James Urges Fiscal Discipline, Targeted Investments for 2026-27 Fiscal Year Budget

February 4, 2026

HARRISBURG – On Tuesday, Gov. Josh Shapiro delivered his state budget address to outline his $53.26 billion proposal for Fiscal Year 2026-27 – a 5.4% increase in spending over the current fiscal year.

Rep. Lee James (R-Venango/Crawford) released the following statement: “While the governor’s proposal is not as steep as his prior asks, I am uncomfortable with the amount of money he wants to spend.

“The proposal he outlined would transfer $4.58 billion from the Rainy Day Fund to the General Fund to cover the costs of his priorities, a nearly 60% reduction in the fund’s balance. My colleagues and I in the House Republican Caucus worked tirelessly to build up this fund in case of emergencies. The governor wants to use a huge chunk of those dollars to cover for outspending our means.

“He is also calling for new taxes and changes to the current tax structure totaling $1.88 billion in new revenue, primarily generated through taxing skill games and recreational marijuana, while also pushing a minimum wage increase to $15 an hour for non-tipped workers and $9 per hour for tipped workers. As the new Republican chairman of the House Labor and Industry Committee, a government-mandated minimum wage hurts both the free market and Pennsylvanians. Artificially inflating the minimum wage will only raise the costs of necessities for residents and businesses alike, which will harm economic growth.

“The proposed budget includes $18.92 billion for PreK-12 education, an increase of $884
million, or 4.9%, from the current fiscal year. While education funding continues to go up, what are the tangible plans to ensure our students can succeed in the classroom? Just because more money is thrown at this does not correlate to success.

“The governor is also aiming to increase funding for the Department of Human Services (DHS) by $1.36 billion, a 6.6% increase, totaling $21.94 billion. It’s important to ensure those who need help receive it, but we cannot sacrifice our future if the numbers do not align.

“Remember, this is just the start of a long process of negotiations. I would like to see more fiscal discipline on display where targeted investments are made to ensure our core government services are properly funded. Families have to balance a budget every month. It’s no different for us in Harrisburg.”

For more information, visit PABudget.com.

Representative R. Lee James
64th Legislative District
Pennsylvania House of Representatives
Media Contact: Nate Temple
717-260-6396
Ntemple@pahousegop.com
www.repjames.com