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Senate Approves Economic Stimulus Package
to Create New Jobs,
Opportunities in Pennsylvania
HARRISBURG -- Seeking
to boost economic growth and create more jobs for Pennsylvanians, the state
Senate today approved legislation creating a major economic stimulus program
designed to infuse new funds into effective, job-creating programs, according to
Senator Terry Punt (R-33). Punt chairs the Senate Community and Economic
Development Committee and played a key role in working with the Administration
and the House of Representatives to develop the package.
The measure, which passed the Senate unanimously and
now goes to the governor, would set up a new Commonwealth Financing Authority to
fund up to $1 billion in economic development initiatives. 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 includes an initiative for retaining
jobs at military bases and reusing abandoned military bases in the
Commonwealth. Senator Punt led the charge to that provision and has worked
closely with the Base Realignment and Closure team regarding Letterkenny Army
Depot in Chambersburg.
“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,
Punt 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.”
Senator Punt 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:
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First Industries: $150 million to provide
loans, grants and loan guarantees for projects related to the development of
tourism and agriculture.
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Business In Our Sites: $300 million to
prepare industrial-business sites for future development.
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Building Pennsylvania: $150 million to
provide loans to fund managers for investment in real estate projects –
industrial, commercial, technology and multiuse.
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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.
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New Pennsylvania Venture Capital Investment:
$60 million to provide loans to venture capital partnerships for
investment in Pennsylvania-related companies.
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New State Tax Increment Financing 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.
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Base Retention and Conversion: Funds
appropriated to the Department of Community and Economic Development for the
Base Retention and Conversion Pennsylvania Action Committee shall all be
used for either one of two purposes: (1) development of a statewide strategy
or (2) grants for economic impact studies, infrastructure needs assessment,
identification of job-training needs or other purposes related to the
potential for military base closures.
Senator Punt noted that several components of the
economic development package have already been enacted into law. They include:
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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.
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Keystone Innovation Zones: Created local
Keystone Innovation Zones in partnerships with colleges and universities to
encourage the commercialization of research and development.
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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.
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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.
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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 increase maximum loan amounts to $5 million. Hospital loans
must be used for equipment that improves patient safety.
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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.
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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.
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Punt Audio
Armstrong
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