How Are Public Money & Resources Decided in PA?

In Pennsylvania (like in other states), lawmakers and public officials, who we elect, decide as a team how to spend the state’s budget. Every year, Pennsylvania legislators have the responsibility of deciding how state funding is divided between different priorities. This is called the state budget.

Most state budget money comes from taxes, including:

• Personal income tax

• Sales tax

• Corporate taxes paid by businesses

• Fuel taxes

• Other state taxes and fees

Most of Pennsylvania's budget comes from taxes, but billions of dollars also come from federal funding, fees, lottery revenue, and other sources. 

A budget is a moral document. By looking at what is funded (and what isn’t) you can understand what programs and services the government is prioritizing for your communities. Just like how you prioritize things in your own personal budget, the state budget can show how our legislators are morally prioritizing what state agencies and services get more funding than others. When you understand this, you can feel empowered to voice your opinion about what you think should be prioritized.

The budget covers many ways in which the state brings revenue in, and most importantly, how it’s spent. The state budget helps pay for services people across Pennsylvania use every day, including:

• Public schools: Teachers, school buildings, buses, classroom supplies

• Roads and bridges: Repairing highways, potholes, bridges

• State parks and forests: Maintaining state nature trails, playgrounds, and protecting Pennsylvania's natural spaces like rivers.

• Public transportation: Helping fund buses, trains, and transit systems like SEPTA

• Health and human services: Programs that help children, senior adults, people with disabilities

• Libraries and museums

• Elections: Printing ballots, training poll workers, maintaining voting equipment

• Environmental protection: Keeping drinking water clean, protecting wildlife, reducing pollution

• Veterans' services: Programs that support veterans and their families with healthcare, housing, education, and other resources.

Who Decides?

The budget is a team effort between Pennsylvania's Governor and the General Assembly (made up of the State House of Representatives and the State Senate). The goal is for the General Assembly to create and pass a budget bill and the Governor to sign it into law before the annual June 30th deadline.

The Process

• The Proposal: The Governor announces a budget proposal to the General Assembly in early February, every year. The budget proposal outlines how the state could spend money during the next year.

• The Review: The General Assembly (Pennsylvania House Representatives and Senators) reviews the proposal and holds public hearings.

• Negotiation & Passage: Pennsylvania House Representatives and Senators discuss, make changes, and eventually vote on a budget bill.

• Signing into Law: The Governor reviews the budget bill that was passed by the General Assembly and signs it into law. The Governor can also reject the whole bill, known as a veto, or strike out specific parts.

Pennsylvania’s state budget process happens every year with Pennsylvania's fiscal year starting July 1 through June 30. If lawmakers miss the deadline, a "budget impasse" occurs, pausing some state payments until a deal is made.

Why Does It Matter?

Understanding the state budget helps us understand our state government’s priorities, as the budget determines how much is spent, or not spent, on state programs and services for the people of Pennsylvania. Even small cuts can have a big impact!

All eligible voters in Pennsylvania have the ability to vote for our General Assembly members every two years. Pennsylvania’s entire House of Representatives are on the ballot every even year, and Pennsylvania’s State Senators are staggered, with even and odd districts alternating every two years. Pennsylvania voters have the power to elect our Pennsylvania House Representatives and State Senators who make decisions on how state funding is prioritized.

With this information, you can decide how you want your voice to be heard to influence these decisions.

How Can You Make Your Voice Heard?

You don't have to wait until Election Day to get involved. You can:

• Contact your state representative or state senator. https://www.palegis.us/find-my-legislator

• Attend public meetings or budget hearings.

• Share your ideas with local leaders and your community.

• Join local community groups and get involved with grassroot organizations (like New PA Project Education Fund!) working on issues you care about.

• Vote in every election, twice a year (Primary election in the Spring, and General Election in the Fall) if you are eligible.

When we learn about the state budget and speak up, we help shape the decisions that affect our communities!