Governor is not letting projected budget deficits stopping him from continued investments in public schools, economic development and infrastructure.But he needs new taxes on marijuana and skill games to get there.

Gov. Josh Shapiro on Tuesday proposed a $51.5 billion state budget, calling for major investments in education and health care. And as Pennsylvania faces a $4.5 billion budget gap, Shapiro also pitched that the state should create new revenue streams — such as legalizing recreational marijuana and regulating skill games — as well as tapping into $1.

Pennsylvania Gov. Josh Shapiro on Tuesday delivered his 2025-26 budget proposal to lawmakers. His plan seeks more money for the poorest public school districts, while emphasizing frugality and pushing for legalized marijuana.