Common Sense Weekly

Welcome to Common Sense Weekly! This is the Commonwealth Foundation's weekly news roundup of policy issues being debated in Harrisburg and across Pennsylvania.

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Pennsylvania's Running Out of Money

Stacy Garrity recently issued an urgent warning: This year’s budget will determine the commonwealth’s economic future — so lawmakers must plan wisely. Garrity, reelected in November to her second term as Pennsylvania state treasurer, cautioned that, if elected leaders don’t act swiftly, the commonwealth’s pending budget deficit will likely, in Garrity’s words, “squander” the Rainy Day Fund.

Years of uncontrolled government spending have caught up to Pennsylvania. Over the past five years, General Fund expenditures have increased by $12.55 billion while revenues only increased by $9.47 billion. Now, Pennsylvania faces a $3.6 billion structural deficit.

Worse yet, the deficit is expanding. A recent report from Pennsylvania’s Independent Fiscal Office (IFO) forecasts the deficit will reach $4.6 billion in fiscal year (FY) 2025–26. The IFO sees disparate growth for the rest of the decade, with expenditures up 18% and revenues 11%. According to the IFO’s projections, this culminates in a $6.8 billion budget deficit in FY 2029–30.



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How Pennsylvania House Democrats May Derail Shapiro’s National Ambitions

The 2024 election may be over, but it is safe to bet that Gov. Josh Shapiro — whose national ambitions are well known — already has his eyes set on 2028. As Pennsylvania enters the final legislative session of his term, Shapiro should avoid putting the presidential cart before his gubernatorial horse.

Shapiro entered office two years ago promising bipartisan leadership

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and committed to work with Republicans in the state Capitol. He campaigned telling voters he would take on the big fights

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and pledged to deliver on policies with broad bipartisan support, including tax cuts and Lifeline Scholarships for kids in failing schools.

Despite the hype about Shapiro’s talent as a politician, he’s proven unskilled and ineffective at governing. His first two years in office tell a story of a stunning lack of accomplishment, abdication of leadership, and betrayal of trust with the legislature.



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Allentown Students Need More Than Strategic Plans, They Need Choices

The future for Allentown students is so bright they better wear shades. At least, that was the overarching theme of a recent public hearing facilitated by the Allentown School District. The school district shared its strategic plan, “Lighting the Way: A Blueprint for Innovation and Excellence 2030.”

Unfortunately, the numbers — absent from the plan — tell a different, less-than-shiny story. Of the district’s 23 schools, 16 appear on the state’s list of low-achieving schools

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— 12 of which have been on the list since 2018.

Performance numbers are also staggering. Less than half of Allentown high school students are proficient in statewide literature standards. Moreover, fewer than two in 10 Allentown high schoolers are proficient in algebra and biology.

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Trump Lifts Freeze on LNG Export Permit Applications

President Donald Trump issued an order on Monday for the U.S. to resume processing export permit applications for new liquefied natural gas (LNG) projects, part of an effort to raise U.S. energy output and dismantle his predecessor's climate policies.

The Republican's executive order, which was expected, effectively reverses a pause on permits for new projects that former President Joe Biden put in place in early 2024. Biden, a Democrat, paused the approvals so U.S. national laboratories could study

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the environmental and economic effects of the booming export industry.



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