HARRISBURG – Senator Dan Laughlin (R-49), today expressed concerns about Gov. Josh Shapiro’s $53.3 billion budget for fiscal year 2026-27, calling for a more responsible spending plan and action on cannabis and skill game regulation.
“Gov. Shapiro’s budget spends too much, relies on unapproved revenues, and steers the state closer to a massive tax increase,” Laughlin said. “Enacting his 5.4% spending increase would take more money from families still struggling with inflation.”
The budget adds $2.7 billion in spending and draws $4.6 billion from the Rainy Day Fund. Laughlin said depleting emergency reserves is not sustainable and criticized a $100 million transfer to a federal response fund as more political than practical.
“Thanks to Senate Republicans, previous proposals that would have required painful tax increases were scaled back,” he said. “We will continue to hold the line and provide a fiscally responsible budget that protects Pennsylvania families.”
The budget counts on nearly $1.9 billion from a mix of new revenue sources, including combined reporting, expanded skill game taxes, cannabis legalization and a proposed minimum wage increase. Laughlin said he supports raising the minimum wage and has introduced legislation three times to do so. He also stressed the importance of regulating cannabis.
“Pennsylvania is losing tax revenue and jobs to neighboring states that have legalized adult-use cannabis,” he said. “Prohibition isn’t stopping use—it’s preventing regulation and state revenue.”
Laughlin pointed to Senate Bill 49, which would create a Pennsylvania Cannabis Control Board to oversee adult-use cannabis and intoxicating hemp products.
“SB 49 ensures consumer safety, testing, responsible marketing, and strong age restrictions,” he said.
He also called for regulation of skill games.
“Skill game parlors are popping up on nearly every corner, and Pennsylvania looks like the wild west,” Laughlin said. “We need rules, fair taxation and strong consumer protections.”
The budget proposes expanding the Video Gaming Terminal tax to skill games, generating $765 million in 2026-27. Laughlin emphasized fairness for casinos.
“Presque Isle Downs paid $50 million for a slots license and is taxed at 54%,” he said. “Unregulated gaming competing with them creates an uneven playing field and threatens thousands of good paying jobs and revenue.”
Laughlin also raised concerns about Human Services and Corrections spending, which he said underestimate real costs and obscure future financial challenges.
“The Human Services budget is projected to grow far less than historical trends, and Corrections spending is rising even with facility closures,” he said.
He praised the exclusion of the proposed RGGI electricity tax, which he said benefits working families.
The Senate will begin budget hearings in the coming weeks.
CONTACT: Chris Carroll, 814-453-2515