State Senate Approves Economic Stimulus Package To
Create New Jobs, Opportunities in Pennsylvania
(HARRISBURG) Seeking to boost economic growth and help create more
jobs for Pennsylvanians, the state Senate last night approved
legislation creating a major economic stimulus program designed to
infuse new funds into effective, job-creating programs, according to
Senator Bob Robbins (R-50).
The measure, which passed the Senate unanimously and now goes to
the Governor for his approval, would create the Commonwealth Financing
Authority, which would fund up to $1 billion in economic development
initiatives over four years. The initiatives are aimed at creating new
jobs in key fields, promoting economic opportunity in rural parts of
the state, and redeveloping old industrial sites to host new
businesses.
The package will also provide venture capital to help start-up
companies expand and includes an initiative for retaining jobs at
military bases and reusing abandoned military bases in the
Commonwealth.
"This is a fiscally responsible plan that will provide targeted,
affordable and timely funding for local economic development and
infrastructure projects that are crucial to business location and
expansion," Robbins said. "It will also encourage job growth and
expansion in high-tech and biotech industries, as well as in
agriculture and tourism – Pennsylvania's top two industries.
Government can not create jobs, but it can provide the tools to assist
businesses in Pennsylvania to grow and prosper and in turn provide
good sustaining jobs for working men and women."
Senator Robbins described the measure as a vital economic
development tool that will help all parts of Pennsylvania,
particularly rural areas where there is a great need for water and
sewer infrastructure and medical facilities.
The comprehensive economic stimulus package includes the following:
- First Industries: $150 million to provide loans, grants and loan
guarantees for projects related to the development of tourism and
agriculture.
- Business In Our Sites: $300 million to prepare
industrial-business sites for future development.
- Building Pennsylvania: $150 million to provide loans to fund
managers for investment in real estate projects – industrial,
commercial, technology and multiuse.
- Second Stage Loans: $50 million to provide loan guarantees to
commercial lending institutions that make loans to life sciences,
advanced technology or manufacturing businesses between two and
seven years old.
- New Pennsylvania Venture Capital Investment: $60 million to
provide loans to venture capital partnerships for investment in
Pennsylvania-related companies.
- New State Tax Increment Financing (TIF) Options: The
Infrastructure and Facilities Improvement Program provides for new
state-level TIF options, including the use of sales tax, corporate
net income tax, and capital stock and franchise tax. The program is
directed to manufacturers, industrial enterprises, retail
enterprises, hospitals, convention centers and hotels.
Senator Robbins noted that several components of the economic
development package have already been enacted. They include:
- Sewer/Water Funding Referendum: Voters will be asked on April 27
to approve $250 million in bond funding for sewer and water system
improvements to support economic development projects.
- Keystone Innovation Zones: Created local Keystone Innovation
Zones in partnerships with colleges and universities to encourage
the commercialization of research and development.
- Elm Street Program: A new program to assist municipalities in
preparing and implementing a revitalization strategy for established
residential neighborhoods, which are close to either a Main Street
Program project or an existing commercial district.
- Small Business First: Increased the loan terms for land and
buildings to 15 years and for machinery and equipment to 10 years.
Extended the Pollution Prevention Assistance Account to fund waste
and energy use reduction projects.
- Machinery and Equipment Loan Program: Expanded eligible
applicants to include medical facilities and information technology
and biotechnology businesses, permitted loans for hardware and
software and increased maximum loan amounts to $5 million. Hospital
loans must be used for equipment that improves patient safety.
- Strategic Plan: Required the Department of Community and
Economic Development to annually submit a report to the General
Assembly detailing its economic development financing strategy and
accomplishments.
- Funding Increases: Funding for the Main Street Program was
increased by $2.5 million to $7.5 million. Funding for Opportunity
Grants was increased by $28 million to $50 million.
Contact: Michael Hengst (717) 787-1322
