Pennsylvania finally has a state budget. Here is what’s in it for Centre County
Pennsylvania adopted a $50.1 billion budget Wednesday, four and a half months overdue. The state was the last in the nation to approve even short-term funding for the 2025-26 fiscal year.
In Centre County, like elsewhere in the commonwealth, the monthslong funding lapse lost school districts tens of thousands in interest revenue, put nonprofit service providers in a financial bind and forced the county government to spend millions in reserve funds. Additionally, food banks were left hanging by the state as the federal shutdown, which also ended Wednesday, left federal Supplemental Nutrition Assistance Program, or SNAP, recipients without aid.
The end of the state budget impasse means school district and social service funding will be restored — Gov. Josh Shapiro said his office would work to “immediately” distribute funds — though many will be left to refill their reserves or pay off loans. The budget erases interest payments for loans from the state, however.
Here is what else the new state budget means for Centre County.
Marginal increases for school districts, with a boost from cyber charter reform
Centre County’s seven school districts altogether received about $91 million in basic education funds, an increase of $1 million over last year’s totals. How the funds are used is largely at the discretion of the school district. An overhaul of how Pennsylvania’s semi-private cyber charter schools are funded, however, is expected to juice public school revenues.
Pennsylvania school districts are required to pay charter school tuition for students within their borders based on a set formula. The new state budget changes the formula to eliminate types of spending, such as 60% of student activities and 60% of operations costs. The new formula also removes cyber charter-related costs and enrollment from the calculation.
Depending on the district, 3 to 6% of expenses were for charter school tuition during the 2023-24 fiscal year, according to a state financial report and audits of the districts. The exact dollar amount allocated for cyber charter schools isn’t available in the state financial report, but state House Democrats estimate at least $100,000 in savings for each area school district for the current fiscal year.
Penn State likely to see flat funding, again
For the seventh consecutive year, Penn State is facing the possibility of $242.1 million from the state for basic funds. Two other state-related universities, the University of Pittsburgh and Temple University, were likewise allocated identical funding to past years in a portion of the budget that cleared the House. It awaits final approval from the state Senate.
The only state-related university to receive an increase was Lincoln University, a historically black university in Chester County.
The bill also calls for state-related universities to be called “state-aided” universities.
A Penn State spokesman said the university was grateful to see the “budget process overall move forward.”
Tax credits for low-income earners
Recipients of the federal Earned Income Tax Credit will be able to access a new, refundable state-level tax credit beginning with the current tax cycle.
Taxpayers may claim a state tax credit equal to 10% of the federal amount received during a given fiscal year. Shapiro estimated 940,000 Pennsylvanians would be eligible.
Higher court fees, less money from county coffers
A $2.50 fee attached to some fraud, bribery, perjury, wiretapping and computer offenses was raised to $3.50, and is now applied to traffic citations. The increased fee will go toward reimbursing counties for district attorney salaries.
The state already pays 65% of county district attorney salaries. The Centre County district attorney makes about $136,000, using a formula established by state law, meaning the county pays about $48,000 to its top law enforcement official.
Correction: This article was updated at 10:57 a.m. Nov. 13 to reflect the status of Penn State and other university funding. Those dollar amounts still await state Senate approval.
This story was originally published November 13, 2025 at 5:00 AM.
