The 2026-27 Pennsylvania state budget signed by Gov. Josh Shapiro includes record investments in education, workforce development and public safety, while maintaining an estimated $8 billion reserve, a move state officials say balances new spending with long-term fiscal stability.
The $50.85 billion spending plan increases funding for public schools by more than $678 million, including $565 million through the state’s adequacy and tax equity formula, $58 million for basic education and $55 million for special education. The budget also continues universal free breakfast for Pennsylvania’s 1.7 million public school students and funds free menstrual hygiene products in schools.
For South Philadelphia families, the education investments could benefit schools within the School District of Philadelphia, which has received significant increases in adequacy funding in recent years.
On July 14, Shapiro, Philadelphia Mayor Cherelle Parker, Pennsylvania Department of Education Secretary Dr. Carrie Rowe, teachers, students, and local elected leaders visited Vare-Washington Elementary School in South Philadelphia to highlight how the 2026-27 budget.
“For schools like Vare-Washington Elementary School in Philadelphia and all across Pennsylvania, the impact of Governor Shapiro’s commitment to funding public education is not theoretical. It is tangible,” said Secretary of Education Dr. Carrie Rowe. “With another balanced, bipartisan budget, we’re doing more than funding schools. We’re investing in millions of individual stories — the child who starts the day with a healthy breakfast, the student who discovers the joy of reading, the young person who finds hope after a difficult day because someone was there to help. And that’s how we invest in Pennsylvania’s future.”
The budget also includes $10 million more for career and technical education programs, bringing annual workforce development funding to $193 million. Additional money will support child care worker recruitment, student teacher stipends and nursing and optometry training programs to address statewide workforce shortages.
Economic development initiatives include $125 million to launch the Innovate in PA 2.0 program, aimed at helping startups, expanding life sciences research and attracting private investment. The spending plan also maintains $20 million for the Main Street Matters program, which supports commercial corridor revitalization projects that could benefit neighborhood business districts such as East Passyunk Avenue and South Street.
Public safety funding includes money to train four additional Pennsylvania State Police cadet classes, continue violence prevention grants, expand after-school programming and increase funding for rape crisis centers and county child welfare services. The budget also provides dedicated state funding for the 988 mental health crisis hotline and mental health walk-in centers.
Transportation projects will receive $775 million over the next two fiscal years for state-owned road repairs, while older Pennsylvanians will see increased funding for aging services and oversight programs. The budget also continues tax relief programs, including the Property Tax/Rent Rebate Program and the Working Pennsylvanians Tax Credit.
“From day one, my Administration has been laser-focused on delivering results for the people of Pennsylvania — and what we’re doing is working,” Shapiro said in a statement. “In a divided legislature, we’ve proven time and again that Democrats and Republicans can come together to get stuff done for the good people of Pennsylvania.”
Lt. Gov. Austin Davis said the bipartisan budget “puts more money back into Pennsylvanians’ pockets while making strategic investments to keep our kids and communities safe.”
State Sen. Nikil Saval, whose district includes parts of South Philadelphia, said the budget makes “strides to support Pennsylvanians at all moments of their lives,” citing increased funding for child care workers, education, teachers, nursing homes and tax relief for working families.
But Saval, who voted against the budget, argued lawmakers failed to address several major issues, including long-term funding for SEPTA and other public transit systems, affordable housing and rising energy costs.
“This budget could have moved the needle on some of the most pressing issues of our times; instead, this is a budget of missed opportunity,” Saval said. “We will fully and permanently fund transit agencies across the commonwealth.” ••
