HARRISBURG – Sen. Dan Laughlin (R-49) supported a responsible state budget today that stands up for taxpayers, doesn’t raise taxes on Pennsylvania families, supports affordability and job growth, and greatly benefits the residents of Erie County.
“This budget is not perfect, but it represents a responsible compromise that protects taxpayers, preserves our reserves and directs substantial new resources toward the services people depend on,” Laughlin said. “Most importantly for Erie County, it brings more than $20 million in additional state education funding into the 49th Senatorial District while also strengthening nursing homes, mental-health care, victim services, childcare workforce development and transportation infrastructure.”
Gov. Josh Shapiro originally proposed a budget that would have increased spending by $2.7 billion (5.4% increase) and taken approximately $4.6 billion from the state’s emergency reserves in the Rainy Day Fund. His plan would have required massive tax increases as soon as next year.
The final agreement cut more than $1.1 billion from the governor’s spending request and will not require any withdrawals from the Rainy Day Fund, setting the state on a more sustainable path and avoiding potential bond downgrades and higher debt costs.
Some Key Investments Directly Impacting Erie County
The budget delivers a long-awaited cost-of-living adjustment for SERS and PSERS members who retired before July 2, 2001, helping older public employees and school retirees whose pensions have not kept pace with rising costs. The COLAs took effect July 1, with annual costs of approximately $38.4 million for SERS and $88.8 million for PSERS, funded by the commonwealth rather than local school districts.
The budget also maintains $5 million for neurodegenerative disease research, supporting work focused on ALS, Alzheimer’s disease, Huntington’s disease, Parkinson’s disease and other devastating neurological conditions. It also continues a dedicated share of Tobacco Settlement research funding for biomedical institutions studying these diseases.
A 3.9% rate increase was appropriated for LIFE Program providers, representing approximately $3.5 million in additional state funding to help community-based organizations continue serving seniors who require nursing-home-level care while allowing them to remain safely in their homes and communities.
State support for rape crisis programs nearly doubles, increasing by $12 million to approximately $24.2 million. This strengthens services available to victims and survivors in Erie County.
Across the 49th District’s 12 public school districts, the budget provides approximately $331.6 million in total education funding — $19.2 million more than the 2025-26 fiscal year. The education funding total includes the estimated basic education funding, special education funding and ready-to-learn block grant allocation, and the increase is driven primarily by the latest phase of adequacy and tax-equity funding.