State Rep. Thomas Kutz (R-Cumberland) has commented on the final passage of Pennsylvania’s 2025-26 state budget, which concludes a prolonged period of negotiation in Harrisburg. The approved budget totals $50.09 billion and marks a moderate increase in spending compared to previous years.
Kutz stated, “This year’s budget strikes a responsible balance by protecting the Rainy Day Fund while putting Pennsylvania’s economy on more stable footing. At $50.09 billion, this budget represents a modest increase in state spending. This number is higher than I had hoped, but it avoids new taxes, preserves our Rainy Day Fund, helps energy affordability, and keeps business taxes stable. These are responsible choices that will benefit both our Commonwealth and families here in Cumberland County.”
He emphasized that education funding for local districts such as Cumberland Valley and Mechanicsburg has been restored under the new plan. According to Kutz, these changes reflect ongoing efforts to reform school funding and support educational priorities in his district.
“In the 87th District, this budget restores state education funding to schools like Cumberland Valley and Mechanicsburg School Districts, which will codify the funding reforms I have championed since day one as your state representative and have worked collaboratively with my House and Senate colleagues to achieve,” Kutz said. He added that investments are also being made in childcare recruitment and retention to help young families establish themselves in Pennsylvania.
The budget introduces measures aimed at reducing household costs related to energy by revisiting existing policies that have led to higher utility bills. It also includes permitting reforms designed to speed up approvals and improve transparency through online systems.
“Pennsylvanians will see additional wins in the energy and permitting sectors, where this budget helps lower household costs and improves our business climate,” Kutz noted.
Another feature of the new budget is increased oversight of benefit programs intended for those most in need. The Asset Limited, Income Constrained, Employed (ALICE) Tax Credit Program has been introduced; it offers working Pennsylvanians a credit equal to 10% of their federal Earned Income Tax Credit.
“This plan also strengthens accountability and oversight in benefit programs, ensuring state resources serve those who truly need them,” he said.
Kutz highlighted fiscal stability as a key achievement: “Most importantly, this budget safeguards the Commonwealth’s long-term fiscal stability. By targeting investments that deliver measurable results, it strengthens education, supports families, and promotes economic growth while keeping the Rainy Day Fund intact and maintaining Pennsylvania’s strong credit rating.”
He acknowledged there is more work ahead for future budgets: “While no budget is ever perfect, this compromise reflects Pennsylvania’s diverse interests. Long-term budgeting will require additional conversations in the coming year to ensure progress is made on lasting reforms and spending is appropriated thoughtfully and with the next generation in mind.”
Kutz concluded by expressing optimism about ongoing efforts: “I’m encouraged by the progress this year’s budget represents, and I was proud to cast my vote in support of our Commonwealth’s economic future and our children. By investing in our communities and families, we can continue our work to make Cumberland County and Pennsylvania the best places to live, work, and raise a family.”
