As Shapiro Acknowledges Need To Stabilize Against Federal Cuts, Revenue From Billionaires and Corporations Could Close $5B Gap
HARRISBURG – This morning Governor Shapiro released his budget proposal, acknowledging the need to protect vital programs for working people against federal instability and proposing a $100 million “Federal Response Fund,” but failing to raise new revenue from the wealthiest Pennsylvania corporations and billionaires.
Following Governor Shapiro’s budget address, the Tax Billionaires, Fund PA campaign released the following statement:
Ray Murphy, co-leader of Pennsylvanians for Accountability from Yass, Billionaires and Corporations (PAYBAC) which leads the Tax Billionaires, Fund PA campaign, said: “The federal ‘Big Beautiful Bill’ creates a multi-billion dollar hole in the budget. While the Governor acknowledged the need to shore up essential programs threatened by federal cuts, we’re disappointed he didn’t tap into the substantial revenue available from Pennsylvania’s wealthiest corporations and billionaires, which could solve the $5 billion per year hole and protect lifeline programs like healthcare and food access that are being gutted by the federal budget bill. Drawing billions from the Rainy Day Fund helps stem immediate harm, but what Pennsylvania needs are recurring, sustainable income streams, like raising revenue from the wealthiest corporations and billionaires at the very top.”
TAX BILLIONAIRES, FUND PA PLAN:
The Tax Billionaires, Fund PA package, backed by a broad coalition of legislators, community and labor groups, would close the gap created by federal cuts and raise nearly $7 billion in revenue this year alone:
Closing corporate tax loopholes = ~$1.5 billion revenue generated
HB1610 | Reps. Elizabeth Fiedler and Mary Jo Daley
Senate cosponsorship memo | Sens. Katie Muth, Nikil Saval and Lindsey Williams
Making Big Tech pay for digital ads cluttering our screens = ~$500 million revenue generated
HB 1678 | Reps. Elizabeth Fiedler, Aerion Abney, and John Inglis
Senate cosponsorship memo | Sens. Lindsey Williams, Nikil Saval, and Katie Muth
Taxing billionaires’ unearned income = ~$4.8 billion
House cosponsorship memo | Rep. Rick Krajewski
Senate cosponsorship memo | Sens. Nikil Saval, Katie Muth and Lindsey Williams
FEDERAL CUTS CREATED PENNSYLVANIA’S BUDGET SHORTFALL:
President Trump and Congress’ One Big Beautiful Bill Act (OBBA) will cost Pennsylvania about $46 billion over the next ten years, approximately $5 billion annually, in order to meet new federal mandates and make up for federal cuts, which most deeply impact SNAP and Medicaid, long-standing federal programs that support children, people with disabilities, and low-income people. New $5 billion spending will be required next year (FY 27-28), with $2 billion required this year (FY 26-27).
The OBBA requires Pennsylvania’s state budget to annually fund, starting this year:
$62 million to implement new Medicaid work requirements,
$125 million for the SNAP food assistance program.
Another $1.5 billion would be needed this year in order to:
Prevent electricity rate increases,
Restore Medicaid and SNAP access for immigrants, and
Cover subsidies that made ACA healthcare (Pennie) affordable.
All of the OBBA-driven funding needs are in addition to longstanding state priorities such as increasing the state’s share of public education funding ($4 billion more per year) and consistent public transit funding ($590 million annually). Given the state’s Independent Fiscal Office projects a structural deficit, further additional revenue will be needed.
