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Budget talks loom over Gov. Shapiro’s visit to Lancaster city on Wednesday

  • By Jaxon White/LNP | LancasterOnline
Gov. Josh Shapiro talks about housing during a news conference Inside Lancaster City Housing Authority at “Farnum Street East,” 33 E. Farnum Street, in Lancaster city, on Wednesday, June 18, 2025.

 Blaine Shahan / LNP | LancasterOnline

Gov. Josh Shapiro talks about housing during a news conference Inside Lancaster City Housing Authority at “Farnum Street East,” 33 E. Farnum Street, in Lancaster city, on Wednesday, June 18, 2025.

Gov. Josh Shapiro visited Farnum Street Towers in Lancaster on Wednesday to tout legislation he pitched earlier this year to address Pennsylvania’s housing crisis in his state budget.

The first-term Democrat spoke about his support for sealing certain eviction records, as well as his proposals for an additional $10 million for the Pennsylvania Housing Affordability and Rehabilitation Enhancement Fund, $50 million for new statewide housing repairs, and $10 million for first-time homebuyers.

But once Shapiro opened the floor to reporters, he wasn’t asked about housing. Each question focused on ongoing negotiations surrounding the state budget, which is due before July 1.

Less than two hours before Shapiro took the podium in Lancaster County, Senate Majority Leader Joe Pittman, R-Indiana County, told reporters in the Capitol that there is “no practical way that a budget will be completed on June 30.”

Pittman said there was no “framework of a deal” with Shapiro or House Democrats as of Wednesday. He said dealing with an expected budget deficit is among the major hurdles.

Shapiro’s $51.5 billion budget would spend about $3 billion in funds unspent from the current year budget, and $1.6 billion from its reserves — facts that Republican lawmakers have repeatedly lambasted since the governor outlined his proposal in February.

Asked about negotiations during his visit to Lancaster, Shapiro said he was “heading right back to the Capitol after this conversation we’re having here.”

According to Shapiro, party leaders are “making good progress.” Despite disagreeing on how to address many issues, Shapiro said lawmakers at least agree that some problems must be addressed. He did not specify what those issues may be.

Shapiro also dismissed the idea floated by Senate Republican leaders — including President Pro Tempore Kim Ward, Appropriations Chair Scott Martin and, most recently, Pittman — that lawmakers approve a short-term budget until Congress and President Donald Trump finalize the federal budget, which is expected to include billions for Pennsylvania.

“We have a legal responsibility to pass an annual budget,” Shapiro said, regarding state funding. “We’re not going to do a six-month budget.”

Housing improvements

Shapiro said his housing proposals are “common sense,” adding that his administration has already announced investments in Lancaster County.

Last week, the Pennsylvania Housing Finance Agency announced the state Housing Affordability and Rehabilitation Enhancement Fund would spend $73 million to back 387 housing programs statewide.

That initiative includes $300,000 in renovations to Farnum Street Towers, a 169-unit complex for seniors and people living with disabilities.

Asked about Shapiro’s proposal to increase housing funding this year, Pittman said in a statement that there are many “worthwhile programs” being considered, but that the state budget will not be able to include them all.

Shapiro credited Lancaster state Rep. Izzy Smith-Wade-El, who also spoke at Wednesday’s event, for his work to improve housing accessibility.

Smith-Wade-El ‘s proposal to seal eviction records older than seven years is slated for a House floor vote this month. The second-term Democrat said his legislation could help as many as 30,000 residents statewide access housing.

“The things that we try to accomplish as Pennsylvanians … rely on having a safe, warm, dry home,” Smith-Wade-El said. “And when those things are lacking, we can see the effects in our communities.”

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