Once again, Governor Wolf’s annual budget address was highlighted by three themes: “Schools that Teach,” “Jobs that Pay” and “Government that Works.”

In the budget proposal, Governor Wolf advanced his theme of “jobs that pay” through initiatives that would benefit both workers and employers. For workers, he proposed that the minimum wage be increased from $7.25/hour to $12/hour this year, then $.50 annually until it reaches $15/hour.

Building on the work of the Keystone Economic Development and Workforce Command Center established last year, the Governor is proposing $12 million to establish a competitive grant program through the Department of Community and Economic Development (DCD) to address barriers to employment like lack of child care, insufficient training and lack of transportation. The Governor is also proposing that an additional $14.8 million in federal dollars be used to redesign employment and training programs for families moving toward careers from reliance on Temporary Assistance for Needy Families. Finally, the 2020-2021 state spending plan includes $450,000 for the Primary Health Care Practitioner Program, to bring access to healthcare to underserved communities.

The Governor is also proposing increases to economic development programs as follows:

  • $5 million increase to the Ben Franklin Technology Development Authority;
  • $5 million for grants to loans to local municipalities affected by the permanent closure of a state-owned or state-operated facility;
  • $2.5 million increase for the Industrial Resource Centers (IRC);
  • $2.5 million increase for the Partnerships for Regional Economic Performance, Small Business Development Centers, and Local Development Districts;
  • $2.35 million increase for Invent Penn State, an academic program with business startup training and incubation; and
  • $2 million increase for the Workforce and Economic Development Network of Pennsylvania (WEDnetPA).

This year’s budget also includes efforts to improve the business climate by reducing the Corporate Net Income Tax from 9.99% to 8.99% on January 1, 2021, and then reduce it incrementally to 5.99%, as well as the implementation of combined reporting.