Focus Needs to be on Job Creation/Economic Development

As we approach upcoming negotiations for the 2013-14 Fiscal Year budget, the Legislature must be mindful that this budget will again task us with finding ways to do more with less and must make sure to invest scarce budget dollars wisely. Both the Administration and General Assembly should look towards investing in and creating programs that will spur economic development and create jobs throughout the Commonwealth. 

Recently, the Pennsylvania Department of Labor & Industry (L&I) released a disappointing March jobs report.  Despite the state’s unemployment rate dropping by two-tenths of one percent, Pennsylvania’s rate still remains above the national unemployment rate.  In fact, the rate was from more residents dropping out of the labor force than from unemployed Pennsylvanians finding jobs.  Pennsylvania now ranks 49th in the country in job growth.  With the more than 20,000 education jobs lost in the past three years, these statistics do not come as a surprise. 

The news was far worse for Pittsburgh.  Our region now ranks dead last in the country in job growth and also has the largest increase in the unemployment rate over the past year when compared to the 40 largest metropolitan areas in the country.  Pittsburgh only added 2,100 net new jobs for the entire last year. 

While most states are coming out of an economic recession, the current Administration’s policies seem to be keeping us behind. What better way to create jobs than invest money into economic development programs and projects?  There are plenty of options and opportunities of where and what to invest in,
including education, rehabilitating the Commonwealth’s transportation infrastructure or expanding Medicaid in our state which would allow Pennsylvania to receive millions of dollars in federal funding for several years. 

After two consecutive years of deep funding cuts, our state has taken several steps backwards.  We must now reverse this reality in order to bring the economy back and thrive.  Refocusing our priorities to invest in job creation and economic development programs will prove to be excellent starting points to get Pennsylvania growing again and provide long-term employment opportunities for residents. 

We must create a positive business environment that encourages investment and growth. From the Ben Franklin Technology outreach to the state’s successful film tax credit program, there are numerous proven programs that have given us a great return on our investment. I hope we can continue to invest in these initiatives in the coming fiscal year, and free up dollars for new small business investment programs that offer even greater potential. To that end, I have introduced two bills that I hope can become part of this year’s economic investment strategy.

One measure, Senate Bill 141 (SB 141), establishing the “angel investment tax credit,” would help small businesses acquire capital and financing for high growth endeavors.

My other bill, Senate Bill 205 (SB 205), would address the existing Second Stage Loan Guarantee Program to loosen restrictions by opening eligibility to all industry sectors. This restructuring of a $50 million dollar Small Business Investment Guarantee Program would provide a needed catalyst to spur private banks and other commercial lenders access to capital for small business.

As we work toward a final budget, I think we can all agree that this year’s budget must have a strong economic development and jobs component. We must do all we can to help Pennsylvanians get back to work.