DCED: Governor’s Proposed 2021-22 Budget Positions Pennsylvania as the Best Place to Live, Work, and Do Business
Harrisburg, PA – Today, Department of Community and Economic Development (DCED) Secretary Dennis Davin released a statement in support of Governor Tom Wolf’s proposed 2021-22 budget, which prioritizes economic recovery and growth through investments in workforce development and businesses tax cuts that will position Pennsylvania for a bright economic future with a highly skilled, diverse workforce.
“The ambitious budget proposed by Governor Wolf will help Pennsylvania rebound from the devastation caused by the COVID-19 pandemic and move forward with a focus on equity and parity for all of the commonwealth’s communities and businesses. COVID-19 laid bare the inequities faced by too many Americans, and the governor’s 2021-22 budget proposal takes a comprehensive approach to addressing them.
“Under the governor’s plan, more than 400,000 business owners will pay less tax than they currently do, receiving a total tax cut of more than $240 million. Gov. Wolf is also calling for a reduction to the Corporate Net Income Tax with incremental decreases over the next five years and to finally and permanently close the Delaware Loophole. These actions will create a more level playing field and lessen the burden on businesses to operate in our commonwealth—a burden that has only become more increased and complicated due to the COVID-19 pandemic—and make our taxation system more equitable.
“Increased support for manufacturing and other high-demand industries will help more Pennsylvanians enter the workforce through easier access to alternate career pathways. The governor’s plan builds on the findings and themes of the bipartisan, public-private Keystone Economic Development and Workforce Command Center and his successful education and workforce development programs through PA Smart, further extending education and family-sustaining career options to more Pennsylvanians.
“Gov. Wolf has also called for a $1.5 million increase in funding to Pennsylvania’s Industrial Resource Centers (IRCs), enabling us to continue to support small and medium-sized manufacturers, which make up more than 92 percent of the state’s manufacturing base. Similarly, the governor’s call for a $1.5 million increase to the Partnerships for Regional Economic Performance (PREP) network will help our economy continue to rise above the challenges of the pandemic by providing crucial technical assistance at a time when businesses need it the most.
“Finally, the proposed Back to Work PA initiative—a bold, diverse economic recovery and workforce development plan–strategically and comprehensively invests in a wide variety of initiatives that will support workers and business owners most significantly impacted by the COVID-19 pandemic.
“Back to Work PA will not only target existing initiatives, but also invest in work-related supports like education, workforce training, child care, re-entry support and broadband access, as well as financial planning to recovering municipalities. All of these supports are critical to not only putting people back to work, but giving them the supports to achieve meaningful skills for well-paying jobs with family-sustaining wages.
“Funded through securitizing a commonsense tax on natural gas extraction, Back to Work PA would allow for a rapid injection of more than $3 billion to Pennsylvania, which will support the state as it bounces back from the pandemic with a stronger economy and the best-trained workforce to power it. Pennsylvania trails only Texas in natural gas production, yet remains the only gas-producing state without a severance tax. Back to Work PA will help improve infrastructure, education, and the workforce in our communities by enacting a reasonable severance tax that finally puts our commonwealth in line with the successes of other major natural gas-producing states.
“These targeted investments are good for working families, good for businesses, and good for our economy.”