On Tuesday, Governor Josh Shapiro presented his state budget address, proposing a $53.26 billion budget for Pennsylvania’s 2026-27 fiscal year, marking a 5.4% increase in spending compared to the current year.
State Representative Lee James (R-Venango/Crawford) responded with concerns about the size of the proposed budget and its reliance on reserves. “While the governor’s proposal is not as steep as his prior asks, I am uncomfortable with the amount of money he wants to spend,” James stated.
James highlighted that the plan would transfer $4.58 billion from the Rainy Day Fund to the General Fund, reducing the fund’s balance by nearly 60%. He said, “My colleagues and I in the House Republican Caucus worked tirelessly to build up this fund in case of emergencies. The governor wants to use a huge chunk of those dollars to cover for outspending our means.”
The proposal also calls for new taxes and changes to tax structures totaling $1.88 billion in additional revenue, mainly through taxes on skill games and recreational marijuana. It includes an increase in minimum wage to $15 an hour for non-tipped workers and $9 per hour for tipped workers. James commented, “As the new Republican chairman of the House Labor and Industry Committee, a government-mandated minimum wage hurts both the free market and Pennsylvanians. Artificially inflating the minimum wage will only raise the costs of necessities for residents and businesses alike, which will harm economic growth.”
Education funding would rise under Shapiro’s plan, with $18.92 billion allocated for PreK-12 education—a 4.9% increase over last year. James questioned this approach: “While education funding continues to go up, what are the tangible plans to ensure our students can succeed in the classroom? Just because more money is thrown at this does not correlate to success.”
The Department of Human Services would see a 6.6% increase, bringing its total funding to $21.94 billion. James added, “It’s important to ensure those who need help receive it, but we cannot sacrifice our future if the numbers do not align.”
He concluded by emphasizing fiscal responsibility: “Remember, this is just the start of a long process of negotiations. I would like to see more fiscal discipline on display where targeted investments are made to ensure our core government services are properly funded. Families have to balance a budget every month. It’s no different for us in Harrisburg.”
James represents Venango County and part of Crawford County in Pennsylvania’s 64th Legislative District official website. He serves as chairman of both the House Tourism, Recreation and Economic Development Committee official website and participates in community service through local advisory boards such as Venango College and Boy Scouts of America French Creek Council official website. His background includes more than four decades in banking and investment management official website, supporting his efforts toward regulatory streamlining for job creation and economic growth official website.
For further details about Representative Lee James or legislative updates, visit www.repjames.com.
