A week after launching Pennsylvania’s new long-term, statewide economic development strategy from the Lehigh Valley, Gov. Josh Shapiro proposed investing $600 million to implement the strategy over the next year.

A cornerstone of that investment, part of Shapiro’s $48.3 billion budget proposal, would go toward getting sites shovel-ready for companies that want move to or expand in the state, including utility hookups and permits.

“It's important we start this work now, because it takes years to get some of these sites ready,” Shapiro said Feb. 6 at his budget address during a joint session of the House and Senate in the Capitol Rotunda.

That proposal builds on a PA SITES pilot program in 2023 that allotted $10 million for site preparation. More than 100 applications were received for that funding over a matter of just a few weeks. In total, those applicants requested $235 million, more than 23 times the amount that was available. 

Getting sites shovel-ready is one initiative in a broad-ranging economic development strategy that emphasizes supporting workforce development, small businesses, and innovation.

“The budget proposes some much-needed state support for business attraction efforts, preparation of hard-to-do sites like urban brownfields, and support for growing the innovation sector of the economy. All of this could have a direct impact on the work we do and the type of jobs, businesses, and projects that exist in the Lehigh Valley," said Don Cunningham, President & CEO of Lehigh Valley Economic Development Corp. (LVEDC). 

On Jan. 30, the governor offered a preview of what his budget would call for during a visit to the Lehigh Valley to unveil Pennsylvania’s economic development strategy, its first in nearly two decades.

He said then that he was “bullish” about the Lehigh Valley, and said the region is a model for the state to follow as it implements its strategy.

The Lehigh Valley set a record for Gross Domestic Product in 2022, the most-recent data available, at $50.2 billion. Advanced manufacturing continues to be a leading driver, with manufacturing contributing $8.1 billion, or 16%, of the region’s GDP.

As the GDP has risen, median household income has risen and poverty rates have decreased in the region. Median household income exceeds the state and national average, and poverty rates are lower than the rates for the state and nation.

"This is a region on the rise, and it is all because you have all put together a plan in the Lehigh Valley and you have consistently executed it every step of the way," Shapiro said during his address at OraSure Technologies in Bethlehem Township.

The statewide economic development strategy, which can be downloaded here, focuses on five key industry sectors: life sciences, robotics and technology, manufacturing, agriculture, and energy. They were selected because Pennsylvania already has a strong foundation in each of them, and they hold opportunities for growth and family-sustaining jobs. The core goals of the plan include getting sites shovel-ready for development, moving at the "speed of business" for permit processing and other approvals, and investing in workforce training, entrepreneurs, and communities.

During his budget address, Shapiro expressed frustration about neighboring states of Ohio, New York, and New Jersey allocating more for economic development.

“And you know what? Let's be frank. Their investment is paying off. And I am sick and tired of losing to friggin Ohio. We need to catch up right now,” he said.

Shapiro will now negotiate with state lawmakers on his proposal. The new fiscal year begins July 1.

In addition to the $500 million PA SITES proposal, Shapiro’s budget proposal includes:  

• $25 million for the Main Street Matters program, to support small businesses and commercial corridors.
• $20 million to support large-scale innovation and leverage research and development assets. The funding would be used to incentivize additional private venture capital, positioning Pennsylvania as a national leader in innovation while proactively investing in entrepreneurs who have historically lacked access to venture capital funding.
• $3.5 million to create and launch the Pennsylvania Regional Economic Competitiveness Challenge, which will fund the development of comprehensive regional strategies.
• $2.2 million to support workforce development.
• $2 million for ‘Career Connect,’ an investment aimed at keeping talented young adults in Pennsylvania by connecting them with employers and helping to create thousands of internships.
• $2 million to help businesses transition to skills-based hiring practices, away from arbitrary degree requirements.
• $2 million to build a single digital platform for all career, education, and training resources to help students and adults plan their future.
• $500,000 to expand and improve the Department of State’s Military Occupational Crosswalk, which connects veterans with civilian career opportunities equivalent to their military experience.

(Photo courtesy of Pennsylvania Governor's Office)