Pennsylvania to begin new fiscal year without budget, as Shapiro, lawmakers express optimism
Associated PressHARRISBURG, Pa. — Work by Pennsylvania lawmakers to complete a new budget was on track to blow into the new fiscal year, with Democratic Gov. For Shapiro, it will be his second straight budget that failed to get across the finish line by the constitutional deadline of July 1 in Pennsylvania’s politically divided government. The consequence of failing to get Shapiro’s signature on a new budget bill is losing some of the state’s spending authority, particularly on discretionary payments, such as those to vendors, counties, public schools and grant applicants. In a budget stalemate, the state is still legally bound to make debt payments, cover Medicaid costs for millions of Pennsylvanians, issue unemployment compensation payments, keep prisons open and ensure state police are on patrol. For now, the state’s main bank account is flush with roughly $15 billion, and a Treasury Department spokesperson said the agency was working with Shapiro’s administration to ensure the state makes its legally required payments should the fiscal year start without a signed budget bill.
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