Budget Stalemate Continues, But So Does the Fight for Students

Sharon Sedlar | July 8, 2026

Pennsylvania’s budget was due on June 30, and we’ve held off on sending this newsletter in the hope that we’d have news to share. Unfortunately, the stalemate continues. 

For the fifth consecutive year, Pennsylvania has failed to pass a budget on time. 

While social media is full of pointing fingers and blame assignment, we prefer to view the situation differently:

Legislators are fighting for what they believe their constituents want and need. 

That’s what voters elected them to do. Pennsylvanians listened to campaigns, weighed the issues, and cast their votes based on the priorities that mattered most to them. 

Although details about budget negotiations have been difficult to find, a recent article in the Altoona Mirror identified three major sticking points: overall spending levels, education choice tax credits, and the legalization of skill games. 

On Monday, you received an update outlining several education-related bills currently moving through Harrisburg. Since education tax credits are reported to be part of the ongoing budget discussions, let’s take a closer look at House Bill 2632

Supporters of HB 2632 argue that the legislation promotes transparency and accountability within Pennsylvania’s Educational Improvement Tax Credit (EITC) Program and Opportunity Scholarship Tax Credit (OSTC) programs. However, the reality is that these programs are already subject to significant oversight and accountability measures. 

Oversight Already Exists 

Consider just a few of the safeguards currently in place: 

  • Donors must report their contributions on their tax returns. 
  • Scholarship organizations must be duly registered, approved by the Department of State, and file tax returns.
  • Participating schools must be duly registered and approved for operations by the PA Department of Education. 
  • Families must meet income eligibility requirements and may face penalties for providing fraudulent information. 
  • Applications submitted by scholarship organizations and participating businesses are reviewed and approved by the Department of Community and Economic Development. 
  • Tax credit claims are subject to review through the Department of Revenue and the Auditor General.

In short, accountability already exists throughout every stage of the process. 

Families See the Contrast 

At the same time, families continue to see troubling headlines from many traditional public school systems. Recent reporting by NBC Philadelphia found that computers, pianos, and other equipment worth hundreds of thousands of dollars could not be accounted for by the School District of Philadelphia. A separate Chalkbeat Philadelphia report highlighted audit findings that the district owes termination payments to hundreds of former employees. Meanwhile, students at Southwark Elementary School recently spoke out about broken bathrooms and a mouse infestation impacting their learning environment. Reports of financial mismanagement, deteriorating facilities, unsafe learning environments, and persistently low academic outcomes continue to raise concerns for families across the Commonwealth. 

In Pennsylvania’s largest cities, too many students are still assigned to schools with poor safety ratings and low reading and math proficiency levels. According to a Carnegie Mellon University analysis of school safety, many students in Philadelphia and Pittsburgh attend schools with significant safety concerns. Parents know these statistics aren’t just numbers – they represent real children whose futures are hanging in the balance. 

A Both/And Conversation 

Some see the solution through district schools. Others support charter schools, cyber schools, private schools, homeschooling, or scholarship programs.

At PaFEC, we believe this doesn’t have to be an either-or conversation. 

Students are not served when one education model advances at the expense of another. Pennsylvania’s diverse learners require diverse educational opportunities. Strong district schools matter. Strong charter schools matter. Strong cyber schools matter. Private schools matter. Homeschooling matters. 

Most importantly, children matter. 

No educational model should be jeopardized. 
No child should be harmed. 

Every family deserves access to an education that works for their child, and every student deserves the opportunity to succeed. 

As budget negotiations continue, we encourage lawmakers to keep students – not systems – at the center of every decision. 

Below is information pertaining to Officers and Leadership in both the House and Senate.  These are the people currently in the budget discussions, and to whom you should direct your concern and commentary (in addition to your own district Senator and Representative!).

Share your thoughts!

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