Senator Dan Laughlin (R-49) has raised concerns about Governor Josh Shapiro’s proposed $53.3 billion budget for the 2026-27 fiscal year, urging a more cautious approach to state spending and advocating for action on cannabis and skill game regulation.
“Gov. Shapiro’s budget spends too much, relies on unapproved revenues, and steers the state closer to a massive tax increase,” Laughlin said. “Enacting his 5.4% spending increase would take more money from families still struggling with inflation.”
The plan includes an additional $2.7 billion in spending and proposes drawing $4.6 billion from the Rainy Day Fund. Laughlin criticized this use of emergency reserves as unsustainable and questioned the practicality of a $100 million transfer to a federal response fund.
“Thanks to Senate Republicans, previous proposals that would have required painful tax increases were scaled back,” he said. “We will continue to hold the line and provide a fiscally responsible budget that protects Pennsylvania families.”
The governor’s proposal depends on nearly $1.9 billion in new revenue sources such as combined reporting, expanded skill game taxes, cannabis legalization, and an increased minimum wage. Laughlin expressed support for raising the minimum wage—legislation he has introduced three times—and highlighted the need for regulating cannabis.
“Pennsylvania is losing tax revenue and jobs to neighboring states that have legalized adult-use cannabis,” he said. “Prohibition isn’t stopping use—it’s preventing regulation and state revenue.”
Laughlin referenced Senate Bill 49, which would establish a Pennsylvania Cannabis Control Board responsible for overseeing adult-use cannabis and intoxicating hemp products.
“SB 49 ensures consumer safety, testing, responsible marketing, and strong age restrictions,” he said.
He also called attention to the growth of unregulated skill games in Pennsylvania.
“Skill game parlors are popping up on nearly every corner, and Pennsylvania looks like the wild west,” Laughlin said. “We need rules, fair taxation and strong consumer protections.”
The proposed budget seeks to expand the Video Gaming Terminal tax to include skill games, which could generate $765 million in 2026-27. Laughlin emphasized fairness for casinos already subject to high licensing fees and taxes.
“Presque Isle Downs paid $50 million for a slots license and is taxed at 54%,” he said. “Unregulated gaming competing with them creates an uneven playing field and threatens thousands of good paying jobs and revenue.”
Laughlin further expressed concerns about projections for Human Services and Corrections spending within the budget, suggesting they may underestimate future financial challenges.
“The Human Services budget is projected to grow far less than historical trends, and Corrections spending is rising even with facility closures,” he said.
He welcomed the exclusion of a proposed RGGI electricity tax from the budget plan.
The Senate is expected to begin hearings on the budget in coming weeks.
Senator Laughlin represents Pennsylvania’s 49th District—which covers nearly all of Erie County including Erie city—where he focuses on job creation initiatives, limiting government spending, enhancing community investments, government reform efforts, bipartisan legislation such as cannabis legalization measures, infrastructure improvements, as well as supporting local organizations through various investments according to his official website. He serves as chair of the Senate Law and Justice Committee [source].