(The Center Square) – There’s a lot of talk in Harrisburg about permitting reform and economic growth.
It’s bipartisan. It’s bicameral. And it’s appealing to businesses of all shapes and sizes.
So, if Pennsylvania lawmakers and Gov. Josh Shapiro know all this to be true, why does the state still rank among the worst for bureaucratic red tape?
It seems that nothing is moving fast enough to attract companies to the commonwealth, even with well-intentioned reforms from the governor’s office down through the Legislature. Instead of prioritizing regulatory rollbacks, officials have bet big on tax credits that don’t seem to be paying off.
Four programs meant to entice companies into the commonwealth have had little to no participation. Elizabeth Stelle, a policy analyst for the Commonwealth Foundation, a conservative research nonprofit based in Harrisburg, said the “corporate welfare” should take a back seat.
“Sadly, PA’s economy isn’t what attracts people and investment but rather what scares them away,” she said in an op-ed published last month.
Two examples – sluggish construction for Nacero’s energy plan and the loss of a FairLife milk processing plant to New York – came with targeted tax credits that, in the case of the former, haven’t even been used.
The credit Nacero was meant to pursue was created during former Gov. Tom Wolf’s administration. He also proposed eliminating a dozen occupational licenses and broader reciprocity with other states. Neither have come to fruition.
Stelle said the foundation’s findings estimate that such changes could increase GDP by $9.2 billion and create roughly 184,000 jobs.
Overregulation can have widespread impacts on an economy. According to U.S. Census Bureau data, from 2010 to 2020, states, on average, had a 7.4% population growth while Pennsylvania’s was only 2.4%.
For Shapiro’s part, his administration has taken bigger strides toward cutting red tape. In his quest to “get things done” in Pennsylvania, he’s created a program to fast-track permits so that businesses, like Nacero, don’t get stalled, or others, like FairLife, don’t turn around and run from the state’s notoriously slow and cumbersome approval process.
He’s also levied fines against agencies that miss permitting deadlines for occupational licenses that apply to roughly 1 million workers in the state. Online tracking is easier, too, which fulfills advocates’ request to make permits more like ordering a pizza.
“When I became governor, I promised to make state government work better for Pennsylvanians by eliminating obstacles and creating real opportunity for the people of our commonwealth,” Shapiro said during a Nov. 20 press conference in Hazleton. “By simplifying the permitting process and focusing on results, we’re not just driving economic growth and creating jobs — we’re delivering for Pennsylvanians, putting points on the board, and making real progress.”
Lauren Jessop contributed to this report.
