Recently Passed State Budget Invests in PA’s Future and Protects Against National Economic Downturn

Billions of New Dollars Revitalize Communities and Create Jobs

Pennsylvania has not stood still as problems in the national economy have threatened our economic security.  Several significant steps were taken in June and July of this year to create new programs and dramatically expand current economic development programs.  Surrounding states have been confronted with sizeable budget deficits, largely due to the national economic downturn and a failure to take the appropriate state action to invest in their own economic picture.  This has not been the case in Pennsylvania.  We have ended the last several years economically secure in spite of national economic pressures.  The following programs will create jobs for Pennsylvania residents and will help to defend the state against national and international economic problems.

RACP

With the increased funding for the Redevelopment Assistance Capital Program (RACP) from $2.65 billion to $3.45 billion, projects worth more than $1.5 billion (including local matching funds) will be able to proceed.  These dollars go to large projects of regional importance, like the PA Convention Center, but they also support smaller developments that can have a dramatic impact on neighborhoods, like the Lucien Blackwell Homes, the Center For Human Advancement, the Arthur Ashe Tennis Center, and the Please Touch Museum.

RACP is a Commonwealth grant program administered by the Office of the Budget for the acquisition and construction of regional economic, cultural, civic, and historical improvement projects.

This new funding will allow immediate implementation of $500 million in projects that are ready to break ground this year.

This investment is a critical part of a redevelopment strategy that creates jobs and economic opportunity.  This new funding ensures that local projects, which create local jobs, will broaden opportunities for business development and stimulate economic growth.

Infrastructure Investments

Investments of more than $2 billion in infrastructure improvements, such as dams, water lines, sewer systems, airports and railroads this year, will create thousands of jobs, and boost the local economy through the purchase of building materials.

It is also important that we immediately ensure the safety and welfare of our citizens by making necessary and long overdue repairs to our most dangerous bridges, including nine in Philadelphia.  Governor Rendell’s Rebuild Pennsylvania Program, using a combination of federal and state funds, will assist in our endeavors with an investment of $350 million going to the repair of more than 400 of the most dilapidated bridges throughout the Commonwealth.

New Energy Program

In an effort to reduce our dependence on foreign oil and to create thousands of jobs, our energy independence plan aims to make Pennsylvania a leader in energy efficiency and natural resource conservation.  A $650 million investment in emerging new technologies and innovative ideas will help Pennsylvanians lower their energy bills as we look toward a future of energy independence. 

In total, investments will be made to expand the alternative energy sector in Pennsylvania as well as help consumers lower their energy costs.

The time for clean, renewable energy and homegrown fuel resources is now, not just for the future. This is just the first step to ensure a future of cost savings on energy.

KOZ

The Keystone Opportunity Zone tax incentive program is another important tool for economic development, job creation and making use of old industrial sites and other unused areas.  More companies will see Pennsylvania as an attractive site to put in roots, growing the job base along with the local economy.

The recent updates made to the KOZ program will give development projects that were facing deadlines the chance to continue.  This means that more jobs will be created and more communities will be revitalized across Pennsylvania

The KOZ program, created in 1999, provides businesses significant state and local tax incentives to develop old industrial sites and other underused areas.

The economic forecast will get worse before it gets better. These key investments in Pennsylvania’s economy will ensure that we are able to weather economic storms for many years to come.