Pa. Senate majority leader predicts budget deadline will be blown

State lawmakers have been scrambling to finalize next year’s state budget by the statutory deadline of June 30. But Senate Majority Leader Joe Pittman (R-Indiana), one of the most important figures in negotiations, says there’s little chance they’ll make it.

“I see no practical way that a budget will be completed on June 30,” he told reporters Wednesday. “We are engaged in conversations, but those conversations have not gone as quickly as we would prefer.”

Pittman added most Pennsylvanians won’t feel any pain.

“On July 1, the sun will come up and I don’t think the good people of Pennsylvania will see any notable difference in their daily lives,” he said.

It wouldn’t be the first time lawmakers have blown a deadline on a spending plan in recent years. That’s in part because of the partisan power divide in state government. Democrats have the governor’s mansion and a narrow majority in the House, while Republicans control the  Senate. 

The dynamic has led to both clashes and compromises.

Pittman expressed some optimism about a deal being reached reasonably close to the deadline, noting some broad agreements exist between Democrats and Republicans. Most importantly, he said, is the consensus that the budget, which currently operates on a deficit, needs balancing.

“I’m encouraged that it seems that all of the parties in the building understand that we do have a structural deficit, and understand that we must figure out a way to deal with that,” he said.

But how to address that could be an issue.

Pittman said there are “two fundamental pillars” that he believes need to be addressed. One is what to do about Medicaid spending, which Gov. Josh Shapiro has proposed increasing by $2 billion

“If that number really is a $2 billion increase, I can tell you there’s not going to be a lot to talk about otherwise,” Pittman said. “If we have to carry that kind of increase, which then parlays into an even greater increase the following year, we have no capacity to do anything in this budget.”

Pittman said potential solutions could include limiting coverage of GLP-1 weight loss drugs like Ozempic, and requiring greater “cost sharing” for more Medicaid enrollees.

Negotiations are happening as members in the U.S. Congress weigh large cuts to Medicaid and food assistance programs like SNAP that could increase the state share of responsibility for the programs.

The other priority for Pittman and Senate Republicans is regulation of skill games, which resemble video gambling machines.

They have proliferated around Pennsylvania corner stores, gas stations and smoke shops and are currently unregulated, which Pittman said has led to both public safety issues and the loss of potential revenue.

What that regulation looks like, however, is still up in the air. But taxing the machines could net the state some money to fill their deficit.

Asked at a separate press conference about Pittman’s assessment, Shapiro provided few details.

“I think we understand the issues that need to be addressed,” he said. “I’m not suggesting we’ve agreed on the answers on how to address them.”

Shapiro added this year’s lift could be lighter than last year’s, when a Commonwealth Court ruling forced lawmakers to reassess the state’s public education funding formula.

Pittman said if a deal could not be reached within a reasonable timeframe after the statutory budget deadline, he’s open to passing a short-term budget that would fund the government and allow lawmakers more time to negotiate.

A spokesperson for House Democrats did not respond to a specific question about the likelihood of the June 30 deadline being blown, but instead pointed to a provided a statement highlighting work Democrats have already done.

“The House Democratic majority is a pragmatic group that has passed numerous budget-related bills to provide for adult use cannabis, to provide working families a raise through an increase to the minimum wage, and to invest in the stability of our energy sector and increase production in the future,” Beth Rementer, a spokesperson for the caucus said in an email.

“We stand ready to send the governor’s proposed budget to the Senate. But we also acknowledge in divided government, we must work together to pass a final compromise,” she added. “We have been waiting patiently to see what the Senate can pass — preferably before or not long after June 30.”

In February, Shapiro unveiled a proposed budget that would have had the state dip into its surplus funds to cover a roughly $1.6 billion deficit. It also included revenue from legal cannabis, which would require the legislature to pass a bill establishing a regulatory framework.

Pittman said that Democratic efforts to legalize cannabis are unlikely to pass this year. Senators in both parties were critical of a proposal that emerged from the House that would have allowed cannabis sold in state-owned stores like liquor.

Funding of public transit has also been a source of contention between Senate Republicans and House Democrats. Advocates have warned that public transit services, especially SEPTA, which serves the Philadelphia area, will likely cut services and raise fares without help from the state. Republicans have generally objected, saying the funding primarily helps those in urban areas, and would have to be paired with funding for roads and bridges throughout the state.

A bill to increase mass transit funding by roughly $300 million passed the House this week. Similar legislation has been passed in the Democratic-controlled chamber before, with no action in the Senate. The bill would also provide $500 million for road and bridge repair.