Harrisburg, PA – As a result of the Shapiro Administration’s sound fiscal management and strong economic development track record, the Commonwealth ended the 2024–25 Fiscal Year collecting $321 million more in revenue than originally estimated, further strengthening the Commonwealth’s position at the start of the fiscal year. The Commonwealth is currently sitting on a nearly $11 billion surplus, including the General Fund surplus and the Budget Stabilization Fund (i.e. rainy day fund).
From day one, Governor Shapiro has been focused on spurring economic growth across Pennsylvania — launching the Commonwealth’s first Economic Development Strategy in nearly two decades, securing historic funding for site development, main streets, and small businesses, and streamlining permitting, licensing, and certification processes. Thanks to this strategy and a bipartisan commitment to balanced budgets, Pennsylvania continues to be in a strong fiscal position — even amid national economic uncertainty and federal ratings changes.
“Under my Administration, Pennsylvania is competing again – we’re attracting investment, creating jobs, and bringing in more revenue than we anticipated,” said Governor Shapiro. “That additional revenue puts us in strong financial position to continue making critical investments in our schools, workforce, transportation infrastructure, law enforcement and more – and we will continue to work together to secure a final budget for the next fiscal year.”
In total, the Commonwealth collected $46.4 billion in General Fund revenue in FY 2024–25, $321 million, or 0.7 percent, above initial estimates from last June. Comparatively, the Commonwealth further outperformed the Independent Fiscal Office (IFO)’s original projection, which was $639 million below actual collections, or 1.4 percent off. Final collections were also within the 2 percent forecast range targeted by the Pennsylvania Department of Revenue.
These results come as the Shapiro Administration continues to manage debt prudently. A recent bond refinancing will save taxpayers more than $71 million over the life of the bonds. Altogether, through bond refinancing completed under Governor Shapiro, taxpayers will benefit from $193 million in savings over the next decade — the result of continued strong fiscal stewardship.
Thanks to this strong fiscal management and steady economic growth, Pennsylvania secured two credit rating upgrades — the Commonwealth’s highest ratings in more than a decade. Moody’s Ratings, Fitch Ratings, and S&P Global Ratings all reaffirmed Pennsylvania’s positive rating status, citing responsible budgeting and a solid financial position under Governor Shapiro’s leadership.
“With two credit upgrades in two years and a clear commitment to responsible budgeting, the Shapiro Administration is saving taxpayers money and strengthening the Commonwealth’s financial future,” said Secretary of the Budget Uri Monson. “We will continue to be prudent stewards of the Commonwealth’s resources.”
Under Governor Shapiro’s leadership, Pennsylvania has:
Secured over $25.2 billion in private sector investments, creating nearly 11,000 new jobs across the Commonwealth.
Launched the first 10-year Economic Development Strategy in nearly two decades.
Advanced plans to cut the Corporate Net Income Tax faster than scheduled, making Pennsylvania more competitive.
Proposed over $160 million in new and expanded economic development investments in the 2025–26 budget proposal to further create jobs and opportunity for Pennsylvanians.
With these results and continued collaboration with the General Assembly, Pennsylvania is delivering real value for taxpayers — building a stronger, more competitive economy for families, workers, and businesses in every corner of the Commonwealth. The Shapiro Administration continues to deliver long-term value for Pennsylvania taxpayers while making smart investments in the Commonwealth’s future.
Learn more about Governor Shapiro’s budget proposal and economic development strategy at shapirobudget.pa.gov.
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