2024 PA Budget Pass

Governor Josh Shapiro signed a $47.6 billion budget package into law Thursday night, ending an 11-day delay from the deadline in the State’s Constitution. The package is a 6% increase from last year’s budget, but $700 million less than Shapiro’s initial proposal in February. The package includes several of key initiatives, including a $1 billion increase in K-12 funding, gap funding for mass transit, infrastructure funding, a cap on the net operating loss tax, and funding for site development to attract and retain employers.  The budget will pull $3 billion of the state’s surplus but leave approximately $10.5 billion in the State’s reserves.  ​

Trish McFarland, President of the Delaware County Chamber of Commerce stated, “On behalf of the Chamber’s Board of Directors and Membership, we want to offer congratulations to the Governor and General Assembly for reaching a budget agreement despite the current political environment and Pennsylvania being the only divided legislature in the nation. The Delaware County Chamber would especially like to recognize our county’s legislative delegation for being receptive to the Chamber’s continued advocacy.”
 
McFarland continued, “However, while we are thrilled to see several initiatives we championed included in the budget package, such as, improvements to state permitting changes to the harmful Net Operating Loss tax and focus on workforce training policies, we have deep concerns over the lack of full funding for mass transit. A highly trained workforce only matters if they can get to their place of employment.” 
 
Senate Leader, Joe Pittman (R-Indiana) offered, “this budget is built on two fundamental principles – honesty and empowerment. It’s honest about the realities and the limitations of divided government. It’s honest about finding new ways to fund educational opportunities, helping those who provide health care and human services, and paying our commonwealth’s bills with no tricks, gimmicks or games.” Pittman continued, “this is also a budget that empowers. It empowers parents to make decisions to benefit their children, job creators through permitting reforms and improving our state’s tax policies, law enforcement to maintain law and order, and taxpayers with $700 million more committed to our Rainy Day Fund.”
 
Governor Josh Shapiro stated, “Since my first day in office, I’ve been focused on getting stuff done for the good people of Pennsylvania, solving the most pressing problems we face, and bringing people together in a bipartisan manner to deliver results – and I’m proud to sign this budget into law that makes historic investments in education and economic development, while continuing investments in public safety and violence prevention, all while cutting costs and reducing taxes,” said Governor Josh Shapiro. “Pennsylvania is the only state in the nation with a divided legislature – and I’m proud that we came together with leaders in both Chambers and both parties to show that we can do big things together to make Pennsylvanians’ lives better.”
 
The final package does not include several items the Governor proposed in his Budget Address in February, as well as items that the Legislature had championed as priorities, such as, an increase to the minimum wage, comprehensive regulatory and permitting reform, legalization of recreational marijuana, and changes to skilled game regulations.
 
The budget package included a General Fund (SB1001), Tax Code (SB654), Fiscal Code (HB2310), and School Code (SB700). More details here and below:

• The net-operating-loss (NOL) carry forward increase from 40% to 80% over four years.
• A childcare tax credit for employers
• $20 million for a new Main Street Matters program
• $20 million in state funding for small minority-, women-, and veteran-owned businesses across the Commonwealth.
• $15 million for tourism marketing to boost our economy, attract more visitors, and support good-paying jobs
• $36 million to $72 million Neighborhood Assistance Tax Credits
• $500 million for the PA SITES program for shovel-ready industrial sites in order to compete effectively with other states for new business investment. This program allows Pennsylvania Economic Development Authority to sell up to $500 million in state bonds to underwrite grants to municipalities and redevelopment authorities to develop infrastructure such as water and sewer lines at industrial sites to help attract business investment. These grants can also be used for comprehensive real estate plans, and to develop or convert buildings and land for mixed use development
• $20 million (up from $5) for Historic Preservation Incentive Tax Credits from $5 million
• $60 million for the Research & Development Tax Credit
• $17 million for the Ben Franklin Technology Partners
• $3 million for Life Sciences Greenhouses to fund early-stage, innovative life sciences companies
• $15,000,000 in Keystone Innovation Zone (KIZ) tax credits worth up to $100,000 for qualified firms
• $80.5million for mass transit
• $80.5 million in new funding to repair roads and bridges
• $125 million in additional funding for Pennsylvania roadways and bridges by reducing PA State Police’s reliance on the Motor License Fund
• $10.5 million to speed up permitting processes at the Department of Environmental Protection (DEP) and clear permit backlogs
• $30 million increase in Career and Technical Education (CTE) programming and equipment and to invest in apprenticeship programs
• $25million in initial funding for the formation of two new state student scholarship programs for Higher Education for students who pursue a degree in a high-demand industry such as education, engineering and nursing, and agree to work in Pennsylvania for 12 months for every year the student receives a grant.
• The community colleges will see a $15.7 million or 6 percent increase.
• PASSHE will see a $35.1 million, or 6 percent increase

If you're interested in staying active in the Chamber's advocacy efforts and participating in the Government Affairs Committee. Contact Trish McFarland