By Joe Picozzi
Over the past several months, my colleagues and I have worked diligently to craft a responsible state budget that protects taxpayers, avoids new taxes, safeguards Pennsylvania’s financial future, and lays the foundation for long-term economic growth. I fought for a budget that preserves and increases resources for the people of Northeast Philadelphia, and I am proud that this year’s budget reflects progress on the priorities that matter most to our community.
This week, the Pennsylvania Senate approved a $50.8 billion budget for Fiscal Year 2026-27 that reflects those priorities. The budget invests in public safety, education, workforce development, and care for our most vulnerable citizens—all without raising taxes on Pennsylvania families or businesses.
At a time of economic uncertainty, fiscal discipline matters.
One of the achievements I am especially proud of is securing a long-overdue cost-of-living adjustment (COLA) for retired police officers and firefighters. These public servants have not received a COLA in more than two decades, despite years of rising inflation that have steadily eroded the value of the benefits they earned through careers spent protecting our communities. Their service and sacrifice deserve to be recognized.
The budget also provides a COLA for eligible retirees in the State Employees’ Retirement System (SERS) and the Public School Employees’ Retirement System (PSERS) who retired before Act 9.
Education remains one of the best investments we can make in Pennsylvania’s future. This budget increases funding for basic education while making significant investments in the Ready to Learn Block Grant, school facility improvements, and Pre-K Counts—programs I have consistently supported because they help prepare students for success.
Recognizing the importance of early childhood education, the budget also increases Child Care Recruitment and Retention funding by $5 million, bringing the total investment to $30 million to help recruit and retain the childcare workforce that working families depend upon.
Equally important, the budget continues to empower parents by preserving educational choice opportunities. Over the past four years, the Educational Improvement Tax Credit (EITC) program has grown by $275 million, bringing total funding to $680 million and expanding scholarship opportunities for thousands of students.
The House of Representatives proposed changes that would have limited these opportunities by reducing scholarship access and making it more difficult for taxpayers to support the program. I am pleased the Senate successfully protected and restored this critical investment in educational choice.
The budget also strengthens Pennsylvania’s workforce by increasing Career and Technical Education funding by $10 million and restoring $15 million for innovative workforce development programs that connect low-income workers with family-sustaining careers.
Supporting our most vulnerable citizens remains a priority. This budget increases funding for mental health services, nursing homes, and long-term care while providing an additional $12 million for rape crisis services—nearly doubling last year’s investment.
Public safety was another major priority.
As part of the budget package, Governor Shapiro signed my Violent Incident Clearance and Technological Investigative Methods (VICTIM) Act into law. The legislation establishes a new grant program through the Pennsylvania Commission on Crime and Delinquency to help law enforcement agencies hire and retain detectives, modernize investigative technology, and improve their ability to solve homicides and other violent crimes.
Too many violent crimes remain unsolved because departments lack the personnel and technological resources needed to conduct complex investigations. Improving clearance rates is about far more than statistics. It means bringing dangerous criminals to justice, preventing future crimes, restoring confidence in our justice system, and providing long-awaited answers for victims and their families.
The budget also improves transportation infrastructure by directing PennDOT to deploy an additional $775 million for highway projects while increasing transparency regarding funding from the Public Transportation Trust Fund. By doing the latter, we will ensure that our mass transit systems, including SEPTA, will have ample and sustainable funding.
I was also pleased to champion legislation to combat predatory towing practices that have victimized too many motorists, particularly in Northeast Philadelphia. My legislation holds every towing company to the same standards by prohibiting unsolicited towing, limiting how long vehicles may be held, guaranteeing owners access to their vehicles, and requiring transparency regarding towing fees. Repeat violators will face meaningful penalties, including fines, misdemeanor charges, possible imprisonment, and even impoundment of their tow trucks.
For far too long, predatory towing has been an unacceptable burden on hardworking families. This legislation provides stronger protections and greater accountability.
Just as importantly, the budget preserves Pennsylvania’s Rainy Day Fund, leaving an estimated balance approaching $8 billion. Maintaining these reserves will help protect taxpayers and stabilize the Commonwealth’s finances should the economy face future challenges.
Although the budget has now been enacted, our work is far from over. I remain committed to advancing policies that promote economic growth, strengthen public safety, expand educational opportunity, and protect taxpayers.
Together, we can continue building a stronger Commonwealth and a brighter future for the Great Northeast and all Pennsylvanians.
Senator Joe Picozzi represents the 5th Senatorial District in Northeast Philadelphia.