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Governor Rendell’s 2006-07 budget continues to enhance Pennsylvania’s competitiveness
Governor Edward G. Rendell today signed a $26.1 billion 2006-07 budget that includes $297 million in business tax cuts that will enhance Pennsylvania’s competitiveness, as the state continues efforts to attract private-sector investment and new jobs while rebuilding the economy and revitalizing communities across the state. In addition to the package of tax cuts, the budget includes a trade initiative that will help Pennsylvania companies bridge borders and expand in global markets. “Throughout the past three years, we have been focused on growing our economy and improving our competitiveness,” Governor Rendell said. “I am committed to helping our businesses grow while supporting the revitalization of our communities. We are already seeing more jobs now in Pennsylvania than at any other time in our history, but there is more we need to do to ensure the economic future of our residents. “Creating jobs and growing the state economy have been top priorities for me from day one. Business tax cuts are a key component of our job-creation strategy. When combined with our innovative and aggressive $2.8 billion economic stimulus plan, they provide a powerful incentive for businesses to locate or expand in Pennsylvania. “At the same time, our global competitiveness program, World Trade PA, will enable our businesses to look far beyond the commonwealth for new opportunities across oceans and around the world,” the Governor added. Business Tax Cuts: Improving PA’s Ability to Compete for Jobs and Investments Governor Rendell’s ongoing commitment to cutting business taxes is reflected in Pennsylvania’s 2006-07 budget, which lowers the tax burden on businesses by $297 million. Cumulative business tax cuts under Governor Rendell now total more than $1.1 billion. The Governor included business tax cuts of about $221 million in his 2006-07 budget proposal in February. He proposed additional tax cuts in May, thanks to a growing state economy that generated higher-than-expected revenue collections. As Pennsylvania’s economy continued to grow, and the state’s year-end budget surplus continued to climb, Governor Rendell worked with the business community and the legislature to develop an expanded package of tax cuts that includes:
Governor Rendell said the business tax cuts will further spur growth in the state’s economy, which has had an average statewide unemployment rate below the national average rate for the past year, with nearly 122,000 jobs added in the past 40 months. “Since I took office, many companies have responded to our invitations to set up shop in Pennsylvania,” the Governor said. “The presence of these newcomers, along with expansion by established Pennsylvania companies, has helped us add thousands of jobs and keep unemployment down. These additional tax cuts will make the commonwealth even more attractive to businesses looking to expand or relocate here.” World Trade PA: Expanding PA Exports and Encouraging Greater Foreign Investment in PA Pennsylvania is the world’s 17th largest economy and exports now total $18 billion annually. Governor Rendell has been steadfast in his focus on investing in business growth, job creation and increasing the commonwealth’s global competitiveness. The 2006-07 budget includes $15 million in new funding to accelerate and expand the commonwealth’s current trade and investment activities. “I am committed to breathing new life into our communities and helping our businesses grow,” the Governor said. “Our investments and aggressive initiatives have already helped Pennsylvania climb in a national ranking for short-term job growth from 46th in 2003 to 15th in 2004. “At the same time, there are more jobs now in Pennsylvania than at any other time in our history. But there is more that we must do to ensure the economic future of our young people, businesses and communities. “We are working proactively to make sure Pennsylvania and Pennsylvanians can compete in global markets,” the Governor added. “These targeted investments are critical to Pennsylvania’s ability to support business growth and to help create new opportunities for our working men and women. In the face of more than $1 billion in federal cuts and fierce national and global competition, we must provide the tools and resources that will foster a business-friendly environment and make our communities attractive to new and expanding companies.” To continue to advance the commonwealth’s competitiveness abroad, the World Trade PA initiative will:
World Trade PA will make key investments that are designed to help Pennsylvania companies expand their export potential. These investments include:
World Trade PA will invest new resources in international marketing and business attraction activities by intensifying efforts in booming areas like Japan, India, the Republic of Korea and China, while maintaining the state’s efforts in Europe and Canada. “The state will use its competitive advantage in sectors like food processing, biotechnology, pharmaceuticals, next-generation electronics and financial services to attract new private-sector investment, create jobs and revitalize our communities,” the Governor said. A crucial part of the strategy will also involve the implementation of a regional “international marketing” grant program to help regional economic development partners create a proactive international business attraction program in partnership with the commonwealth. World Trade PA will also leverage Pennsylvania’s extensive network of foreign-born university graduates to promote new business opportunities for the state. The initiative will create the Pennsylvania Global Business Alumni Program and will fund universities and Keystone Innovation Zones to hire coordinators who will be charged with connecting potential business leads with Pennsylvania firms.
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