PA Budget Supports Schools, Retired Public Servants, Armanini Says

July 12, 2026

HARRISBURG – The 2026-27 state budget approved by the House of Representatives today sets historic levels of education funding and provides a cost-of-living adjustment (COLA) for the pensions of retired police officers and teachers, according to Rep. Mike Armanini (R-Elk/Clearfield).

The $50.8 billion spending plan reflects months of negotiations between the House, Senate and governor’s office. While no budget is without compromise, Armanini said the final agreement includes several priorities that will benefit communities across the Commonwealth while maintaining fiscal restraint.

Importantly, negotiations related to the spending plan also brought about changes to the regulations governing Pennsylvania’s coal industry. The changes are expected to streamline permitting and regulatory processes, making it easier to dig for coal while supporting an industry that continues to provide family-sustaining jobs and affordable energy throughout the region.

“We negotiated this budget in a way that helps working families and does not rely on the Rainy Day Fund to do so. That is a ‘win’ for Pennsylvania,” Armanini said. “We were able to make significant investments in key priorities while also keeping spending growth in check and avoiding broad-based tax increases.”

The budget includes significant investments in education, providing additional resources for schools across Pennsylvania while continuing to support students and teachers. Armanini said ensuring schools have the resources they need, while maintaining accountability for taxpayer dollars, remains an important priority.

The COLAs will be made available for pre-Act 9 retirees in the police and teacher pension systems. The investment of $170 million annually for 10 years recognizes the service and sacrifice of public employees whose retirement benefits have not kept pace with inflation.

The budget incorporates $10 million to address concerns in rural healthcare.

The budget passed by the House and Senate this weekend also sets aside $775 million for road and bridge projects that were previously approved but never started. Armanini said moving those projects forward will help families get where they need to go safely, improve access for businesses and create construction jobs.

“The governor’s wish list totaled $53.3 billion, so I’m thankful we could bring that down to a more reasonable spending total that is within 1.5% of the previous fiscal year,” Armanini said. “It also avoids broad-based tax increases, does not bail out mass transit and keeps the established schedule for the corporate net income tax reduction. Those are important wins for taxpayers and employers alike.”

Armanini expressed concerns, however, about accounting maneuvers that were used to balance the budget. In particular, the state will be deferring a month’s worth of payments to Medicaid’s Managed Care Organizations, potentially creating a financial challenge for the 2027-28 budget.

“Pennsylvania must continue to pursue structurally balanced budgets that protect taxpayers and provide long-term financial stability,” he said. “We also need to do more to promote baseload energy production and make the state more industry friendly.”

The budget now heads to the governor’s desk for his consideration.

Representative Mike Armanini
75th Legislative District
Pennsylvania House of Representatives
Media Contact: Jennifer Fitch
717-260-6563
jfitch@pahousegop.com
www.repmikearmanini.com