PA Governor's $48B Budget: Medical Debt Relief, Recreational Marijuana, and More

In a bold move, Pennsylvania Governor Josh Shapiro has proposed a $48 billion budget that could reshape the state's future and alleviate the burden of medical debt for its poorest residents. The budget, unveiled on February 12, 2024, includes funding for the Pennsylvania State Police, changes in higher education, and the legalization of recreational marijuana and skill games.

A Budget for the Future

Governor Shapiro's budget proposal seeks to address longstanding concerns about the state's reserves while still leaving $11 billion in the rainy day fund. The plan, which totals $48.3 billion in general fund spending and $125 billion in total spending across all funds, includes increases in basic education subsidies, transportation, state-owned colleges and universities, and gun violence prevention.

$1.1 billion increase in basic education subsidies

$282 million for transportation

$125 million for state-owned colleges and universities

$100 million for gun violence prevention

The Medical Debt Relief Plan

One of the most striking aspects of the budget is the proposal to use $4 million in taxpayer money to clear up to $400 million in medical debt for Pennsylvania's poorest residents. This plan mirrors a bill introduced by state Rep. Arvind Venkat and aims to alleviate the financial burden of medical debt, which can negatively impact credit scores and financial stability.

Eligible individuals would qualify if their annual income is at or below 400% of the federal poverty limit or the amount owed is 5% or more of their income. RIP Medical Debt, a Boston-based nonprofit, estimates that there is potentially $3.3 billion of qualifying medical debt belonging to 1.4 million people held by commonwealth health care providers.

Legalization of Recreational Marijuana and Skill Games

In a controversial move, Governor Shapiro's budget proposal includes the legalization of recreational marijuana and skill games. If passed, the legalization is expected to generate nearly $200 million in revenue for the 2024-2025 fiscal year.

Despite criticism from Republicans, Shapiro remains confident that his seven-year budget proposal addresses concerns about the reserves and would still leave ample funds in the rainy day reserve. However, the Independent Fiscal Office has warned of a cumulative structural deficit of over $16 billion through 2028-29.

As Pennsylvania faces the challenges of the future, Governor Josh Shapiro's $48 billion budget proposal seeks to balance the need for investment in key areas with the responsibility of maintaining financial stability. The legalization of recreational marijuana and skill games, along with the medical debt relief plan, could have far-reaching implications for the state and its residents.