Shapiro calls for a construction-ready Pa. to improve commonwealth's economy

Mar. 22—Pennsylvania must be construction-ready if it's going to compete in economic development with Ohio, Gov. Josh Shapiro said Friday during an appearance on KDKA Radio in Pittsburgh.

The Buckeye State is a frequent foil of Shapiro's when discussing economic growth in Pennsylvania. He says Ohio spends seven times more on development and that Pennsylvania must catch up.

In his budget proposal, Shapiro seeks a full rollout of a pilot program initiated last year, PA SITES (Pennsylvania Strategic Investments to Enhance Sites) — a $500 million bond and grant initiative to make the commonwealth shovel-ready for large-scale manufacturing. He points to Intel's decision from 2022 to build two manufacturing plants in Ohio.

The Columbus Dispatch reports Intel's investment is estimated at $28 billion with the computer chipmaker earning an $8.5 billion pledge of support from the White House this week for projects nationwide.

"Ohio eats our lunch when it comes to economic development," Shapiro told the hosts of The Big K Morning Show with Larry Richert and Marty Griffin.

"There is no way you're going to land big deals like a chips factory if you don't plunk down millions of dollars to create an environment where you're going to attract those businesses," Shapiro said.

Asked about criticism from opponents about his budget goals, Shapiro took a shot at Republican leadership without naming names or caucuses. It seemed, however, clearly directed at Senate Republicans since Democrats control the House.

He said he's fine weathering daily criticism from people in Harrisburg who've made it their job to posture against each of his proposals. But those "sitting on their hands" in the State Capitol are signaling to Pennsylvanians that they're unwilling to invest in the commonwealth and its people, he said.

"There's no excuse not to make investments when you're sitting on a $14 billion surplus," Shapiro said.

Republicans point to the out-year projections in Shapiro's budget that show Pennsylvania could spend through its current surplus in five years without substantive changes in spending and revenue.

Shapiro counters this by saying that even if his entire plan was enacted, there'd be $11 billion left over entering the 2026 fiscal year. He's betting on the return on investment of his initiatives to recruit industry and build a more skilled workforce including through technical education and the building trades.

During the interview, Shapiro again bemoaned Pennsylvania's spending on higher education, which he says is almost dead last in the country, and a problem still needing a solution — the Commonwealth Court ruling that held Pennsylvania's funding system for K-12 schools is unconstitutional. He also cited the Keystone State's population, one growing smaller and older.

Another budget battle has already begun as departmental hearings wrapped in the House and Senate last week. The June 30 deadline looms, and it's a deadline lawmakers and the Shapiro administration failed to meet last year.

The governor maintained a determined and optimistic tone about Pennsylvania's future, specifically its economy and workforce. Pennsylvania's unemployment rate for February settled at a record low of 3.4% for the fifth consecutive month, the Department of Labor & Industry reported Friday.

Shapiro remained optimistic, too, about forthcoming negotiations with Republicans in the General Assembly.

"I'm not frustrated at all. I'm mindful in this divided Legislature that you got to bring Democrats and Republicans together to get stuff done. I've done that successfully in the past, we'll do it again," Shapiro said.

"We're going to compromise and that's OK, compromise is not a dirty word," he said.