported by the largest plurality for any measure in the PA House. Thirty state senators have already signed on.
  • New regulations requiring every PA child be tested for lead poisoning twice before they turn two years old. 
  • A statewide ban on cell phones in public school classrooms. 
  • The CARE Package, a suite of bills that keeps communities safe, reduces crime, and builds strong futures for kids by reforming PA’s juvenile justice system.

Improving children’s lives requires strategy, teamwork, and good moves at the legislature. We hope you’re ready to play to win.

Children First’s Donna Cooper was on WURD radio week talking about keeping free pre-k in Philadelphia through the successful soda tax. Listen here!

God, please protect my son when he’s not at home,” prays a Minnesota immigrant mom each time she sends her young son to school.

It’s on the airwaves – the Children First budget analysis!

Take 15 minutes and watch our entertaining budget recap that gives you all the news you need, fast. 

WATCH HERE.

Families across Philadelphia have been
clear: we need greater transparency,
accountability, and community voice in how
our child welfare system operates.
“The Philadelphia Child Welfare Commission
will elevate lived experience, bring the public
into the process, and ensure we are
continuously measuring what’s working – and
what isn’t – so we can better protect children
and support families.”

– Philadelphia Councilmember Nina Ahmad,
on introducting legislation to create the
Philadelphia Child Welfare Commission.