By Julian Collazo, Marketing Communications & Development Intern, GRCA
Pennsylvania’s FY 2025-26 state budget is now in place, bringing much needed clarity after a four-month impasse following the original June 30 deadline. At the latest Business and Community Advocacy Council (BCAC) meeting, members heard directly from Sen. Judy Schwank, who explained how the budget came together and what it means for Berks County communities. The discussion focused on how state-level decisions will impact schools, employers, families and local governments.
Sen. Schwank explained that the delayed timeline reflected the reality of a split legislature, where compromise was necessary to move the process forward. Lawmakers ultimately agreed on a balanced $50.1 billion budget that avoids broad-based tax increases while increasing spending by about 5 percent, primarily for education and people-focused programs. Passed by the House 156-47 and the Senate 40-9, the plan demonstrated strong bipartisan support. The budget includes targeted investments in small business support, workforce development, childcare and community infrastructure, while leaving Pennsylvania with roughly $8 billion in reserves and providing greater stability than in past budget cycles.
BCAC members also heard from Alex Rahn, who outlined several areas that received increased funding, including education, workforce development and small business programs. Education funding increased for both basic and special education, while higher education funding was maintained for state system schools and state related universities, which play a key role in preparing Berks County’s workforce.
Workforce development conversations quickly turned to childcare, which remains a top challenge for employers and working families. Rep. Jacklyn Rusnock, who recently went through her first full budget process, shared how limited access to childcare affects both family stability and workforce participation. While the new $25 million investment in the Child Care Staff Retention and Recruitment Program is a positive step, she noted that the need is far greater and will require continued attention in future budget cycles. Sen. Schwank also highlighted the Working Pennsylvanians tax credit, which aims to support low-income families and help offset costs that can make childcare unaffordable.
Local investment and redevelopment were another key focus of the meeting. Sen. Schwank provided an update on the Berkshire Mall site, where long-standing stormwater issues had stalled progress for months. With a court order now in place, plans for new retail and development space are advancing. This progress aligns with state budget investments in economic development, including funding programs such as Main Street Matters and the Historically Disadvantaged Business Program, which support reinvestment in downtown and commercial corridors.
Beyond the budget discussion, the meeting also reviewed current economic conditions in Berks County. According to GRCA’s Q3 Economic Intelligence Report, the county is experiencing a 20-year high in household delinquency rates. While wage growth continues, it remains behind inflation, placing added pressure on household finances. Berks County’s unemployment rate has risen to 5.2 percent, the highest level since 2021. While the increase is notable, it reflects broader workforce trends rather than a lack of available jobs. An aging population is shrinking the labor pool, fewer foreign-born workers are entering the workforce and employers are becoming more selective, extending the time needed to fill open positions.
Overall, the FY 2025-26 state budget highlights the close connection between state policy and local conditions. For Berks County, the budget provides stability in some areas while pointing to issues where continued focus is needed. For those looking to explore the details, a full breakdown of the FY 2025-26 Pennsylvania state budget is available. BCAC will continue to serve as a resource for understanding these issues and sharing timely updates, so the Berks County business community stays informed and engaged as budget priorities move from planning to action.
Save the Date: 2026 BCAC Meetings*
- Feb. 13
- April 10
- June 12
- Aug. 14
- Oct. 9
- Dec. 11
*Meeting dates are subject to change
About BCAC
The Business and Community Advocacy Council (BCAC), hosted by the Greater Reading Chamber Alliance (GRCA), serves as a collaborative network for public and private business professionals to engage in impactful advocacy. BCAC focuses on educating members about the policy-making process, identifying emerging policy issues and fostering active participation in local and statewide advocacy efforts. By promoting pro-business advocacy statements, BCAC empowers members of all sizes to navigate and shape the legislative landscape effectively. We do this by utilizing GRCA’s Pro-Business Advocacy Statements to guide the collaboration and coalition building that leads our advocacy work.
To learn more or get involved, contact Alex Roche, Director of Advocacy, at aroche@greaterreading.org.