Pennsylvania Governor Josh Shapiro discusses how his budget proposal will impact Pittsburgh
PITTSBURGH (KDKA) - Governor Josh Shapiro proposed a budget of more than $51 billion. Now he is making the push to get it passed by the state house and senate.
In speaking one-on-one with KDKA, Gov. Shapiro touted investments in our region, citing Pittsburgh as an economic hub for the state.
Some of the places the governor says we can expect to see some of this money are investments in schools, safety, mass transit, and economic development. For Pittsburgh-area schools, Mr. Shapiro said it received a budget increase of $26 million more this year than prior years.
A $40 million increase in public transit is also in his proposed budget for the region.
"There's really extraordinary opportunity. I'm bullish on Pittsburgh. I love the community, and we are going to keep investing in it," Gov. Shapiro said.
There are concerns from Republicans in the legislature as the projected revenues are not meeting the projected expenditures. Currently, the budget's revenue is a little less than $5 billion from its projected income.
Part of the governor's plan for this shortfall is to legalize marijuana. He said it can raise $1.5 billion over the next five years. Along with taxing revenue skill games that you see in bars, clubs, and convenience stores. While Shapiro struggled with the idea of legalizing weed, he says we are missing out on what our neighbors are making money on.
"If you go over to the dispensary in Ohio, 60% of the clients there are from Pennsylvania," Governor Shapiro.
That still leaves some need for revenue.
The idea for this budget is to take some money from the reserves which currently hold $10 billion between the rainy-day fund and general fund surplus. The surplus would be gone and a little more than $1.5 billion would come out of the rainy-day fund.
"There are times when you want to grow use some of your savings because it's better to invest and to grow the economy. That's what we're doing in Pennsylvania," Gov. Shapiro said over Zoom.
When asked if legalizing marijuana fails, he answered with the need to compromise on the budget to make it work. With colleges, Pitt, Penn State, and Temple will have a merit process. One example would be paying them for grads who stay in the state. The proposal has $60 million for this.
"We think that's really important that we incentivize our higher education institutions to do the things that are necessary and to graduate the people in the fields that we need," Gov. Shapiro said.
Another issue the governor is pushing for is the raising of the minimum wage. He said Pennsylvania is lagging behind neighbors who have already raised it. The budget needs to be done by the end of June.
WATCH: Governor Shapiro discusses working with Trump Administration
KDKA also discussed a couple of national issues with the governor. Those included the deportation efforts started by President Trump and tariffs and what they could mean for us in Western Pennsylvania.
In tackling immigration, the president promised the largest deportation operation in the country's history. It's sent shockwaves through many communities including several ethnic groups in our region. According to the governor, if someone has committed a crime they should be sent out.
"The federal government as they did under the Biden administration needs to work to take those people out of the community. That is what we are seeing now," Gov. Shapiro said.
For concerns about ICE raids at schools, houses of worship, and work, the governor says there is some fear when people are just rounded up.
"It is my hope that as the Trump administration further develops their policy their focus is on the criminals in our community and not the law-abiding citizens," the Democratic governor said.
With the ongoing threats of tariffs to other countries, Governor Shapiro says any tariffs will drive up the cost of goods. He was pleased to see they were called back.
"I think tariffs can be really dangerous when it comes to consumer costs because all they serve to do is jack up the cost for consumers," Gov. Shapiro said.
Beyond prices, the governor said any tariff would have a trickle-up effort on job creation. It could drive new potential workplaces away.
"I would hope the president would rethink his approach to tariffs because I think it's really going to hurt us in Western Pennsylvania," Gov. Shapiro said.
While the governor said he hasn't spoken to the president or vice president directly yet, he has worked with their administration and is hopeful to work with them on issues going forward.
