Statement from Allegheny Conference on Community Development Chief Growth Officer Matt Smith in Response to the Passage of the 2024-2025 State Budget

Statement from Allegheny Conference on Community Development Chief Growth Officer Matt Smith in Response to the Passage of the 2024-2025 State Budget

PITTSBURGH - July 12, 2024 - "On behalf of the Allegheny Conference on Community Development, I congratulate the Pennsylvania general assembly and the Shapiro Administration for working in a bipartisan manner to ensure the fiscal year 2024-2025 state budget continues to greatly improve Pennsylvania's economic competitiveness, enhance our reputation as a business-friendly state, and continues to position the commonwealth as a frontrunner in the global economy. The passage of this state budget is a tremendous win for the Pennsylvania business community and underscores our elected officials' dedication to growing the economy, competing for jobs, and making Pennsylvania competitive for investment.

Included in this year's budget are several priorities that align with the Conference's 2024-2026 agenda and will advance the southwestern Pennsylvania region - specifically, the $500 million investment in the Pennsylvania Strategic Investments to Enhance Sites (PA SITES) program, improving the net operating loss (NOL) structure, commitments to improve our state's permitting system, and establishing framework for carbon capture and sequestration (CCUS). These priorities, along with the continued phasedown of the corporate net income tax rate, streamlined government processes, and a comprehensive, statewide economic development strategy, will continue to create a more favorable business climate throughout the commonwealth.

The $500 million investment in the PA SITES program is critical for southwestern Pennsylvania. For nearly two decades, the general lack of shovel-ready sites and real estate was the leading reason existing and prospective businesses decided not to grow or locate in our region. Through PA SITES, Pennsylvania's numerous greenfields, brownfields, and commercial and innovation centers will see immediate investment to attract companies in high-growth industries and spur job creation.
This investment is crucial to strengthening the economy, workforce, and future of the commonwealth and the Pittsburgh region. We thank the bipartisan group of elected leaders for recognizing the critical need and proposing a solution that will once again position Pennsylvania as a leader in business investment among peer states. We look forward to working with regional public and private partners to implement and utilize this transformative investment. Movement on NOLs and permitting modernization, paired with business attraction and retention tools like the PA SITES program, are steps in the right direction to unlock our region's potential.
We thank our elected leaders for addressing one of our top issues - improving the commonwealth's NOL structure -and appreciate their efforts to raise the cap on prospective NOLs. This is another milestone in creating a more competitive business environment, yet we urge state leaders to quickly continue discussions to tackle legacy NOLs for established Pennsylvania businesses that have invested in our commonwealth.
Another win for our state is the much-needed progress on permitting modernization, which has been a long-standing priority of the business community. We thank Governor Shapiro and the leaders in the House of Representatives and the Senate for recognizing this competitive disadvantage and addressing it through the Streamlining Permits for Economic Expansion and Development Program (SPEED). Regulatory predictability and improvements to the permitting process, including creating a secure tracking system for permit applications, third-party review of specific Department of Environmental Protection permits, establishing permit review timelines, and continuing PAyback - a money-back guarantee system established under the Shapiro Administration if permits, licenses, or certifications are delayed - will allow businesses to plan and invest with greater confidence, and move our commonwealth forward.
We also commend the general assembly for passing Senate Bill 831, the Carbon Dioxide Geologic Sequestration Primacy Act. This act established the legal and regulatory framework for carbon dioxide capture and sequestration in Pennsylvania. This framework will help our state decarbonize industries and establish a foundation for a future hydrogen economy.
We look forward to working alongside the Shapiro-Davis administration, general assembly, and public and private partners to create a business-friendly environment, coupled with robust economic development tools, to achieve a competitive region and state where we can build a next-generation economy for all.

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Matt Smith is available for interviews today, offering a perspective on behalf of the region's employer community and the impact that this budget can have on the Pittsburgh region. Please reach out to Phil Cynar, contact information below, to schedule.

Media contact: Phil Cynar, Allegheny Conference, [email protected]
412-281-4783, ext. 4573