00:20 - Good morning.

00:25 - Lieutenant governor Davis.

00:27 - Speaker McClinton.

00:29 - President Pro Tempore leader.

00:32 - Bradford and leader. Pittman.

00:35 - Leader.

00:35 - Topper and leader.

00:36 - Costa, thank you for giving me the honor

00:40 - of addressing another joint session of this General Assembly.

00:44 - As your governor, before I begin, I want to recognize my outstanding

00:49 - cabinet and senior team led by Dana Fritz, who I have the privilege

00:54 - of working alongside every day to move our Commonwealth forward.

00:59 - I'd like to give a special thanks to the Commonwealth's

01:02 - new Budget Secretary, Zachary Reber joins us

01:05 - today.

01:11 - His unique collection of ties,

01:16 - only surpassed by the number of vests

01:18 - worn by Russell Redding at the Farm Show.

01:22 - I'm proud of my dad, Steve.

01:23 - My in-laws, Ellie and John are here with us today, and I especially want to

01:28 - welcome the love of my life and Pennsylvania's first lady, Laurie.

01:34 - Love you.

01:48 - Let let the record

01:49 - reflect that this chamber has had the wisdom to deliver for standing

01:53 - ovations to the First Lady of Pennsylvania over the years.

01:56 - I love you to the senators and representatives

01:59 - who are gathered here today.

02:01 - Truly thank you for your service.

02:03 - And to our fellow Pennsylvanians who entrust us to do this work

02:07 - and join us today.

02:09 - Welcome to all of you.

02:11 - At the beginning of every year, we convene

02:14 - in this beautiful chamber to begin our work.

02:17 - And this year, as I lay out my vision to build on the progress we've made,

02:21 - I want you to know that I am just as motivated today as the desk started.

02:27 - I'm humbled by the history that walks these halls where we are blessed to work.

02:32 - The eyes of history are literally looking down on us today

02:37 - as the great

02:38 - apotheosis of Pennsylvania reminds us.

02:41 - Painted into the rock just above where the speaker sits

02:45 - and serving is the foundation for the temple above me.

02:49 - It's a special passage from the book of Deuteronomy.

02:52 - Remember the days of old.

02:55 - Consider the years of many generations.

02:59 - Ask thy father, and he shall show thee thy elders.

03:04 - And they will tell thee.

03:07 - I recall, as a young state representative sitting in Representative Briggs, his seat,

03:11 - looking up at this mural and seeing the likes of Ben

03:14 - Franklin and Thomas Paine and Thaddeus Stevens.

03:18 - These are our elders,

03:21 - and their example should guide and inspire us.

03:25 - Men like Franklin and Payne and others gathered

03:27 - in Philadelphia 250 years ago to begin this grand experiment

03:33 - in the greatest system of governance, the world has ever seen.

03:44 - And that work.

03:45 - That work has been passed on from generation to generation.

03:50 - But you see, I'm not just inspired by our history.

03:52 - I'm inspired by the stories I hear from Pennsylvanians each day

03:56 - as we consider the years of many generations yet to come.

04:01 - And the Commonwealth we will leave behind for them.

04:05 - These are the people that give us our direction.

04:09 - The people that I listen to,

04:11 - the people for whom I'm hungry to continue to make a difference.

04:14 - This year and for many more years to come.

04:18 - Because I know government can be a productive force for good in people's

04:23 - lives.

04:24 - I know because I've seen it over the past three years.

04:28 - Our kids are getting a better quality education.

04:31 - Our workers have more opportunity to chart their own course.

04:34 - Our economy is growing and our communities are safer.

04:39 - We've done that work together,

04:41 - and we've done it in a way that shows we respect all people.

04:46 - No matter what you look like, where you come from, who you love,

04:50 - or who you pray to or choose not to pray to.

04:53 - We've increased funding for education by nearly 30%.

04:58 - We've expanded Vo-Tech, CTE and apprenticeships

05:02 - to open up new pathways of opportunity.

05:09 - School.

05:10 - School attendance is up.

05:11 - Graduation rates are up.

05:13 - More young

05:14 - people are finding their passion in the trades and for 31 straight months,

05:19 - our unemployment rate has remained lower

05:22 - than the national rate.

05:30 - It is a point of pride that we have more young farmers

05:34 - under the age of 35 than any other state in the entire country.

05:39 - We're producing.

05:44 - We're producing more energy today

05:46 - than ever before, 240,000,000MW,

05:50 - because our all of the above energy strategy is working.

05:58 - And since we last gathered,

06:00 - we landed the largest private sector investment in the history

06:04 - of our Commonwealth in Luzerne and Bucks counties.

06:13 - And just last Friday,

06:14 - we won the biggest life sciences deal in Pennsylvania history

06:18 - and the largest economic development deal ever in the Lehigh Valley.

06:26 - If you don't

06:26 - believe me, look at the smile on his face.

06:29 - We now have the only state economy in the northeast

06:33 - that's actually growing, according to Moody's and Forbes rated us

06:37 - one of the best states in the country to start a business.

06:40 - The investments we're making are paying off.

06:43 - Our economy is growing.

06:45 - And in the first seven months of this fiscal year, we collected $417

06:50 - million more in revenue

06:54 - than we initially estimated.

07:02 - Our bond rating

07:02 - has gone up not once, but twice, resulting in taxpayer

07:07 - savings of more than $200 million.

07:10 - What we're doing together is working.

07:14 - We're solving problems, and we're getting stuff done to improve people's lives.

07:18 - And Pennsylvania is on the rise.

07:21 - Here's another problem we're tackling head on together.

07:24 - Public safety.

07:26 - Over the last three years, we have funded nearly 2000 more cops on the beat

07:30 - and expanded after school programs and violence

07:33 - intervention initiatives centered on our communities.

07:37 - As a result, violent crime is down 12%

07:41 - and fatal gun violence is down 42%.

07:51 - And I know we're joined

07:52 - today by Mayor Parker and Mayor O'Connor.

07:54 - Last year, Philly and Pittsburgh experienced the fewest homicides

07:59 - in decades.

08:06 - We're doing this by building

08:08 - trust between law enforcement and the communities they serve.

08:12 - I'm the former chief law enforcement officer of this Commonwealth.

08:14 - I know what it takes to make our community safer.

08:18 - And so does captain Tom Lennox of the Erie Police Department,

08:22 - who joins us here today.

08:24 - Captain Lennox leads Erie's Police Athletic League,

08:27 - where he helps coach and mentor 1700 young people from the community.

08:32 - He gets to know these kids and is a real source of inspiration for them.

08:37 - And I'll tell you what, we need more of that in our commonwealth.

08:40 - So let's continue to work together.

08:42 - By funding another four classes of PSP troopers

08:46 - and increasing our commitment to violence prevention rooted in our communities.

09:00 - Lieutenant Governor Davis leads the Pennsylvania Commission on Crime

09:03 - and Delinquency, and he has been strategic in driving out $97

09:08 - million to Erie's Pal and other violence prevention organizations.

09:13 - We thank him for his work, and it is working.

09:17 - We have more than doubled state funding for these initiatives,

09:21 - and this year we're building on that progress

09:23 - by further increasing that funding and expanding

09:27 - after school programs through the LGS boost initiative.

09:31 - And consider this dollar for dollar.

09:34 - We've invested just as much in violence prevention

09:38 - as we have in training new PSP troopers under the leadership

09:42 - of Lieutenant Colonel George Bivens, because we understand

09:46 - that our two pronged approach is the smart way to ensure public safety.

09:51 - But while we here in the Commonwealth, Democrats and Republicans alike

09:55 - have worked together to make our community safer, we've had to beat back attempts

10:00 - from our federal government to undermine that progress.

10:04 - When the administration cut $18 million for homeland security funding, money

10:09 - that PMA director Randy Padfield, and our local communities

10:12 - used to detect threats and keep people safe,

10:15 - I went to court to protect Pennsylvanians, and we won.

10:19 - But understand this isn't an ideological fight.

10:23 - It's about making sure Pennsylvanians get back what they are owed.

10:27 - You see, Pennsylvanians pay $158

10:30 - billion in federal taxes every year,

10:34 - and we expect to get something for that money.

10:36 - And the federal government

10:38 - hasn't just tried to unlawfully withhold funding for public safety.

10:42 - They've also tried to do that for dollars, for plugging abandoned

10:45 - wells and providing health care for rural communities, improving school

10:49 - infrastructure, and even providing food benefits through Snap.

10:55 - They're breaking that compact they have with the people of Pennsylvania.

10:58 - That's why I took them to court 19 times and won each and every time,

11:03 - bringing billions of dollars back to our Commonwealth.

11:31 - You'd think everybody would

11:33 - clap for bringing billions of dollars to our Commonwealth.

11:36 - Look, I know, I know, this is uncomfortable

11:40 - for some of you in this room to hear, but now is a time

11:44 - when we need to stand together for our commonwealth and be prepared.

11:49 - Should they try to take away more of what is owed to us?

11:53 - That's why I'm proposing to create a federal response fund,

11:57 - seeded with $100 million, to help mitigate

12:01 - any future actions or inactions by the federal government

12:04 - that threaten the services that our fellow Pennsylvanians rely on.

12:09 - Remember, we're here today talking about one third of what our state spends

12:15 - our discretionary budget, but another 40% comes from the federal government.

12:20 - We need to prepare ourselves should they continue

12:23 - to walk away from those commitments.

12:26 - You know, I sit on the Council of Governors,

12:29 - a group of ten governors, five Democrats and five Republicans.

12:33 - In fact, I was appointed by president Trump.

12:36 - In our conversations, the federal government has made clear

12:39 - they want to shift the cost burden for emergency preparedness to the states,

12:44 - which is why our state fund is so needed right now.

12:48 - In addition, I believe we have to keep investing in our first responders.

12:53 - These guys and their teams literally dive into frozen lakes

12:58 - and they run into burning buildings to keep us safe.

13:01 - I'm borne witness to that.

13:03 - Today we're joined by one of those heroes, Lieutenant

13:07 - Jeremy Warm Kessel of the Allentown Fire Department.

13:17 - Stand up.

13:19 - We appreciate you.

13:27 - Thank you.

13:34 - The historic firehouse

13:36 - that they work out of in Allentown is 100 years old.

13:39 - It's the largest and busiest in the city,

13:43 - but the walls are literally falling down, and the heat often doesn't work.

13:47 - The Commonwealth already provides some funding for fire

13:50 - companies under the leadership of Commissioner Cook.

13:53 - But the current system doesn't

13:55 - allow them to make major investments like repairing their building.

13:59 - $30 million in competitive grants would change that

14:02 - and give Allentown the opportunity to upgrade this firehouse.

14:07 - Look, public safety is at the heart of our work

14:10 - as elected leaders, and if our communities are safe,

14:14 - then we provide a strong foundation for real growth.

14:17 - I hope you will join me in standing with our first responders,

14:22 - not just clapping for them today, but funding their needs every single day.

14:48 - Lieutenant, it seems

14:49 - like we got a majority, so we'll be good here.

14:53 - Look, a safe community

14:55 - is a critical ingredient for economic growth.

14:58 - On my watch, we have experienced record economic growth.

15:03 - Consider this.

15:05 - In just three years, we've created

15:07 - over 21,500 new jobs, secured over

15:11 - $39 billion in private sector investment.

15:15 - That is more than the previous 15 years combined.

15:21 - For 15 years combined.

15:27 - You remember when I said a moment ago,

15:29 - we've collected 417 million more in revenue than we projected?

15:33 - Well, this is a big reason why on Friday, I was in the Lehigh Valley

15:37 - where Eli Lilly, the most valuable pharmaceutical company

15:41 - in the world, announced they are investing $3.5 billion with a B

15:47 - to build a state of the art manufacturing hub

15:50 - and create nearly 3000 new jobs.

15:53 - We couldn't even compete for that kind of deal a few years ago,

15:57 - but now we're winning them because we have a plan.

16:00 - We have the resources to back it up and we are moving with real speed.

16:05 - This is a testament to all of us coming together and prioritizing economic

16:09 - development under the extraordinary leadership of Secretary Rick Saggar.

16:16 - Thank you.

16:18 - And we are seeing

16:20 - we are seeing results

16:21 - all across our commonwealth in Lancaster County, where your offense

16:25 - is creating the largest biomedical testing laboratory in the world.

16:30 - In Erie County, where Colton and Zach Troyer, fourth generation potato farmers,

16:35 - are developing a new brand of organic potato products

16:38 - and creating 50 local manufacturing jobs.

16:41 - And in Beaver County, where Mitsubishi Electric Power Products

16:45 - is building a factory and creating 200 new jobs

16:49 - to help manufacture critical components that going to power plants

16:52 - and industrial sites.

16:54 - And you know what?

16:55 - We won that Mitsubishi deal over frigging Ohio.

17:05 - I'm pleased to see

17:06 - so many business leaders and CEOs and members of chambers

17:10 - from across the state joining us here today to celebrate

17:14 - what we're doing, because they know what we are doing is working.

17:18 - They know we're focused on targeted investments in our small businesses,

17:22 - our main streets, our downtown centers, our rural communities,

17:26 - and our suburban office parks.

17:28 - And they know we're cutting taxes, not raising them.

17:31 - And while we've made great strides, we've got a lot more to do.

17:35 - Like making sure everyone has a way to get to work, whether that's on

17:39 - a rural road or over a suburban bridge or, yes, whether that's on mass transit.

17:48 - Yep. Last year.

18:07 - Last year,

18:08 - Secretary Carol and I stepped in to provide a bridge

18:12 - to for our two largest transit systems for the next two years.

18:16 - This budget calls for sustainable, recurring

18:19 - funding for mass transit to begin in 2027.

18:23 - I bought us two years, but we have to keep working at this

18:27 - because this isn't a problem we can ignore.

18:30 - Mass transit helps drive our economy

18:32 - and this is an issue of economic competitiveness.

18:36 - And you all know I'm competitive as hell and I want to win.

18:39 - And we're winning a whole lot.

18:41 - And to win we need to innovate.

18:44 - We've always been a hub of innovation since the days of Ben Franklin.

18:48 - That's why, as Secretary Russell Redding knows, having

18:51 - the only Ag. innovation fund in the country has been so successful.

18:56 - Funding 88 projects in 45 counties

18:59 - and giving farmers the tools they need to succeed and grow.

19:04 - Let's learn from that experience and build on our success by creating

19:08 - innovate in PA 2.0 to support our start ups and help them grow too.

19:14 - And listen, this actually isn't a new idea, but we have a chance to make it better.

19:19 - Back in 2013, under a Republican governor,

19:23 - this party launched the Innovation Fund, seeded with $100 million in tax credits.

19:29 - A Democratic state senator sponsored it.

19:31 - And 99% of Republicans in the House and Senate voted for it.

19:35 - Let's fund it again and be even more targeted,

19:39 - and use those dollars to provide capital for promising

19:42 - start ups to fund clinical trials for life sciences and develop

19:46 - a workforce and education pipeline to help these companies succeed.

19:51 - We know this works in Pennsylvania, Jake Lou said.

19:55 - And received $10,000 in seed funding from our Commonwealth

19:59 - for Gecko Robotics and turned it into $1

20:02 - billion company based in Pittsburgh with hundreds of employees.

20:06 - I've been there. It's incredible.

20:08 - Our support for Gilson Snow, another place I've been helped bee help them

20:13 - become one of the hottest snowboard manufacturers in the United States.

20:16 - To be clear, I went to the factory, I didn't snowboard,

20:20 - and they provided a new market for Pennsylvania hardwoods.

20:24 - We know the need is there and the seed capital can help.

20:28 - Pennsylvanians are innovators.

20:30 - We've got to believe in that potential and we've got to invest in it.

20:34 - And when it comes to innovation, no sector of our country's

20:37 - economy is growing faster than data centers and artificial intelligence.

20:45 - The United States is locked

20:47 - in a battle for AI supremacy against China.

20:51 - And look, I don't know about you, but I'd much rather the future be controlled

20:55 - by the United States of America and not Communist China.

21:06 - And so if you believe that, as I do, then recognize Pennsylvania

21:10 - is well positioned to play a leading role in that effort.

21:14 - We're the second largest energy producer in the entire country.

21:18 - We have leading researchers in AI and machine learning at Penn State and CMU.

21:23 - Penn and elsewhere.

21:24 - We have the talent, and we're already investing in the workforce

21:28 - needed to build, maintain and operate these facilities.

21:32 - And under my administration, we are delivering the speed and certainty

21:36 - in our permitting process that these massive projects require.

21:40 - Thanks to the work of Ben Kershner and the Office of Transformation

21:44 - and Opportunity.

21:48 - It's no wonder.

21:50 - It's no wonder why last summer, Amazon chose

21:54 - to invest $20 billion in our Commonwealth,

21:58 - the largest investment in the history of Pennsylvania.

22:02 - And at the same time,

22:03 - we need to be selective about the projects that get built here.

22:07 - I know Pennsylvanians have real concerns about these data centers, and the impact

22:11 - they could have on our communities are utility bills and our environment.

22:15 - And so do I.

22:17 - So today I'm announcing grid, the governors

22:20 - responsible infrastructure development standards

22:24 - developed by my administration in consultation with the community

22:28 - to hold data center developers accountable to strict standards.

22:32 - If they want our full support.

22:34 - Let me explain.

22:36 - First, developers must commit to bringing their own power generation

22:41 - or paying entirely for the new generation.

22:45 - They'll need.

22:52 - Paying

22:53 - entirely for the new generation they'll need, and not saddling homeowners

22:57 - and businesses with added cost because of their development.

23:01 - Second, developers must commit to strict

23:05 - transparency standards and direct community engagement.

23:10 - Too many.

23:15 - Too many of these projects

23:16 - have been shrouded in secrecy, with local communities left in the dark

23:20 - about who's coming in and what they're building.

23:23 - That needs to change, and it will.

23:25 - Third, these projects need to hire and train

23:29 - local Pennsylvania workers.

23:51 - And to do that.

23:53 - To do that, they need to enter into community benefit agreements

23:57 - that fund important local priorities and support the towns that host them.

24:02 - And fourth, they must commit to the highest standards

24:06 - of environmental protection, especially water conservation.

24:22 - And so

24:25 - if companies adhere to these principles, they will unlock benefits

24:29 - from the Commonwealth, including speed and certainty

24:32 - in the permitting process and our available tax credits.

24:36 - I know everyone in this room wants to see our economy grow

24:40 - and create more jobs and more opportunity.

24:43 - But I also recognize this is unchartered territory.

24:47 - So let's come together, codify

24:49 - these principles and take advantage of this opportunity.

24:52 - We can play a leading role in winning the battle for AI supremacy,

24:56 - but we have to do it in a way that puts the good people of Pennsylvania first.

25:01 - These tools and these data centers that they enable are really, really powerful.

25:06 - They've made their way into businesses, hospitals.

25:09 - They've also made their way into the hands of our children.

25:12 - Today, new technologies are allowing students to be creative,

25:16 - build worlds, explore their own power to innovate and problem solve.

25:20 - Laurie and I have seen that with our own four children.

25:22 - We want to encourage them to do that.

25:25 - But we've also got to ensure that they are safe and they are protected

25:29 - because these new technologies also present a host of new risks.

25:34 - Here's just one example.

25:36 - Hear me on this.

25:37 - A.I. companion bots are proliferating all across the internet.

25:42 - If you're a parent, you've certainly seen this.

25:45 - You can go on the App Store right now and download one, complete with a bot

25:49 - that will have a full conversation with you.

25:52 - For kids who are lonely or having a hard time.

25:55 - It can feel easier to turn to one of these apps for advice

25:58 - and to a real life friend or parent or teacher.

26:02 - 30% of teens report

26:05 - using an AI chat bot every single day.

26:09 - But this space is entirely unregulated and there are no protections.

26:14 - You can find bots that will tell you that they're real people.

26:17 - Some, and I've seen this with my own eyes, will tell you

26:20 - they're real doctors and give out medical advice.

26:24 - We have even discovered bots that say they are licensed

26:27 - to practice medicine in the Commonwealth of Pennsylvania.

26:31 - That's dangerous.

26:33 - And I would argue that is illegal.

26:36 - And so I've directed the Departments of State and Health,

26:39 - the Pennsylvania State Police,

26:40 - and my Office of General Counsel under the leadership of Gen Selmer,

26:44 - to explore all legal options to hold the developers of these apps accountable.

27:02 - This is

27:03 - something we need to work on together.

27:06 - But it's not just our kids.

27:08 - These chat bots and the companies behind them.

27:10 - They're preying on our seniors and those who are most vulnerable.

27:13 - And even encouraging them to engage in self-harm.

27:17 - Well, my administration will take action to protect our kids

27:21 - and seniors and other vulnerable members of our society.

27:24 - I believe we need to put real safeguards in place.

27:27 - So I'm asking all of you to come together in a bipartisan manner

27:31 - to put commonsense protections in place.

27:35 - Here's a few things I think we should do right away.

27:38 - Let's require age verification and parental consent,

27:42 - because some kids are just too young to understand the difference between

27:45 - AI and a real person.

27:53 - Let's let's require these companies to detect

27:55 - when children mention self harm or violence against others.

28:00 - And immediately direct them to appropriate authorities.

28:04 - Let's force these companies to periodically remind users

28:08 - that there's not another human being on the other side of the screen, and.

28:17 - And let's prohibit AI chat bots from producing

28:20 - sexually explicit or violent content featuring

28:24 - kids.

28:41 - I know

28:41 - this space is evolving rapidly, and I think we need to.

28:45 - And we can act quickly together to protect our kids.

28:50 - And look, this General Assembly has a track record of looking out for our kids.

28:54 - We've invested a record amount of money in public education and created

28:59 - a brand new formula that drives that money out to the schools that need it most.

29:04 - And we pledge to keep doing it until we meet our obligations.

29:08 - Set forth in article three, section 14 of our state Constitution,

29:12 - which guarantees every Pennsylvanian access

29:15 - to a thorough and efficient system of public education.

29:20 - As a result of the investments we've made so far,

29:23 - and thanks to Doctor Rowe and her team at the Department of Education.

29:27 - Schools have served more than 224

29:30 - million free breakfast to our kids.

29:48 - 3000 more

29:49 - students are enrolled in career and technical education courses.

29:53 - The number of new teacher certifications is increasing.

29:57 - After more than a decade of decline.

30:04 - Regular attendance and graduation

30:06 - rates are up, and Consumer Affairs now ranks us

30:10 - as one of the top states for quality public education

30:13 - in the entire country.

30:19 - This budget proposal builds on that progress.

30:22 - It again increases our investment in basic education

30:26 - and in special education

30:29 - at a time when there are people attacking those with special needs.

30:34 - We are investing in them.

30:36 - We are respecting them and we are believing in their full potential.

30:42 - Here in Pennsylvania.

30:56 - I want to thank all of you

30:58 - for the bipartisan consensus we have here in Pennsylvania to do that.

31:03 - This budget again directs $565 million more to the schools and need it

31:08 - most through the new adequacy formula that we created together.

31:13 - And it builds on the work.

31:17 - And it builds on the work we started last year

31:20 - to reform our cyber charter system, bringing savings

31:23 - for public schools up to $250 million

31:27 - this year.

31:32 - We funded mental health services in nearly 800 schools

31:36 - and helped hire more than 200 new mental health counselors for our students.

31:40 - This budget will allow even more schools to follow their lead,

31:44 - and my plan expands on that work even further by ensuring

31:48 - that those dollars can also be used to hire substance use disorder counselors.

31:54 - I was in Tunkhannock just the other day with Secretary Bogan

31:58 - and Secretary Davis Jones hearing from professionals on this.

32:02 - And together we're going to deliver for those people in need.

32:06 - Supporting our kids means investing more dollars in our schools

32:10 - and ensuring that they have a healthy, productive learning environment.

32:14 - One way to do that

32:15 - is to get the distraction of cell phones out of those classrooms.

32:35 - Man, if applause could

32:38 - vote, we need to have this whole thing done already.

32:42 - I'm calling.

32:43 - I'm calling on the members of the General Assembly to put a bill on my desk to ban

32:48 - cell phones while kids are in school.

32:55 - I know there are bills in both chambers to do this.

32:59 - I urge you, respectfully, to come together and send a bill to my desk.

33:03 - Students need to spend less time focused on their phones and more time

33:08 - focused on learning.

33:09 - I'm talking to their friends face to face and on developing

33:12 - the critical skills that they will need later in life.

33:16 - Here's another thing we can do to strengthen student well being.

33:19 - Let's give students the opportunity to take a break during the day

33:24 - and get some exercise.

33:25 - If they are able to clear their heads and not feel the pressure

33:29 - of being in a classroom for 5 or 6 hours in a row.

33:34 - I've directed the State Board of Education to develop recommendations

33:39 - for schools to guarantee recess for our students.

33:56 - You know,

33:57 - I made a promise three years ago.

34:00 - I made a promise three years ago to put two parents

34:03 - on the state board of Education,

34:06 - and we have done just that.

34:09 - Trey Haddock and Kathy Christiano join us here today.

34:13 - Thank you for your important work.

34:15 - Thank you for finding ways to bring recess into our classroom.

34:18 - And thank you for bringing a parent's

34:20 - perspective to our state Board of Education.

34:23 - Recess. To me,

34:25 - recess to me isn't just an extra block on the schedule.

34:29 - I would argue it's as critical as learning math and science and English.

34:33 - It's fundamental to kids growth and their ability to interact with one

34:37 - another, to play together, and to learn to settle disputes.

34:41 - I've heard about the need for recess from teachers, but more importantly,

34:45 - from students who are asking for ways to develop these life skills.

34:50 - Let's get it done together.

34:51 - These are foundational skills, no matter which

34:54 - path they choose to go after high school.

34:57 - For those who choose to go to college, we came together

35:00 - to make the first significant progress on higher education in 30 years.

35:05 - We should be proud of that work.

35:07 - Together, we created the Commonwealth's first ever

35:09 - state board of Higher Education, and that board is developing

35:13 - a strategic plan for higher education in our Commonwealth.

35:16 - We also created the Performance Based Funding Council, which established

35:21 - a new formula to deliver new funding to Pitt and Penn State and Temple.

35:26 - That formula drives more dollars out to the universities

35:30 - based on things like how many of their students graduate,

35:33 - how many degrees that grant for in-demand careers.

35:36 - How many transfer students they accept from community colleges?

35:40 - We've got this important tool in place.

35:42 - We established the metrics and now it's time to fund it.

35:46 - We need to invest in higher education to grow our workforce.

35:50 - But as you've heard me say, college isn't the only path to success.

35:55 - Some Pennsylvanians will find success by joining the military.

35:59 - Some will serve right here in our Commonwealth.

36:09 - Some will serve right here in our Commonwealth

36:11 - by joining the Pennsylvania National Guard.

36:14 - And I want to welcome.

36:18 - I want to welcome Adjutant General.

36:20 - Pippy back here to the chamber today and thank him.

36:24 - And all 17,000

36:26 - service members for their dedication to our Commonwealth and our country.

36:30 - Thank you, General.

36:34 - Some Pennsylvanians will enter the workforce after high school

36:38 - and begin building their career right away.

36:42 - Some will enroll in an apprenticeship and join the trades in some.

36:47 - After spending time flat for the trades. And.

37:03 - I love.

37:04 - I love that our favorite plumber, senator, led the clapping for the trades.

37:08 - Thank you, Senator Kaine.

37:10 - And some after spending time in the workforce,

37:13 - then go back to school to learn new skills and further their career.

37:17 - We together have shown that we respect all paths

37:21 - to success, and we've invested in each of them.

37:24 - We increased our investment in vo tech, CTE and apprenticeship programs

37:29 - by 50% compared to the day I took office.

37:32 - As a result, we have thousands more students taking CTE classes.

37:37 - We've registered 231 new pre apprenticeships and apprenticeships

37:42 - and more than 39,000 of our fellow.

37:45 - Pennsylvanians have participated in an apprenticeship.

37:48 - During my time as your governor, in fields ranging

37:51 - from welding to nursing to dairy herd management.

37:55 - Those investments are making a meaningful difference

37:58 - and they're creating pathways of opportunity.

38:01 - Pennsylvanians like one Acadia Surveyor who started charting her

38:06 - course at the Muhlenberg CTC back in high school.

38:10 - She discovered a love for engineering and went on to earn degrees

38:14 - from Thaddeus Stevens and Penn State Berks.

38:17 - She now works as an engineering technician,

38:20 - all because she had the opportunity to go to a CTC back in high school.

38:25 - One is home with her newborn baby watching live on the live screen.

38:29 - Hey, want to.

38:29 - And I want you to know we are proud of you here in this chamber.

38:40 - Look, I,

38:41 - I want to help more Pennsylvanians chart their own course, just like wanted did,

38:45 - because there's still more demand for these classes.

38:48 - More and more students see themselves working alongside great electricians

38:52 - like Rob bear and other members of the skilled

38:56 - trades.

39:03 - That that's why we need.

39:06 - That's why we need to increase CTE funding by another $18 million this year,

39:11 - bringing our total investment to $200 million.

39:15 - And while we increase our investment, let's also cut the red tape

39:19 - for CTE students so they don't have to repeat classes

39:23 - they've already taken as part of their gen ed together.

39:26 - We can make it easier for kids taking CTE classes

39:30 - to graduate with all the credits they need.

39:32 - I've seen the look on a young person's face

39:35 - when they discovered the thrill of being a beautician,

39:38 - or that sense of purpose when they realize they want to become a chef.

39:43 - Let's give more students that opportunity.

39:45 - The way for Pennsylvania to continue to be competitive is to provide the skills

39:50 - and the training we need right now, given our demographic challenges.

39:55 - The chairman knows this.

39:57 - Today, our kindergarten classes are 26% smaller than our high school

40:03 - graduating classes, with fewer students going through the pipeline.

40:07 - We have to be hyper focused on outcomes and giving them the skills that they need.

40:12 - And we can't lose sight of the fact that there are literally hundreds

40:16 - of thousands of Pennsylvanians who could be added to the workforce

40:19 - if we take care to give them the tools they need to succeed.

40:23 - Take the 614,000 Pennsylvania adults

40:27 - who don't have a high school degree, for example.

40:30 - That's a ton of untapped potential.

40:33 - Right now, there are 7500 Pennsylvanians who are sitting on a waiting list

40:37 - to get into adult education initiatives that ultimately lead to their GED.

40:42 - And the need is all across our Commonwealth.

40:45 - In fact, in Luzerne County Community College alone,

40:48 - there are 700 people on that wait list.

40:51 - There are Pennsylvanians who want to advance their careers but need

40:55 - help developing the reading, writing and math skills that most jobs require.

40:59 - We can provide that help by investing just $2.5 million.

41:04 - We can get them off the wait list and get them into our workforce.

41:08 - Let's do that together.

41:16 - There's

41:17 - another group with untapped potential,

41:20 - and not enough people appreciate what they have to offer.

41:23 - Pennsylvanians with disabilities

41:26 - Laura and I and Morris done extraordinary work on this.

41:29 - Laura and I care deeply about making sure.

41:32 - Pennsylvanians with disabilities find jobs,

41:35 - and the companies that hire them find great value in the work that they do.

41:40 - We recognize the unique strengths they bring to our communities.

41:44 - That's why we've taken care to support 76,000 workers with disabilities

41:49 - through our Office of Vocational Rehabilitation,

41:52 - under the wonderful leadership of Secretary Walker.

41:55 - Lori has met with CEOs from 20 Pennsylvania companies

41:59 - to discuss the benefits of hiring people of all abilities,

42:03 - and each one of them has agreed.

42:06 - And this budget invest more in the work that over does.

42:10 - Thank you for your work.

42:17 - Another way, another way we can grow

42:19 - our workforce is by making sure people have the basic necessities of life.

42:24 - Think about it.

42:25 - It's almost impossible to hold down a job if you're worried about

42:28 - where you're going to sleep that night,

42:30 - or where your next meal is going to come from.

42:32 - That's where our investments in Health initiative comes in.

42:36 - For the last three years, led by Secretary Arkush, we've been working

42:41 - with our federal partners on an initiative to ensure those basic needs are met.

42:46 - We won their approval to use federal Medicaid dollars for this pilot program.

42:51 - Even Doctor Oz expressed his support for our initiative.

42:56 - Our pilot has the potential to save our Commonwealth millions of dollars.

43:01 - And the best part is, the upfront cost is very, very little.

43:05 - In fact, for less than $3 million,

43:07 - we'll be able to access more than double that in federal funding

43:11 - and potentially saved millions of dollars and expand our workforce.

43:15 - Doctor, our thank you for your leadership in this space.

43:24 - We're also making targeted

43:25 - investments to address some of our critical workforce shortages.

43:29 - Let me give you an example.

43:31 - Last year, we all all of us identified a problem that we don't have

43:36 - enough child care workers, and that's because we don't pay them enough.

43:40 - So we came together.

43:42 - So we came together to create the first state funded

43:46 - child care recruitment and retention grant in Pennsylvania history.

43:50 - We gave 450 bucks to 55,000 child care workers across our commonwealth,

43:56 - and we showed them the respect that they deserve.

44:00 - People like Leah LaSalle, a teacher at Riverview.

44:03 - Children's Center in Allegheny County who I met in December.

44:07 - Leah has spent more than 20 years in this field.

44:10 - It's a passion for her, and this bonus will help her

44:14 - and her child care workers like her keep doing that vital work.

44:18 - We've already received more than 4300 applications

44:21 - from child care centers to pay their workers and recruit more.

44:25 - The demand has been overwhelming.

44:27 - So this budget doubles down on that work, and includes an additional $10 million

44:32 - to raise that recruitment and retention bonus from $450 to $630.

44:51 - That's

44:52 - that's more money in the pockets of our child care workers

44:56 - and more available child care for Pennsylvania families.

44:59 - It's a win win.

45:01 - And as our kids get older,

45:03 - the need for well-trained, high quality professionals, it doesn't end.

45:07 - We also need more early childhood educators and pre-K teachers.

45:11 - These kind and gentle souls who want to get our kids started

45:15 - on the right path, but who have been paid too little for too long.

45:20 - This budget delivers for them.

45:22 - And as our kids enter the K-12 system,

45:25 - we will ensure that there are more well trained teachers there to meet them.

45:29 - Three years ago, we came together

45:32 - in a bipartisan manner to create the student teacher stipends.

45:35 - Because look, if you're working full time as part of your training

45:38 - to become a teacher, you should get paid for that.

45:42 - In our first year, we invested in

45:44 - 2000 aspiring educators.

45:48 - People like Hayley Sill, who join us here today.

45:51 - She's a teacher who I literally ran into

45:55 - at Susquehanna Township High School who got clap for Hayley.

45:59 - There you go. Stand up. Hayley.

46:15 - She came bounding

46:17 - out of her classroom to tell me she just graduated.

46:20 - Pitt eats to pay, and she got this stipend,

46:24 - which led her into this classroom in south central Pennsylvania.

46:29 - And she came here to Harrisburg to help advocate for more students

46:32 - to be able to get it.

46:34 - We need more. Hayley's in our classroom.

46:36 - So let's increase our commitment to this initiative

46:39 - that we know works.

46:43 - As she and the other 2000 student teachers show,

46:46 - if we put more money in people's pockets, we can get them into the jobs they love.

46:52 - You know how else we can put money in people's pockets

46:56 - by finally raising the minimum wage here

46:59 - in Pennsylvania?

47:20 - Okay.

47:33 - Let let the record reflect.

47:38 - Let the record reflect.

47:39 - I just noted that 25 senators stood up to clap for that.

47:43 - 25 senators, ten.

47:52 - So. So, look,

47:56 - our minimum wage in Pennsylvania

47:59 - has been stuck at $7.25

48:03 - for the last 16 years.

48:07 - In that time, every single one of our neighboring states

48:11 - has raised the wage for their workers.

48:15 - Four of our six neighbors

48:17 - are at $15 an hour or more.

48:21 - Ohio is on their way to $15.

48:24 - Hell, even West Virginia is ahead of us.

48:28 - The House of Representatives,

48:30 - under the leadership of Leader Bradford and Speaker McClinton,

48:33 - has passed legislation to increase our minimum wage twice,

48:39 - and each time.

48:45 - And each time, despite the fact that there are obviously

48:48 - 25 votes in the Senate, the Senate has refused to act.

48:52 - As Senator Tartaglia will tell you from the floor of the Senate later today,

48:57 - it has been 7150 days

49:02 - since Pennsylvania last passed legislation to raise the minimum wage.

49:07 - That's hurting over a half million workers

49:10 - who are still making less than $15 an hour.

49:14 - But listen,

49:16 - clearly those arguments,

49:18 - having convinced our friends in the Senate to act over the last decade and a half.

49:22 - So let me offer one more reason why we need to do this.

49:27 - Because raising the minimum wage to

49:29 - $15 an hour will save this.

49:33 - Commonwealth $300 million a year on entitlement programs

49:38 - like Medicaid. Not.

49:46 - Not by adding.

49:48 - Not by adding arbitrary and cumbersome requirements

49:51 - that push people who still need help off the rolls.

49:55 - But by literally raising the wages of nearly 61,000 people

50:00 - who currently rely on Medicaid and make less than 15 bucks an hour

50:04 - so we can put more money in their pockets so they don't need Medicaid anymore.

50:09 - So listen, if you aren't going to do this because it's the right thing to do,

50:14 - or because it would let more families put food on the table for their kids,

50:19 - then do it because it's going to save us $300 million,

50:23 - shrink our entitlement budget by growing our workforce

50:27 - and putting more money back in workers pockets.

50:35 - I am calling on

50:36 - the General Assembly to stop delaying

50:39 - and put a minimum wage bill on my desk,

50:42 - and I will sign.

50:56 - So look,

50:57 - whether you're earning minimum wage or not,

51:00 - whether you're in a minimum wage or not, we see too many arbitrary barriers

51:04 - for people who are trying to get into our workforce.

51:08 - And my administration has led the way on fixing this.

51:11 - On my first day in office.

51:13 - I signed an executive order

51:15 - doing away with the college degree requirement for state government jobs.

51:19 - We tore down that wall that had been erected over time,

51:22 - and instead we built a bridge to opportunity.

51:25 - Since then, 60% of our new hires don't have a college degree.

51:31 - But it isn't just Commonwealth employees who are benefiting from our focus on

51:35 - breaking down barriers.

51:36 - It's everyone who needs a licensed permit

51:39 - or certification from the Commonwealth to be able to practice their craft.

51:43 - Let me give you some examples.

51:45 - The Department of State, Under Secretary Schmidt's outstanding leadership oversees

51:49 - 29 licensing boards that confer

51:52 - 170 different licenses.

51:55 - When I took office, the processing time for

51:58 - many of these licenses was too damn slow.

52:01 - It took 25 days for a nurse to get their license three years ago.

52:06 - Today, it takes just six days for pharmacists.

52:11 - Hold your applause for Secretary Schmidt.

52:13 - We got some good ones here.

52:15 - For pharmacists, the wait was 26 days.

52:18 - Now it takes just one day.

52:20 - New barbers used to wait 12 days to get their license.

52:23 - Now they get that license the same day they apply for it.

52:27 - Think about it.

52:28 - I talked to my barber who cuts 12 heads a day at 20 bucks a pop.

52:32 - 12 days of waiting cost him 2880 bucks.

52:37 - This is money back in Pennsylvanians pockets,

52:40 - but there's still too much red tape.

52:42 - Getting in the way.

52:44 - For example, a barber in new Jersey

52:48 - needs to complete 900 hours of training to get their license.

52:52 - But if they want to get their license here in Pennsylvania, state

52:55 - law requires them to complete 1250 hours of training.

53:00 - A pharmacist in Maryland needs to complete 1000 hours.

53:03 - But for that same position here

53:05 - in the Commonwealth, our regulations require 1500 hours.

53:08 - We've actually put ourselves at a competitive disadvantage

53:12 - by incentivizing workers to go practice in another state.

53:15 - So let's work together, as we have, on permitting reform, to get rid of arbitrary

53:20 - licensing requirements and make it harder for qualified people to get on the job.

53:32 - I thank Secretary Smith for

53:34 - his leadership in this space.

53:39 - In addition to the changes in the law that we can do together,

53:42 - I've directed Secretary Schmidt to conduct a comprehensive review

53:46 - of our licensing requirements and report back not in a year or six months,

53:51 - but in 30 days, to ensure Pennsylvania is competitive with our neighbors.

53:55 - Look, everyone in this room wants their doctor

53:59 - to have completed their schooling and gone through a rigorous licensing process.

54:03 - I get that. And we all want our engineers

54:05 - to demonstrate that they know how to build a bridge.

54:07 - But we also have to acknowledge that some of this red tape is just unnecessary.

54:11 - And by eliminating it,

54:13 - we can tear down those walls that keep people out of our workforce,

54:16 - preventing people from getting the help that they need and deserve.

54:20 - Let me give you just one more example.

54:22 - The need for licensed mental health professionals is growing

54:26 - here in our Commonwealth.

54:27 - Demand for licensed social workers is projected

54:31 - to increase by another 12% over the next four years.

54:35 - Fortunately, there are amazing students like Paige Lombard, who's

54:38 - watching at home.

54:39 - Hey, Paige, who are studying to do this work.

54:42 - But right now they have to complete their coursework

54:46 - and also complete a licensing process that's largely duplicative.

54:50 - Secretary Schmidt has partnered with our social work schools

54:54 - and with the Pennsylvania chapter of the National Association of Social Workers,

54:59 - to support changes to our laws that will ensure that the final exams

55:03 - cover all the licensing requirements so students can receive their diploma

55:08 - and their license on the day they graduate.

55:11 - It's common sense.

55:18 - We we need more of these critical professionals.

55:22 - And if you pass this reform, hear me on this.

55:24 - It will make Pennsylvania's process to licensed social workers

55:28 - the fastest in the country.

55:30 - Let's get it done.

55:35 - We all know that that need is real.

55:38 - Because when people call our nine, eight, eight call centers,

55:41 - when they're struggling, they need to be connected to these licensed professionals.

55:46 - Last year, nine, eight, eight handled more

55:49 - than 145,000 calls from Pennsylvanians who are looking for help.

55:54 - This budget recognizes that and provides dedicated state

55:57 - funding for nine eight, eight for the first time ever.

56:01 - It also supports our walking crisis centers,

56:03 - the places that people often go to handle our most difficult cases.

56:08 - All of this builds on the investment that we've made together in county mental

56:13 - health services, recognizing that they're on the front lines of doing this work.

56:18 - This work is bipartisan, so let's keep it going, because there's more

56:22 - we need to do to protect Pennsylvanians, especially our kids.

56:26 - Over the last eight months, under the leadership of Secretary Arca,

56:30 - she and her team have been busy at work

56:32 - meeting with a number of members in this room

56:35 - about how we can improve our child welfare system to keep our kids safe.

56:40 - Our system is supposed to be a place someone can turn to

56:43 - when they see something wrong, but right now it's overburdened

56:48 - and it's not set up to offer services to families

56:51 - who actually just need a little bit of extra help.

56:53 - Let me explain.

56:55 - There are many parents

56:56 - who are doing everything in their power to care for their kids,

56:59 - but then they get caught up in the system

57:01 - because they don't have enough money to put food on the table for the kids.

57:05 - They're working hard.

57:06 - They just can't make ends meet.

57:07 - To me, that parent is not the same as the one

57:11 - who purposefully and intentionally withholds food from a child.

57:16 - That's abuse.

57:17 - And those two parents shouldn't be treated the same way.

57:21 - But unfortunately, that's what's happening right now in our child welfare system.

57:25 - We've got to do more to help folks who are trying to be good parents

57:28 - and not let them get caught up in the system.

57:31 - I know that this is a priority for many, many members in this chamber

57:34 - on both sides of the aisle,

57:36 - which is why it receives increased funding in my budget.

57:40 - Let's make this the year where we work together to enhance.

57:44 - Childline, update the Child Protective Services Act,

57:47 - and provide real help to those parents who are just trying their best.

57:57 - We can do

57:58 - that while at the same time holding accountable

58:01 - those who are abusing and neglecting our children.

58:05 - I held child abusers accountable as Pennsylvania's attorney general,

58:09 - uncovering thousands of cases of abuse by hundreds of predator priests

58:14 - and a cover up that extended all the way from Pennsylvania to the Vatican.

58:18 - I put behind bars pediatricians and teachers and coaches

58:22 - who abused children, too.

58:24 - And every year since then, I have urged you to open up

58:29 - a civil window to give survivors a chance at real

58:33 - accountability.

58:51 - Leader

58:51 - Bradford has put a clean bill on the House floor six

58:55 - different times over the last three years, and it has passed each time.

59:00 - But I got to say it.

59:01 - I got to call it out.

59:03 - Senate Republicans have refused to act.

59:05 - Stop cowering to the special interests like insurance companies

59:09 - and lobbyists for the Catholic Church.

59:11 - Stop tying justice for abused kids to your pet political projects.

59:17 - Start listening to victims.

59:20 - Listen to the victims.

59:29 - It is shameful that this has gotten done

59:34 - in 30 other states

59:36 - who have followed our grand jury report's lead,

59:39 - but it has failed to pass here in our Commonwealth.

59:42 - So passed statute of limitations reform this year give survivors of sexual

59:47 - abuse the chance to confront their abusers

59:50 - in court.

59:56 - And just like we protect our kids,

59:59 - 266 we've also got to make sure that there are strong protections in place

01:00 - 06.569 to guard against those who would exploit our abuse,

01:00 - 09.982 exploit abuse of our seniors

01:00 - 12.384 under Secretary Coolidge's leadership.

01:00 - 15.678 The Department of Aging has completely revamped the system

01:00 - 20.717 for monitoring our Commonwealth's area agencies on aging, or Triple A's.

01:00 - 25.822 Triple A's provide a lot of the services that older adults in Pennsylvania rely on.

01:00 - 30.093 They also investigate when an older adult is the victim of fraud or abuse.

01:00 - 33.630 Secretary Coolidge has created a new system

01:00 - 36.442 that judges every day on a set of

01:00 - 39.469 criteria across 11 different categories.

01:00 - 42.548 And for the first time ever, we are now posting

01:00 - 45.541 those results on the department's website.

01:00 - 48.887 That's why the secretary and his team have received

01:00 - 52.982 national recognition from experts in the field for these reforms.

01:00 - 56.886 And my budget funds this important public safety initiative.

01:00 - 59.098 But we need more than just funding.

01:00 - 02.125 We need to update our laws to to protect our seniors.

01:01 - 05.270 It has been nearly 30 years

01:01 - 08.665 since the Older Adults Protective Services Act was really updated.

01:01 - 13.503 It's so outdated that it doesn't even cover financial exploitation.

01:01 - 16.715 The fastest growing form of elder abuse.

01:01 - 20.810 Reverend Keith Marsh and his wife Deb, who join us here today,

01:01 - 26.683 unfortunately experienced this in 2020 for criminals impersonating employees

01:01 - 30.629 at their bank stole more than $850,000

01:01 - 33.656 from them as their entire life savings.

01:01 - 36.502 And despite sudden transfers from their bank account,

01:01 - 39.929 none of the actual employees at their bank flagged the transactions

01:01 - 41.740 for suspected fraud.

01:01 - 44.343 We need to put more safeguards in place.

01:01 - 47.546 And so that's why I'm calling on the legislature to update our laws

01:01 - 51.040 to include financial exploitation as a crime

01:01 - 55.912 and empower DA's and attorney generals to prosecute these crimes.

01:01 - 00.183 This is one of the many reforms we need to make to this law.

01:02 - 02.594 So let's come together and get it done.

01:02 - 06.222 It's common sense to protect our kids and our seniors.

01:02 - 09.892 We need to make sure every dollar we appropriate for their benefit

01:02 - 13.830 goes to them, and doesn't get fleeced from the system.

01:02 - 17.433 As attorney general, I prosecuted dozens of fraudsters

01:02 - 19.778 and those who stole public benefits.

01:02 - 23.582 Now, the Office of Inspector General, led by another former AG,

01:02 - 27.977 Michelle Henry, has continued that work alongside other state agencies.

01:02 - 31.623 We combat fraud wherever we find it, and we put

01:02 - 35.284 a real resources into this effort because it's important to ensure

01:02 - 38.888 that public dollars go to the people who really need them.

01:02 - 43.068 In 2024, Pennsylvania charged 119

01:02 - 47.196 cases of Medicaid fraud and recovered more than $11 million.

01:02 - 48.507 That's good,

01:02 - 49.309 but we can build

01:02 - 53.078 on those strong safeguards and give ourselves more tools to prosecute

01:02 - 58.141 waste, fraud and abuse by finally passing a False Claims Act in Pennsylvania.

01:03 - 12.931 A False Claims Act allows us to collect additional damages

01:03 - 16.659 and recoup more state dollars that would otherwise be lost to fraud.

01:03 - 21.273 I know there is bipartisan support for this, because I've literally stood

01:03 - 25.468 with lawmakers of both parties advocating for a state false Claims Act.

01:03 - 28.704 Let's finally get that done.

01:03 - 32.051 Not only

01:03 - 35.178 are we working to get more money back for our Commonwealth.

01:03 - 40.416 We have been successful in putting more money back in people's pockets.

01:03 - 44.053 I know Pennsylvanians are feeling the pinch of rising costs

01:03 - 48.591 from the tariffs imposed on our farmers, to cost passed on to consumers.

01:03 - 51.861 As a result of congressional inaction on health care.

01:03 - 55.841 Nearly 500,000 Pennsylvanians are seeing their health

01:03 - 59.202 insurance premiums double this year because Congress failed to act.

01:03 - 00.280 Of that.

01:04 - 01.647 Get this.

01:04 - 07.219 Of that 500,000, over 85,000 Pennsylvanians

01:04 - 12.481 have already dropped health insurance in just the first four weeks of this year

01:04 - 17.663 because of those cost increases and the communities that are getting hit,

01:04 - 20.990 the hardest are rural counties in Pennsylvania.

01:04 - 23.202 Look, I hear it every day.

01:04 - 25.137 Trips to the grocery store costs more.

01:04 - 26.572 Are utility bills go up.

01:04 - 31.000 And for so many, the American dream of owning a home no longer feels possible.

01:04 - 35.514 That's why here in Pennsylvania, we have come together to cut taxes.

01:04 - 38.441 Seven times since I took office.

01:04 - 44.756 Seven times.

01:04 - 48.417 We've put money back in the pockets of seniors, small businesses,

01:04 - 53.456 families with childcare costs and working Pennsylvanians just struggling to get by.

01:04 - 57.903 Last year, we came together to advance the first new initiative

01:04 - 02.498 in 54 years to address poverty and to help working families.

01:05 - 05.677 Madam speaker insisted on this.

01:05 - 09.639 And together we created the Working Pennsylvanians Tax Credit.

01:05 - 12.842 And this year.

01:05 - 28.667 This year,

01:05 - 33.896 this year, Madam Speaker, it is going to put a $193 million

01:05 - 38.267 back in the pockets of 940,000.

01:05 - 41.437 Pennsylvanians.

01:05 - 46.018 So my budget doesn't raise taxes.

01:05 - 51.423 In fact, it continues to cut taxes and it doesn't require a broad

01:05 - 54.626 based tax increase today, tomorrow, or

01:05 - 57.653 at any point in the next five years.

01:05 - 00.823 Listen.

01:06 - 02.100 I know how this works.

01:06 - 06.162 I know some of you are going to try and score political points by saying it does,

01:06 - 11.634 but just by saying it doesn't make it true what this budget does do.

01:06 - 20.152 What this budget does

01:06 - 23.846 do is finally regulate and tax skill games

01:06 - 26.858 and pass comprehensive cannabis reform

01:06 - 29.885 in Pennsylvania.

01:06 - 36.369 District

01:06 - 40.939 attorneys from across the Commonwealth are calling on us to regulate skill

01:06 - 44.567 games and finally, provide law enforcement with clear guns.

01:06 - 49.081 We're putting our communities at risk and losing out on billions of dollars

01:06 - 52.108 in revenue by doing nothing on both.

01:06 - 54.386 Everyone knows we need to get this done.

01:06 - 58.414 So let's come together and finally get it over the finish line.

01:06 - 01.917 We need to cut costs, and we need to be more competitive.

01:07 - 04.029 And one of the best ways to do that

01:07 - 07.189 is by reducing the cost of energy for Pennsylvanians.

01:07 - 10.502 One of our challenges,

01:07 - 13.105 one of our challenges, is that our regional grid

01:07 - 17.466 operator, PJM, has moved too slow to generate more power.

01:07 - 21.446 Two years ago, I sued PJM when I found out

01:07 - 25.007 that they plan to jack up rates to the highest they've ever been.

01:07 - 29.979 And as a result of our lawsuit, we capped the price PJM can charge

01:07 - 33.358 and save consumers in the 13 PJM states,

01:07 - 37.386 including Pennsylvania, over $18 billion so far.

01:07 - 40.966 Last month, I led a bipartisan group of governors

01:07 - 44.193 to the white House, where we signed a statement of principles

01:07 - 50.409 calling on PJM to speed up the connection of new energy sources and extend

01:07 - 56.048 that price cap for another two years, which will save 67 million Americans.

01:07 - 59.308 An additional $27 billion.

01:08 - 09.127 I'm going to let the Trump administration know you didn't clap for them.

01:08 - 10.896 All right,

01:08 - 13.923 PJM, PJM is.

01:08 - 16.868 PJM is just one part of the problem.

01:08 - 21.530 But we know that there are other factors that affect Pennsylvania utility bills.

01:08 - 25.067 The amount that comes from the energy you use

01:08 - 28.337 represents only about 20% on your bill.

01:08 - 32.408 Another big chunk comes from fees and costs

01:08 - 37.213 that your local utility company charges to get electricity to your home.

01:08 - 40.358 Are utility companies in Pennsylvania?

01:08 - 44.220 Well, they make billions of dollars every year, while at the same time

01:08 - 46.765 they increase the cost for consumers

01:08 - 49.925 with too little public accountability or transparency.

01:08 - 53.562 That's going to change.

01:08 - 58.143 So last month,

01:08 - 00.812 last month, I called the four largest electric

01:09 - 03.839 utility companies in Pennsylvania into my office,

01:09 - 08.611 and I pushed them to do their part to help control rising costs for Pennsylvanians.

01:09 - 11.723 I made clear that if they were unwilling to act,

01:09 - 15.050 the Public Utility Commission would step in and force them.

01:09 - 18.554 Following that conversation, Peco,

01:09 - 21.333 Duquesne, Light, FirstEnergy and people,

01:09 - 26.338 all of whom join us here today have agreed to take four important

01:09 - 30.099 initial steps to rein in costs starting today.

01:09 - 35.004 First, they will end the so-called black box settlements

01:09 - 39.608 and agree to set prices transparently so Pennsylvanians will know

01:09 - 44.914 exactly how much money they are earning and how utility dollars are being spent.

01:09 - 48.360 Second, they will work with my administration

01:09 - 51.787 and with the General Assembly to enact common sense reforms

01:09 - 55.357 that will ban deceptive contracts by retail providers,

01:09 - 58.894 which could save Pennsylvanians hundreds of millions of dollars.

01:10 - 07.445 Third, they agreed to eliminate junk fees

01:10 - 12.074 that they charge low income Pennsylvanians to have their service reconnected.

01:10 - 15.644 Something that literally can be done with the press of a button

01:10 - 18.847 at the utility's control center.

01:10 - 27.232 And that alone will save.

01:10 - 30.693 Pennsylvanians millions of dollars each year on their bills.

01:10 - 33.929 And fourth, they will work with both chambers

01:10 - 36.808 to extend and expand

01:10 - 41.737 chapter 14 protections for low income and vulnerable Pennsylvanians

01:10 - 45.241 all across our Commonwealth.

01:10 - 53.758 These steps

01:10 - 57.019 these steps will save consumers money immediately.

01:10 - 00.966 And while I do appreciate are utility leaders for working together

01:11 - 05.227 to cut costs for consumers, I want to be clear this is just a start.

01:11 - 07.239 They have a lot more work to do.

01:11 - 10.699 And so that's why I'm taking three further steps today.

01:11 - 16.305 First, I'm calling on the PUC to better scrutinize utility spending.

01:11 - 21.076 I want the PUC to examine every single line of every single bill

01:11 - 24.546 to ensure each customer dollar is being well spent.

01:11 - 28.526 We're joined today by Chairman Steve to Frank and members

01:11 - 32.755 of the PUC who have agreed to begin working on this immediately.

01:11 - 36.191 Thank you for your service to the people of Pennsylvania.

01:11 - 47.345 Second, second.

01:11 - 50.773 I've created a new watchdog within my administration,

01:11 - 55.654 a special counsel for energy affordability, tasked with closely

01:11 - 01.092 examining utility rate requests and taking legal action to stop utility

01:12 - 04.396 companies from jacking up their rates and costing

01:12 - 07.423 you more.

01:12 - 10.502 And third.

01:12 - 13.729 Third, look, we need to have a hard conversation

01:12 - 18.276 about the amount of profit utilities and their investors

01:12 - 21.403 make on the backs of hardworking Pennsylvanians.

01:12 - 27.218 S&P Global.

01:12 - 30.722 Ratings currently ranks Pennsylvania as one of the top

01:12 - 34.083 four states in the country for utilities to make a profit.

01:12 - 38.797 At a time when consumers are struggling with high costs, are utilities

01:12 - 42.558 need to be more sensitive to the realities of their customers?

01:12 - 47.429 I'm working with the PUC to prevent excessive utility profits this year,

01:12 - 49.207 but the General Assembly needs

01:12 - 52.801 to take action to lower costs for consumers going forward.

01:12 - 56.438 By giving the PUC a set of benchmarks to follow

01:12 - 00.676 when determining how much profit a utility company can make.

01:13 - 05.623 Because understand

01:13 - 09.518 we grant these utilities a monopoly, and in exchange,

01:13 - 15.391 they have a legal responsibility to keep their costs just and reasonable.

01:13 - 18.570 They shouldn't get $1 more than what

01:13 - 21.573 they need to meet their customers demand.

01:13 - 25.267 Together, these steps will save Pennsylvanians over

01:13 - 29.338 a half billion dollars on their energy bills every year.

01:13 - 32.384 And if you act with legislation,

01:13 - 35.353 the savings can be even greater.

01:13 - 38.723 But look, I recognize the most consequential way

01:13 - 42.951 we can lower energy prices is by generating more energy.

01:13 - 45.830 It's a simple supply and demand.

01:13 - 47.866 Pennsylvania is an energy leader.

01:13 - 49.234 We should be proud of that.

01:13 - 51.770 And I'm an all of the above energy governor.

01:13 - 55.073 And for the last several years, I've heard people on the other side

01:13 - 59.067 of this building making excuses for why they couldn't talk about energy.

01:13 - 03.848 And those excuses always centered on Pennsylvania's entry into Reggie.

01:14 - 05.750 Way back in 2019.

01:14 - 08.811 So we came together on a bipartisan basis last year

01:14 - 12.347 to remove Reggie from the conversation. And.

01:14 - 17.329 And we

01:14 - 21.933 also came together on a bipartisan basis to remove your excuse

01:14 - 25.060 for not moving forward on energy plans.

01:14 - 33.735 So now now is the time.

01:14 - 37.015 Now is the time to act.

01:14 - 39.851 I've put forward my lightning plan, a comprehensive plan

01:14 - 43.111 to build more energy generation here in the Commonwealth.

01:14 - 46.624 Reform our permitting and siting laws and diversify

01:14 - 49.627 our energy sector to generate more renewables.

01:14 - 53.097 My plan will save consumers $664

01:14 - 56.701 million and create 15,000.

01:14 - 59.137 Energy sector jobs are out there.

01:14 - 03.274 And it is supported by labor leaders, environmentalists,

01:15 - 06.702 consumer advocates and even energy producers.

01:15 - 09.013 Look, this is my plan.

01:15 - 11.816 If you don't like it, stop making excuses.

01:15 - 15.153 Put your proposal on the table and let's get to work

01:15 - 18.180 already.

01:15 - 26.065 Pennsylvanians

01:15 - 29.091 can't afford another delay from Harrisburg.

01:15 - 33.004 It's not just the cost of heat our to heat our homes that's stressing

01:15 - 34.372 folks out right now.

01:15 - 37.699 Housing prices are too high as well.

01:15 - 42.271 A lot of people are worried about whether they can afford a house at all.

01:15 - 45.807 Home prices and rents are rising faster than wages.

01:15 - 50.255 Over half of all homes in Pennsylvania are more than 50 years

01:15 - 53.258 old, making them more expensive to repair.

01:15 - 56.261 And if we don't take action now, we'll be short

01:15 - 59.655 of 185,000 homes by 2035.

01:15 - 01.099 The mayor knows this.

01:16 - 03.968 That's why today I am proposing

01:16 - 08.430 bold new steps to reform our zoning laws, build more housing,

01:16 - 12.334 and protect renters and homeowners like energy.

01:16 - 16.948 One of the most effective ways we can lower costs is by simply building

01:16 - 19.975 more housing that starts at the local level,

01:16 - 23.054 where zoning laws and ordinances vary

01:16 - 26.815 across all 2560 of our municipalities.

01:16 - 31.653 Yet right now, we literally don't even have a catalog of all those rules.

01:16 - 35.433 We need to make one so that we can help local governments understand

01:16 - 38.760 what works best to build more affordable housing.

01:16 - 40.338 That also means working

01:16 - 44.132 with local communities to modernize the municipal planning code,

01:16 - 48.570 to build where it makes sense, and to cut red tape where it's necessary.

01:16 - 53.075 It means creating standards for accessory dwelling units,

01:16 - 57.121 facilitating transit oriented development, and streamlining

01:16 - 00.916 mixed use development on main streets and commercial corridors.

01:17 - 12.537 It also means building on our successes

01:17 - 15.998 after doubling the amount of money available for fair.

01:17 - 20.736 It also means making a major investment in building new housing.

01:17 - 26.041 And to do that, my budget creates a new $1 billion

01:17 - 29.077 critical infrastructure fund.

01:17 - 40.598 And this fund,

01:17 - 43.901 this fund will be supported by issuing bonds

01:17 - 48.497 that will go toward housing and other needed infrastructure projects.

01:17 - 52.410 And thanks to our improved bond ratings, the Commonwealth will actually save

01:17 - 56.838 $25 million compared to what this would have cost just two years ago.

01:17 - 01.343 Rather than tinker with this, let's go big on housing

01:18 - 04.446 and let's make a real impact.

01:18 - 13.588 We need hundreds of thousands of new homes.

01:18 - 16.734 And this this is how we build them.

01:18 - 19.761 But it's not just about building more houses and apartments.

01:18 - 24.099 It's also about making sure those who live in them aren't taken advantage of.

01:18 - 28.770 Right now, landlords are allowed to charge exorbitantly high fees

01:18 - 32.016 just to submit a rental application.

01:18 - 34.919 Those fees are meant to cover the cost of a background check.

01:18 - 39.114 But too often times, landlords are charging two, three, four times the cost.

01:18 - 43.528 I'm calling on a statewide cap on rental application

01:18 - 47.422 fees, limiting them to the actual cost of screening

01:18 - 51.126 and prohibiting landlords from charging fees.

01:18 - 55.330 Before a tenant can view that property.

01:18 - 00.545 Out of state.

01:19 - 02.880 Out of state. Private investors.

01:19 - 06.108 Well, they're also raising housing costs.

01:19 - 11.346 Christine Zimmer, who lives in Berks County and joins us here today.

01:19 - 13.658 She knows this firsthand.

01:19 - 17.252 Christine and her husband, Joe, who passed away last year.

01:19 - 21.923 They downsized in 2019 in order to move closer to their grandkids.

01:19 - 26.237 They bought in a manufactured home community, a community

01:19 - 28.139 where they own the home.

01:19 - 32.701 But the company owns the land that it sits on and charges them rent for it.

01:19 - 35.346 That's how the trouble started.

01:19 - 39.450 The fee Christine pays to that company has nearly doubled

01:19 - 43.378 since she moved in six years ago, creating a huge financial burden.

01:19 - 47.082 This has become far too common across these kinds of communities.

01:19 - 51.419 And there are 56,000 of these households across Pennsylvania.

01:19 - 56.558 People living on land that more and more is being bought up by private equity.

01:19 - 00.529 I'm asking you to pass legislation limiting annual

01:20 - 03.674 rent increases for manufactured home communities

01:20 - 08.136 to protect grandma homes like Christine from predatory private equity.

01:20 - 11.315 Thank you for being here, Christine.

01:20 - 14.342 Thank you.

01:20 - 22.226 We've we've actually seen

01:20 - 25.687 bipartisan bills in the Senate introduced on this topic.

01:20 - 28.900 And just yesterday, a bipartisan group of House

01:20 - 31.927 members stood together to advance this issue.

01:20 - 35.173 Let's pass those together.

01:20 - 36.574 Together.

01:20 - 38.609 That's the operative word here.

01:20 - 42.204 We have shown what's possible when we work together.

01:20 - 45.983 Even when it takes longer than it should.

01:20 - 49.010 We all recognize it took too long last year

01:20 - 52.247 and that had real impacts on Pennsylvanians.

01:20 - 55.350 But we learned some valuable lessons through that process.

01:20 - 58.486 We learned that we all need to be at the table,

01:20 - 01.623 and we all need to be at the table sooner.

01:21 - 06.628 When we all sat together, majority and minority, we made real progress.

01:21 - 10.808 In that spirit, I've invited the leaders of all four caucuses

01:21 - 14.102 to my office tomorrow to begin this process in earnest.

01:21 - 18.773 And I appreciate the fact that they've all accepted this invitation.

01:21 - 25.747 Thank you.

01:21 - 30.619 But despite the extended process, all of us agree.

01:21 - 32.930 We made real progress last year.

01:21 - 37.092 Progress that unlocks two of the most powerful forces in our society.

01:21 - 39.503 Hope and optimism.

01:21 - 42.006 And that's what we're beginning to see more of.

01:21 - 45.142 You can feel it on our farms and in our skyscrapers,

01:21 - 48.169 along our main streets and in our classrooms.

01:21 - 51.840 And a time when dysfunction and chaos reigns elsewhere.

01:21 - 55.977 Pennsylvania is showing we can be a model for steady progress

01:21 - 57.588 when we come together.

01:21 - 03.251 Treat others with respect and find ways to extend a helping hand to our neighbors.

01:22 - 07.389 When William Penn arrived on the banks of the Delaware River

01:22 - 13.128 in what is now Chester, Pennsylvania, in 1682 aboard a ship named welcome,

01:22 - 16.207 he set out to create a place

01:22 - 21.078 that would be an example to the nations, a place that would be open to all people

01:22 - 25.874 with free elections, free expression, and the freedom to worship as you wish.

01:22 - 28.677 As central tenants of our new home,

01:22 - 32.256 I know all that feels at risk right now

01:22 - 36.351 to not only many in this chamber, but to millions of Pennsylvanians

01:22 - 43.158 at a time when it feels like others values are changing, ours remain the same,

01:22 - 47.571 while some are attacking our citizens based on what they look like,

01:22 - 50.598 where they come from, who they love, or who they pray to.

01:22 - 53.768 We are demonstrating respect for all.

01:22 - 56.647 As other states raise taxes.

01:22 - 59.874 We're operating with a healthy surplus and cutting them

01:23 - 04.346 when others put in place policies to make costs rise.

01:23 - 07.892 We ease the burden at a time when people

01:23 - 11.686 from different parties can't find ways to work together elsewhere.

01:23 - 15.657 We know we have to get around the table here to make progress.

01:23 - 17.735 So let's come together

01:23 - 21.863 and make smart investments in schools and safety and economic development.

01:23 - 24.342 Let's cut costs and cut taxes.

01:23 - 28.970 Let's protect our fundamental freedoms and let's continue our rise.

01:23 - 33.517 And so, under the watchful eyes of our elders, learning from those.

01:23 - 38.847 Pennsylvanians who came before us and taking inspiration from their example,

01:23 - 42.927 let's go forward with a sense of common purpose

01:23 - 47.822 to build on our progress and to continue to get stuff done.

01:23 - 49.067 Thank you.

01:23 - 52.636 God bless you and may God watch over the men

01:23 - 55.663 and women of the Pennsylvania National Guard.

01:23 - 56.898 Thank you very much.