Pennsylvania Gov. Josh Shapiro discusses his new memoir, "Where We Keep the Light: Stories from a Life of Service", at the 92nd Street Y on Tuesday, Jan. 27, 2026, in New York. (Photo by Evan Agostini/Invision/AP)

Gov. Josh Shapiro, in his fourth year in office, presented his 2026-27 budget proposal to the General Assembly Tuesday.

The budget — about $53.2 billion — is balanced, does not raise taxes, and does not rely on any broad-based tax increase over the next five years, ensuring long-term stability while continuing to deliver results to Pennsylvanians, he said.

“From day one, my administration has been laser-focused on delivering results for the people of Pennsylvania – and what we’re doing is working,” Shapiro said.

“By listening to Pennsylvanians and working together, we’re solving problems and proving that government can be a force for good in people’s lives.”

Once again, the noise in the Capitol was loudest when Shapiro called for legislators to put a bill on his desk on raising the minimum wage. Twenty five senators rose to applaud the request.

“Our minimum wage in Pennsylvania has been stuck at $7.25 for the last 16 years,” he said.

“Every single one of our neighboring states — four of six — are at $15 an hour. Ohio is on its way. Even West Virginia is ahead of us.”

“Minimum wage legislation has been passed twice and each time despite the fact there are 25 votes in the Senate, the Senate has refused to act.”

Shapiro projected increasing minimum wage could end up saving $300 million on entitlement programs like Medicaid. “Put a minimum wage bill on my desk and I will sign it.”

The budget proposed funding for 2,000 additional police officers to be on the beat and expanding afterschool and community-based violence intervention programs.

“These efforts are delivering results — violent crime is down 12 % statewide and fatal gun violence has dropped 42 %, helping communities across Pennsylvania feel safer and more secure.”

Agriculture focus

Shapiro credited Secretary of Agriculture Sec. Russell Redding for leading the Ag Innovation Fund – a plan to invest in 88 projects in 45 counties, giving farmers tools they need to succeed and $100 million for startups as part of Innovate in PA 2.0.

Data centers

Shapiro touched on the exponential growth of data centers and artificial intelligence.

He acknowledged there are real concerns about the data centers and their potential impact on utility bills and the environment, but said the state will ensure these companies are held to strict standards, making them bring their own power generation or paying entirely for the new generation they will need and not saddle homeowners and businesses with the added cost.

Moreover, the data centers will be required to commit to the highest environmental standards, especially water conservation and if the companies adhere to these principles, they will be able to unlock the benefits, including speedy and certainty in the permitting process.

Additionally, such data centers will be held with strict transparency standards and be required to have direct community engagement and these companies will be required to hire and train local Pennsylvania workers, he said.

Getting stuff done

Shapiro noted how in the past three years Pennsylvania has created over 21,500 new jobs, added $39 billion in private sector investment — which is more than in the past 15 years combined. In his proposal, Shapiro estimates that Pennsylvania will receive $729.4 million in revenue during the fiscal year by legalizing adult-use cannabis effective July 1. This includes $36.9 million in revenue from the 20% tax on the wholesale price of products, another $36.9 million from the sales and use tax on retail sales, and $659.6 million from license fees.

“What this budget does do is finally regulate and tax skill games and pass comprehensive cannabis reform,” Shapiro said.

“District Attorneys from across the Commonwealth are calling on us to regulate skill games and finally provide law enforcement with clear guidance. We’re putting our communities at risk and losing out on billions of dollars in revenue by doing nothing on both.”

In terms of joblessness, the state’s unemployment rate has stayed below the national average for 31 straight months, and has become the only state in the Northeast with a growing economy, he said.