Governor's Budget Proposal for FY 2026-27 General Overview: • Governor Shapiro’s FY 2026-27 proposed budget of $53.26 billion increases spending by $2.72 billion, or 5.4%, over the current fiscal year. • FY 2026-27 current tax structure revenues are estimated to grow by $919 million, or 1.9%. • To balance his FY 2026-27 spending proposal, Governor Shapiro needs $6.46 billion in new revenue. To accomplish this, he proposed the following transfers and tax revenue modifications: o Transferring $4.58 billion out of the Rainy Day Fund to the General Fund. o Enactment of new taxes and changes to the current tax structure and tax credits totaling $1.88 billion in new revenue, primarily by taxing skill games, recreational marijuana, and a minimum wage increase. Supporting Documents Governor's Proposed Budget Overview Governor's Proposed Budget Tracking Run Governor's Proposed Budget Financial Statement Governor's Proposed Budget Agency Details Governor's Proposed School District Funding Past Spending