Aaron and Jeff are back with PSEA's Government Relations team to discuss the highs and lows for educators in Gov. Shapiro's 2026-27 Pennsylvania state budget proposal.
Aaron and Jeff are back with PSEA's Government Relations team to discuss the highs and lows for educators in Gov. Shapiro's 2026-27 Pennsylvania state budget proposal.
Do you have some feedback for us? Send an email to podcast@psea.org.
Learn more and watch for upcoming episodes at psea.org/podcast.
Voiceover:
Welcome to Duty Free Lunch, the official podcast of the Pennsylvania State Education Association. Join us as we unpack the issues that matter most to you. From cutting edge classroom strategies to thought-provoking policy discussions, if it impacts PSEA members, it's on the menu.
Aaron Chapin:
Hello, and welcome to Duty Free Lunch. I'm PSEA President Aaron Chapin, joined once again by PSEA Vice President Jeff Ney. How's it going, Jeff?
Jeff Ney:
Oh, Aaron, it is a wonderful day here in Harrisburg. How are you doing today?
Aaron Chapin:
Oh my goodness, it would be a whole different podcast if I went into that.
Jeff Ney:
Oh, that'd be... Maybe we should do one of those.
Aaron Chapin:
You don't want to know. No, no, no. I'm going to be positive and upbeat. You know why?
Jeff Ney:
Well, we have some great guests here today.
Aaron Chapin:
Oh yeah, that too.
Jeff Ney:
Oh, that too?
Aaron Chapin:
Yes. We're in budget season, again.
Jeff Ney:
One of my favorite times of the year.
Aaron Chapin:
Well, unfortunately, I wasn't able to be there for the governor's budget address, but you were.
Jeff Ney:
Oh, I was.
Aaron Chapin:
How was it?
Jeff Ney:
Oh my goodness, it was, I mean, riveting. We had some of our members show up there to make sure that we got some of the points across that our members are caring about, and I cannot wait to talk more about it.
Aaron Chapin:
Did you enjoy the experience as an overall? Was that your first time?
Jeff Ney:
It was not my first time. I went to the governor's budget address once when I was treasurer.
Aaron Chapin:
Oh, for Governor Wolf.
Jeff Ney:
For Governor Wolf, and took a whole bunch of people over to the residence that time as well.
Aaron Chapin:
Well, congratulations. Thanks for filling in for me.
Jeff Ney:
Absolutely, anytime.
Aaron Chapin:
Well, as we've alluded to, earlier in February, the governor rolled out his proposed 2026, 2027 state budget. And man, Jeff, there's a lot in there for public education.
Jeff Ney:
There is.
Aaron Chapin:
It is. He's a great education governor.
Jeff Ney:
And the crowd really got behind him when he started saying stuff about it.
Aaron Chapin:
I am. Well, since he took office, Governor Shapiro has worked with lawmakers on both sides of the aisle to secure more than 2.1 billion. Billion, that's with a B.
Jeff Ney:
That's awesome.
Aaron Chapin:
I know you're a math teacher and all, but that's with a B.
Jeff Ney:
B.
Aaron Chapin:
And that's new funding for our schools. And if this proposal is adopted, it's going to be close to three billion.
Jeff Ney:
I know.
Aaron Chapin:
I know. It's real progress, but always the proposal, it's just the first step. It is a long journey ahead of us right now. And to understand it all, because we are not nearly smart enough to do that. We've got our government relations folks here. We got Dan Wiedemer, Kelli Thompson, and the one and only Erika Brunelle.
Jeff Ney:
Making her inaugural debut to the podcast.
Erika Brunelle:
This is not my inaugural.
Aaron Chapin:
No, she's been on before.
Erika Brunelle:
I have a Duty Free Lunch mug. Cheers President Chapin.
Aaron Chapin:
Yes, cheers. I would do it, but she's got water, I've got coffee.
Erika Brunelle:
Got to stay hydrated.
Aaron Chapin:
It's morning time when we're recording this. So welcome back to the three of you. It is great to have you here. Let's just jump into this. Dan, let's start with the big picture, el photo grande. This is a proposal. That's right, Jeff.
Jeff Ney:
Wow.
Aaron Chapin:
Spanish. That's right.
Jeff Ney:
My goodness, I didn't know you were bilingual.
Aaron Chapin:
Well, and so it's a proposal, Dan, and obviously it's just a proposal for the final budget. So from your perspective, what stands out most when we look at Governor Shapiro's '26-'27 plan? And what's the road look like to get this sucker passed?
Dan Wiedemer:
So you know what strikes me about this budget, by the way, thank you for having us back.
Aaron Chapin:
Of course.
Dan Wiedemer:
What strikes me most about this budget is how casual the world writ large is about it because of how regularly awesome these budgets have been. So what stands out to me is the consistency of the boldness. And it's really important for us to not get lulled by that, to not get put to sleep like, "Oh, another billion dollars for public education."
Aaron Chapin:
Ho-hum.
Dan Wiedemer:
Ho-hum, another billion dollars for public education. Because look around, look around at the federal level, look around at what's happening at other states. What we are experiencing and seeing here in Pennsylvania is rare. The boldness of these investments in public education is incredibly rare. Now, how all of that gets done, what's an election year, first and foremost. And so those key issues, those big trades across the chambers, I think take on more importance, right?
Erika Brunelle:
Yeah, absolutely. And if I can chime in here, Dan, I think one of the things that stands out for me is the fact that it's been nearly a quarter of a century since retirees have gotten a cost of living increase. And unfortunately, that wasn't part of the governor's proposal. Do I think we can get it to the governor's desk this year and get it signed? Absolutely. We have made tremendous progress over the last three years with this being a top PSEA priority.
We've seen three very strong bipartisan votes out of the house. We saw a Republican-led COLA bill introduced last year in the Senate, and we know that the votes absolutely exist in the Senate to get this done and get it to the governor's desk. I think one of the key parts of that is the fact that there are a handful of Senate Republicans who are in swing districts, who are for reelection this year, who have made it a priority to get it done. And so just building on a theme that to get all of this good stuff across the finish line, we really, really, really need to see every PSEA member, every student member, every active member join, stand up, speak out in solidarity for these retirees.
They are living on pensions that are nearly a quarter of a century old and they haven't seen a penny of an increase in their retirement income in all of that time. They're struggling to pay for medications, utilities, and food. This needs to be the year, COLA or bust.
Jeff Ney:
Thank you, Erika, for sharing that. A major piece of this budget proposal is $565 million increase for adequacy and tax equity payments, along with another 50 million through the basic education funding formula. Kelli, what does that actually mean for our members and students?
Kelli Thompson:
Well, Jeff, I think it means that the top priority remains the remedy to the historic Commonwealth Court ruling, resolving the historic inequities in our school funding system that resulted in low wealth school districts not having enough money to support their kids. The 565 million represents money to schools that could be used to support strategies that demonstrate higher student achievement, promote student wellness, and even foster more supportive learning environments. But when we look at the $50 million increase for the basic education subsidy, I look at that as somewhere where the budget could be improved by the legislature.
Several years ago, we had the Basic Education Funding Commission, and that bipartisan entity recommended $200 million a year in new funding through the Fair Funding Formula. So while you have the remedy that is looking backwards to say, "This is what districts were owed," the formula was meant to look forwards and say, "This is what they need now." And so we all know $50 million isn't keeping up with the rate of inflation, so it is a great thing that the adequacy and tax equity payments are the priority, but we can do better.
Aaron Chapin:
That's right.
Jeff Ney:
Yeah.
Aaron Chapin:
Absolutely. So let's talk about some more parts to this, Erika. We've got special education, we've got the career and technical education. They're seeing some increases if this budget goes through, more than 50 million for special ed, 14 million for the CTE. Don't forget the 10 million for STEM in the computer science program. How significant are those targeted investments when we look at the big picture?
Erika Brunelle:
Well, President Chapin, the additional 50 million for special ed and 14 million for CTE, they are positive steps and we're grateful that the governor continues to see the importance of continued investment in these areas. On the special ed front, is $50 million increase going to solve years of structural underfunding? Unfortunately, no.
And another part, excuse me, of the problem is that the cost of delivering special education services continues to increase, as does the number of students who are being identified as needing special education services. So because schools are required by law to provide these services, a real and growing gap still exists even with the proposed increase of 50 million. When state funding doesn't keep pace with rising costs and needs, school districts have little choice but to shift more of that burden onto local taxpayers in the form of property tax increases.
Now, on the CTE front, again, a $14 million increase is positive, but it's important to look at how that money is structured. Our analysis of the budget proposal shows that only about four million of that total would flow through the CTE subsidy line, and that subsidy is what directly supports program expansion and increased student enrollment. So right now, there are long wait lists for high quality CTE programs across the state because we've done a really good job of elevating CTE as a viable pathway for all students. And we know that employers desperately need the skills that CTE produces. So if we're really serious about workforce development, we need to strengthen the subsidy line so that schools can open more seats and meet that demand.
And of course, we also can't lose sight of equipment grants. The governor proposed $2 million increase for this line in particular, and because modern CTE programs depend upon up-to-date industry standard equipment, and those are big expenses for schools. So students can't train for today's jobs using outdated yesterday's tools. And if we want to truly expand access and opportunity, there's definitely room for more in all of these areas. But all in all, what the governor proposed is positive and incremental.
Jeff Ney:
Obviously, we want our students learning on the most up-to-date equipment possible. Dan, we're drilling down a little bit more into this budget proposal, and we're seeing $15 million increases for pupil transportation and $14.3 million to maintain universal school breakfast, which has been one of the governor's big pushes. These aren't always headline issues, but they matter in our schools. So can you talk about how that will affect each of those schools?
Dan Wiedemer:
Yeah, so they matter because they speak to values. And I think in particular, when we look at the expansion, the continuation of universal free lunches, or pardon me, free breakfast in our schools. The federal government just cut SNAP benefits. We are estimating that seven and a half million students are going to lose access to free school meals as a result of that in addition to whatever challenges that they're facing at home. So this is, it absolutely speaks to priorities. Budgets are about priorities. It absolutely speaks to values. You would think the one thing that we could agree on in this country is that it's really hard for a kid to learn if they're coming to school hungry or if they're sitting there hungry.
Jeff Ney:
Yep.
Dan Wiedemer:
You all know that as educators. Here in Pennsylvania, in contrast to what we are seeing at the federal level, we're talking about expanding access, not only morally right, but the right thing to do for educational outcomes. We want kids to learn, to be able to expand opportunities, to be able to grow, to be able to provide themselves a better future. You can't do those building blocks if the kids are blocked by things like hunger or losing their healthcare. You ever try to pay attention when you have a toothache and you can't get to the dentist? Pretty hard to do for a kid.
Jeff Ney:
Absolutely.
Dan Wiedemer:
Pretty hard for a kid to focus on a standardized test when they haven't had anything to eat. So yeah, these are not the headline issues. These are not the things that are going to get a ton of attention, but they really speak to the commitment of this administration, of legislators that support it, of their values, of where they stand, and of just the right thing to do.
Jeff Ney:
So speaking of the things that are important to this administration, early learning is another area that the governor focused on. There is a $51.2 million increase for preschool early intervention and additional funding for pre-K accounts and Head Start supplements. So Kelli, I'm going to turn to you. Can you connect that with addressing staff shortages and supporting our youngest learners?
Kelli Thompson:
Sure, Jeff. The increases for pre-K counts and Head Start, which are 7.5 million and two million respectively, are focused on raising rates for those employees so the grantees can hold on to staff. We've seen a exodus of individuals from the early childhood industry, and so they are continuing to invest in rates to hold onto staff. I want to be clear though on the funding for early intervention. Early intervention is a mandated cost. Early intervention services to preschool children are an entitlement guaranteed by the federal IDEA law. And the proposed $51 million increase accounts for a projected increase in enrollment to serve kids and a 2% cost of living adjustment for those LEAs that contract with the Department of Education to provide those services. Will that be enough? We're not sure at this moment. The administration is proposing a process change for how preschool early intervention programs are funded. It's more like a budget process thing.
They want to estimate the funding or the cost for those programs on the front end of their budget process rather than on the back end. And so that's why we see such a larger increase in preschool early intervention as proposed in Governor Shapiro's budget. But it also means that LEAs providing the preschool services aren't going to be able to request supplemental funding on the back end to reimburse for any funding shortfalls that they experience in providing EI services to kids. This is an area we have to watch really closely here, probably definitely through this budget process, but going into the '26-'27 year to see if this type of process works for those entities, most of them are intermediate units that are providing the preschool early intervention.
Jeff Ney:
Wow. They're so smart.
Aaron Chapin:
She just schooled you.
Jeff Ney:
I know.
Aaron Chapin:
And she called you Jeff.
Jeff Ney:
Yeah.
Aaron Chapin:
Yeah? Let's go back there, Erika.
Jeff Ney:
See what she calls you this time.
Aaron Chapin:
That's all right. Let's talk about higher ed, Erika. Something obviously I have gotten to know a lot about. My daughter's a sophomore in college, and one of these colleges we'll be talking about, community colleges, the PASSHE system, they're level funded. And I know that, I think just based on the way your head was shaking, state related universities are seeing a 30 million increase tied to performance based funding. So how do we, well, how do you feel about these numbers? We've got room for improvement here, and I think I already know your answer.
Erika Brunelle:
Well, Aaron, here's another place.
Aaron Chapin:
There we go.
Erika Brunelle:
There's definitely room for improvement, particularly for community colleges in PASSHE, especially if we're serious about access and affordability for Pennsylvania students and families. So the reality is that level funding from community colleges in PASSHE, it doesn't reflect the financial pressures that those institutions are facing. And unfortunately, flat funding in a high cost environment really means a cut. So to put that into perspective, level funding for PASSHE and community colleges last year meant that PASSHE ultimately imposed a tuition increase after several years of freezes because the state appropriation didn't keep pace with rising costs. And then on the state related side, the performance-based funding model tied to the 30 million, that's new.
This would be the first year that a performance-based funding model would be implemented, and so it definitely shows a shift toward funding accountability, and we'll be keeping a close eye on that in the coming years to ensure that those performance metrics don't disadvantage institutions that serve higher need or rural populations. Ultimately, every year that our institutions of higher ed see under funding, students see the impact in higher college costs, reduce programmatic options, difficulty registering for classes, overcrowded classrooms, and reductions in support services, and our members feel the same. Plus, they also feel the pressures of stagnant salaries, reduced staffing, increased workloads, et cetera. That's why PSEA has joined with many other of the unions that represent workers in this area to advocate for some increases, particularly among PASSHE institutions and community colleges.
Aaron Chapin:
They're being asked to do a whole lot more basically on a cut because of inflation.
Erika Brunelle:
Yes, yep.
Jeff Ney:
Wow.
Aaron Chapin:
It's wrong.
Jeff Ney:
It is wrong.
Aaron Chapin:
Yep, I'm paying the bill for it too.
Jeff Ney:
Erika, I'm going to stick with you because you came with me across the street to the governor proposal. And one of the proposals that the governor announced that got a lot of attention and a lot of applause on that House floor was raising the minimum wage from $7.25 to $15 an hour. We had one of our ESPs be invited by the governor to come and highlight the fact that she does not get $15 an hour in the job that she does. For many of our support professionals, this is going to be a big deal. It's not where we wanted it at at least $20 an hour, a living wage of at least $20 an hour, but the impact could have huge implications on recruitment, retention, and respect for these essential workers. What do you think about this proposal?
Erika Brunelle:
Well, VP, you're absolutely right. Raising the minimum wage to $15 an hour, as the governor has proposed, is absolutely a step in the right direction. Pennsylvania hasn't increased the minimum wage since 2009, and unfortunately, every surrounding state has moved higher so we're long overdue and we're lagging behind and it's kind of embarrassing at this point. And the reality is that thousands of ESPs across Pennsylvania would benefit from what the governor has proposed in terms of a wage increase.
However, for most of our ESPs, even $15 an hour doesn't reflect a true living wage. And then these are people whose jobs, they're very challenging and they do so much to support all of our students, particularly the most vulnerable students. They keep schools safe, clean, fed, and functioning. The work they do is absolutely essential, and so that's why, as you had mentioned, PSEA is advocating for a living wage of at least $20 an hour for our ESPs, because the reality is if we want real recruitment, real retention and real respect for these support professionals, we have to go beyond catching up and we have to pay them like we mean it.
Jeff Ney:
Which they absolutely deserve.
Aaron Chapin:
Absolutely. So Kelli, we've talked a lot on this podcast about student teacher stipends.
Kelli Thompson:
Yes, we have.
Aaron Chapin:
Yeah. It's been one of our top priorities for the last couple of years. The governor's proposal adds five million, which would bring the total to 35 million. So Kelli, tell us, what does that mean for the expiring educators out there, and how's it going to help us tackle the educator shortage that we're experiencing in this state?
Kelli Thompson:
Well, it means that we know based on the number of applicants this year, we think that that number would support additional student teachers receiving a stipend. We estimate that 35 million funds, about 70% of the applicants. It's progress. It's not necessarily what we want ultimately, we want a fully funded program that students can look to and say, "Policy makers in Pennsylvania have my back." I can responsibly and confidently enroll in a teacher preparation program and know that I'm going to get paid for my student teacher experience. And so we're not at that place yet, but we are chipping away at it every year and making progress. We should try to do better again as a part of this budget process.
The other factor here that we have to keep in mind on the stipend is that we know that there is a real commitment to implementing the high vacancy bonus for those student teachers who choose to go to schools that traditionally have a high number of vacancies. And that bonus has been put off for the past couple years just because of the lack of funding available for it. And so if we ultimately pass a budget in Pennsylvania with $35 million in it, how do we serve more student teachers with that base stipend as well as provide a bonus? I think that is going to be a discussion point as a part of the budget negotiations this year.
Aaron Chapin:
Because that really was part of the philosophy behind the student teacher study.
Kelli Thompson:
Absolutely.
Aaron Chapin:
It's not just to pay our student teachers, but also to help these communities out.
Kelli Thompson:
Absolutely.
Jeff Ney:
Dan, you know as well as I do that just because the governor sends out this proposal does not mean that it's going to be enacted, it still has to go through the legislature. So how important is it that lawmakers hear directly from our members on this budget?
Dan Wiedemer:
Yeah. Well, so first we have a long way to go. I mean, the last budget was passed five minutes ago.
Jeff Ney:
Yeah.
Dan Wiedemer:
So that was months late. Hopefully this year is a little bit better, but the great thing about working with educators is that they are the best messengers in the world. They have the most compelling stories. They're the best at communicating with people. And I think what we're seeing today is that those interpersonal relationships, the ability to like pick up the phone and just talk to someone and have a conversation rather than tweeting at them is so incredibly impactful. So advocacy, something we do really well here at PSEA through our Advocates for Children and Education program and just through our mass advocacy work is really critical. But those human connections, even if it's a letter or a postcard, a phone call, a visit to a legislator, really will make all the difference.
Aaron Chapin:
There we go.
Dan Wiedemer:
There it is.
Aaron Chapin:
There you are. Guess what?
Jeff Ney:
What?
Aaron Chapin:
You get to ask a bonus question.
Jeff Ney:
One bonus question?
Aaron Chapin:
That's it.
Jeff Ney:
All right.
Aaron Chapin:
I sound very enthusiastic about it, don't I?
Jeff Ney:
You do.
Aaron Chapin:
Well.
Jeff Ney:
Erika, I'm coming to you with a bonus question.
Aaron Chapin:
You're giving it to Erika?
Jeff Ney:
I am going to give it to Erika.
Aaron Chapin:
Wow. Kelli, don't be mad.
Jeff Ney:
Well, they can all chime in. All right, so we're looking month, the budget doesn't have to be passed until June 30th.
Aaron Chapin:
If they get their ducks in a row.
Jeff Ney:
Looking months ahead, one key change or an addition that you'd like to see before this budget's finalized, what would it be?
Erika Brunelle:
I'm just going to bookend what I said on the front end, COLA or bust.
Aaron Chapin:
It's got to be COLA.
Jeff Ney:
Kelli?
Kelli Thompson:
Ditto.
Aaron Chapin:
Sounds like a bumper sticker.
Jeff Ney:
Wow. COLA or bust.
Aaron Chapin:
COLA or bust. We can put it on the back of the governor's car.
Jeff Ney:
My goodness. Look at all these great one-liners that have come out of this podcast.
Aaron Chapin:
There you go.
Jeff Ney:
First one was Rachel with Keystone Democracy, now this.
Aaron Chapin:
Call it or bust. Man. Good job, Erika. Well, we are out of time.
Jeff Ney:
We are.
Aaron Chapin:
All out of time. Our guests today have been PSEA's own Kelli Thompson. Thanks, Kelli.
Kelli Thompson:
Thank you.
Aaron Chapin:
Erika Brunelle.
Erika Brunelle:
Thank you.
Aaron Chapin:
And Dan Wiedemer. Thanks, Dan. You're back again.
Dan Wiedemer:
Back to reclaim my title. Right.
Aaron Chapin:
Who'd you take down?
Dan Wiedemer:
I don't know, but I'm sure that their ratings were so much worse than what you're going to get with this one.
Aaron Chapin:
I'm trying to think. It might have been Mary Kusler. No?
Dan Wiedemer:
No.
Aaron Chapin:
Maybe Jim Vaughan?
Jeff Ney:
No, because he only comes on at the end.
Aaron Chapin:
Maybe Kelli?
Jeff Ney:
It might be Kelli.
Aaron Chapin:
Yeah. Well, congratulations.
Jeff Ney:
Yeah. Thank you.
Aaron Chapin:
The jacket will be coming soon. But thanks to the three of you for all of the work you do across the street. It is all serious. It's very important work that we need to be done on behalf of our members, our schools, our kids, so thank you very much for joining us. And thanks for all of our listeners for tuning in. You got some feedback for us? You got to send us an email: podcast@psea.org. You've been really slacking, so let's get on that, please. I'm Aaron Chapin.
Jeff Ney:
And I'm Jeff Ney.
Aaron Chapin:
And you have been listening to Duty Free Lunch. Bye for now.
Voiceover:
You've been listening to Duty Free Lunch with the Pennsylvania State Education Association. Visit psea.org/podcast to learn more, and don't forget to subscribe and share. Paid for by the Pennsylvania State Education Association.