Pennsylvania Governor is unveiling a $53.2 billion proposed budget for 2026-27 that aims to outpace projected revenue of $50.8 billion, while eyeing new revenue from potential legalization of recreational cannabis and electronic skill games, though consensus remains uncertain.

The budget address, Shapiro’s fourth, will be delivered in Harrisburg on Tuesday, with CBS News Philadelphia planning to stream the remarks live.

With the 2026 election season underway, the budget could face delays as Shapiro’s reelection bid and legislative races influence timely passage.

Education funding remains a core issue due to a 2023 adequacy ruling, with Democrats pushing for more, while Republicans question spending distribution and effectiveness.

Shapiro highlighted bipartisan support for technology education, volunteer-fire grants, and childcare recruitment/retention, while signaling pressure from Senate Republicans on energy policy and costs.

Energy costs and demand, driven by data center growth, are central to the budget debate, with parties debating measures to lower consumer costs and how to handle policy shifts like cap-and-trade and federal negotiations.

Fiscal pressures cited include underfunded public schools, strained transit, rising human services costs from an aging population, and potential impacts from federal health care and food aid cuts.

The budget process unfolds under a Republican-majority Senate and Democratic-majority House, shaping negotiations and timelines.

A $100 million transfer from reserves would create a Federal Response Fund to back social services amid possible Washington-driven disruptions.

Additional fundraising updates from Lehigh Valley and Central PA reflect competitive district dynamics in PA-07 and PA-10.

The plan uses Rainy Day Fund reserves to address the deficit, drawing over half of the roughly $8 billion balance at once, raising Republican concerns about long-term solvency.

Overall, the proposal frames debates over solvency, revenue-raising methods, and balancing immediate investments with sustainable fiscal policy.