Rick Siger, Secretary of the Pennsylvania Department of Community and Economic Development, delivered these remarks at LVEDC’s 30th Anniversary Annual Meeting on March 18. The meeting explored the region’s vibrant $56 billion economy, the growing talent pool, and the partnerships that have helped propel the Lehigh Valley to a top U.S. mid-sized market for economic development. To view the entire Annual Meeting, click here.
Thank you so much everybody … Thank you, Don. Thanks to everyone here. It is definitely true. You saw the data. You can sort of feel it on the street when you're in the community, that the Lehigh Valley is doing well … It is truly a shining star of Pennsylvania. We have lots of work to do across the Commonwealth to become more competitive. I'll talk about a few of those things today. But here in the Lehigh Valley, things are really on the rise.
What I want to talk about is how we can be the best possible partner at the state. And our view of this, like our theory of the case, is we need a plan ... When I came into this job two years ago, we hadn't really put together a plan for economic development in Pennsylvania in almost 20 years, focused on economic development, on strong communities. And we had to fix that. Not in terms of a plan that's going to be some sit-on-the-shelf document that governments put together and release, but in terms of a real concrete roadmap, like a blueprint for action.
And I'm here to tell you today that we're taking some real action. We have half a billion dollars for industrial site development, and we’re on the cusp of investing the first tranche of it. We have created certainty and predictability and speed in our permitting systems, to national acclaim through programs like our Fast Track program, like our Office of Transformation and Opportunity.
We have taken a hard look internally at DCED, reorganized our group, integrated our international efforts, our marketing efforts, our branding efforts, our project management efforts, to be the right partner for groups like the LVEDC and others across Pennsylvania. And we're working hard on business climates.
So, I'm going to talk about our budget. I'm going to talk about some forward-looking stuff, but I guess if I leave you with two big points: One, the Lehigh Valley is an exceptionally powerful part of Pennsylvania's economy. Two, we are working really hard every day to be the most effective partner possible.
We believe we're making real progress ... We've gotten a lot done, but there's more to do. I want to talk about just three categories of investment that Governor Shapiro has proposed in his budget this year that are both kind of financial and programmatic that we want to move forward. One, we've got to just hammer on this theme of being open for business. That means the tools and business model. We need to focus on innovation, in a way that doesn't just support our cities and research universities like Lehigh but supports all of Pennsylvania. But we've got to address housing. This is an issue that I know is really important here.
So, just to give a couple examples … We have hundreds of programs at DCED that have been built up over time. We've looked at every single one. We've done specific analysis of those tools, what works and what doesn't work. One small example, we have a bunch of tax credits, those top three that are underutilized ... we want to have a payroll tax and a wage-based tax credit to compete and create jobs like other states have. We've proposed a $10 million Advanced PA tax credit.
I mentioned we reorganized our entire delivery model. That includes additional marketing funds, not just a new brand - Pennsylvania Gets it Done - but real engagement with real estate professionals and companies all across Pennsylvania, and new discretionary incentives in workforce training as well.
On innovation, we know we have to double down here. And in spite of what may be happening at the federal level, if you look at the extraordinary research capability in Pennsylvania, it's almost unheard of. I think we're No. 4 in the country in research funding overall, billions of dollars from the corporate sector, from the federal government, to fund research. Here, we know we've got to be better at commercializing that research, bringing it out of our universities and research labs to create jobs here. We're proposing $30 million specifically focused in life sciences, $20 million focused on a broader kind of innovation framework, and something we like to call Career Connect, which is really about keeping Pennsylvanians here in Pennsylvania. 
And then building on that innovation framework, a regional focus. Because when people hear innovation, they may think about Lehigh Valley, or they think about Philadelphia or Pittsburgh. We want all of Pennsylvania to be a part of this innovation economy. We want to support regions, whether it's manufacturing or workforce training, to be a part of that innovation economy.
And then finally, we really want to talk about housing, not just because housing is a moral imperative, or putting a roof over someone's head is critical for their health. These are things that we know and understand. But because housing is really like an economic unlock for the Commonwealth. And while the challenges associated with housing are different in different parts of the state, there's not enough. Cost of housing is increasing. These are impacts created by the amazing economic success that we have.
We are putting together the first ever housing action plan in Pennsylvania ... But it's not just about building new housing. It's about rehabbing housing. It's about support. And it's about affordability. And to get at that, in this first year, Governor Shapiro has proposed a set of investments which we think can have real impact to try to drive housing activity in Pennsylvania, whether it's helping us restore housing through housing stock restoration - fun fact: 25% of all houses in Pennsylvania were built before 1940 - or whether it's the $10 million first-time homebuyer tax credit program that helps more young families and adults get into the housing market.
So, as I wrap up here, I want to leave you with this. I came in and had a great honor of being nominated and confirmed for this job a little more than two years ago. We built a plan. We built a team. We started last year, relentlessly and with great energy, executing against that plan. Sites. Big wins across Pennsylvania. Really improving ourselves as partners for organizations like LVEDC. We have a new budget that shows more to go, but we feel like we have a playbook. We have energy. We have momentum. And under Governor Shapiro’s leadership, we're really determined to make Pennsylvania a leader - not just here in Lehigh Valley but in all of Pennsylvania - a leader in economic development. So, thank you very much for having me today.
(Photos by Marco Calderon Photography)