Governor Josh Shapiro recently unveiled his Economic Development Strategy – the first for Pennsylvania in nearly two decades – which aims to position the Commonwealth as a premier destination for business, unlocking its tremendous potential for economic growth and bolstering its competitiveness among peer states. The plan includes significant investment in programs to attract businesses and talent including economic development, job creation, and innovation.
Created with the Commonwealth’s Department of Community and Economic Development (DCED), the strategy, which is available to read in full at www.PAGetsItDone.com, capitalizes on the state’s strengths. The Chamber commends Governor Shapiro and DCED Secretary Rick Siger for detailing a strategic path forward for Pennsylvania’s accelerated growth.
“The Governor’s economic development strategy serves as a needed blueprint for inclusive growth throughout the Greater Philadelphia region and the Commonwealth, creating jobs, spurring innovation, and growing opportunities. We stand ready to work together with the Shapiro Administration, General Assembly, and our business community to strengthen our competitive position in the global economy,” said Chellie Cameron, President and Chief Executive Officer, the Chamber.
The strategy focuses on key high-growth, high-value industry verticals where Pennsylvania already holds a profound competitive advantage and can expect significant potential for growth over the next 10 years:
- Agriculture
- Energy
- Life Sciences
- Manufacturing
- Robotics and Technology
Research has found that Pennsylvania possesses economic innovation-driven assets but lags behind peer states in advanced industry growth. A clear commitment to growth by Pennsylvania’s elected leaders is critical to reversing this concerning trend. The Chamber has called on state lawmakers to take action; we believe this plan has the potential to put Pennsylvania business back on the map by prioritizing economic development.
A 2024-25 Budget to Support Economic Development
Shortly after the strategy’s release, Chamber leaders were in Harrisburg as Governor Shapiro issued his $48.3 million budget proposal for the next fiscal year. His proposal would provide funding for several key programs highlighted in his economic development strategy, including $500 million to support commercial and industrial site development through a taxable bond issuance. The move seeks to build upon last fall’s $10 million pilot program, which received 102 applications requesting more than $236 million in funding.
In addition, the budget proposal called for the establishment or funding of several programs, including:
- $25 million for Main Street Matters program, supporting small businesses and commercial corridors;
- $20 million to support large-scale innovation;
- $18 million increase in funding for tourism and business marketing;
- $3.5 million to launch regional planning grants to address revitalization, infrastructure, or housing issues;
- $2 million for the Career Connect program to connect workers with employers through apprenticeships, internships, and job training.
Governor Shapiro’s budget proposal seeks to address several other issues of importance to the Chamber and the economic vitality of our region, including transit funding, business taxes, minimum wage, and basic education funding.
Transit Funding
To address the budget shortfall that SEPTA is facing, the Governor has proposed $283 million in additional funding for transit. Southeastern Pennsylvania generates 41% of the state’s economic activity with 32% of its population on just 5% of its land. Our region’s economic productivity and density is only possible because of our transit system and ability to move workers and residents efficiently and safely throughout the region. The Chamber supports the Governor’s call for increased transit funding.
Business Taxes
The Chamber believes a competitive business tax climate is key to business location and expansion decisions. While the Governor proposed to continue the scheduled phasedown of the corporate net income tax (CNIT), there is no proposed increase in the net operating loss (NOL) carryforward limit. The Chamber advocates for maintaining or accelerating the CNIT phasedown and increasing the NOL deduction carryforward limit to support start-ups and entrepreneurs with the biggest potential for job gains in Pennsylvania.
Minimum Wage Increase
The Chamber supports the development of a policy and approach to a $15 per hour minimum wage that will keep businesses competitive while improving livability in our region. Governor Shapiro reiterated his call for a $15 minimum wage, aiming to address Pennsylvania’s low minimum wage compared to neighboring states.
Basic Education Funding
Finally, the Governor proposed a significant increase of over $1 billion in basic education funding, responding to a court ruling on the funding formula’s constitutionality. The Chamber supports increased funding for basic education and reforms to ensure equitable distribution and prioritize student outcomes.
Join the Chamber’s Advocacy Efforts
The Chamber stands ready to work alongside the Shapiro Administration and the Pennsylvania General Assembly to achieve the strategy’s goals to strengthen our region’s competitive position in the global economy. Together we can create a more competitive and inclusive business environment – and, in turn, promote job creation, economic growth, and build stronger communities throughout the Commonwealth. To learn more, contact Anselm Sauter, Vice President, Regional Advocacy, at asauter@chamberphl.com or join us on our next Legislative Updates: Weekly Conference Call.
