By Julian Collazo, Marketing Communications & Development Intern, GRCA
Published: Thursday, August 28, 2025
The Pennsylvania state budget may not grab the same headlines as national politics, but its impact on our daily lives is hard to overstate. When budget negotiations stall, the effects are felt everywhere, from school funding to whether local agencies can pay contractors on time.
This summer, legislators in Harrisburg have been working to resolve a budget stalemate. While talks remain behind closed doors, key issues still under discussion include funding for mass transit, road and bridge improvements and regulation of skills games. Meanwhile, larger policy debates, such as tax reform and marijuana legalization, seem to be on the back burner right now.
Here in Berks County, the consequences of the budget delay, combined with reductions in certain federal funding, are already being felt. Although federal employee cuts have had limited direct impact locally, the withholding of contracting funds is affecting employment and operations. County leaders may be forced to respond by freezing discretionary spending and pausing hiring new staff. Payments to contractors reliant on state or federal dollars could be delayed.
Rising borrowing costs are adding to the financial pressure, making it more expensive for contractors and service providers to operate. Counties now face difficult decisions about how to maintain essential human services that protect vulnerable populations, all while avoiding the depletion of reserves or the burden of new debt.
The challenges with the state budget are not just financial, they are political. With a divided legislature, reaching agreements on the budget can be complex. During the August Business and Community Advocacy Council (BCAC) meeting, participants suggested that while major policy changes are unlikely this year, there may be room for bipartisan compromise on certain regulatory issues.
Moving forward will require cooperation, practicality and a shared commitment to public good. Pennsylvania law mandates a balanced budget, which makes it all the more urgent to find common ground that sustains essential services and supports economic growth.
The Greater Reading Chamber Alliance (GRCA) encourages community members to reach out to their state representatives and senators to share how the budget affects their work, business or family. GRCA will continue to provide nonpartisan updates as negotiations unfold and will share information on budget items that directly impact the Berks County business community.
A state budget is more than a spreadsheet, it is a blueprint for the year ahead. It shapes our schools, infrastructure, housing and workforce. In Berks County, we all have a stake in how that plan takes shape. The sooner it’s resolved, the sooner our community can move forward with clarity and confidence.
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 Roché, Director of Advocacy at aroche@greaterreading.org.