Pennsylvania’s six billion-dollar budget surplus is gone, and now the state is expecting a billion-dollar deficit by next year. The Independent Fiscal Office yesterday said Pennsylvania’s new budget will put the state in the red for the 2025-2026 state budget. The IFO says Pennsylvania is spending more than it is bringing in. Their report says state revenues are expected to grow at about one-and-a-half percent, while spending is set to grow by over five percent. Lawmakers in Harrisburg say that means there will either be budget cuts or tax increases.
