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PA Budget Update: Plan Passed by PA House Would Drastically Increase Spending; Negotiations Ongoing

June 13, 2023

PA Budget Update: Plan Passed by PA House Would Drastically Increase Spending; Negotiations Ongoing

The PA House recently passed a state budget (102-101 along party lines) which would increase spending by $5.7 billion or 14 percent over the current 2022-23 fiscal year. Compared to the $45.9 billion budget proposed by Governor Josh Shapiro, the approved House spending plan increases spending by $1.08 billion over what the governor proposed. The Senate, which returns to session on June 19, is not expected to pass the House plan as currently written. As we previously mentioned and as we get closer to the state budget deadline of June 30, some lawmakers have indicated a disregard for the deadline unless certain priorities are met including, but not limited to, a minimum wage increase and mandatory paid family leave. Proposals to increase the minimum wage include HB 1500 sponsored by Rep. Jason Dawkins (D-Philadelphia) which proposes to raise the minimum wage to $15 per hour and was recently approved by the House Labor & Industry Committee. Additionally, Senator Dan Laughlin (R-Erie) has introduced SB 743 which would increase the wage to $15 per hour and permanently tie it to the cost of living, resulting in automatic increases. As indicated above, these proposals along with the Governor’s budget request for a $15 per hour minimum wage are going to be part of the ongoing budget negotiations. Additionally one proposal to require paid leave, HB 181 sponsored by Rep. Dan Miller (D-Allegheny) and recently approved by the House labor and Industry committee would create a statewide family and medical leave insurance program providing up to 20 weeks of paid leave for employees. This legislation would require all individuals employed in the Commonwealth to make a payroll contribution of up to 1 percent. Additionally, this contribution would be evaluated and could be adjusted annually by the state Department of Labor & Industry and does not have a small business exemption. Stay tuned for additional updates and if you have not already done so, please complete the minimum wage and paid family leave action alerts which can be found here.

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