Budget & Taxes (State Budget)

Pennsylvania House Bill 2735 updates the Public School Code of 1949 to restrict school districts from increasing real property taxes unless their projected ending fund balances meet specific limits. The bill establishes a sliding scale where larger districts with higher total budgeted expenditures must maintain lower percentages of committed, assigned, and unassigned funds compared to smaller districts. To ensure compliance, each district that approves a tax increase must submit certification data to the Department of Education by August 15 of each year starting in 2027.

SB 134 proposes a constitutional amendment to limit Pennsylvania's annual state spending. It would require total state spending (excluding federal funds) to stay near the previous year's level, adjusted for either personal income growth or inflation plus population change. Exceptions allowing higher spending include emergencies (approved by a two-thirds vote in both legislative chambers) or other cases with advance gubernatorial request and a two-thirds legislative vote. This amendment directly affects all state budget decisions and would require voter approval after legislative passage.

HB 1085 amends Pennsylvania's Motor License Fund allocation rules for the Pennsylvania State Police. It sets a 2025-2026 funding cap at 68% of the 2016-2017 level ($125 million) and eliminates all future appropriations for this purpose starting in fiscal year 2026-2027. The bill directly affects the State Police budget and the Motor License Fund, which is funded by vehicle registration fees. This is a procedural budget adjustment with no new policy changes, solely modifying existing funding levels.