In addition to renewing efforts to raise the minimum wage and legalizing marijuana for recreational use, Pennsylvania Governor Josh Shapiro’s proposed budget on Tuesday asks for historically large increases in financing for the state’s transit and public education systems.

Why it matters: Shapiro has proposed spending $48.3 billion for 2024–2025; this is an increase of 6.2% over the previous year, but it does not include tax increases and only uses a portion of the state’s surplus, which is kept at roughly $11 billion.

Creating the news: Shapiro stated in a speech that repairing the state’s dilapidated schools and making sure Pennsylvanians have access to dependable public transit are his top objectives.

Under his plan, basic education funding would be increased to $1.1 billion, with approximately $900 million allocated to “adequacy investment” in the first year to promote greater parity among all districts.
Additionally, the budget proposal would invest $282.8 million, or 1.75% more, on the transport systems, with $161 million going to SEPTA.

Zoom out:The state needs to spend $5.4 billion in K–12 over the next seven years to close the education gap, according to a commission, which is why the governor is emphasizing public education.

Shapiro suggests allocating $300 million for “sustainable” funding to schools in order to renovate their aging buildings and remove hazards like asbestos and lead.

The Philly school district would have financial stability thanks to the expected $247 million rise, according to the district. In the absence of an increase in state support, the district is facing a significant budget deficit.

Zoom in: Shapiro’s budget would raise $1.5 billion over five years by boosting the sales tax allocation, marking the first increase in the state’s support for public transportation in over a decade.

Although SEPTA would have a $240 million deficit when federal pandemic assistance expires in July, if the budget’s financing is approved, Shapiro said, the transit agency wouldn’t have to raise fares or reduce service.

What’s being said is: “We must make concessions. In his speech, Shapiro stated, “To get anything done, we need to give a little.”

The mystery: According to Shapiro, Pennsylvania loses out on $250 million in income annually as a result of its refusal to legalize marijuana for recreational use by adults.

According to Shapiro, $5 million would be set aside for restorative justice programs, and the criminal histories of people detained for marijuana-related offenses would have to be cleared.

What we’re keeping an eye on: Will the budget adoption be delayed?A split government caused a budget standoff last year that lasted for months.