00:02 - Good morning and welcome to day one of our

00:06 - budget hearings for

00:07 - twenty

00:08 - twenty six.

00:11 - Today we are glad to be joined.

00:15 - By the department of community and economic development.

00:18 - We also want to thank all of.

00:21 - The departments who are becoming

00:22 - who had to be rescheduled from

00:25 - Monday

00:26 - or Tuesday because of the snow we appreciate

00:28 - their flexibility

00:29 - so that we can get those budget hearings in.

00:33 - Before we begin

00:34 - I would like to

00:35 - turn over

00:36 - chairman druzy do you have any introductory comments ah yes thank you mr chairman and

00:40 - good morning everyone good morning secretary saga and your staff.

00:45 - As I did last year I'd like to set the stage for this hearing to solve the people who

00:48 - are viewing or listening understand what the numbers are we're talking about

00:51 - the governor's proposal a total general fund spending amount of

00:55 - two hundred and seventy seven point eight million

00:57 - for this upcoming fiscal year which is an overall decrease of two hundred and thirty

01:01 - six point four million or forty six percent

01:04 - over the current fiscal year so as we go through the hearing

01:07 - I think we'd like to understand what the decrease

01:10 - entails why there is a decrease

01:12 - as we we know we were able to make some significant strides in this current budget

01:17 - movie removing some bad energy policy

01:20 - but also

01:21 - some regulatory forms

01:22 - from a perspective but we can we need to grow

01:24 - our economy in d c d is going to be fundamental

01:27 - in bringing those jobs back growing the economy

01:30 - and a sustainable future for this commonwealth

01:32 - at a time when we're facing a significant deficit

01:34 - so while decreases are good in some cases

01:37 - we'd need a better explanation of what that

01:39 - really means in this current budget proposal so

01:42 - thank you.

01:43 - Thank the chairman.

01:46 - Alright.

01:47 - As we proceed with this year's

01:48 - budget here's our rules

01:50 - of engagement will stay to say.

01:53 - In the middle

01:53 - is.

01:55 - The box

01:56 - that will control our time.

01:58 - Every member will have five minutes

02:00 - to engage and ask questions

02:03 - with our testifies.

02:05 - When the light turns yellow

02:07 - that means that there are thirty seconds left.

02:10 - Thirty seconds is

02:12 - time where we can wrap it up.

02:14 - Not necessarily to start a new line of questioning

02:17 - but to conclude with the current line of questioning.

02:21 - At red

02:22 - that means that time has expired and we would ask that our testify

02:26 - would quickly conclude again the.

02:29 - Reason for our time

02:30 - clock so that we can get as many questions

02:33 - from the members asked in answered

02:35 - as

02:36 - Possible.

02:38 - Members

02:39 - and

02:40 - you'll be able to ask questions from the microphones

02:43 - that have the white

02:45 - tape

02:46 - around the handle.

02:48 - They are

02:49 - positioned all throughout the chamber

02:52 - and those are the microphones.

02:54 - That we will use.

02:57 - For our budget hearings.

03:01 - And I believe that is it

03:03 - so.

03:04 - Before we get started.

03:07 - With the testifies please stand so we can swear you were.

03:13 - Do you solemnly swear that the testimony that you're about

03:15 - to give us the truth the whole truth so help you god.

03:18 - Thank you

03:19 - you may be seated in secretary cider.

03:21 - You have the floor.

03:24 - Thank you so much good morning chairman Harris Germans druzy

03:27 - members of this distinguish committee

03:29 - it's a great honor to come before you today to discuss governorship heroes twenty

03:32 - twenty six twenty seven budget proposal.

03:35 - We believe this budget is a responsible approach calling for smart investments that

03:39 - continue the incredible progress we've seen interstates economy

03:42 - and it felt in our communities these past three years.

03:45 - Since issuing our ten year economic development strategy in early two thousand twenty

03:49 - four we at DC idiot been working hard every single day

03:53 - to implement its many strategic initiatives.

03:55 - For example the plan called for transformative investment in site development so we

03:59 - could better compete against neighboring states for business projects.

04:02 - States that quite frankly had been outperforming us in this area for years.

04:07 - Working together with all of you

04:09 - we passed five hundred million dollars in funding to prepare more pad ready sites

04:14 - in the twenty twenty four twenty twenty five budget cycle.

04:17 - This investment made real waves in the economic development

04:20 - site selection community showing that Pennsylvania

04:23 - was back in the game

04:24 - and through the pa sites program we've awarded more than one hundred and thirteen

04:27 - million dollars in twenty twenty five including a new round today.

04:31 - Not including

04:32 - the psh grants we've provided

04:34 - to companies like Eli Lilly

04:36 - Johnson and Johnson as part of those companies historic multibillion dollar

04:39 - investments into the commonwealth

04:41 - we've announced in this past month.

04:43 - Alongside these major improvements to our business climate

04:46 - the cd has also delivered results for Pennsylvania communities

04:50 - through initiatives that were guided by the economic development strategy for example

04:54 - the main street matters program continues to deliver twenty million dollars per year

04:58 - for top quality community projects

05:01 - with the additional tax credit allotment provided with your help and leadership.

05:06 - The neighborhood assistance program is stronger than

05:08 - ever awarding seventy million dollars in tax credits

05:11 - to bolster business contributions to community initiatives

05:15 - and our tourism economy another great priority

05:18 - is flourishing as well.

05:19 - Generating almost eighty four billion dollars in economic impact supporting

05:23 - five hundred and fourteen thousand jobs contributing

05:25 - five billion dollars in state and local taxes

05:28 - and welcoming a record two hundred one point six million visitors and twenty four

05:32 - a number that will surely be eclipsed this year as we celebrate

05:35 - america's

05:36 - two fiftieth.

05:39 - Governorship years twenty twenty six twenty seven budget proposal is crucial for

05:42 - continuing the momentum we've established as a commonwealth.

05:45 - Some of the major pieces of the budget

05:47 - I hope to talk with you about today include

05:50 - investing one hundred million dollars to launch innovate in pa two point oh

05:54 - to expand venture investment

05:55 - to support our leadership in life sciences

05:57 - accelerate commerce realization strengthen regional innovation ecosystems

06:01 - and help our partners capitalize on opportunities.

06:05 - Increasing rp a first funding

06:07 - by ten million dollars to allow for more flexible funding

06:11 - to close great business deals.

06:13 - Streamlining three underused tax credits into a new ten million dollar advance p a

06:17 - tax credit to better support job creation.

06:20 - Updating the unused portions of the pa edge tax credit program

06:24 - to incentivize growth in jobs innovation in energy.

06:28 - Creating a dedicated twelve point five million dollar line

06:31 - in wedding at pa to ensure continued investment in on the job training.

06:35 - Investing two million dollars for a new career

06:37 - connect program to support creating internships

06:39 - to help employers recruit talent and build tomorrow's workforce

06:43 - and importantly continuing funding

06:45 - from main street matters are historically disadvantaged business assistance program

06:49 - manufacturing pa

06:50 - and more.

06:52 - And crucially and finally the budget calls for bold meaningful action to finally

06:56 - address the housing crisis afflicting pennsylvanians

06:59 - and families across the country.

07:02 - A few weeks ago is platt proud to issue the first ever

07:05 - comprehensive housing action plan for Pennsylvania.

07:08 - Like our economic development plan.

07:11 - It proposes comprehensive solutions for tackling fundamental challenges with housing

07:15 - in the budget

07:16 - calls for investments tied to the housing action plan

07:18 - including a one billion dollar critical infrastructure fund

07:22 - a new statewide financing mechanism to support energy housing

07:25 - schools and municipal facilities.

07:28 - Modernizing the municipal planning code and establishing a new deputy secretary for

07:32 - housing at dcd to lead this work.

07:36 - Only by addressing housing community development and economic growth

07:39 - together can we continue to truly deliver for

07:41 - Pennsylvania residents families and businesses

07:44 - and that's the approach this budget takes.

07:47 - It's been a real pleasure and honor to work with you

07:49 - the legislature over these past few years

07:52 - to secure the kinds of investments that have

07:54 - fostered a dynamic and growing eco economy.

07:56 - We can see what happens

07:58 - when we come together to get it done for Pennsylvania

08:01 - and I'm excited to continue our momentum

08:03 - by passing this budget this year.

08:05 - I really appreciate the opportunity to be with you today I look forward to working

08:09 - together and happy to answer your questions

08:11 - thank you Karen

08:12 - thank the secretary we're going to start representative Salisbury.

08:22 - Good morning.

08:24 - Secretary I'd like to personally thank you for what your department has done in the

08:29 - district that I represent which is twelve small boroughs and a township

08:34 - as well as the edge of the city of Pittsburgh in allegheny county

08:38 - one one thing that we continue to struggle with and I think

08:41 - this may be a common issue across the state

08:44 - is blight

08:45 - and so I know that you

08:47 - have a big focus this year

08:50 - on enhancing small business development

08:53 - business development generally housing

08:56 - but

08:57 - one of the problems that we have is really it's very challenging to get

09:02 - is this is to come in and set up in what remains of our central business district

09:07 - because of the extremely severe blight situation so I'd like to ask you

09:11 - what

09:12 - what if anything is your department doing to focus on

09:16 - this blight situation across the state

09:18 - yeah thanks very much for the question and as you know I'm a

09:21 - Pittsburgh aren't very familiar with

09:23 - the area you represent

09:24 - and.

09:26 - Blight is a critical issue to address especially

09:28 - in our older communities like the mon valley

09:30 - and.

09:31 - We have a number of programs on our books that can be helpful here

09:34 - some are

09:36 - funded

09:36 - through direct grants like the cuny development block program

09:39 - which has blight eligibility

09:41 - some are.

09:44 - More strategic in nature like a main street matters program

09:47 - where

09:47 - for example under the new guidelines with a

09:49 - twenty million dollars that you are supported.

09:52 - Were able to invest in anchor buildings for example that might reposition or demolish

09:56 - plate to to create a new opportunity

09:58 - and I do think that in the housing context specifically.

10:02 - Important that and I think this critical infrastructure fund will focus on

10:05 - not just building new housing at all levels

10:08 - but also.

10:09 - Renovating existing housing

10:11 - and I think.

10:13 - That can suite of programs.

10:15 - Can help individual communities develop

10:18 - a strategy to address blight

10:20 - and you know this well rep

10:22 - this is not an overnight thing

10:23 - right you gotta have a plan and priorities and developed kind of funding models for

10:28 - really like a property by property strategy

10:30 - and would love to work with you and in those communities to make sure

10:34 - we're on a good path that they have access to the funds we have available in others.

10:40 - I think one of the big issues is again trying to get small businesses and

10:44 - new homes

10:46 - or renovated homes as you mentioned.

10:48 - Coming into an area that has

10:50 - a high impact of late so braddock borough for example had a population high of over

10:56 - twenty thousand and currently has about seventeen hundred HP people

10:59 - so with and

11:01 - with essentially ninety percent over ninety percent of the borough vacant.

11:06 - It it is challenging and these small municipalities really don't have the funding

11:10 - so what

11:11 - funding is available

11:13 - is it more than in previous years what are you looking to do with plate remediation

11:18 - that might be different than and before.

11:20 - I think kind of two part answer.

11:23 - One.

11:24 - There are existing programs we have that

11:26 - can

11:27 - combat play

11:28 - and I think

11:29 - and

11:30 - one of the things we've done a little bit under the

11:32 - radar but I think is important is we've built up.

11:35 - Our planning team.

11:36 - We've built up folks on our community and our local government services group are

11:40 - actually professional planners we have about twelve of these folks

11:43 - and their entire job job

11:45 - is to work alongside municipalities to develop

11:48 - plans comprehensive plans plans for specific issues

11:51 - when asked

11:52 - and so I think

11:53 - one important.

11:55 - Role that they play is to help develop a plan

11:58 - and then it's like what do we do with the plan

11:59 - how do we align

12:01 - a focusing and braddock on blight

12:03 - these are our top five properties we need to remediate where do we find the funds to

12:08 - move this forward isn't mainstream matters is a community

12:10 - development block grants through federal pass-through

12:12 - is it other housing funds or local funds.

12:15 - I would love to actually just like set a meeting with the braddock.

12:19 - Municipal leadership and some of our planning team to start

12:22 - to work through that cause I do think there are funds available

12:25 - to to help address some of these issues and in there I

12:28 - fully agree with you have a really critical concern and.

12:31 - I think some of it may be associated as well as tangled title problems of sorting out

12:36 - who even owns these properties eminent domain can

12:39 - be challenging due to the requirement to post a bond

12:43 - but realistically I have entire ne neighborhoods

12:45 - where no one has lived since the mid nineteen eighties

12:48 - so there are trees growing through what used to be the roof of the home.

12:53 - So I would I would just really

12:55 - ask and encourage you to emphasize this need for

13:00 - demolition

13:01 - and you know I know we talk a lot about get things done build back better

13:05 - I think also tear stuff down would be a fantastic three word phrase to chant.

13:11 - Thank you very much yeah appreciate thank you rep.

13:18 - Thank you representative bar ton.

13:20 - Thank the German and thank you

13:22 - secretary sagarin your team for being here

13:24 - for up

13:25 - I like to talk about energy and our economy if that's okay

13:29 - and secretary the act forty five

13:32 - of twenty twenty five percent Ali ended the commonwealth's

13:35 - participation with the regional green gas initiative

13:38 - Reggie as we all know it

13:39 - and and I know it's only been.

13:41 - Three months.

13:43 - Since the

13:44 - inaction and enactment of act forty five but.

13:48 - Can you share with us or discuss the impact that

13:51 - ending Reggie has had on our commonwealth's economy

13:54 - thus far

13:55 - and and maybe more so what the prospects are for enhanced energy investments across

14:01 - our commonwealth in the coming years

14:03 - yeah thanks for a

14:04 - very good to see you at.

14:06 - Your think it's probably a little premature

14:07 - like you said three months in for me to sort of

14:09 - provide a generalized impression of

14:12 - impact of Reggie.

14:14 - Or the the.

14:16 - Of

14:16 - Leaving

14:17 - but.

14:19 - I do think that I can happily share some reflections

14:21 - on sort of energy economy and I think there's a couple

14:24 - domains here that are really quite important.

14:27 - One is

14:28 - the energy industry in Pennsylvania

14:30 - that is to say companies that are

14:33 - winning in this economy

14:35 - by growing in Pennsylvania to serve the energy industry

14:38 - companies like hitachi or ge for nova or

14:42 - iOS or others

14:44 - who like build infrastructure

14:46 - to serve the energy economy we've seen in particular in the southwest part of the

14:49 - state but elsewhere also up your way in the northeast

14:52 - your many companies

14:54 - growing jobs here high wage high skilled jobs

14:57 - to sort of build out the energy economy

14:59 - so that's point one

15:00 - went to his

15:01 - and.

15:03 - The governor has been really clear we need to generate

15:05 - more energy

15:06 - and

15:07 - there are also significant

15:09 - jobs associated

15:10 - with those activities

15:11 - two examples that come to mind one is.

15:14 - The repowering of green clean energy center formerly no-sew Maryland just down the

15:18 - road here to greet hundreds and hundreds of actually thousands of construction jobs

15:22 - hundreds of permanent jobs

15:23 - to bring more power back on the grid another example

15:27 - chair series of course you know very well

15:29 - is the homer city's

15:30 - power station which is converting from

15:33 - a legacy coal acid into a gas asset with some

15:35 - some advanced technology infrastructure as well

15:38 - so I do think in our strategy in fact from

15:41 - years ago said

15:42 - energy is like a critical area of focus for us it's a critical

15:46 - competitive advantage for us

15:48 - and we are seeing really strong activity in this domain and

15:51 - eager to do more.

15:54 - Thank you that.

15:56 - I think it's

15:57 - widely agreed upon certainly in this room and across the commonwealth

16:01 - that.

16:02 - Our

16:02 - our economy depends on energy

16:04 - right and and and so

16:06 - from direct development of our state's abundant energy resources to

16:10 - affordable energy

16:11 - required to keep manufacturing sector competitive.

16:16 - It is undeniable that a strong economy

16:19 - depends on

16:20 - a strong energy sector.

16:23 - While there's.

16:25 - Much to discuss today

16:27 - and

16:28 - related to what is contained in the d c e d budget.

16:31 - I I guess.

16:33 - I think it's important for the moment to address something that's not there

16:36 - and that's a strategy

16:38 - for energy in the commonwealth that's not in the budget.

16:41 - What tangible steps is d c e d prepared to

16:44 - take to enable growth in our commonwealth's

16:48 - workforce

16:49 - tax base

16:51 - and economy through through the energy sector

16:54 - yeah thanks for the question.

16:56 - Guess that the answer that in two ways number one again and back in two thousand and

16:59 - twenty four when we worked actually alongside many of you knew personally sir of

17:02 - course to develop a plan for what could help Pennsylvania's economy move forward

17:07 - we identified five critical sectors to focus on

17:10 - one is energy

17:11 - and as I noted

17:13 - there are many examples and I think the data shows that we're seeing

17:16 - and

17:17 - real vigor in the manufacturing sector around energy and

17:20 - in the energy sector overall

17:22 - and

17:24 - to

17:24 - The governor has proposed

17:26 - and repurposed this year

17:28 - is lightning plan

17:29 - which is

17:30 - I think what you're asking for

17:32 - which is

17:32 - an energy plan to help move the commonwealth forward to grow our economy.

17:37 - This includes.

17:38 - Changes to the pa edge tax credit to incentivize new energy generation

17:43 - it includes something we call the reset board to help site

17:46 - critical energy infrastructure projects

17:49 - it includes

17:50 - a set of other activities that

17:52 - the governor has put forward

17:54 - as a plan to move the energy.

17:56 - Economy forward here and frankly to address this issue.

18:00 - I think we'd welcome a conversation with you with with colleagues here

18:04 - on the right way to

18:05 - to.

18:06 - Adopt that plan to tweak that plan to come up with a plan

18:10 - to move Pennsylvania's energy

18:12 - economy forward and to move our energy policy

18:14 - environment forward to protect consumers

18:16 - to enable economic growth and to make sure Pennsylvania can win in the economy

18:20 - secretary thank you my time's almost up I just wanted to share with you

18:23 - I'm well aware of the

18:24 - lightning plan

18:25 - it's just

18:26 - we don't see revenue coming in for energy and my time's up so

18:30 - thank you very much for taking them yet.

18:34 - Thanks gentlemen representative Kincaid.

18:36 - Thank you mr chairman

18:38 - thank you secretary for being here and I want to start by as

18:42 - someone also from western Pennsylvania thanking you and your

18:45 - staff for being willing to work with me on hb

18:47 - five eighty nine to get landslide insurance am.

18:51 - Moving so it's

18:53 - now in the senate and I look forward to continuing to work with your department to be

18:56 - able to get that across the finish line

18:58 - and

18:59 - I wanted to talk about the the pa two point oh and the innovation

19:05 - stuff that's that's been proposed and.

19:07 - I think that it's great but I

19:10 - have a question about

19:12 - it it feels a little redundant to that Ben Franklin authorities

19:17 - and the Ben Franklin tech partners are

19:19 - are level funded in this budget at seventeen million

19:22 - and

19:23 - it helps

19:24 - I focus on early

19:27 - stage

19:28 - companies helping them to flourish suburban general which is in my district has al

19:33 - the lab health and that is one of the beneficiaries of of the Ben Franklin.

19:38 - Tech partners and

19:40 - I know I know that developing a talent pipeline is really crucial

19:45 - but at the same time

19:46 - the Ben Franklin's do that and

19:49 - and eight gecko in Pittsburgh is another really

19:51 - great example of that kind of investment so

19:55 - I know that the Ben Franklin's can I apply for this funding but at the same time

20:00 - are we not creating redundancies

20:03 - by having them apply for funding rather than just

20:06 - allocating additional funding to our Ben Franklin's.

20:10 - So that because are already established in this space and assist.

20:14 - These companies to begin with

20:16 - yeah thanks for the question

20:17 - let me say first of all like.

20:19 - I love the Ben Franklin partners they're close partners of ours

20:23 - they do a great job

20:25 - in addition to the state funds they get as you point out seventeen million dollars

20:28 - they are able to and have had a lot of success raising

20:31 - funds from other partners of course they

20:33 - also invest in companies returns from those companies help them

20:37 - operate and.

20:39 - I think it's like a reasonable question to ask should we

20:41 - just block Grant to our existing keep capability versus

20:45 - your compete these funds

20:47 - we believe

20:48 - we should compete them

20:49 - not because we don't think the benz could do this

20:52 - well

20:52 - but because actually

20:54 - Pennsylvania has a slew of partners

20:56 - and tes

20:57 - universities companies

20:59 - that we think

21:00 - could partner with or without the bench to to do this too and we want to

21:03 - give folks an opportunity

21:05 - to compete for these funds and in particular

21:08 - and

21:09 - innovate in pa two point oh is one time funding

21:11 - and therefore

21:13 - it wouldn't really contribute to like that seventeen million dollar run rate anyway.

21:17 - Let me just say a bit about what we intend to

21:18 - do with the money and why we think this makes

21:20 - more sense.

21:22 - Number one

21:23 - we're going to focus

21:24 - a portion of this money on life sciences specifically

21:27 - as you recall last year we had proposed a thirty million dollar one time fund

21:30 - and it was did not move forward in the budget

21:32 - we're coming back for it in this context

21:34 - because candidly

21:35 - life sciences in Pennsylvania is having a bit of a moment

21:38 - and

21:39 - we have in the past month closed

21:40 - three and a half billion dollar investment from Eli Lilly in lehigh valley

21:44 - a billion dollar investment

21:45 - from Johnson and Johnson

21:47 - in Montgomery county

21:48 - much more to come in our pipeline

21:50 - and we're seeing

21:52 - really significant growth

21:53 - in

21:54 - The startup ecosystems and life sciences not just in Philadelphia but also in

21:57 - Pittsburgh and state college in other areas

21:59 - and so we have a point in time where we want to drive this forward

22:02 - the bends are a key part of that if of tour that facility bellevue terrific opportunity

22:06 - but there are many other partners that we feel like

22:08 - should have access to these funds also

22:10 - and that is like the program design decision we've made

22:13 - for this one time funding source.

22:16 - Thank you.

22:17 - I don't think that it should be an either or I think we can increase the

22:20 - funding to the bands and also do this

22:22 - am

22:23 - To

22:23 - Add just a

22:24 - fit for that.

22:26 - The other thing I wanted to ask that in the governor's

22:28 - proposal the waterfront tax credit has been eliminated

22:31 - he proposed this last time he was proposing it again this year

22:35 - and

22:35 - part of

22:37 - the fact that the waterfront tax credit has been underutilized is because the

22:41 - reimbursement is low lower than other tax credits

22:44 - I have legislation to address that

22:47 - but especially when we're talking about western pa and trying to get

22:51 - investment and people to come back to western pa

22:54 - and our waterways are really critical to that

22:57 - and development along those waterways has

22:59 - for too long gone

23:01 - on undeveloped

23:03 - and

23:04 - eliminating this tax credit would seem to

23:07 - continue to kind of put a damper on

23:09 - our ability to really utilize the kinds of resources that are uniquely available in

23:13 - western pa yeah appreciate the point.

23:16 - I want to be clear our proposal to cut the waterfront tax rate is not somehow

23:20 - opposition to waterfront development it's a question of.

23:25 - We have

23:25 - a set of tax credits we want to just try to optimize them for the needs of the

23:29 - commonwealth and our belief is that

23:32 - a new tax credit geared toward

23:34 - a discretionary Grant program a discretionary tax program

23:37 - that we can

23:38 - deliver for business expansion here which we call advanced pa

23:42 - is a better use of those funds and we have opted to

23:45 - you know

23:45 - somewhat pay for those funds

23:47 - and by limiting three texture it's including waterfront

23:50 - in the reason we chose waterfront is really twofold

23:53 - number one

23:54 - as you point out the utilization is quite low just looking at my notes.

23:57 - I think we have had like one hundred and ninety eight thousand dollars of credit

24:00 - supplied for this year on a five million dollar credit so like vr very

24:04 - low utilization a lot of that is the reason you point out of course

24:08 - and.

24:09 - Great projects that would

24:10 - seek out waterfront tax credits also have access to other tax credit programs like

24:14 - the neighborhood assistance program

24:16 - but this is not like a

24:18 - somehow an articulation of a policy against waterfront

24:20 - development rather we think a more efficient use of

24:23 - tax credit availability in that department appreciate the question

24:26 - thank you.

24:32 - Thank the gentle lady representative Mustafa.

24:35 - Thank you chairman Harris.

24:37 - Good morning

24:38 - mister secretary.

24:40 - In June

24:41 - two thousand and twenty five the commonwealth announced

24:43 - a twenty billion dollar new investment from Amazon

24:46 - to build the two data centers in lucerne in bucks county.

24:50 - What was the commonwealth's incentive package for

24:52 - those developments yeah thank you very much rep

24:55 - I think of our package kind of in three parts.

24:58 - Hurt one is

24:59 - like we have done with many other large industrial

25:01 - projects of critical importance to the commonwealth.

25:04 - They received fast-track permitting support

25:06 - from or offs of transformation and opportunity.

25:09 - Weather it's not like a cash Grant.

25:11 - It has enormous value to a company like Amazon

25:15 - which for which speed for whom speed is

25:18 - key.

25:19 - That's one to

25:20 - Amazon is availing itself like other data centers of their

25:24 - of the by rights sales and use tax exemption credit.

25:28 - For sales and use tax exemption on data center

25:31 - construction and equipment

25:32 - as administered by the department of revenue and

25:35 - then third and in somewhat I think interestingly.

25:38 - Instead of

25:39 - like deploying dollars to

25:41 - the company.

25:43 - We worked with Amazon to come up with a plan

25:45 - where we would deploy ten million dollars

25:48 - I'm focused in particular on the northeast pa side in Salem

25:52 - township to the workforce delivery system of Pennsylvania

25:55 - and to Pennsylvania ones

25:57 - to make sure Pennsylvania could get these jobs

25:59 - both in the trades to build the stuff

26:01 - and importantly in the long term jobs like data

26:03 - center technicians and others that would work there

26:05 - I think in the coming months we'll be prepared to sort of announce

26:08 - the Grant Grant recipients of those funds

26:10 - and

26:11 - that to me is

26:12 - better value for the taxpayer and it's actually

26:14 - better value for Amazon they don't want

26:16 - ten million dollars they want people that can help build these facilities and operate

26:21 - them and we think that's a win-win

26:22 - and those are great incentives

26:23 - are those.

26:25 - Still ongoing I mean is the commonwealth incentivizing

26:28 - certain sizes of data centers that are coming in that are in discussions

26:32 - and

26:33 - we've got a lot of land out west and western Pennsylvania

26:36 - and I just wondered if those incentives are still

26:38 - available look we consider every project separately I think

26:42 - it's probably not wise for me to make a blanket comment

26:45 - but I do think

26:46 - given the substantial interest we've seen

26:48 - in data center development

26:50 - and given the significance end

26:52 - of in generosity of the existing sales and use tax exemption.

26:56 - It is not currently our practice to offer

26:59 - additional incentives above and beyond.

27:01 - Hermit speed

27:02 - and

27:03 - that exemption

27:04 - and when you check it about fast-tracking pyramid speeds

27:07 - what were those fast track permits for.

27:10 - It's a great question.

27:12 - The list of permits

27:13 - for

27:14 - projects of this level of complexity is

27:16 - extremely long I want to say it's actually like

27:19 - in the hundreds but

27:21 - as a general matter

27:22 - think about these permits in a few categories.

27:25 - It'll.

27:27 - Land use

27:28 - transportation and others

27:29 - that you would have really in any.

27:32 - Large scale industrial project

27:33 - and I want to be really clear

27:35 - fast track does not mean

27:37 - that rules

27:38 - fast track mean speed and certainty it does not mean

27:41 - that the commonwealth would relax any sort

27:43 - of statutory or regulatory requirement around

27:45 - water quality air quality etc so these projects are all being permitted.

27:49 - Properly by the dp

27:51 - because a few years ago I had asked the question of you

27:55 - and

27:55 - I believe it was when pa sites were starting out

27:58 - what.

27:59 - I

28:00 - Like what was your focus on working with gp to fast-track

28:03 - some of these

28:04 - permitting reforms we all know

28:06 - I talked to a lot of energy producers out there

28:09 - just in amongst my travels

28:10 - and it's always regulatory and legal issues

28:13 - that are always stopping any sort of

28:15 - development or as you

28:17 - use the word fast tracking of anything.

28:20 - How are you working with d e p to maybe move these a little bit forward faster are we

28:26 - honor the urgency I mean we talk a lot we talk a great game

28:29 - of we've got the land we've got the

28:31 - the resources the natural resources to move forward

28:34 - so what is DC edu doing now

28:36 - and I believe that was about three years ago when I asked the question

28:39 - what are you doing now

28:40 - to work with

28:41 - e

28:41 - To

28:42 - Make them understand the urgency of this yeah this is

28:44 - a great question I actually think there's a great wait

28:46 - by partisan story here about Pennsylvania

28:49 - going from if we're being honest historically

28:52 - a place with a reputation for pretty slow and bureaucratic

28:56 - orbiting

28:57 - to a place that is really leading the country in this area.

29:00 - You know

29:01 - the governor creative officer transformation opportunity

29:04 - they have

29:05 - not just created this fast-track program for

29:07 - a small subset of key large scale strategic

29:10 - investments like Amazon like Eli Lilly in the lehigh valley

29:13 - but they've also

29:14 - you know for example catalogued every single permit license and certification the

29:17 - whole state that's like twenty one hundred

29:20 - different processes.

29:21 - They've created this money back guarantee and they've just had really significant

29:26 - positive results here's like two examples that I think

29:27 - are really important that I like to talk about but really

29:30 - frequent about talking to businesses catches people's eye

29:33 - number one

29:33 - when the governor took office it took like eight weeks

29:35 - to get a business license from the state department

29:37 - did it takes a single business day.

29:40 - In in the dp context

29:42 - and

29:42 - I haven't read here

29:43 - when we took office the backlog was significant

29:46 - like

29:46 - that

29:47 - the permits that were like still on the shelf like

29:49 - difficult to work through like nobody wanted to touch

29:52 - today the backlog is eliminated

29:54 - at dp.

29:55 - These are

29:56 - real progress points that I think we can all be proud of

29:59 - as we work together to make Pennsylvania more business friendly state and by the way

30:02 - companies are noticing it's why we're seeing

30:04 - one reason we're seeing really increased interest in

30:07 - the pipeline and we're closing some of these large skilled guys think thank mr

30:10 - secretary thank the general extra

30:11 - thank you representative Brennan.

30:14 - Thank you mr chairman

30:15 - secretary sager good morning always didn't see any here

30:18 - and.

30:19 - I love going around my district and talking about the fact that this governor is the

30:22 - first governor to have a business plan and something like twenty thirty years

30:26 - you know as a business

30:27 - I know how important is a plan

30:29 - and you know I I'm seeing all this

30:32 - data about us being the only

30:33 - growing economy in the northeast so

30:36 - I'm also seeing some of those anecdotal successes

30:39 - with the

30:40 - you know we see

30:41 - Eli Lilly

30:42 - investing three point five billion dollars into the lehigh valley

30:45 - j and j in the Philadelphia suburbs.

30:48 - I'm wondering

30:49 - the bio tech industry so important

30:51 - we've seen so many other states doing huge huge investments to Massachusetts new York

30:56 - and

30:57 - and we seem to be having so much success here

30:59 - we have the infrastructure we have the education I'm wondering.

31:03 - In some of those those more recent deals what were

31:06 - what were some of the incentives that were used what some of the challenges that you

31:09 - use on and and how can we we we be doing more

31:12 - to encourage these

31:13 - life sciences companies to invest

31:15 - here and also.

31:17 - At the that the early stages to to find ways to to keep them to stay here

31:21 - yeah thank you for the question.

31:24 - This is really kind of like what our strategy sought to address

31:27 - right when we came in and.

31:29 - We were if we're being honest with each other not really competing

31:32 - for the kind of project like let's say Eli Lilly sought to build here

31:36 - where the ceo Dave ricks actually stood next to

31:38 - the president and said.

31:40 - All communities in

31:42 - the united states bid on this project if you wanted

31:45 - right they built for these things we won one of them in the lehigh valley

31:48 - in in the way we did it as sort of multifold

31:51 - and

31:52 - in it's really a result of us having worked together these past couple of years

31:55 - number one we had the tools to compete

31:57 - and

31:58 - we had pa sites

32:00 - we had increase funding in our pa first line

32:03 - we had the pa edge tax credit

32:05 - you know biomedical element which we all have which we brought to bear

32:09 - all of which are tools that

32:11 - this body put in place to help us win this thing

32:13 - but like money does not wind projects like this alone

32:15 - we had to have speed I was just talking to the rep over here about

32:19 - like our incredible progress and

32:21 - frankly the incredible concierge service that our team

32:24 - can provide to these large scale projects like Lily

32:27 - dealing with

32:28 - myriad issues from

32:29 - you know toads to historic preservation to like you name it like

32:32 - in the weeds complex kind of project management

32:35 - but actually just as important if not more important than those two pieces are like.

32:40 - Ecosystem and workforce

32:42 - right

32:42 - Lily wanted to be close to.

32:45 - The amazing pharmaceutical and research ecosystem that we find in Philadelphia

32:50 - suburbs and increasingly to the north into lehigh valley

32:52 - and they wanted to be certain that.

32:55 - Not just the tradesmen and women that they were hiring the couple thousand

32:57 - construction workers will be available

32:59 - but that as they ramped to eight hundred and fifty you

33:01 - know hundred thousand plus dollar a year permanent jobs

33:05 - they had partner that could help

33:07 - work to provide those jobs

33:08 - and so we actually developed like a bespoke and very specific

33:11 - program with the carbon community college

33:13 - drawing on

33:14 - experience for Montgomery county and also from north Carolina

33:17 - where Lily operates other facilities

33:19 - to give them the certainty and fund that certainty

33:23 - for excellence and sort of delivery

33:25 - and I think

33:26 - all that speaks to Pennsylvania's value prop here it

33:29 - can't just be like incentives it can't just be permits

33:32 - it's got to be people and it's gotta be

33:35 - really like leveraging that research and industry ecosystem in our cities

33:40 - in particular

33:42 - to help grow this sector all across Pennsylvania

33:45 - and I know we have a lot of organic resources here

33:48 - the that that may make folks want to locate here

33:51 - I'm wondering does aarp I mean some of these areas lehigh valley

33:55 - Philadelphia suburbs

33:56 - we have an aging infrastructure

33:58 - is that posing any limitations in in bringing folks here into

34:03 - to Pennsylvania

34:04 - Bridges we also have issues with

34:06 - a public transportation I know that's a big

34:08 - concerns that business leaders have as well so I'm

34:10 - wondering if you can comment on that and and and

34:12 - in how we're doing in in some of those regions

34:14 - and and in general where we're seeing growth

34:16 - that's right

34:18 - and

34:18 - infrastructure is really key

34:20 - I mean

34:20 - the the level of importance.

34:23 - Of

34:24 - Road rail

34:26 - air infra the structure varies based on sector and company

34:29 - but I can tell you the case of

34:30 - Willie is really really important.

34:33 - So important in fact that

34:34 - like a part of our discussion with them

34:36 - was providing certainty and surety about a long

34:39 - planned but very important to their development

34:42 - new interstate access off interstate seventy eight immediately adjacent to their

34:45 - facility that was a core part of discussion

34:48 - and

34:48 - that is also true if you're talking about recruiting headquarters to downtown

34:52 - Philadelphia there people need to be able to

34:53 - get to work they've got to be able to

34:56 - drive on great roads and in importantly especially in our cities but really

34:59 - everywhere in Pennsylvania they've got to be able to access mass transit

35:03 - this comes up in every conversation can I get my people to work

35:06 - it's like perk plus roads plus mass transit.

35:09 - I think it's a really important point whether

35:10 - you're talking about a distribution center

35:12 - with one hundred trucks or whether you're talking about a white collar

35:15 - headquarters in a in a skyscraper in downtown Pittsburgh or Philadelphia

35:18 - infrastructure transportation super cute.

35:22 - Thank thank you for your time I see my time's up but thank you for the work that your

35:24 - office is doing it's certainly seen great

35:26 - benefits in Pennsylvania thank you thank you sir

35:28 - we thank the gentlemen representative all summer.

35:31 - Thank you chairman Harris

35:33 - mr secretary thank you for being here today.

35:37 - Mr secretary last year

35:39 - at this hearing

35:41 - we had a significant discussion

35:44 - regarding the management of federal broadband funds.

35:48 - I am concerned.

35:51 - Because we all know that the deployment of broadband

35:54 - access is fundamental to the jobs and economic

35:58 - development in rural areas across Pennsylvania

36:02 - connecting our communities

36:04 - to the global marketplace.

36:07 - From what I understand back on February ninth of this year.

36:11 - The national telecommunications and information administration

36:16 - can additionally approved the Pennsylvania broadband

36:19 - development authorities broadband equity access

36:23 - and deployment final proposal.

36:27 - This proposal

36:29 - is slated to provide over seven hundred and eleven million

36:33 - to expand broadband broadband access

36:37 - to nearly one hundred and thirty thousand locations

36:41 - across the state

36:42 - in largely rural areas

36:45 - similar to where I come from me and Wayne and pike counties.

36:50 - It's my understanding

36:52 - that the

36:52 - that the federal approval

36:55 - is only conditional.

36:58 - Because of the

36:59 - disagreement

37:00 - we explored last year regarding the classification of broadband line workers

37:05 - specifically

37:07 - the shapiro administration

37:09 - refused to recognize the fiber

37:11 - optic line installation

37:14 - is inherently different

37:16 - from electrical line work.

37:18 - As a result

37:20 - concerns were raised

37:21 - that the commonwealth related expenditures

37:24 - related to this project

37:26 - will likely far exceed.

37:29 - What is reasonable and necessary contrary to the regulations promulgated

37:35 - by the federal government.

37:38 - In other words.

37:40 - The shapiro administration is not doing what it needs to do to control costs.

37:46 - Enhance affordability

37:49 - and ensure that these funds will provide every possible mile of fiber

37:54 - and connect the maximum number of rural located Russians.

37:59 - So mister secretary

38:01 - can you please tell us

38:02 - what is d c e d doing to comply with this conditional approval

38:08 - and what will

38:09 - you do to ensure

38:11 - that our Laurel there are laws that our rural communities.

38:15 - What what will you do to ensure sure that our

38:19 - rural communities do not lose that seven hundred

38:22 - and eleven million dollars.

38:26 - Yeah thank you very much for the question.

38:29 - As I'm sure I said last year in my view this is among the very most important things

38:34 - that we're working on as a department connecting every pennsylvanian to

38:38 - high speed Internet I fully agree with you on that with respect to the award

38:41 - condition that you mentioned that the federal government

38:44 - has said they would.

38:47 - Impose on the

38:48 - broadband development authority.

38:50 - We are not yet in the receipt of that condition

38:52 - and the language that describes it so I think it's premature for me to sort of

38:55 - say how we would deal with it

38:57 - but but here's what I think I will say.

39:01 - We were awarded one point one six billion dollars in bead funds.

39:05 - We have worked tirelessly in a bipartisan way as you know the

39:08 - the bing development authority is a is a bipartisan organization which

39:11 - we sort of run the back office of but is sort of

39:13 - administered by all of us together

39:16 - and.

39:18 - That seven hundred and eleven million dollar propose zl is

39:20 - the result of significant back and forth discussion around

39:24 - technology type

39:25 - location validation and verification all across Pennsylvania

39:29 - and at the existing wage rate.

39:32 - That setting one hundred and eleven million dollars

39:34 - will take that one hundred and thirty thousand number to zero that is to say

39:39 - we will connect via fiber or cable or in some cases low earth orbit satellite

39:45 - every single broadband serviceable location in Pennsylvania

39:48 - for seven hundred eleven million dollars

39:51 - and the number of unconnected folks in Pennsylvania will be zero

39:54 - by the end of this department

39:56 - that also

39:57 - as you as you'll remember we got one point one six billion from the feds

40:00 - that is with like returning over four hundred million dollars

40:03 - to the program which there's a separate discussion about

40:06 - how to deploy that and happy to talk about that further

40:08 - so.

40:10 - While I can't comment on the work conditions because we don't have it

40:13 - while it's really

40:14 - the department of labor and industry that sort of

40:17 - administers the prevailing wage classifications

40:19 - and the broadband authority essentially

40:20 - just takes existing classifications what I can tell you is

40:24 - at the current rate

40:25 - seven hundred eleven million dollars

40:27 - we have complete confidence

40:28 - that we can connect every single pencil.

40:30 - Robin and by the way

40:32 - don't just take my word for it

40:33 - right now with a different pot of two hundred and four million dollars of funding.

40:37 - We've awarded that funding

40:39 - to fifty three projects

40:41 - to connect about fifty thousand locations those

40:43 - dollars are in the ground now being deployed

40:46 - and so I think we've got a track record to work I think thank you very much

40:49 - thank you sir

40:50 - though thank the gentleman representative Webster.

41:00 - Excuse me we were talking about school buses the record.

41:05 - Secretary saga I think you know

41:07 - that.

41:08 - I've been impressed from the beginning with

41:10 - some of the statements you've made around

41:13 - the fact that quality of life for our workers

41:15 - and our communities is a big part of economic development

41:19 - in in my area

41:21 - very specifically on

41:22 - being laser focused in our self interest

41:25 - we've had repetitive storms and engine issues

41:28 - because our infrastructure is simply all

41:31 - it gets storm water into the creeks way too fast at velocity and

41:36 - and high levels of water and

41:38 - and that repetitive costs for

41:41 - a car dealerships and and businesses

41:44 - and and fan families is has been

41:47 - enormous

41:48 - so

41:48 - My question is more around the

41:50 - sort of the

41:51 - deeper infrastructure that we need to develop so that we create the opportunity for

41:57 - those quality of life initiatives that.

42:00 - That make

42:01 - Pennsylvania workers want to be here

42:02 - yeah.

42:04 - Thank you rep

42:05 - and fully agree with your sort of overall frame

42:08 - which is

42:09 - people want to live in great communities

42:11 - right great communities need great schools they need great infrastructure great main

42:14 - streets I think a lot of what you've seen us focus on

42:17 - not just in the d c d budget but across the governor's

42:20 - budget.

42:22 - Focuses on those pieces

42:24 - with respect to infrastructure.

42:26 - Well you know transportation infrastructure

42:27 - certainly is funded through colleagues at penndot.

42:30 - D c d we do have a significant number of programs

42:33 - and some of them through the commonwealth finance authority which fund infrastructure

42:38 - and.

42:39 - That's important.

42:41 - I would also say that to my

42:42 - to the point I made to to rep Salisbury earlier or

42:45 - we've tried to create like technical assistance

42:48 - frameworks

42:49 - people

42:50 - that like are smart on this that know about planning

42:52 - where maybe the city of Philadelphia doesn't need

42:54 - our planning support but small municipalities do

42:57 - to help think about not just like how do I

42:59 - apply for this Grant for this waste water plant

43:01 - but like what waste water plant do I need

43:04 - what capacity do I need what location should it

43:06 - be in

43:07 - for the growth or the strategy that we have

43:10 - for it

43:11 - and so I think that kind of.

43:13 - Helping municipalities and counties

43:15 - you know think through what's best for their needs

43:18 - plus

43:19 - real funding through small water and sewer and other programs.

43:22 - Is the right sort of balance here and in la me just say

43:25 - the same thing I would say that really everybody here

43:27 - if you've got like a community you want us to sit down and kind of do a deep dive

43:31 - with just like send me an email we'd be pleased to do it anytime

43:34 - I'll take you up on that says Jacob differentiate the offer.

43:38 - Because you may know we have completed about a million dollar

43:41 - study on the perkiomen watershed so we know

43:44 - what projects play into that scenario.

43:48 - Real quick change of subject

43:51 - you talk a little bit about Ben Franklin about

43:54 - innovate two point oh

43:56 - and were those.

43:58 - Those

43:59 - Grant and some support should be.

44:04 - Usually to talk a little more about it yep just got

44:06 - where we are what's the plan I was looking for my

44:08 - neighbor

44:09 - to to look.

44:12 - Pennsylvania has

44:13 - incredible innovators

44:15 - has an incredible research base in particular

44:18 - from the seven are one universities across Pennsylvania

44:20 - but also from companies in other universities

44:23 - like

44:23 - the most fun part of my job I think is meeting with companies and others who are

44:28 - pioneering these new

44:29 - opportunities at j and j a as as you know just

44:32 - two weeks ago

44:34 - to announce a billion dollar new cell and gene therapy manufacturing facility

44:37 - like no one's ever built something like that

44:39 - that is like built on the research they're doing

44:41 - right in spring house to to take it at scale.

44:45 - So what can we do as a state

44:47 - to help accelerate that innovation

44:49 - and not just create great ip and great companies

44:51 - but keep them here in Pennsylvania and growing here

44:54 - not just in our city

44:56 - and our thought is that

44:57 - in addition to the Ben Franklin's which

44:59 - have a real track record of really indeed been

45:01 - a national model in many cases for the way

45:04 - kind of state spun off organizations can do this work

45:07 - and

45:08 - we've got to bring new tools to bear we've got to do what I think of is like putting

45:11 - the mud knee in the middle of the table here

45:13 - to make sure that it's not just like

45:15 - individual problems being solved but that our universities are working together

45:18 - with our industry and others

45:20 - to solve big problems problems like.

45:23 - Creating a clinical trial network to make it easier to test

45:25 - drugs here

45:26 - problems like.

45:28 - Companies that are spinning out of university of Pennsylvania or pit with like

45:31 - in incredible ip and capability that don't necessarily have the business leadership

45:35 - or finance leadership they need to stay

45:38 - and succeed in Philadelphia and I think

45:39 - the more specific we can be about the problem

45:42 - we're trying to solve

45:43 - and.

45:44 - The more we can tap into

45:46 - the brains within this ecosystem to come up with really

45:49 - creative solutions to solve them and naturally how we've

45:51 - craft this innovate in p a two-point to bring

45:53 - will tell you what we're trying to solve

45:56 - you innovator you university you company come to us

45:59 - and propose how you want to solve it

46:01 - I appreciate that I think there's many more things to

46:04 - discuss and I know they love light's yellow and and will honor that

46:08 - but that dynamic where one thing

46:10 - spurs additional economic gap activity

46:12 - is really important to Pennsylvania appreciate the crochet rep things now.

46:16 - Thank the gentleman represented rig by.

46:20 - Thank you chairman Harris thank you secretary for being here.

46:24 - We are providing funding for an event sponsored by the NFL.

46:28 - The world's most valuable sports league

46:30 - with an average franchise worth about seven point five billion.

46:35 - Trying to grasp the need for taxpayer dollars

46:38 - for this project.

46:40 - From a local standpoint

46:41 - visit Pittsburgh.

46:43 - Is the

46:43 - official tourism promotion agency for allegheny county

46:47 - and the city of Pittsburgh will also be marketing the draft.

46:51 - Visit Pittsburgh

46:52 - also receives taxpayer dollars from the county hotel tax.

46:55 - Given all the aforementioned

46:57 - do you believe that this ten million dollar investment in state tax dollars

47:01 - is truly necessary and a follow up that would be.

47:05 - Will you be able to provide us

47:07 - the taxpayers width of Pennsylvania

47:09 - with an eco economic amp packer this ten million dollar investment in the NFL draft

47:14 - including the return on our investment yeah and the short answer is yes and yes I do

47:20 - believe it's necessary yes we will definitely be able to

47:21 - provide you an economic impact let me let me share why.

47:26 - This is an event that is.

47:28 - Sort of generational in a year that's generational.

47:31 - I'm a Pittsburgh as we talked about just before the hearing.

47:34 - This was the largest event probably in the history of the entire city

47:38 - and

47:39 - it also comes with tens of millions of eyes from

47:41 - in particular the u s but also around the world

47:44 - looking at Pittsburgh in Pennsylvania and developing an impression

47:48 - and so

47:49 - for us to spend ten million dollars

47:51 - to make sure that this event

47:53 - is safe as a great visitor experience

47:56 - goes off without a hitch and frankly positions

47:59 - Pennsylvania in our image in Pittsburgh in particular in this case and it's image.

48:03 - In the best possible light to the world I think is the row right investment and and

48:06 - let me quantify this for you a little bit the projections and will will have a

48:10 - there will be a way to sort of

48:11 - give you like a post event report on this

48:14 - what the projections

48:15 - are for like one hundred and thirty million to one

48:17 - hundred and sixty million dollars of economic impact

48:19 - just from like the three days of the draft and the week surrounding it

48:23 - what that doesn't quantify though and what I think is really what this is about for us

48:27 - is like a chance to serve re baseline

48:29 - Pennsylvania in Pittsburgh's image around the country in the world

48:32 - as a destination for visitors

48:34 - as a destination for residents and you know a little bit selfishly for me

48:38 - as something I can sell to business to try to

48:40 - get them to grow here and to to locate here

48:42 - so

48:43 - Is ten million dollars a lot of dollars it is

48:46 - but we believe that it's a wise investment

48:49 - because of just the unique nature of this opportunity

48:52 - and the number of eyeballs that are going to be focused on Pennsylvania as a result.

48:56 - So assuming the the amount of people that are going to be present at this

48:59 - and we've discussed this.

49:01 - The the benefits you feel are going to certainly go outside of the Pittsburgh market.

49:06 - Spanning pretty far

49:07 - folks are going to be staying and traveling in for the events and.

49:11 - I think that's right I think it's really multi-fold one is yes I mean I think every

49:14 - hotel's going to be full from like morgantown to

49:16 - johns town read that that just sort of is I think

49:19 - as a result of the number of people that are directly visiting.

49:23 - What I think

49:24 - it's important to know that

49:26 - we're not just marketing this for the draft we're not just saying come to the draft

49:30 - and go to Pittsburgh for two days

49:31 - when you go to the draft and you go to

49:34 - the visit pa activation in point state park which everyone should do.

49:38 - We're not going to say look at this cool thing in Pittsburgh we're going to say hey

49:41 - you

49:42 - go to falling water

49:43 - you know go to the poconos go to go to lake erie

49:46 - you know there it's it's an opportunity for us to get attention on

49:50 - and Slovenia and then market other parts of Pennsylvania

49:53 - to these visitors

49:54 - so hopefully if you drive in from buffalo for

49:56 - the draft because you're an obsessed bills fan

49:58 - like you're coming back because you want to go visit

50:01 - snowmobiles

50:02 - I don't do they exited at me

50:04 - I'm sorry I had to interrupt like your come and go birds

50:06 - or.

50:08 - Here we go steelers

50:09 - but but

50:10 - you know because you're coming back because you learned something and you love

50:12 - Pennsylvania too so I think I think there's like

50:15 - the existing event

50:16 - but if we do this right and we're determined to do so

50:19 - and we can spend these dollars to make sure these people keep coming back and that

50:22 - their impression of Pennsylvania continues to be positive again for visitors

50:26 - for businesses and

50:27 - and maybe for future residents.

50:29 - Thank you mister sector mr chairman.

50:31 - I bleed black and gold.

50:33 - And that's okay that's in Pennsylvania he's talking about bill fan

50:37 - where are they

50:39 - I mean there is a member over here who said there are bills

50:41 - so I'm not going to point them out we're going to let them

50:43 - just sit over here.

50:45 - Think digital.

50:47 - Representative Avenue.

50:49 - Thank you mr chairman and Decker mr secretary mr deputy secretary

50:53 - for being here it's good to see you

50:55 - and I think often times on when government has conversations around affordable housing

51:01 - both at the federal state and local level

51:03 - a lot of times the the investments in affordable housing

51:07 - the scale kind of tips towards ren letters

51:10 - more so than home ownership

51:13 - and we know between.

51:15 - Two thousand and fourteen and two thousand and twenty three

51:18 - the median house price in Pennsylvania increased by over forty five per cent

51:22 - and in that same time.

51:24 - We estimate that wage growth in Pennsylvania was around twenty percent

51:28 - so obviously there's some disparities between

51:30 - people being able to afford homes and the amount of wages that they have and so

51:34 - as you all were working through the housing action plan

51:38 - I'm sure there were

51:39 - are so are there any policies that you all can think about

51:42 - outside of obviously raising the minimum wage.

51:45 - That we can think about to help support people

51:49 - to be able to purchase a home at a more affordable price

51:51 - yeah thanks so much for that.

51:53 - Question rep

51:54 - and look you were a part of our conversations and and the development of the plan to.

51:59 - I'm really excited about actually the the road map that the plan puts forward

52:03 - because in addition to the

52:05 - budgetary pieces the governor's proposal for this billion dollar critical

52:08 - infrastructure fund which gets at some of this

52:10 - and some of the early

52:12 - policy pieces we've proposed

52:14 - if you look at the plan.

52:16 - You know

52:17 - two things I think really get to what you're saying number one

52:20 - we've just got to build more housing

52:22 - right

52:23 - and.

52:24 - That is not a problem that we can exclusively subsidize our way out of

52:28 - we've got to build more housing at

52:30 - all levels affordable housing attainable housing market rate housing

52:33 - and in all regions although there's variability across regions of course our faster

52:37 - growing regions require more housing.

52:39 - So that's

52:40 - point one but point to like equally important is

52:42 - you've got to make sure people can access that housing

52:45 - and so there's a

52:46 - us

52:46 - Considerable set of policies that we put forward that are

52:51 - to make sure that folks in Pennsylvania

52:53 - have access to housing like here's a couple of examples that I think are

52:57 - make sense

52:58 - and.

52:59 - Number one.

53:01 - If you have an eviction notice is filed against you and you don't actually get

53:04 - evicted that shouldn't be on your permanent record to try to obtain housing

53:06 - right and the governor talked about that now two

53:07 - years in a row feels very common sense to me.

53:11 - For example if you're

53:11 - a victim of domestic violence you should be able to break your lease without

53:15 - penalty to get out of a tough situation

53:17 - and there are many more examples in the plan

53:19 - that talk about out

53:20 - how we can just help people access housing

53:24 - while we are

53:25 - closing this gap of like one hundred and eighty five thousand homes which we believe

53:29 - we need to create by two thousand thirty five

53:31 - to meet this sort of broad population and growth dynamics

53:34 - of Pennsylvania

53:35 - and I think.

53:36 - This is not an easy problem to start to tackle

53:39 - but I do believe we have a strong vision and and in my experience

53:43 - you know

53:43 - traveling across the state interacting with many of you again on a bipartisan basis.

53:47 - There's actually a lot of energy behind tackling this issue it's not just an urban

53:51 - issue a real issue it's a suburban issue

53:53 - it's an issue in erie it's an issue in Philly it's an issue in in your district of

53:56 - course in Pittsburgh and welcome the chance to keep working together

53:59 - to get this done.

54:02 - Thank you mr secretary I want to switch gears just a

54:04 - little books or maybe some way in this in a similar vein.

54:08 - Or spirit has talked about the neighborhood assistance tax credit program.

54:11 - I believe correct me if I'm wrong last year was the first year

54:15 - we were able to get resources out at the new level the seventy two

54:19 - or seventy two million

54:21 - I know it was originally at thirty six million then we doubled as seventy two that's

54:24 - right can you talk about sorta the benefits of

54:27 - being able of us expanding and doubling that amount

54:29 - how you are able to serve more projects I know a lot of.

54:33 - Commune development corporations in my district

54:35 - really benefit from that and a p program

54:37 - and and can you talk a little bit about even

54:39 - with this increased Amber has seventy two million

54:42 - available tax credits is still oversubscribed are there still folks like

54:46 - trying to get more than seventy two million

54:48 - yeah

54:48 - thank you for the question

54:50 - it actually has been

54:51 - two years we did it the first year we administered thirty six then you passed a

54:54 - budget with thirty six wherein we did another round and then

54:57 - last year was the first year we did

54:59 - the full seventy two together.

55:01 - Look thank you

55:02 - thank you for growing this program to to all of you

55:05 - it's one of our most flexible.

55:08 - Community development programs

55:10 - in

55:11 - It

55:11 - By it's very nature

55:13 - bytes program design is like a team sport program which is what I love like it brings

55:17 - together private public nonprofit together

55:20 - to try to solve a problem together and I agree with you that

55:23 - and western Pennsylvania our home

55:25 - is the place that I think had historically

55:28 - benefited the most from this program they're like really energized advocates answer

55:32 - of donors in the program in the west

55:33 - what I'm happy to say would you may not be as

55:35 - happy about but I think is good for Pennsylvania is

55:37 - this last year set of.

55:40 - Awards was the most geographically diverse set of awards we've ever made

55:43 - that is to say like people across the state are catching on this program is having

55:47 - really strong impact you know

55:49 - coast-to-coast if you will and I think that's a tribute both to our team and also

55:53 - just to to great companies and great nonprofits across the state accessing it

55:57 - with respect to

55:58 - do

55:59 - It is oversubscribed but not incredible so I dunno

56:01 - if you have that number off the top of your head

56:03 - I don't but I can share that we funded four hundred and five applications looking

56:07 - around

56:07 - I think we got like somewhere you know maybe like ten to fifteen million

56:11 - in requests above the seventy two it's not hugely so but it is currently over

56:14 - subscribed but we'll get back to you with a specific number

56:16 - back of his second

56:17 - term appreciated.

56:20 - Thank the gentleman representative flood.

56:23 - Thank you chairman thank you secretary for being here and your staff

56:26 - and July twenty or July fourth of twenty twenty six is going to be a really big day

56:31 - as it's as we celebrate the and two hundred and fiftieth anniversary of the signing

56:36 - of the declaration of independence

56:38 - in Philadelphia

56:39 - and the birthplace of our nation act forty five of twenty twenty five provided a

56:45 - transfer of fifty million dollars.

56:49 - From the gaming fun to the tourism promotion fund

56:52 - with a with n d c e d

56:54 - of that up to forty million dollars is to be used for

56:57 - the america to fifty and then ten of that for the NFL.

57:02 - Draft in Pittsburgh

57:04 - and I'm sure there is going to going to be a lot of celebrations across Kansas lavinia

57:09 - and that lehigh valley to fifty which I have been working with closely

57:14 - has a lot of they're prepared to

57:17 - have a lot of celebrations they're prepared to

57:19 - handle the spill over from Philadelphia

57:21 - and with Easton having historical significance

57:25 - in that it was one of the three places where

57:27 - the declaration of it independence was signed

57:30 - and

57:31 - I mean

57:32 - red

57:33 - it was red amazing

57:34 - one of three yet in Easton

57:36 - and it was read one of the three places it was read we have a lot to celebrate

57:40 - so of course

57:42 - money is always the key issue

57:45 - and can you assure us that the forty million dollars will be spread read

57:49 - fully across the commonwealth and not just spent in Philadelphia

57:53 - yet.

57:55 - The short answer is yes the longer answer is.

57:59 - You know look as you know the budget was passed somewhat late in the year last year

58:03 - we're still working through the specifics of

58:06 - diploma these funds.

58:09 - And it is definitely the case

58:11 - that some of the marquee events the world cup

58:13 - or the major league baseball all-star game

58:15 - will be recipients of these funds

58:17 - to make sure that as we sing to your colleague eg

58:20 - these events go off perfectly for visitors as we sort of.

58:25 - Try to elevate Pennsylvania's image for tourists and businesses and I think

58:29 - that is a good use of funds because of the sheer number of let's say outside eyes

58:34 - international and non Pennsylvania eyes in the u s

58:37 - looking at Pennsylvania

58:38 - marketing opportunity

58:40 - but it's also really really important that we make sure that these events are great

58:44 - experiences for pennsylvanians ourselves right couldn't agree more

58:48 - and I think you'll see

58:49 - some of these monies

58:50 - going to smaller regional events across Pennsylvania to accomplish that goal

58:54 - look

58:55 - forty million dollars is a very large number but there are literally hundreds of

58:58 - events across Pittsburgh we cannot fund every single thing

59:02 - but we think

59:03 - we're close

59:04 - to like a really balanced and smart way to deploy this that really

59:08 - takes advantage of this moment

59:10 - deploys these funds

59:11 - to get maximum value for these marquee events like the draft

59:15 - but also honors

59:16 - and some Indians and and I think we'll have more announcements and exciting things

59:19 - and that's how how do you go about prioritizing

59:22 - the money for for.

59:25 - Events like the lehigh valley to fifty and I'm

59:27 - sure there's probably others around Pennsylvania

59:30 - that are

59:31 - organized as well as the lehigh valley to fifty folks are

59:34 - how do you prioritize

59:35 - money yeah

59:36 - look not easy like like many of our programs

59:39 - rep avenues just asking like his neighborhood

59:41 - assistance over subscribe like almost all our programs

59:44 - are vastly oversubscribed this is like not a bad thing by the way we're running

59:47 - programs that people want to apply to and are effective

59:50 - here I think we balance

59:52 - and.

59:54 - A broad set of factors including

59:56 - 984 you know economic impact tourism impact marketing impact geographic balance

01:00 - 03.234 to try to come up with the smartest possible

01:00 - 05.794 way to spend the funds and and

01:00 - 10.684 look like in all our programs there are great projects that probably don't get funded

01:00 - 14.090 but we will do our absolute best to make sure that we're

01:00 - 18.034 putting the interests of our goals first which really is.

01:00 - 21.474 Rebase like building a new baseline for.

01:00 - 23.664 Pennsylvania's image on the global stage with this

01:00 - 27.924 just generational opportunity of this set of sporting events taking place

01:00 - 29.622 literally in the two hundred fiftieth anniversary

01:00 - 32.044 of the country which like started your.

01:00 - 32.664 End

01:00 - 34.950 we're making sure the pennsylvanians have a really important

01:00 - 37.294 part to play in that which of course is also the purpose of

01:00 - 39.304 america to fifty the legislative.

01:00 - 42.122 A whole bunch of other activities so so thank you for the question

01:00 - 42.476 so

01:00 - 44.767 Additionally the governor's proposed one point

01:00 - 46.796 two five million for the america to fifty

01:00 - 48.124 commission

01:00 - 48.986 and

01:00 - 53.306 for fiscal year twenty six twenty seven while while I understand the need for

01:00 - 55.046 the importance of the commission

01:00 - 56.726 I question the timing

01:00 - 59.636 of the proposed funding since the commission Ian

01:00 - 03.159 will become obsolete after the week of July fourth

01:01 - 06.206 can you clarify why the funds are being proposed

01:01 - 08.316 and how they will be spent.

01:01 - 09.686 I think we see

01:01 - 12.366 well July fourth is obviously the.

01:01 - 15.686 Anniversary of the founding of the country and

01:01 - 19.466 twenty twenty six as a year is like a broad celebration of the country

01:01 - 21.386 and in rough terms

01:01 - 24.506 one point two five million dollars is like a half years budget

01:01 - 27.116 for where america to fifty has been a two point five

01:01 - 28.166 it would get them

01:01 - 28.976 directly from like

01:01 - 30.746 July one to December thirty one

01:01 - 34.832 which would support any activities they have for the remainder of twenty six as well

01:01 - 36.956 as wind down activities which are which are real

01:01 - 37.646 and

01:01 - 40.766 we've worked closely with the commission that's what I think they believe

01:01 - 43.746 they need and we support that level of funds

01:01 - 44.306 at this time

01:01 - 45.996 thank you.

01:01 - 50.616 I think the gentle lady representative Flemming.

01:01 - 54.966 Thank you very much.

01:01 - 56.646 Good to see secretary.

01:01 - 58.646 We appreciate you being here

01:01 - 00.696 one of the.

01:02 - 02.826 Representative

01:02 - 04.046 my colleague

01:02 - 07.116 the good gentleman from bucks county representative Brennan.

01:02 - 10.686 Touched on life sciences and I just want to continue that conversation

01:02 - 11.456 and

01:02 - 15.306 you know we know it's a it's an important part of our economy particularly.

01:02 - 17.919 You know pharmaceutical industry and a whole bunch

01:02 - 20.916 of other sort of bio and life science issues.

01:02 - 21.476 Can you you

01:02 - 26.076 provide an update on the state small business credit initiative funding.

01:02 - 26.726 Through the

01:02 - 28.346 American rescue plan

01:02 - 32.672 and you know since our life sciences and and other enterprises depending on that

01:02 - 35.156 funding where do we stand right now with where that is

01:02 - 36.596 yeah thanks for the question

01:02 - 38.726 as you know this was a program that sort of

01:02 - 41.696 started before my time as secretary but we continue to run on it

01:02 - 42.326 and

01:02 - 44.936 there are three tranches of these funds

01:02 - 45.836 and

01:02 - 50.012 those trenches have gone to the Ben Franklin technology development authority one

01:02 - 53.216 fund focused on diverse leaders they've gone the cdf eyes

01:02 - 55.536 green development financial institutions

01:02 - 59.046 are certified economic development organizations that Ben Franklin's

01:02 - 00.944 life science greenhouses there's two hundred and

01:03 - 03.326 sixty eight million dollars total across the three

01:03 - 05.916 crunches and.

01:03 - 08.378 It is performance based so you have to spend up to a certain

01:03 - 11.126 percentage I think it's eighty percent eighty percent

01:03 - 13.316 of each trench before you can draw down the next

01:03 - 15.956 and we are currently spending through the second tranche

01:03 - 19.256 and we're on track to request the third tranche

01:03 - 20.436 shortly.

01:03 - 24.512 In spite of changes the federal level our discussions with treasury who administers

01:03 - 27.476 this have not given us any sense that

01:03 - 29.945 we wouldn't have access to that third truncheon so

01:03 - 32.516 we're continuing to aggressively push these funds out

01:03 - 36.092 and again it's sort of performance space so it's not just us block granting it like

01:03 - 38.126 to the org it's like they have to spend it down

01:03 - 39.956 with companies to bring that

01:03 - 41.816 small business credit into the market

01:03 - 46.176 once we hit that eighty percent we'll be in a position to request the third truck.

01:03 - 48.296 Thank you very much for that update

01:03 - 52.796 we appreciate it I know like I said a lot of enterprises are are depending on that so

01:03 - 53.426 pre-program

01:03 - 54.896 thank you very much and

01:03 - 59.606 the second thing I wanted to get to is is you know more localized I'm

01:03 - 02.322 blessed to represent the area within about fifteen

01:04 - 04.616 minute a fifteen minute drive of the capital

01:04 - 09.626 and and so with that comes opportunity you know we have a workforce the tier

01:04 - 10.346 you know

01:04 - 13.406 Harrisburg is largely while we have a diversity of industry

01:04 - 15.523 obviously you know with the capitol building

01:04 - 18.086 here in the capitol complex we have a lot of

01:04 - 19.856 folks who work here

01:04 - 21.236 live here and work here

01:04 - 23.876 but with that also comes and

01:04 - 27.476 you know some challenges and one of those challenges a's

01:04 - 32.666 and you know when we how state buildings and in municipalities

01:04 - 35.648 and and and the loss of tax revenue to provide

01:04 - 38.096 essential services that comes along with that

01:04 - 43.206 and I just wanted to ask if the department has any thoughts on a proposal by.

01:04 - 46.056 My friend the good chairman of the local government.

01:04 - 46.826 Committee

01:04 - 48.546 chairman Freeman.

01:04 - 50.966 He has a bill to repurpose

01:04 - 54.466 and funding from the johns town flood tax rather than going

01:04 - 57.326 into the general fund it would go into a Grant program

01:04 - 00.491 for municipalities that that have more I

01:05 - 03.866 believe it's more than fifteen percent of their

01:05 - 07.136 taxable property that is tax exempt

01:05 - 11.486 and so I just wondered if the department had any thoughts on that and

01:05 - 16.946 I believe I believe d c d s d c e d would administer that that Grant program

01:05 - 20.636 just wondered if you had any general thoughts on how we could infuse

01:05 - 25.956 and you know more more funding to local governments perhaps through that program.

01:05 - 28.146 Yeah thank you for the question.

01:05 - 29.226 I will say

01:05 - 31.648 I'm sure that our team is familiar with this bill

01:05 - 33.864 I'm not as I sit here today personally familiar

01:05 - 36.056 would love to get up to speed

01:05 - 37.346 and and

01:05 - 41.166 articulate a view and work with with you and and the chairman

01:05 - 43.796 on a way forward here certainly the issue that you're

01:05 - 45.536 raising is not new to me

01:05 - 46.106 and

01:05 - 49.866 this is true of now just state capitals but also

01:05 - 52.956 you know cities with large universities or.

01:05 - 53.696 You know

01:05 - 58.802 religious organizations that that occupy significant land and so happy to to talk

01:05 - 01.676 more about that but I am not specifically familiar with the legislation

01:06 - 02.246 okay

01:06 - 04.549 thank you very much secretary I really appreciate

01:06 - 07.746 your work and and I I wanted to touch on that because.

01:06 - 11.966 It does give me the opportunity to to thank you and the department for

01:06 - 14.416 the great work that you do with local governments

01:06 - 16.196 which I really appreciated having been

01:06 - 19.056 having we had a township commissioner myself so thank you so much

01:06 - 19.946 thank you rep

01:06 - 21.726 thank the gentleman.

01:06 - 22.866 Representative maiko

01:06 - 27.666 thank you mr chairman and mister secretary for being here appreciate it.

01:06 - 29.805 I just wanted to do a little bit of a follow

01:06 - 32.256 up from the representative from allegheny

01:06 - 34.976 Kincaid and Montgomery Webster

01:06 - 37.206 about we were talking about.

01:06 - 39.416 The benz yeah

01:06 - 40.886 and as you know I sit on

01:06 - 41.576 the bench

01:06 - 42.756 aboard.

01:06 - 44.755 Back in the eighties I think we were giving them

01:06 - 47.286 eighty million and now we're down to seventeen

01:06 - 49.466 you were talking about innovate and pa

01:06 - 50.586 two point oh

01:06 - 53.666 g you have any metrics on the one point oh

01:06 - 54.446 and how

01:06 - 57.306 that benefited the commonwealth by any chance.

01:06 - 00.546 Not as I sit here today but I will say that.

01:07 - 03.206 While I am very happy to go back to the team and

01:07 - 05.070 like see what we have as you know this was like

01:07 - 07.746 twenty twelve thirteen time frame.

01:07 - 10.766 I don't know that it's going to be like apples to apples

01:07 - 14.666 the the dip this the similarity between one point one two point oh

01:07 - 16.316 it's like funding mechanism

01:07 - 16.781 that

01:07 - 16.950 the

01:07 - 19.296 sale of insurance tax credits and therefore.

01:07 - 23.466 We thought that for like one time funding it would be.

01:07 - 25.686 A smart idea to.

01:07 - 28.586 Repurpose something that worked on a bipartisan basis

01:07 - 30.326 but the use of the funds

01:07 - 31.626 is totally different.

01:07 - 35.336 In some sense like the economic impact that we're proposing would be different.

01:07 - 39.212 I'm happy to go deeper and sort of like our theory of the case of course for like why

01:07 - 42.666 we want to spend dollars on certain ways but I don't think it is going to be.

01:07 - 44.116 Happy to share it again note note

01:07 - 44.336 no

01:07 - 46.686 I don't think it's going to be the same yeah.

01:07 - 49.526 I guess my follow up would be on that and

01:07 - 50.976 seanez.

01:07 - 54.494 Were already invested in the benz and they already

01:07 - 58.116 have that infrastructure in place with the universities

01:07 - 01.056 with the institutions with the.

01:08 - 04.856 Businesses that we have in the commonwealth why not use that as

01:08 - 07.016 change the funding source a fun change how

01:08 - 07.736 allocated

01:08 - 08.816 you know what I'm saying

01:08 - 11.246 I do look I think that's like a reasonable point of view

01:08 - 12.086 I guess my

01:08 - 16.356 my perspective would be I would be surprised and disappointed.

01:08 - 18.026 If the benz didn't

01:08 - 20.552 build coalitions and lead coalitions to go after

01:08 - 23.406 this funds and like when some of these funds

01:08 - 24.936 but I think that

01:08 - 27.416 we're going to get a better outcome for the state

01:08 - 29.636 if we compete these funds

01:08 - 32.486 and open it up to a broader set of

01:08 - 34.356 ecosystem partners.

01:08 - 38.726 The bends have a long track record actually of leading and participating in

01:08 - 42.626 these kind of multi agency type funding mechanisms personally I

01:08 - 44.426 before I took this job I love read

01:08 - 46.706 alongside innovation works

01:08 - 48.146 in southwest Pennsylvania

01:08 - 51.296 like a sixty five million dollar Grant proposal to the federal government

01:08 - 53.396 to grow the robotics industry events were

01:08 - 55.886 critical partner in the thinking around that about.

01:08 - 56.816 Ben's got like

01:08 - 58.056 a quarter of the funding

01:08 - 00.756 so to me that kind of approach

01:09 - 04.256 where like we're putting the money in the middle of the table and in making people

01:09 - 04.856 kind of

01:09 - 07.196 come together in unique ways to try to deploy it

01:09 - 10.916 especially with a one time fund like the way this is design innovative pa

01:09 - 12.416 is going to result

01:09 - 13.736 in better outcomes

01:09 - 15.486 but again like I want to be clear like

01:09 - 18.842 adventure not just eligible for this funds like it is my expectation they know this

01:09 - 19.886 expedition that like

01:09 - 21.476 they go out and like

01:09 - 24.716 build plans and go when some of this money I think that's reasons apple

01:09 - 26.336 in a in a good way to do business

01:09 - 27.056 and

01:09 - 27.776 okay

01:09 - 29.106 now I and I

01:09 - 31.696 see where you guys are going with that and I understand that

01:09 - 34.236 so you guys are looking to just throw it out there

01:09 - 39.716 and have the bends also apply for that for that funding should they wish to buy

01:09 - 41.056 their ways to write what yeah

01:09 - 41.456 yeah

01:09 - 41.966 and

01:09 - 44.576 my second question for you

01:09 - 45.858 statement.

01:09 - 48.200 On the board side you know I also sit on the

01:09 - 51.456 Pennsylvania military community enhancement commission.

01:09 - 51.776 We

01:09 - 58.446 Think the number from last year if I remember correctly it was like forty six billion

01:09 - 01.059 we bring in from the federal government and it

01:10 - 04.146 gets allocated to our bases here in Pennsylvania

01:10 - 05.156 and

01:10 - 07.166 is there I get to quick

01:10 - 08.436 to questions on that

01:10 - 13.682 is there any kind of conversation on the economic development and how we can spur and

01:10 - 15.806 bring in more of that federal funds

01:10 - 16.436 that

01:10 - 19.196 goes into our communities here in the commonwealth

01:10 - 21.216 and then my second is.

01:10 - 23.786 Kind of in conjunction with that

01:10 - 25.934 I think we're spending around like half a million I

01:10 - 29.196 think it's like five something five eighty or something.

01:10 - 31.166 That we allocate to

01:10 - 32.906 the p m c c

01:10 - 34.506 a I know

01:10 - 38.269 Connecticut they're they're dumping like twenty thirty

01:10 - 41.126 million Oklahoma is same thing twenty thirty million

01:10 - 42.366 into similar

01:10 - 42.852 rams

01:10 - 44.032 that they have

01:10 - 47.952 at the end of the day is there any way that we can bump that up and

01:10 - 51.642 fight for those federal dollars to come into the commonwealth that would be

01:10 - 55.422 phenomenal for communities and the defense industry

01:10 - 56.862 in this era that we live in.

01:10 - 01.098 Yeah thanks for the question I can't I'm looking at my original confront that oh it's

01:11 - 02.662 a we're proposing six hundred and eight thousand

01:11 - 04.806 dollars a year you're right it's it's like in that mid

01:11 - 05.832 one thousand one hundred

01:11 - 06.952 albums.

01:11 - 10.282 Look I'm very much.

01:11 - 14.842 An advocate for and would be excited to work with you on.

01:11 - 15.282 That.

01:11 - 17.502 Working alongside the commission

01:11 - 18.932 which of course as you know I've

01:11 - 22.998 participated in from time to time absolutely to not just think about like a brac

01:11 - 24.470 proofing our existing facilities which I think

01:11 - 27.202 is why this commission was originally created

01:11 - 30.912 but given like the lack of evidence that there would be like a real brac

01:11 - 33.442 process on the horizon as you know.

01:11 - 34.492 How do we a

01:11 - 37.092 advocate for maximizing the footprints of these

01:11 - 38.692 defense.

01:11 - 43.042 Assets in the commonwealth which there are many of which.

01:11 - 46.422 On a direct basis provide massive employment and economic impact

01:11 - 48.372 but then maybe more importantly I think

01:11 - 49.492 we're getting to

01:11 - 51.792 looking like the defense industrial base broadly

01:11 - 55.492 and how we can just grow jobs in Pennsylvania there and on that point.

01:11 - 00.232 I would argue that like I dunno what exactly what Connecticut does but.

01:12 - 01.632 We actually do

01:12 - 06.672 deploy significant like workforce funds and incentive funds and manufacturing funds

01:12 - 10.912 to grow the defense industrial base it's like a core sub part of our manufacturing

01:12 - 14.358 strategy I think we could do better action this is saying I'd love to work with you on

01:12 - 15.982 connecting the work of the commission and

01:12 - 18.072 like our defense industrial base work

01:12 - 19.002 and

01:12 - 20.532 look there's a lot of

01:12 - 22.942 really interesting companies.

01:12 - 24.664 All across pa but this is like

01:12 - 26.502 again a kind of coast-to-coast issue

01:12 - 28.662 doing work in the defense base would love to

01:12 - 31.332 talk with you more and get absolutely sir definitely want to get

01:12 - 32.602 the offline yeah

01:12 - 33.862 yep.

01:12 - 38.212 Thank the gentleman representative young.

01:12 - 43.162 Good morning and happy black history month everybody.

01:12 - 48.642 As we are preparing for twenty twenty six and the global view on

01:12 - 50.602 Pennsylvania specifically

01:12 - 53.882 and the opportunity for so much economic development

01:12 - 56.022 and wealth to happen right here in this moment.

01:12 - 02.202 We should also be looking to see what can happen beyond twenty twenty six and so

01:13 - 04.062 as there are so many

01:13 - 07.542 local communities that are already

01:13 - 10.522 distress right historically disadvantage

01:13 - 11.842 and businesses

01:13 - 17.172 how do you believe we can maximize this opportunity now to not only stabilize

01:13 - 18.402 such businesses

01:13 - 19.612 but grow

01:13 - 20.652 those businesses

01:13 - 22.707 yeah thanks for the question and I think you're sort of

01:13 - 24.972 beyond twenty twenty six frame is like exam ackley right.

01:13 - 27.912 Look there's a lot of pressure on all of us I think to

01:13 - 29.502 show well

01:13 - 30.312 in the next

01:13 - 34.212 nine months like like show what Pennsylvania is made up like the draft should be

01:13 - 35.832 beautiful shots of

01:13 - 37.102 of Pittsburgh like

01:13 - 41.392 you know the world cup July fourth incredible opportunity for for Philadelphia

01:13 - 45.082 but actually like that's only step one I think.

01:13 - 49.518 Trying making sure that we leverage these events to the benefit of our people and

01:13 - 52.062 communities and businesses is really like why

01:13 - 53.392 we're spending the money

01:13 - 55.202 it's why we're spending so much focus on this

01:13 - 56.352 and I think

01:13 - 58.882 we can do that in like a bunch of ways.

01:13 - 02.362 Way one we've been talking about a lot which is.

01:14 - 03.702 If we can continue to

01:14 - 06.379 improve pence sylvania and erste in particular are city's

01:14 - 09.532 images but really all of Pennsylvania's images globally

01:14 - 12.132 we're going to make it so more people want to visit here

01:14 - 14.832 more companies want to grow here and located here

01:14 - 16.182 and that is jobs

01:14 - 20.534 right and so like high quality jobs is really like our stock in trade that helps grow

01:14 - 22.272 improve communities and and

01:14 - 23.922 ensures that our kids and.

01:14 - 27.612 Grand kids can stay here and succeed here and then

01:14 - 28.572 too

01:14 - 33.982 I think it's important that we have a program set like a toolkit

01:14 - 38.452 that addresses some of these issues really proactively you're aware of course rep of.

01:14 - 40.434 So sorry our historically disadvantaged business

01:14 - 42.462 program which gets really to your particular point

01:14 - 46.072 which is that for small businesses in particular.

01:14 - 48.072 That are disadvantaged in some way

01:14 - 49.512 we have created

01:14 - 51.347 a set of technical assistance pieces and actually

01:14 - 54.562 just this week we announced our first micro grants.

01:14 - 55.732 All across the state

01:14 - 57.462 to help those businesses

01:14 - 58.822 sort of get a leg up

01:14 - 00.082 I think.

01:15 - 01.252 This.

01:15 - 02.802 Sort of fits together

01:15 - 03.672 with

01:15 - 05.682 our overall theory of the case which is

01:15 - 07.962 we've got to grow our economy

01:15 - 09.822 to succeed and that will help

01:15 - 12.222 small business will help us attract and

01:15 - 14.562 grow large business and ultimately improve

01:15 - 16.812 our communities make this a great place for

01:15 - 19.042 to live live work and play.

01:15 - 20.472 Thank you for your

01:15 - 22.702 your answer I will like to.

01:15 - 26.082 Highlight I know he used to work jobs a lot in this space

01:15 - 31.512 however my platform is really focused on classroom to careers so jobs

01:15 - 32.922 can happen throughout

01:15 - 35.292 different periods of our lives but if we're really

01:15 - 36.582 trying to

01:15 - 37.792 grill.

01:15 - 41.332 People in and attend in a way towards a career

01:15 - 43.392 my I will like to ask

01:15 - 47.392 how are we working together or how are you engaging stakeholders

01:15 - 48.612 to ensure that

01:15 - 51.178 we are listening to what they believe they need

01:15 - 54.132 and how we can match that through the resources

01:15 - 56.622 yeah great great point and like I love the career

01:15 - 57.862 point.

01:15 - 00.708 I had a job like operating a forklift when I was a kid

01:16 - 02.922 that that's not really my career so I take the point

01:16 - 04.702 and I think that.

01:16 - 07.732 There's a bunch of ways we can do this.

01:16 - 10.882 Let me just give like one example.

01:16 - 12.912 I think that the governor's focus

01:16 - 15.172 really since day one of his administration

01:16 - 16.266 on making sure that

01:16 - 18.166 all Pennsylvania have a path to succeed to a

01:16 - 20.172 great career that they want to see as important

01:16 - 22.312 it started with of course.

01:16 - 26.202 Taking away the college degree requirement for the vast majority of state jobs

01:16 - 28.573 but it's also sort of pervaded our overall approach to

01:16 - 31.582 economic development like when we go out and celebrate

01:16 - 33.618 Eli Lilly investing three billion dollars in

01:16 - 36.832 life sciences like that's actually not about.

01:16 - 39.492 Phds out of penn doing experiments by the way.

01:16 - 42.193 I love that work yeah I love the fact that Lily

01:16 - 44.742 put a gateway lab in downtown Philadelphia to grow

01:16 - 46.842 start ups and in the bio tech ecosystem

01:16 - 48.672 but those eight hundred fifty jobs

01:16 - 51.432 are predominantly folks actually with like an

01:16 - 52.612 associate's degrees

01:16 - 55.782 and I think that's the kind of career like one hundred k plus

01:16 - 58.692 in lehigh valley working for one of the largest farmers in the world

01:16 - 01.572 like those are the kind of careers we're focused on on growing here

01:17 - 04.082 but it's also true for small business someone can can one

01:17 - 07.012 own a small business or work in a small business and I think.

01:17 - 09.232 That message aging

01:17 - 10.182 that sort of

01:17 - 13.962 sense that in Pennsylvania you could serve chart your own path and and

01:17 - 15.832 develop a career

01:17 - 19.122 of your choosing again whether you want to be a phd biochemist or

01:17 - 22.338 whether you want to be working you know in one of these former facilities or anything

01:17 - 24.292 in between I think is really important.

01:17 - 25.672 Thank you so much.

01:17 - 27.082 Thanks.

01:17 - 31.432 Representative Nelson.

01:17 - 34.312 Thank mr chair.

01:17 - 35.632 Welcome.

01:17 - 39.085 Shout out to my brother Nelson's here from.

01:17 - 40.002 Nelson's we

01:17 - 41.212 are all in there

01:17 - 42.292 though.

01:17 - 43.902 Welcome it's always

01:17 - 46.632 positive to hear economic development

01:17 - 49.872 employers jobs opportunities for working families

01:17 - 53.122 I'm a west more land county rep you know and

01:17 - 55.602 I want to start in that area of

01:17 - 59.532 what you had referred to as a transformative program the pa sites

01:17 - 00.252 syrup

01:18 - 01.702 and.

01:18 - 03.162 Five hundred million doll dollars

01:18 - 04.812 over the next couple of years

01:18 - 07.870 and you had mentioned that you were pleased that

01:18 - 12.612 dispersion was starting to spread out a little bit more I mean those first two rounds

01:18 - 16.852 over half went to the eastern part of the state.

01:18 - 17.472 So

01:18 - 21.402 What are your plans to continue to balance out those.

01:18 - 22.842 Awards

01:18 - 24.522 to the western and central regions

01:18 - 27.582 yeah great question as I think you know this I'm a Pittsburgh or

01:18 - 28.602 so

01:18 - 30.286 If anything I get like picked on by my

01:18 - 32.382 Philadelphia colleagues for being like a little

01:18 - 33.562 overly.

01:18 - 37.222 Generous in the west but no in all in all kidding aside.

01:18 - 40.872 We're really kind of starting to roll on this program as of

01:18 - 42.694 this morning at eight o'clock we had put out one hundred

01:18 - 44.892 and thirty one million dollars just today we announced

01:18 - 48.642 another significant round of grants thirty one million I think you'll see in that list

01:18 - 51.592 substantial investments in the western part of the state.

01:18 - 55.492 We try really hard to be geographically balanced but we're also.

01:18 - 59.622 Assessing individual projects on their merits based on

01:18 - 01.522 the quality of.

01:19 - 04.252 Jobs we believe they can provide overtime.

01:19 - 06.592 When we are.

01:19 - 07.212 I liked

01:19 - 10.302 that when earlier people were asking about the benz

01:19 - 11.452 yeah I like that

01:19 - 15.732 dcd is saying hey the bins can compete yes like everyone else I think that's healthy

01:19 - 17.452 to have that competition.

01:19 - 19.222 In the west

01:19 - 22.205 you know we were really pleased to see nippon

01:19 - 25.122 purchase us steel yet there are already making

01:19 - 25.962 billion

01:19 - 26.832 investments

01:19 - 28.312 of their searching

01:19 - 30.900 in the united states to build a new electric arc furnace

01:19 - 33.642 which is going to be about a three billion dollar

01:19 - 35.352 investment and

01:19 - 37.121 can you touch on how

01:19 - 38.242 pa sites

01:19 - 39.352 or business p a

01:19 - 41.922 are aggressively pursuing to win

01:19 - 44.742 us steel's next investment here in Pennsylvania

01:19 - 46.942 yeah thank you for the question.

01:19 - 51.382 I want to be sensitive to confidentiality but but let me say.

01:19 - 55.782 I am extremely aware of

01:19 - 58.642 and intend to compete very hard for

01:19 - 00.322 and.

01:20 - 04.432 Nippon and u s deals additional investment

01:20 - 08.362 and I think the most actually effective way we can do that.

01:20 - 09.502 Beyond

01:20 - 11.426 searching for and providing great sights and great

01:20 - 15.202 incentives and other programs like our typical playbook is.

01:20 - 16.983 For the two point four billion dollars they have

01:20 - 19.242 already committed to execute in the mon valley

01:20 - 21.192 making sure that that goes

01:20 - 22.432 perfectly.

01:20 - 24.462 I was thrilled yesterday literally yesterday

01:20 - 26.502 they announced final permitting

01:20 - 30.472 for their one hundred million dollar slag recycler at the iti works in braddock

01:20 - 31.212 and

01:20 - 32.412 we have

01:20 - 35.172 calls which I personally participate in regular calls

01:20 - 38.212 with the permitting agencies with their offs of transformation

01:20 - 39.442 on.

01:20 - 40.842 Their entirety of the

01:20 - 42.168 two point four billion including a new hot strip

01:20 - 44.782 mill which they've said they're going to put at iti.

01:20 - 49.844 We're in lockstep with us steel and they know that we know that they know

01:20 - 52.184 that we're competing really hard.

01:20 - 53.534 For this next

01:20 - 54.194 project

01:20 - 55.064 and

01:20 - 57.920 it's going to be really competitive I want to be clear here like this is not some

01:20 - 59.724 kind of slam dunk from Pennsylvania

01:20 - 01.844 but we are going to we're going to come after it.

01:21 - 04.754 Aggressively it's great to hear to the permanent

01:21 - 05.541 side of it it

01:21 - 07.004 was rough really painful loss

01:21 - 09.494 that last us steel investment two years

01:21 - 10.754 you know no permit

01:21 - 11.564 approval

01:21 - 12.974 so it's it's great

01:21 - 14.444 the refreshing new approach

01:21 - 15.944 I'd like to shift gears

01:21 - 19.964 with my remaining time and talk about existing manufacturers and programs to incent

01:21 - 21.474 you had mentioned.

01:21 - 24.017 Vigor in the manufacturing sector yet you

01:21 - 26.564 know not just machining but defense me meaning

01:21 - 27.924 and.

01:21 - 28.694 The

01:21 - 33.344 ten million dollars that governor shapiro is proposing to bring back

01:21 - 38.654 in the infrastructure and facilities improvements is there a way that

01:21 - 40.574 our existing manufacturers we have

01:21 - 44.084 you know they they want to repurpose buildings but it might be

01:21 - 48.344 five hundred thousand dollar ills metrical upgrade to be able to

01:21 - 49.934 to beef up can

01:21 - 50.504 you

01:21 - 51.744 can we touch on

01:21 - 52.274 how

01:21 - 56.024 a program like this could benefit existing employers yes

01:21 - 57.614 so let me say two things

01:21 - 00.264 with respect to the I f I p program.

01:22 - 03.354 We have proposed ten million dollars.

01:22 - 07.544 Essentially to honor prior commitments made by that program in past years

01:22 - 09.914 that program is not currently active

01:22 - 12.054 or funded to be active.

01:22 - 16.700 But in in it really actually has not been active since I've been secretariat I

01:22 - 20.594 believe it's sort of active stage sunset you know long before I came into this role

01:22 - 24.260 but there are prior commitments in that program that we need to service that's that's

01:22 - 26.044 why we've asked for ten million dollars there

01:22 - 28.124 I will say like setting that completely aside

01:22 - 30.594 like I would love to talk to any manufacturer

01:22 - 31.454 about

01:22 - 33.474 needs they have to expand.

01:22 - 34.844 We have loans

01:22 - 37.694 through peta we have the psh program as you point out

01:22 - 41.060 if they're looking to make a capital investment of at least a million dollars and

01:22 - 43.484 hire at least twenty people over the next three to five years

01:22 - 46.614 that unlocks our pa first Grant programs.

01:22 - 51.014 You read a lot of headlines about Eli Lilly and Johnson Johnson and Amazon

01:22 - 54.734 but actually if you look at like our pipeline of wins last year

01:22 - 59.204 a lot of them are like small and medium sized manufacturers all over the state

01:22 - 01.694 you know taking that next big step building that building

01:23 - 03.024 that is like

01:23 - 04.484 the core of our work

01:23 - 07.934 so I would love to work with you and and really again anyway one here like

01:23 - 11.554 hopeless fill the pipeline by the way our pipeline is very full this is a good thing

01:23 - 14.000 but with the smaller media manufacturers that's how I

01:23 - 16.104 think Pennsylvania wins especially rural Pennsylvania

01:23 - 16.394 yeah

01:23 - 17.894 that's great thank you very much

01:23 - 19.284 for your working with you to

01:23 - 22.074 thank the gentlemen representative causa roski.

01:23 - 24.714 The morning

01:23 - 26.324 and thanks for being here it's

01:23 - 29.664 kicking off our appropriations week but that's on a Wednesday

01:23 - 30.464 and

01:23 - 33.305 I have a question about the the rural health transfer

01:23 - 34.724 transformation fund

01:23 - 36.354 against a little complicated

01:23 - 39.354 of how we're going to distribute these funds so.

01:23 - 40.974 The federal government

01:23 - 42.674 under the big beautiful bell

01:23 - 43.914 they have

01:23 - 46.104 made available fifty billion.

01:23 - 48.314 Over the next five years to support rural

01:23 - 49.934 hospitals across the country

01:23 - 51.794 and then under governorship hero's

01:23 - 55.364 plan he proposed one hundred and ninety three million

01:23 - 57.344 in federal funds be used

01:23 - 00.234 under the department of health and human services.

01:24 - 03.174 So dhs will distribute this funding.

01:24 - 05.613 Based on I had to do my research on this

01:24 - 07.634 because it does get a little complicated so it's

01:24 - 08.144 it's

01:24 - 11.204 this funding goes through what are called preps

01:24 - 12.354 a partnership for

01:24 - 14.844 regional economic performance

01:24 - 18.434 and these preps will work with their regional framework to develop

01:24 - 19.994 rural care

01:24 - 21.204 collaboratives

01:24 - 22.434 and they will

01:24 - 23.594 be the pie people that

01:24 - 26.114 you know plan the objectives to make sure we are

01:24 - 27.354 accessing

01:24 - 29.154 care workforce.

01:24 - 31.644 Care initiatives and technology.

01:24 - 34.694 So here's my question which pertains to

01:24 - 35.234 to

01:24 - 35.744 To

01:24 - 37.404 To you and dcd

01:24 - 40.424 I want to know what your role is in helping develop these

01:24 - 41.544 these and

01:24 - 44.744 these rural care costs elaborative and

01:24 - 46.994 how are the preps going to be involved with

01:24 - 47.834 and

01:24 - 50.534 you know what types of entities are included in this and

01:24 - 52.514 how do they currently address the

01:24 - 56.384 the businesses needed to communicate to these communities and how did they support

01:24 - 57.954 so it's.

01:24 - 59.214 It's a lot of money

01:24 - 01.990 we have a huge crisis in the commonwealth across

01:25 - 04.484 the whole country three really with rural health

01:25 - 06.464 and this is really important

01:25 - 08.984 and some people are in rural communities

01:25 - 09.764 right

01:25 - 13.034 but some of our hospitals take care of like I am a nurse.

01:25 - 15.414 I am from Scranton Pennsylvania

01:25 - 19.754 but I am not considered rural but my hospitals take care of people from

01:25 - 21.734 Wyoming says quanah hike

01:25 - 26.204 and which are considered rural so it just kind of talked me through how this whole

01:25 - 27.474 process will work

01:25 - 29.314 yeah thank you rep for the question I want to

01:25 - 31.044 preface this by saying.

01:25 - 31.604 I'm

01:25 - 33.464 some of this I actually don't know

01:25 - 35.034 like the core

01:25 - 37.231 work here is done by secretary orchestra dhs you should

01:25 - 39.734 of course ask her about it and I'm happy to like set up

01:25 - 40.974 a meeting.

01:25 - 43.334 I would say a couple of things about our real number one

01:25 - 45.494 I do serve on an actually my

01:25 - 48.132 top community deputy Rick fellow former mayor

01:25 - 50.234 who runs like our local governments group

01:25 - 53.744 serves unlike the governance committee of the of this effort

01:25 - 55.707 and actually in formerly informally during the

01:25 - 59.094 development of the plan I worked with secretary or kush.

01:25 - 59.384 I'm

01:25 - 03.620 actually alongside innovators from inside and outside Pennsylvania to think about

01:26 - 05.128 ways we could deploy these funds in a way

01:26 - 06.872 that would be sort of most beneficial source

01:26 - 08.774 happy to be like a sort of

01:26 - 10.874 let's say adviser as the team

01:26 - 13.254 the really the core team at dhs.

01:26 - 14.454 Developed this plan

01:26 - 17.834 with respect to the prep regions my understanding is and I want to

01:26 - 19.520 make sure we're one hundred percent on this

01:26 - 20.544 we could follow up

01:26 - 21.044 that

01:26 - 25.940 while the plant used the prep regions which are regions we administer essentially to

01:26 - 29.244 divide the state geographically because it's a pretty

01:26 - 32.174 sort of like common way to think about regions of the state

01:26 - 36.584 that the prep partners themselves attraction like organizations like for example a

01:26 - 40.274 local development district in northeast Pennsylvania

01:26 - 43.094 are not actually like recent receiving and deploying the funds

01:26 - 43.874 and.

01:26 - 45.494 I do think that

01:26 - 46.914 health is

01:26 - 50.204 health care access to health care like this real hospital issue is like

01:26 - 51.704 massively important

01:26 - 52.514 to

01:26 - 56.714 Rural Pennsylvania to attracting companies to attracting and retaining residents and

01:26 - 59.444 like I intend to be a really active partner

01:26 - 02.384 as a represent these business interests and community interests

01:27 - 03.774 alongside this

01:27 - 04.854 this effort.

01:27 - 05.594 Thank you

01:27 - 09.170 and I'm glad you will be working with secretary are kosha and I think you should just

01:27 - 10.994 put all nurses on this board and then

01:27 - 12.644 get the health no objection for me

01:27 - 14.294 saying that would be probably the

01:27 - 14.834 best

01:27 - 17.814 choice thank you very much thank you yeah.

01:27 - 23.064 Thank the gentle lady representative Marcel.

01:27 - 27.354 Thank you mr chairman and thank you so much for joining us this morning.

01:27 - 29.564 It's good to hear about the full pipeline

01:27 - 30.794 that you had mentioned

01:27 - 33.524 and in terms of bringing businesses to our state

01:27 - 37.104 obviously that helps us from a budget perspective and revenue.

01:27 - 38.424 So I

01:27 - 40.244 it was actually following up on what rep

01:27 - 42.974 representative Nelson mentioned in terms of

01:27 - 45.224 that business pa appropriation

01:27 - 49.034 and that is for eight point nine million in the current fiscal year

01:27 - 54.344 the stated goal at the business pa team is to strategically promote business success

01:27 - 56.604 expansion and attraction.

01:27 - 59.544 I served on the team pa.

01:27 - 02.774 Foundation which seems to have a very similar mission

01:28 - 05.444 and I just took a couple of excerpts from their mission

01:28 - 06.944 that are sound similar

01:28 - 11.844 it is to accelerate economic opportunities to position pa as a leader.

01:28 - 16.364 A catalyst and enabler for business investment attraction retention and growth

01:28 - 18.254 so my question to you is

01:28 - 20.264 why why or why do we have

01:28 - 24.194 two things that sound very similar and can be a little bit confusing why are we

01:28 - 27.504 duplicating efforts here yeah thanks for the question.

01:28 - 31.584 When I took on this job three years ago.

01:28 - 34.134 Our organization

01:28 - 35.714 was not optimized for

01:28 - 38.414 competing economically in today's market

01:28 - 39.374 we had

01:28 - 41.964 a project management team we called the governor's action team

01:28 - 43.994 that like helped companies work through deals

01:28 - 46.734 we had an ops of international business development that

01:28 - 49.734 did a version of that plus trade only internationally

01:28 - 51.464 we had a marketing group that was

01:28 - 53.844 intertwined with film and tourism

01:28 - 55.784 we had no offense

01:28 - 58.094 in terms of business development or like company

01:28 - 00.836 outreach business retention expansion activities

01:29 - 03.564 and we'd very little research capability.

01:29 - 06.014 We build a strategy we looked at

01:29 - 09.830 states really all over the country who do this well I used to work in one of them bio

01:29 - 11.614 in Virginia who's really one of the best this

01:29 - 16.214 and we have now implemented a new model for business attraction retention

01:29 - 17.514 from kind of end to end

01:29 - 19.234 for business marketing all the way through

01:29 - 20.924 post award growth of companies

01:29 - 22.604 which we call business pa.

01:29 - 25.494 It's essentially an internal reorganization

01:29 - 28.844 of existing dcd functions in the creation of some new functions

01:29 - 33.324 to actually do the work of economic development with companies.

01:29 - 36.744 What team pa does is important but different.

01:29 - 39.099 Team pa is not the government of course it's a

01:29 - 41.234 nonprofit organization I serve on the board of it.

01:29 - 45.044 In tempe a I would say if you ask them looks after you're

01:29 - 49.044 a sort of long-term economic vitality of Pennsylvania

01:29 - 52.664 so they form for example collaboratives in manufacturing your energy to get

01:29 - 54.767 feedback from the private sector about the direction

01:29 - 56.791 Pennsylvania should be going or something like this

01:29 - 58.274 that's very different from

01:29 - 00.104 get a phone call from Eli Lilly

01:30 - 02.834 spend nineteen months like getting a deal done

01:30 - 06.650 assembling land incentives kind of permits and things like that that's what business

01:30 - 09.107 period so is that why team pa doesn't have a line

01:30 - 12.864 item anymore is that you decided to put all of this.

01:30 - 16.334 Activity and consolidation into another area

01:30 - 17.854 I am a familiar.

01:30 - 18.164 Team

01:30 - 20.457 has not had a line item since I've been secretary

01:30 - 22.454 I don't I don't know what the past looked like.

01:30 - 24.884 Tps does seek and

01:30 - 27.276 does receive grants from the department for like

01:30 - 29.414 discrete work for example studies they might do

01:30 - 30.854 but that is

01:30 - 32.004 business pa is like

01:30 - 34.544 that's a government agency that's just what we call

01:30 - 38.514 our economic dilemma the development delivery model within dcd

01:30 - 40.664 same like our office of tourism or

01:30 - 41.624 you know our

01:30 - 43.034 office of tax credits

01:30 - 46.604 we call business pa because frankly we're working in business and I think

01:30 - 47.964 titles like

01:30 - 48.614 office of

01:30 - 52.214 project management distribute some bureaucratic title is not as effective as

01:30 - 53.814 a managing director

01:30 - 55.208 with a sleek business

01:30 - 56.728 card going to talk to a company

01:30 - 58.288 but those are all stayed in place

01:30 - 59.438 that is like our core

01:30 - 00.798 economic development activity

01:31 - 04.834 thank you so if there is a business in Pennsylvania that is trying to get more

01:31 - 07.948 information or as a business in another state coming to Pennsylvania

01:31 - 10.778 who are they supposed to talk business pa.

01:31 - 11.998 All day long

01:31 - 13.833 and pa gets it done dot com or you give him

01:31 - 16.898 myself whenever I talked to any business anytime

01:31 - 17.548 and

01:31 - 19.838 get them that yeah please do.

01:31 - 20.548 So

01:31 - 23.128 So based on how you described it

01:31 - 27.070 how is this initiative working so far since it's a consolidation

01:31 - 31.868 or do you have any results or success stories you can share I do.

01:31 - 34.878 Here's a couple of metrics that I think are really interesting.

01:31 - 36.478 From twenty twenty four

01:31 - 39.758 we we start a business pa like in late and.

01:31 - 40.828 Twenty four

01:31 - 44.198 we basically launched this new reorg November of twenty four.

01:31 - 46.138 In twenty twenty five

01:31 - 48.268 we close twice the projects

01:31 - 50.709 so one hundred per cent increase for three

01:31 - 53.608 times the new jobs and twenty times the capital

01:31 - 55.098 that we did in twenty twenty four

01:31 - 55.888 and

01:31 - 58.998 here's some new data that I just learned from bureau of labor statistics

01:31 - 01.368 that's when you added more jobs and twenty twenty five

01:32 - 04.558 than any state but north Carolina and Texas in the hole

01:32 - 05.768 entry.

01:32 - 10.378 There are many factors that influence the economy of a state like Pennsylvania but

01:32 - 14.368 every state is working in the national context in which we're working right now with

01:32 - 16.168 uncertainty around tariffs and other things

01:32 - 20.374 Pennsylvania is succeeding our pipeline is showing it wins like Lilly and jnj and

01:32 - 23.308 Amazon more to come I think our proof points of this

01:32 - 26.524 we are not where we want to be by any stretch I'm not here to serve dick clear

01:32 - 28.588 victory but I would say that it feels like.

01:32 - 31.558 Pennsylvania is on the rise and I think the data in the

01:32 - 34.054 reaction we're getting from companies is really showing that

01:32 - 35.118 by the way thanks for your

01:32 - 37.968 terrific support bipartisan support to help us get that done

01:32 - 38.548 thank you

01:32 - 42.538 thank the gentle lady representative con vegan Sharon Harris

01:32 - 44.888 secretaries hire a great cd again.

01:32 - 50.374 The first question is about the minimum wage we've been watching states around us

01:32 - 51.818 continue to raise their minimum wage I think new

01:32 - 54.758 Jersey and new York just raise their wage again.

01:32 - 57.488 Pennsylvania were stuck at seven dollars and twenty five cents

01:32 - 58.168 this

01:32 - 59.578 Democratic majority

01:32 - 02.338 in this chamber have sent several bills over to the senate

01:33 - 03.838 representative green

01:33 - 06.418 has introduced another bill and pro adecco prime that with

01:33 - 07.658 representative kenyatta

01:33 - 08.958 that would raise Pennsylvania

01:33 - 10.318 Pennsylvania minimum wage

01:33 - 12.088 to fifteen dollars an hour

01:33 - 16.768 immediately and then tie to cost of living increases can you tell me

01:33 - 17.368 and

01:33 - 18.788 the members.

01:33 - 23.548 Why is this in the governor's budget why is it so important that we raise a race

01:33 - 26.858 that we wait raise the wage here in Pennsylvania

01:33 - 29.368 and how will that help us to

01:33 - 32.098 attract and retain talent here in our commonwealth

01:33 - 33.488 yeah.

01:33 - 35.861 Thank you for the question obviously the

01:33 - 38.098 governor has proposed this in each of his budgets

01:33 - 41.974 and has continued to propose it this year and I think it's really a fundamental

01:33 - 44.168 question of fairness in a question.

01:33 - 45.668 Of economics.

01:33 - 48.518 First.

01:33 - 52.714 Like you said there's a competitiveness question around workforce every state around

01:33 - 54.358 us including west Virginia actually

01:33 - 56.986 has increased their wage recently we're sort

01:33 - 59.038 of like an island of seven twenty five here

01:33 - 00.945 and I think that has real competitiveness questions for

01:34 - 03.148 us particularly for folks who live like near a border

01:34 - 05.528 in in lower wage jobs.

01:34 - 06.638 Too.

01:34 - 08.288 I think it's a fundamental question of

01:34 - 09.088 fairness

01:34 - 10.048 there are

01:34 - 12.548 actually asked the team to look at this.

01:34 - 15.568 Five hundred and fifty three thousand eight hundred workers

01:34 - 18.488 that earn like between seven twenty five

01:34 - 20.318 and fifteen an hour.

01:34 - 21.958 That's a poverty wage

01:34 - 24.664 in less folks think that this is like a kid scooping

01:34 - 27.958 ice cream in the summer kind of job like many of these

01:34 - 30.868 are folks with families people with kids this is their job

01:34 - 33.088 and we think that raising that wage

01:34 - 35.426 to fifteen bucks an hour which by the way is like thirty

01:34 - 38.068 one thousand a year this is not some like enormous salary

01:34 - 38.908 and

01:34 - 41.158 can help lift those folks out of poverty he

01:34 - 44.468 can actually save dollars in our medicaid system

01:34 - 46.768 and can help those folks live more productive

01:34 - 50.538 and healthy lives here in Pennsylvania so I think there's an economic argument for sure

01:34 - 52.588 there's also just like a do the right thing

01:34 - 53.518 part of this

01:34 - 55.618 which I think is important we've got to help

01:34 - 59.374 the government should be a force for good in people's lives lifting folks out of

01:34 - 01.048 poverty I think the minimum wage is a very

01:35 - 02.168 specific

01:35 - 03.118 and proven

01:35 - 06.008 to your point many states have done this way to do that.

01:35 - 07.778 Thank you.

01:35 - 12.298 The other week you joined the governor in east falls so thanks for joining us

01:35 - 14.008 to talk about the housing action plan

01:35 - 15.838 and in that

01:35 - 18.898 governor talked about a lot of ways that we're

01:35 - 20.357 going to increase building here in the

01:35 - 23.318 commonwealth and also getting rid of old regulation

01:35 - 25.268 that really holds us back.

01:35 - 25.648 He

01:35 - 27.038 Talked about

01:35 - 30.578 making it easier to get more units online

01:35 - 34.708 helping people to be able to share housing to allow them to

01:35 - 35.368 to build

01:35 - 38.668 affordable housing can you talk about why

01:35 - 39.838 this is important

01:35 - 41.198 for us to

01:35 - 42.818 be able to.

01:35 - 44.517 Make things more affordable for people to be

01:35 - 46.588 able to buy a house or to be able to afford rent

01:35 - 49.408 and to help us be more compare native here in Pennsylvania

01:35 - 50.618 yeah.

01:35 - 52.138 In

01:35 - 55.324 My first year in this job in two thousand and twenty three we spent a huge amount of

01:35 - 58.948 time listening to businesses local governments communities legislative partners

01:35 - 00.388 all across Pennsylvania

01:36 - 01.048 it's like

01:36 - 03.395 what is important to you in our economy and yes we

01:36 - 07.388 talked about sites and we talked about corporate tax and.

01:36 - 09.208 You know lots of complex topics

01:36 - 11.068 but in every single meeting

01:36 - 12.908 people talked about housing

01:36 - 13.798 and

01:36 - 16.774 so inner economic common strategy actually for those who haven't read the whole thing

01:36 - 18.758 cover to cover I can't imagine there's anyone here

01:36 - 20.018 and.

01:36 - 21.568 We actually have like a strategy like

01:36 - 22.498 deal with housing

01:36 - 26.014 but it was not terribly specific because we didn't know exactly what we wanted to do

01:36 - 27.358 we knew that we had to address it

01:36 - 30.068 because the reality is it's a

01:36 - 33.598 important human service issue we've got to make sure folks for

01:36 - 36.628 health reasons and moral reasons have a roof over their head

01:36 - 41.008 it's a really really important economic issue for affordability for individuals

01:36 - 41.908 also

01:36 - 44.198 to make sure that our economy can continue to grow

01:36 - 47.018 and so what we saw when we put this plan together as you know sir

01:36 - 47.698 is

01:36 - 50.518 We've got to build more we've got to make it easier for people to.

01:36 - 52.798 Teen housing once we have it

01:36 - 56.668 we've got to take care of our most vulnerable and frankly we've got to do our best

01:36 - 00.298 to simplify regulations to take cost out of housing

01:37 - 04.018 so that we can get more housing built here that's partially a state function

01:37 - 08.104 I think we've shown real progress in other permanent domains around industrial

01:37 - 09.488 projects and things where we have a

01:37 - 11.128 track record to build on there

01:37 - 13.858 and it's going to require really strong partnerships

01:37 - 17.548 with local governments of which we have twenty five hundred and fifty five

01:37 - 19.028 in this commonwealth

01:37 - 20.248 so it's a big lift

01:37 - 22.738 couldn't be more excited to get moving on it

01:37 - 26.048 and looking forward to to the next steps.

01:37 - 28.628 Like you said secretary thanking chairman things.

01:37 - 33.658 Thank the gentleman representative bro

01:37 - 35.048 thank you chairman

01:37 - 38.188 and thank you secretary for being with us it's been very

01:37 - 39.668 informative

01:37 - 40.378 and

01:37 - 44.828 I'd like to continue down the line of questioning of housing

01:37 - 48.778 I did glance through the housing action plan thank you

01:37 - 54.248 and in my county which is Lawrence county is one of three on the west.

01:37 - 57.628 Western side of the state where you have a large percent

01:37 - 00.188 of renters that are burdened

01:38 - 01.358 and.

01:38 - 04.928 I also notice that in in the booklet.

01:38 - 10.208 Pennsylvania is one of two states where the cost of new construction

01:38 - 12.608 is going to be double of existing.

01:38 - 15.328 Existing housing and I know this because

01:38 - 19.318 my daughter is in the process of building a house in our county

01:38 - 20.768 so.

01:38 - 25.220 The governor's b budget book proposes a critical infrastructure

01:38 - 28.871 investment program as a new capital project category

01:38 - 30.208 to build more housing

01:38 - 33.078 and to support new energy generation with the goal

01:38 - 36.698 of increasing supply and reducing costs across

01:38 - 38.138 both sectors.

01:38 - 43.174 From the materials it shows that two hundred and fifty million and bonds would be

01:38 - 46.558 issued annually and deposited into the capital

01:38 - 49.288 facilities fund starting in

01:38 - 52.718 fiscal year two thousand and twenty eight to twenty nine.

01:38 - 56.818 Does this new program tie into the housing action plan

01:38 - 59.319 and will d c e d administer these housing

01:38 - 02.888 expenditures yeah thanks so much for the question

01:39 - 06.188 and my emphatic answer to the first question is yes.

01:39 - 07.688 When the governor

01:39 - 09.058 put forward this plan

01:39 - 10.538 is a ten year plan

01:39 - 12.988 you know there's like twenty eight initiatives in it

01:39 - 15.838 it would be foolish of us to do them all at the same time

01:39 - 18.488 but we have selected.

01:39 - 22.348 I believe very strategically set of things to focus on initially

01:39 - 24.238 one such thing is

01:39 - 25.518 and you'll see it in the plan

01:39 - 30.058 you know the development of at scale resources to help build more housing and

01:39 - 33.358 and maintain more housing through home repairs and things like that

01:39 - 35.728 this critical infrastructure fund is that

01:39 - 37.358 and.

01:39 - 39.478 It's a big swing admittedly

01:39 - 43.264 but I think anyone who looks at this plan even the executive summary will realize

01:39 - 47.498 that the scale of the problem and the scope of the problem is really significant

01:39 - 50.399 and it's a problem in all sixty seven counties many may feel different

01:39 - 53.438 in in west Philly than it feels in Lawrence kind of like.

01:39 - 55.917 The core issues we need more housing we need to repair

01:39 - 58.168 housing we need to make sure people can access housing

01:39 - 59.158 are the same

01:39 - 02.468 this program as construed will be.

01:40 - 04.338 Administered through the office of the budget

01:40 - 05.188 and I think

01:40 - 06.748 fair to say that

01:40 - 08.998 because of our housing leadership and expertise

01:40 - 11.938 we would have a strong hand in in advising the officer the budget

01:40 - 13.528 in the administration of this fun

01:40 - 13.888 do you

01:40 - 17.228 how much of the funding will be allocated to housing.

01:40 - 21.664 I don't believe that the specific numbers have been determined but when we've talked

01:40 - 22.731 about it internally when I've heard the

01:40 - 24.635 governor talk about it recently publicly he said

01:40 - 27.388 you know that the majority of the lion's share of the funding

01:40 - 29.768 I think it's important that.

01:40 - 31.238 We have

01:40 - 34.978 optionality to fund other critical infrastructure schools energy

01:40 - 36.518 but this is a

01:40 - 38.858 first and foremost a housing fund.

01:40 - 39.538 Okay good

01:40 - 40.658 good to know

01:40 - 44.123 and just out of curiosity do you feel that funding

01:40 - 46.828 for a new housing project is something that.

01:40 - 48.308 I.

01:40 - 51.368 The government should be monitoring

01:40 - 56.678 and should or should it be left in the private sector.

01:40 - 59.306 In perfect world.

01:41 - 02.656 This kind of subsidy may not be required for housing

01:41 - 05.686 but but let me give you some data that suggests that

01:41 - 07.616 I think we need this funding.

01:41 - 10.106 First like second demand signal.

01:41 - 12.488 Our department with ten million dollars of the peer

01:41 - 14.358 sites funding that you approved thank you again

01:41 - 15.406 and

01:41 - 17.176 ran a ten million dollar pilot

01:41 - 19.532 for housing infrastructure not to build housing

01:41 - 21.616 itself but rather to prepare sites for housing.

01:41 - 25.492 Everybody in the commonwealth knew he had ten million dollars of headroom available

01:41 - 27.102 we get four hundred and seventy five million for

01:41 - 29.576 and seventy one million dollars of applications.

01:41 - 30.016 Okay

01:41 - 32.246 so so I think there's really significant demand

01:41 - 35.636 went to I think goes back to the point you're making earlier.

01:41 - 37.546 In certain parts of the commonwealth

01:41 - 39.976 the cost to build a new unit of housing

01:41 - 42.316 exceeds the value of the house once it's built

01:41 - 45.856 so like there's a market failure in many parts that come with were like

01:41 - 48.360 it just results in no housing getting built like

01:41 - 50.326 if you can't sell a house for as much as you

01:41 - 52.536 paid to build it no one's going to build a house

01:41 - 54.706 and that's the scenario that we find ourselves in

01:41 - 58.762 so when there's a market failure of that level significance when it's holding back

01:41 - 00.388 growth and quality of life for Pennsylvania

01:42 - 01.412 I do think

01:42 - 02.756 it's like.

01:42 - 04.525 Among the areas where a government subsidies

01:42 - 06.676 appropriate and that's why we've proposed this

01:42 - 08.366 this subsidy today.

01:42 - 11.516 Thank you so much thank you.

01:42 - 14.726 Thank the generally the representative for you.

01:42 - 16.606 Thank you chairman and

01:42 - 18.046 thank you secretary sanger.

01:42 - 20.910 I want to go back to some of our life sciences

01:42 - 23.596 and technology I think I think you've brought on

01:42 - 28.036 with with the Lilly and Johnson and Johnson investments it's in it's you know a

01:42 - 30.286 credible x success that we've had

01:42 - 32.146 attracting some of these big companies

01:42 - 33.826 but we also have a big

01:42 - 36.617 ecosystem of so small and start-up businesses

01:42 - 39.236 that are spinning out of our universities

01:42 - 42.436 and some of them we've we've had a hard time retaining them here.

01:42 - 45.326 For example just recently.

01:42 - 50.896 I was up with our competitive caucus in lehigh valley and talking to manufacturers of

01:42 - 52.846 a chip manufacturers are struggling

01:42 - 55.826 for that capital investment as they're growing.

01:42 - 59.536 We we've been talking to some therapeutics companies caption and

01:42 - 02.986 therapeutics has been outta university of Pennsylvania just

01:43 - 04.936 just chose to go to San Diego

01:43 - 07.436 even though they're university of Pennsylvania therapeutics

01:43 - 07.936 yup

01:43 - 10.711 what can you tell us about some of the efforts

01:43 - 13.706 on that kind of that small and midsize.

01:43 - 19.316 Businesses tick to keep them here in Pennsylvania and I'll give you one example.

01:43 - 20.636 Selfishly

01:43 - 22.506 and you know what's coming

01:43 - 26.656 so we had a tradable NFL bill that passed the house here one ninety eight to one

01:43 - 27.046 so

01:43 - 28.636 Broad bipartisan support

01:43 - 30.496 that is really targeted at these

01:43 - 32.896 technology life sciences businesses that are

01:43 - 33.826 in that

01:43 - 35.476 need for capital yeah

01:43 - 37.046 what else.

01:43 - 41.066 You could talk a little bit about that but also what are we doing for those.

01:43 - 44.296 Those small businesses because that's an ecosystem that

01:43 - 47.126 we just need to keep here in Pennsylvania

01:43 - 50.902 look one thousand percent agree and by the way these things are related it's not like

01:43 - 53.356 Lily decides to make a three billion dollar investment

01:43 - 54.946 independent of

01:43 - 56.686 the quality of our

01:43 - 59.476 innovation ecosystem in Philadelphia in fact it's because of it

01:44 - 04.222 and again it gets a little less of tension but Lily also made a really substantial

01:44 - 06.406 investment into downtown Philadelphia to build

01:44 - 08.636 one of the very few sites of their gateway laps

01:44 - 10.876 which is they're kind of like innovation lab

01:44 - 14.032 where they work with small and medium sized companies to help commercialize new

01:44 - 16.376 texture these things are really closely related.

01:44 - 20.926 This is really the spirit of why we're proposing innovate in pa to point out

01:44 - 25.036 and in specifically why a chunk of it is focused in the life science industry

01:44 - 26.872 again not just because we have momentum there

01:44 - 28.606 but because it's where we have excellence

01:44 - 31.762 and because I think it's really relevant actually all across the state but just to

01:44 - 34.106 stick with southeast Pennsylvania for a minute.

01:44 - 36.226 Why did a company like that

01:44 - 37.456 very witch is a

01:44 - 38.576 tough

01:44 - 40.006 outcome for Pennsylvania

01:44 - 42.626 decided to build in San Diego.

01:44 - 45.376 I think what we've tried to do in developing this

01:44 - 46.276 proposal

01:44 - 48.826 talking to industry talking to others is like understand

01:44 - 52.346 why companies make decisions like that here's a couple of examples.

01:44 - 54.256 Of what we want to solve for with innovate

01:44 - 55.036 in pa

01:44 - 56.156 number one

01:44 - 57.296 talent.

01:44 - 58.606 We know that was

01:44 - 00.556 going to stick with Philadelphia as an example

01:45 - 02.836 between the university of Philly penn chop

01:45 - 03.856 dry Axel

01:45 - 05.036 temple like

01:45 - 08.546 exceptionally strong talent and research ecosystem

01:45 - 13.066 but companies also need business leaders they need CEOs and cf foes and

01:45 - 15.372 folks that can take this technology out of the

01:45 - 17.566 lab moving into the market and commercialize it

01:45 - 18.556 this is a

01:45 - 20.476 pain point that we've heard from

01:45 - 22.846 many companies in Philadelphia and so one

01:45 - 23.996 proposed.

01:45 - 26.386 Expenditure here is to help boost that talent

01:45 - 27.106 pipeline

01:45 - 28.186 too

01:45 - 32.476 we know that from talking to farmer leaders and startup startup leaders that

01:45 - 36.106 the second you're in trials in a drug or device

01:45 - 38.726 you were just hemorrhaging caches of startup.

01:45 - 41.536 You are waiting for a trial to be finished so you can

01:45 - 43.486 move onto the next phase or

01:45 - 45.886 ideally commercialize a product or drug

01:45 - 46.606 and

01:45 - 48.796 that's a very costly process

01:45 - 53.416 and so even shaving days or weeks off that process can add huge value

01:45 - 54.196 to a company

01:45 - 58.396 we've been working with big pharma's also with startup leaders and others

01:45 - 00.551 on an idea of a clinical trial network that we

01:46 - 02.656 proposed to fund through innovative pa two point oh

01:46 - 06.016 to make Pennsylvania Mya like the fastest state in the country

01:46 - 09.356 without of course sacrificing any patient safety or quality.

01:46 - 11.116 For clinical trials

01:46 - 14.086 these we think are innovative ways

01:46 - 16.636 to make Pennsylvania more competitive to make it

01:46 - 19.036 a destination of choice for life science companies

01:46 - 21.707 which if we're being honest it already is to

01:46 - 23.956 some extent because of the outstanding innovation

01:46 - 26.266 system we have it's like taking that next step

01:46 - 28.726 to make sure even more folks can stay here and I think

01:46 - 29.356 you're

01:46 - 33.616 welcome feedback on these pieces but but we've grounded this innovative pa

01:46 - 35.206 approach especially in life science

01:46 - 36.826 really with the industry

01:46 - 39.956 to try to understand what can achieve some of these outcomes.

01:46 - 41.056 Very much

01:46 - 42.853 appreciated time.

01:46 - 44.746 Thanks gentlemen representative cuts

01:46 - 48.766 thank you chairman good morning sector thank you so much for being here today

01:46 - 50.636 and understanding we're short on time and

01:46 - 52.486 have a lot of members to get through I want to

01:46 - 54.436 be brief and your focus in on

01:46 - 56.896 one specific area on housing

01:46 - 59.956 and I'm curious as part of the governor's

01:47 - 01.656 conversation with the administration

01:47 - 04.066 and the administration's conversations about housing

01:47 - 05.956 about this critical infrastructure that

01:47 - 07.576 represent brown just asked about

01:47 - 12.616 and has the administration considered coupling some of those measures

01:47 - 17.176 with other costs with other measures that would be cost savings for

01:47 - 19.676 residents so for example.

01:47 - 21.912 There's a number of piece of legislation that

01:47 - 24.826 passed the house with large bite partisan margins or

01:47 - 27.086 have passed committee unanimously

01:47 - 30.226 I'm talking about first time home buyer savings accounts

01:47 - 31.816 real estate transfer tax

01:47 - 34.388 cuts across the board or exemptions first

01:47 - 37.216 time home buyer active duty military one time

01:47 - 39.086 transfer to an llc.

01:47 - 41.416 Or another bill which will be something

01:47 - 43.996 which is a poi tax deduction as well

01:47 - 46.976 the thought being with some of these measures that.

01:47 - 50.686 They reduce costs for people to

01:47 - 51.916 get into housing

01:47 - 54.076 which ultimately is going to

01:47 - 56.738 allow the market to breathe a little bit allow more

01:47 - 59.086 people to to come to market with interest rates

01:47 - 01.576 still kind of being that that pressure point there

01:48 - 04.276 and the more dollars you are able to free up by

01:48 - 07.946 reducing the percentage of income people are spending on housing

01:48 - 10.906 is more that we can invest into the economy and ultimately

01:48 - 13.876 fund some economic growth for the commonwealth so

01:48 - 16.589 I'm just curious where you see any of those

01:48 - 19.396 measures fitting into the governor's overall

01:48 - 24.766 housing policy and where we as legislators can continue to work to ensure that

01:48 - 27.416 some of those measures become law.

01:48 - 30.356 Yet thank you very much for the question I'm actually.

01:48 - 32.146 Furiously reading through

01:48 - 35.686 that section of the plan which I'm not going to get that done in time for answer.

01:48 - 36.586 I mean

01:48 - 38.584 without being specific about those individual pieces

01:48 - 41.486 of legislation I want to follow up with you on that.

01:48 - 43.396 The answer is like broadly yes

01:48 - 44.546 I think there are like

01:48 - 46.916 twenty eight really specific.

01:48 - 49.456 Things that we put forward in the plan

01:48 - 54.466 and the governor in his budget speech of course focused on a subset of those and

01:48 - 56.500 he focused on the critical infrastructure funding

01:48 - 00.196 focused on I think eight other policy elements but

01:49 - 03.086 these are all policy area is that.

01:49 - 05.026 We heard about looked at.

01:49 - 07.966 A number of them are I think in our plan

01:49 - 10.432 and think we'd love to have a conversation with you about

01:49 - 13.256 again I have not reviewed the specific pieces of legislation

01:49 - 14.914 but about coming at this from all angles I

01:49 - 16.738 think like if there's one takeaway I have from

01:49 - 18.566 from spending a year

01:49 - 20.666 getting kind of a crash course in housing learning

01:49 - 23.186 about this talking to folks all Pennsylvania

01:49 - 25.226 it's like there's no like silver bullet here

01:49 - 27.166 we've really got to come at this from

01:49 - 28.966 a lot of different angles

01:49 - 30.206 and I think

01:49 - 32.667 many of the examples you used are an example that

01:49 - 34.996 ain't like it's not just subsidy but we need subsidy

01:49 - 37.415 it's not just regulatory but we need regulatory

01:49 - 40.466 it's also some of these other pieces and I think.

01:49 - 42.196 I'm very optimistic actually

01:49 - 45.826 I hope you would be too I don't want to put words about that this could be an area of

01:49 - 48.139 pretty broad bipartisan collaboration actually to

01:49 - 50.536 move some of these pieces forward just given the

01:49 - 53.746 importance of the issue to to all parts of Pennsylvania

01:49 - 56.086 I agree with your secretary and we have

01:49 - 56.506 a

01:49 - 59.244 Large group of bipartisan legislators who are invested

01:49 - 01.726 in this specific issue you've heard from both sides yet

01:50 - 04.126 but also recently a number of

01:50 - 05.656 pieces that have been introduced

01:50 - 07.996 so I think there's a lot of momentum growing there

01:50 - 10.486 and I would look forward to continuing that conversation

01:50 - 12.406 I think it's a it's a huge issue and

01:50 - 13.096 and

01:50 - 15.445 housing's one of those things that unlocks as you

01:50 - 18.286 just mentioned businesses don't invest in Pennsylvania

01:50 - 21.256 without having housing for their workforces so.

01:50 - 25.265 I'm encouraged by the conversation and look forward to evolve thanks should be

01:50 - 28.186 us in as a partner in that effort for sure would love to develop

01:50 - 30.106 a great actor so much sector thank chairman

01:50 - 33.086 thank the gentleman representative Madison.

01:50 - 37.066 To your team thanks for coming

01:50 - 40.136 first I wanted to start off with a shout out.

01:50 - 42.316 Your team has been very involved with the

01:50 - 44.415 various issues but that either it's surrounding

01:50 - 46.916 my district or in my district specifically

01:50 - 50.006 like to shut out all your help with downtown Harrisburg

01:50 - 53.812 and helping with the plan there are still ways to go but I do appreciate the efforts

01:50 - 55.276 year and your team have made thus far

01:50 - 56.626 and I

01:50 - 00.076 want to follow up on the Cleveland cliffs piece the the mill and stilton

01:51 - 02.506 but it was excited to see durabolin will actually be

01:51 - 05.626 expanding a second shift so a year ago we were in a

01:51 - 09.446 dire situation but now we may be in a good position

01:51 - 11.086 to see some growth there to

01:51 - 11.986 do

01:51 - 14.176 But my question actually that I have

01:51 - 16.128 well actually do you have any fobs to

01:51 - 16.638 I guess

01:51 - 18.249 the I would just say like I hope you're not

01:51 - 20.908 getting tired of me that those are two good.

01:51 - 23.338 Good examples actually of where.

01:51 - 25.647 Your department runs a bunch of programs so we

01:51 - 27.738 have a bunch of people doing great stuff but

01:51 - 29.628 we also try to solve problems

01:51 - 30.928 and I think

01:51 - 33.048 downtown Harrisburg is is a place where

01:51 - 37.168 as you know I've spent a bunch of PR one time we have a bunch of team members focused

01:51 - 39.028 the dura bond issue.

01:51 - 41.208 Super excited about

01:51 - 43.698 a constructive path forward there as you know we spent

01:51 - 46.998 enormous amount of time working on that these are the kinds of things that

01:51 - 48.658 you know.

01:51 - 49.828 I kind of love working on

01:51 - 50.388 like like

01:51 - 52.218 putting a puzzle together and getting a good

01:51 - 54.282 outcome for me so thank you for the partnership and.

01:51 - 56.088 You know again sorry for

01:51 - 58.558 having to endure so much am i.

01:51 - 00.077 Mean your district here at Alaska I will have you around

01:52 - 02.658 a lotta fun we're having cupcakes and we're gonna mill

01:52 - 03.838 walking around so

01:52 - 04.698 appreciate it

01:52 - 07.218 my question is actually I'm having a lot of

01:52 - 09.388 interest in.

01:52 - 12.828 Data centers in my district one is being built

01:52 - 15.168 I actually went on a tour with the

01:52 - 19.318 local county commissioners they set up a tour in northern Virginia

01:52 - 23.634 where they had a very high concentration of data centers I learned a lot personally

01:52 - 25.908 for just anybody to do a similar type of tour

01:52 - 29.598 but my question is the big takeaway I had is that we

01:52 - 32.538 should probably start thinking about some kind of regional planning

01:52 - 36.315 and with these we had all three surrounding counties

01:52 - 39.558 Perry dauphin cumberland come on this all have a lot of

01:52 - 44.038 inch trust in data centers are seeing them proposed but because of the potential

01:52 - 50.184 strain on the grid and water resources we all share those collectively together and I

01:52 - 53.838 worry that if we just do this piecemeal and not a coordinated way

01:52 - 54.738 this could

01:52 - 59.698 have some very negative consequences in regards to increasing utilities.

01:53 - 02.268 Increasing water rates so

01:53 - 04.008 what is your thought on

01:53 - 07.469 more regional planning when it comes to data centers is

01:53 - 11.548 that something you would recommend folks to start doing.

01:53 - 13.348 Yeah thanks for the question.

01:53 - 14.688 Look I think

01:53 - 17.849 regional planning and coordination economic development

01:53 - 20.538 honestly in almost any context is a good idea

01:53 - 23.668 certainly it isn't data centers and I think.

01:53 - 26.188 What we've seen as the economy.

01:53 - 29.088 In this part of the economy grows like an

01:53 - 30.738 absolutely astounding rate

01:53 - 31.998 over the last just

01:53 - 33.778 one to two years

01:53 - 34.368 and

01:53 - 37.416 is enormous interest in Pennsylvania by data centers because

01:53 - 40.528 of a bunch of reasons our natural resources certainly

01:53 - 41.808 available sites

01:53 - 45.718 terrific workforce especially construction workforce in that building trees.

01:53 - 48.413 With the governor put forward on this which I

01:53 - 51.078 think is related to your question in his budget is

01:53 - 53.188 what we think is like an articulation of

01:53 - 55.458 what good looks like the grid principles that

01:53 - 58.758 we've proposed to you all and would love to engage with you

01:53 - 00.538 in a constructive conversation

01:54 - 02.748 sort of be linked to direct commonwealth support

01:54 - 06.138 you've got to like bring your own power pay your own way in energy

01:54 - 11.128 you've got to abide by the highest level of environmental standards especially in

01:54 - 15.744 water where we know cooling water is a really significant issue or a significant

01:54 - 17.848 resource required by data centers.

01:54 - 21.474 You've got to be transparent and engaged with communities you can't kind of do these

01:54 - 23.928 things in secret in a black box I'm really glad to hear

01:54 - 28.038 for example you as a state rep are engaging with accompany in your district they're

01:54 - 30.924 taking you down to Virginia to see what these things look like I agree I would

01:54 - 33.298 encourage folks to do that I've done it

01:54 - 33.763 and

01:54 - 34.638 then forth

01:54 - 35.238 and

01:54 - 37.896 you know delivering local jobs and community benefits

01:54 - 40.218 at the question was asked by rep must allow earlier like

01:54 - 44.808 did you give Amazon money the answer to that is no we gave dollars to

01:54 - 48.168 our local workforce system to make sure these jobs could stay

01:54 - 50.548 here in Pennsylvania I think.

01:54 - 52.518 If we can work together

01:54 - 54.738 do the right planning on energy environment

01:54 - 56.038 and workforce.

01:54 - 58.708 Green light and support.

01:54 - 01.188 Through permitting for a sales and use exemption

01:55 - 03.604 really high quality projects and that is a path

01:55 - 06.138 for us to take advantage of and benefit from

01:55 - 09.408 the data center boom we're experiencing and also

01:55 - 11.088 you know protect Pennsylvania's from

01:55 - 13.266 increases in electricity bills and and

01:55 - 14.478 other kind of land use

01:55 - 17.358 pitfalls that that large scale projects like this the might

01:55 - 19.008 present and by the way

01:55 - 19.818 I've spent

01:55 - 22.344 a significant amount of time in the last couple weeks talking to

01:55 - 24.774 some of the biggest companies in the world that build these things

01:55 - 24.978 like

01:55 - 26.188 they kind of agree

01:55 - 28.908 like like there's a bunch of details to work out but I think

01:55 - 29.838 the medically

01:55 - 30.438 that kind of

01:55 - 32.563 focus and planning and transparency is is well

01:55 - 35.638 received by the by the industry here as well.

01:55 - 37.318 Thank you for that.

01:55 - 38.368 Extra.

01:55 - 43.548 Thank the gentleman representative krupa

01:55 - 44.808 thank you mr chairman

01:55 - 48.978 secretary I represent the fifty first house district which is southern fayette county

01:55 - 53.458 and it's no secret that fayette county has been on the economic decline for decades

01:55 - 59.088 population loss job loss shattered industry persistent hardship for our workers

01:55 - 04.828 families over that same time period millions of taxpayer dollars

01:56 - 05.538 has

01:56 - 09.318 flowed through our certified economic development organization

01:56 - 12.648 a group called fe penn economic development council

01:56 - 14.328 including funds

01:56 - 15.618 d c d

01:56 - 17.938 directly controls or administers

01:56 - 21.152 yet despite one on it's surface looks like public

01:56 - 24.018 investment the county continues to struggle

01:56 - 29.118 with respect to fe pen there are at minimum serious concerns about

01:56 - 31.398 related party transactions

01:56 - 35.079 specifically but not limited to things such as low interest

01:56 - 38.668 loans to board member or board connected one businesses

01:56 - 42.448 development of property owned by the sido itself

01:56 - 46.608 and contracts awarded to entities that are associated with board

01:56 - 48.748 members or board relationships

01:56 - 50.968 that kind of dealings unacceptable

01:56 - 54.828 and when it occurs it robs the people of fayette county of the very

01:56 - 58.278 benefits the economic development programs that you're speaking of

01:56 - 00.678 are supposed to deliver ever and to offer

01:57 - 03.950 dcd zone mission statement states that it exists

01:57 - 07.068 to foster opportunities for business to grow

01:57 - 09.168 and for communities to succeed

01:57 - 12.678 while assuring transparency and accountability

01:57 - 16.998 and the expenditure of public funds when public dollars

01:57 - 18.898 taxpayer dollars.

01:57 - 21.078 Are b being circulated among

01:57 - 22.488 the well connected

01:57 - 26.898 rather than being used to expand opportunity broadly

01:57 - 29.338 that's DVDs mission.

01:57 - 33.168 It's it's being undermined it's a betrayal of the public trust

01:57 - 35.658 so at the time in my district when people

01:57 - 39.798 are in jeopardy of losing their homes because they can't pay their property taxes

01:57 - 43.944 we have our volunteer firefighters on the corner begging for money or selling hoagies

01:57 - 46.218 trying to raise money just to keep their doors open

01:57 - 48.618 it's offensive that taxpayer dollars

01:57 - 53.268 are being spent the line the pie Paula the pockets of fayette county elite and wealthy

01:57 - 57.228 and if it could happen in fayette county it can happen across the commonwealth

01:57 - 58.818 so my question is

01:57 - 02.208 what is DC doing to prevent this type of abuse

01:58 - 05.588 does dcd independently audit and review related

01:58 - 08.388 party transactions before funds are awarded

01:58 - 14.364 are loans or grants to board member owned businesses explicitly prohibited or merely

01:58 - 20.028 allowed with disclosure does dcd verify documented refusals and decision making

01:58 - 24.298 has dcd ever suspended funding revoked certification

01:58 - 29.664 referred an organization for investigation or pursued clawbacks due to governance

01:58 - 31.758 violation and I I asked these questions

01:58 - 34.728 and I welcome any follow up conversation regarding these issues

01:58 - 38.684 I ask this because if d c d's oversight is limited to

01:58 - 42.108 accepting certifications without independent scrutiny

01:58 - 47.398 than this committee needs to know that because with respect to every taxpayer dollar

01:58 - 49.138 our people deserve

01:58 - 50.368 accountability.

01:58 - 51.978 Thank you

01:58 - 53.308 for the question

01:58 - 53.658 and

01:58 - 54.961 of course you and I had a chance to talk about

01:58 - 57.658 this a little bit in advance of the hearing too.

01:58 - 59.538 Let me say a couple things

01:59 - 03.828 one that's sort of set of like seven or eight questions you asked

01:59 - 04.488 and

01:59 - 06.606 send that to us and I want to answer those in

01:59 - 08.808 writing with like advice of our program people and it

01:59 - 10.963 was like I want to make sure you get like a very precise

01:59 - 13.858 response to each question and we'll do that rapidly.

01:59 - 17.608 On the big picture here I think I want to make two points.

01:59 - 18.318 One

01:59 - 20.538 we do a lot of our work through partners

01:59 - 23.248 and we do that on purpose actually.

01:59 - 24.988 We're a Grant maker

01:59 - 28.608 and but we run pretty lean we got like three hundred seventy five folks and we're

01:59 - 30.615 doing a couple billion dollars when you add up

01:59 - 32.958 all the federal money and we do that because

01:59 - 34.288 a lot of these dollars

01:59 - 37.678 though with all due respect and I couldn't just because I want to be time sensitive

01:59 - 39.658 sure it's not like it when I go over time

01:59 - 40.218 I got it

01:59 - 44.658 thank you mr chairman so says specifically I think you can agree with me

01:59 - 46.678 that this type of insider

01:59 - 49.078 self-dealing is unacceptable.

01:59 - 53.694 I want to understand the specifics of this issue broadly speaking it if a sido

01:59 - 57.418 organization is operating for the benefit of board.

01:59 - 00.958 Member own businesses we can agree that that's improper.

02:00 - 04.413 I mean I dunno how you dispute that or I mean look I

02:00 - 06.588 don't think it's appropriate for me to sort of like

02:00 - 10.788 hypothetically like there's obviously an issue that you've identified at vape pen

02:00 - 11.448 I want to

02:00 - 13.578 go deep on this understand what it is

02:00 - 16.108 and to the extent there.

02:00 - 17.328 With all due respect

02:00 - 17.993 can we at

02:00 - 21.588 a very basic level can we not agree that taxpayer money

02:00 - 24.078 being appropriated through an organization

02:00 - 24.858 that's very

02:00 - 26.328 that's prioritizing

02:00 - 30.084 board member owned businesses I'm I'm not asking specifically with vape pen just on a

02:00 - 31.908 very basic level can we not agree

02:00 - 34.248 that that a board member

02:00 - 39.468 should not be allowed to participate on a board at when when taxpayer money

02:00 - 43.128 is going to be used to benefit that board members business.

02:00 - 44.938 I think that.

02:00 - 49.468 Governance principles in a nonprofit run in the government would suggest that.

02:00 - 52.022 Certain best practices should be in play like refusals

02:00 - 55.038 and things like that but I am not prepared to make a

02:00 - 58.308 hypothetical blanket statement here I do want to understand

02:00 - 00.198 and we talked about this prior like

02:01 - 02.938 I would like to get a briefing on this specifically

02:01 - 05.598 because because we work with all these partners

02:01 - 08.298 it's incumbent upon us to focus on

02:01 - 10.818 waste fraud abuse audit which we do

02:01 - 11.808 every single day

02:01 - 13.998 we have a team of people led by

02:01 - 15.508 sitting right there

02:01 - 16.848 who like their job is to

02:01 - 19.332 every dollar we spend is expended

02:01 - 20.529 with integrity

02:01 - 21.062 and

02:01 - 26.372 protecting waste fraud and abuse and representing the taxpayer properly where there

02:01 - 30.002 is bad action by a sub contractor or grantee or sido

02:01 - 32.042 like I want to know about it we want to fix it

02:01 - 34.682 but that requires me understanding in detail

02:01 - 37.658 these issues and I look forward to following up with you on that thank you very much

02:01 - 38.102 thank the

02:01 - 39.282 gentle lady

02:01 - 41.442 representative mullins.

02:01 - 43.912 Thank you mr chairman and secretary sager in hand it's

02:01 - 45.940 good to see both of you again thanks for being here.

02:01 - 49.472 I want to return yet again to innovate

02:01 - 51.212 in pa two point oh.

02:01 - 53.592 Because of the exciting.

02:01 - 54.602 I believe the

02:01 - 55.982 exciting promise

02:01 - 58.632 and potential at home holds.

02:01 - 01.802 We over the next few months are going to be having

02:02 - 03.002 a policy debate

02:02 - 05.982 a budget debate over what we can afford

02:02 - 10.272 to pass and include in our spending plan and what we can't.

02:02 - 11.702 But

02:02 - 14.892 I think it's important to note how unique

02:02 - 18.102 of a proposal innovate and p a is

02:02 - 18.992 and I would

02:02 - 20.432 like after

02:02 - 21.152 after I

02:02 - 24.332 helped tee it up here for you to explain to me

02:02 - 26.432 what kind of budgetary impact

02:02 - 27.752 innovate and pa would have

02:02 - 29.082 my.

02:02 - 32.972 Long before I was a house member I was a state senate staffer

02:02 - 33.992 and

02:02 - 34.802 my

02:02 - 36.492 Former boss.

02:02 - 39.012 Where I worked in my last cubicle.

02:02 - 42.152 Was state senator John Blake and introduced innovate and pa

02:02 - 44.442 the first iteration of connect which ultimately

02:02 - 46.532 made it into law in the tax code that year

02:02 - 49.022 and we saw a great

02:02 - 52.662 great so access return from the auction of those.

02:02 - 53.712 Deferred

02:02 - 55.182 tax credits

02:02 - 59.522 and the beneficiaries of which have a proven decade after decade

02:02 - 02.912 return on investment that means a return to the commonwealth

02:03 - 06.452 for every one dollar invested in the Ben Franklin technology partners

02:03 - 08.372 four dollars is generated in state

02:03 - 09.822 tax revenue.

02:03 - 13.952 The life sciences greenhouses since their inception in two thousand and two

02:03 - 17.132 have invested just under one hundred twenty eight million

02:03 - 18.702 yet leveraged.

02:03 - 20.762 Over five billion dollars

02:03 - 21.302 of

02:03 - 22.842 Economic activity

02:03 - 23.492 and if

02:03 - 24.842 in the meanwhile created

02:03 - 25.962 just under

02:03 - 27.782 four thousand high paying jobs

02:03 - 28.742 and

02:03 - 31.022 day in and day out are working toward

02:03 - 33.912 the treatments and therapies and technologies

02:03 - 36.612 for some of our most ravaging diseases

02:03 - 37.892 but again

02:03 - 41.412 our budgets are about what we can afford and what we can't.

02:03 - 47.352 Can you explain to me how this will how invented two point oh.

02:03 - 48.792 If it will

02:03 - 49.562 have

02:03 - 50.162 the

02:03 - 53.822 zero net impact on the state budget in the near term

02:03 - 55.392 and how

02:03 - 59.982 we make sure when those tax credits when the bill comes due in a few years.

02:04 - 01.802 That we are able to afford it

02:04 - 04.652 and is it attributable to those returns that we see

02:04 - 06.422 yeah thank you for that question

02:04 - 08.427 this is really really important not just for innovate which

02:04 - 10.992 I'll talk about a second but for a lot of our programs.

02:04 - 12.732 When we.

02:04 - 17.762 Request funds from you for pa sites or pa first or innovate two point oh

02:04 - 22.482 like I think of those as investments when we do a deal with Lily.

02:04 - 23.222 For example

02:04 - 23.672 like

02:04 - 25.382 we do a bunch of math

02:04 - 27.842 around direct and indirect benefit

02:04 - 28.992 to the commonwealth

02:04 - 30.192 and we like

02:04 - 32.192 calibrate our incentive based on that math

02:04 - 35.552 and these are like increase ably powerful deals to us in terms of

02:04 - 37.009 what we think of as like terminal value like

02:04 - 39.492 the twenty year value of that kind of investment

02:04 - 42.252 and we look at something like innovate two point oh.

02:04 - 45.602 Many of the proposals that we're putting forward here are designed to

02:04 - 48.162 let's say increase the speed of the flywheel

02:04 - 50.942 of our innovation economy which has

02:04 - 55.622 you know tremendous positive economic impact in in direct impact for job growth like

02:04 - 57.212 personal income tax the commonwealth

02:04 - 58.352 but also

02:04 - 00.632 broadly building communities right builds wealth

02:05 - 01.382 it builds

02:05 - 02.132 and

02:05 - 06.882 it helps keep companies you know rep really got like capitan in in Philadelphia

02:05 - 09.842 and I think we do that in like four ways here we do it

02:05 - 11.612 by recapitalizing

02:05 - 13.562 I'm in a modest but real way

02:05 - 16.772 the Ben Franklin technology development authority venture fund

02:05 - 19.562 where we sub Grant out dollars to venture money

02:05 - 24.188 early stage venture money typically that's going to Pennsylvania companies we want to

02:05 - 27.092 do it through this life science set of activities which I've talked about

02:05 - 28.212 around talent

02:05 - 29.582 and clinical trials

02:05 - 30.242 and

02:05 - 31.512 you know frankly

02:05 - 33.752 and incentivizing partners like

02:05 - 36.316 Ben Franklin's like universities like companies to

02:05 - 38.402 come together to solve some of these tough problems

02:05 - 43.062 we want to do it through creating a venture studio motto which is like a police based.

02:05 - 44.952 Version of an accelerator

02:05 - 45.872 and

02:05 - 47.112 we want to do it by

02:05 - 49.502 frankly giving us Mike and me and our team

02:05 - 53.912 and some dollars that we can use for flexible strategic response so for example when

02:05 - 57.428 the Ben Franklin partners of southeast Pennsylvania go out and try to win a big

02:05 - 59.252 federal Grant life sciences like they've done

02:05 - 59.972 and

02:06 - 03.698 I don't have to like search the couch cushions for dollars that I may or may not be

02:06 - 05.972 able to commit in five years like we have funds

02:06 - 07.832 that can help take advantage of these

02:06 - 10.722 significant innovation based opportunities

02:06 - 11.342 and

02:06 - 14.282 other states as has been pointed out have deployed

02:06 - 18.182 you know really significant scale in these kinds of activities they've seen

02:06 - 19.452 real success

02:06 - 21.212 we've got the building blocks here

02:06 - 25.802 to get this done and and welcome your feedback and support to try to do it

02:06 - 27.797 and by the way I really it's really cool he

02:06 - 29.741 worked on innovate one point I did not know that.

02:06 - 32.330 There's some real nostalgia going on but yes

02:06 - 34.652 it's important that we've seen the program I

02:06 - 39.332 already work and be responsible with taxpayer dollars and

02:06 - 40.232 up

02:06 - 41.652 Help to super fund

02:06 - 45.812 these programs which have a guaranteed decade after decade

02:06 - 49.062 strong positive return on investment

02:06 - 51.642 to the commonwealth so I think it's important.

02:06 - 52.412 As we

02:06 - 54.452 continue to tout this program

02:06 - 56.202 that we are.

02:06 - 57.362 That we are

02:06 - 00.032 drilling home the point that this is not going to

02:07 - 00.722 it

02:07 - 02.312 Cost anything but rather

02:07 - 05.402 will receive a strong return

02:07 - 06.522 on the.

02:07 - 08.082 On the back in.

02:07 - 08.612 Russia

02:07 - 11.442 thank the gentleman represented advance oh.

02:07 - 15.062 Thank you chairman Harrison and thank you secretary or

02:07 - 16.442 saga for being here today

02:07 - 19.982 and energy I want to talk about act forty five

02:07 - 21.062 a little bit here

02:07 - 24.902 energy underpins nearly every d c e d initiative

02:07 - 28.292 it affects manufacturing data center small business growth

02:07 - 31.097 even affordable housing Ohio and west Virginia

02:07 - 33.812 have a low lower electricity bills in Pennsylvania

02:07 - 36.602 they never entered into regi while we did

02:07 - 39.114 it the same time we've heard today that we

02:07 - 41.552 must export we must expand affordable housing

02:07 - 43.532 but a families cannot afford

02:07 - 45.572 their energy bills they cannot afford

02:07 - 48.212 home ownership I've heard from families that have received

02:07 - 50.012 a five to six hundred dollar a month

02:07 - 52.742 electric bill so so I want to talk us together

02:07 - 54.882 from a competitive standpoint

02:07 - 58.322 do you think our participation in regi increase cost

02:07 - 01.359 or created uncertainty that puts Pennsylvania at

02:08 - 04.362 a disadvantage amongst our neighboring states.

02:08 - 07.962 Thanks for the question rep.

02:08 - 10.502 I'm not exactly sure how to

02:08 - 13.962 answer that question what what I guess I would say is.

02:08 - 16.523 The first part of your statement I fully agree

02:08 - 19.362 with which is like energy is not just a critical.

02:08 - 21.512 Element of our

02:08 - 24.362 economy it's also like a real competitive strength for us.

02:08 - 29.652 That was true last year it's true again this year and in fact as you know well.

02:08 - 30.152 The

02:08 - 33.042 importance of energy as.

02:08 - 35.750 A component of decision making for companies is only

02:08 - 39.072 increasingly like two years ago I would have sat here and said.

02:08 - 41.342 Confidently be number one

02:08 - 43.052 component of

02:08 - 47.252 site selection for a company is workforce and availability of workforce

02:08 - 49.922 it's now been eclipsed like in surveys we've seen by

02:08 - 52.712 availability of energy so so on that point we agree

02:08 - 54.602 and I think my focus is

02:08 - 56.222 going forward on

02:08 - 57.932 really two things one

02:08 - 00.122 maximizing Pennsylvania's economic possess mission

02:09 - 02.194 using that energy as a core asset that is true in

02:09 - 05.682 manufacturing as you point out it's certainly true in.

02:09 - 08.292 AI infrastructure and true in.

02:09 - 09.842 Other components of our plan

02:09 - 10.862 and

02:09 - 13.773 I think we've talked about it earlier the governor put

02:09 - 17.042 forward an energy plant like a policy set of steps that

02:09 - 19.652 we believe we can take to incentivize additional

02:09 - 22.422 generation onto the grid

02:09 - 25.592 to speed up permitting for strategic energy projects

02:09 - 27.392 and a whole slew of other items

02:09 - 29.985 to move ahead so I I do think it is time for us

02:09 - 32.522 as a state to take a hard look at these issues

02:09 - 34.952 make progress on energy even as we

02:09 - 37.892 now run one hundred miles an hour every day

02:09 - 40.412 to to close great projects which you're you're

02:09 - 44.042 absolutely right you know are based on energy availability yeah

02:09 - 45.452 is there a list

02:09 - 46.782 do we have

02:09 - 49.742 a list of companies that maybe we have lost to over the years

02:09 - 51.572 Ohio to west Virginia am

02:09 - 55.002 and if so why why did they choose not to come here.

02:09 - 57.327 I don't know if we have like a full list but we do a

02:09 - 59.972 lot of benchmarking and what I would call a hot wash

02:10 - 03.522 of key projects that we win and lose.

02:10 - 07.508 Is that something you can share with the committee just something to go over so

02:10 - 11.042 so that we know when we're winning and losing I don't need all the details but

02:10 - 14.738 it's just something brief hey this is where we're winning this is where we got it right

02:10 - 18.008 maybe this was where we got it wrong to where maybe there's some policy issues that

02:10 - 20.272 we can get look I think I'd be happy to do that like on a

02:10 - 24.002 on an example by example basis I don't have like a report I mean

02:10 - 24.482 we have

02:10 - 24.932 lots of

02:10 - 27.272 we know exactly who we want in last in a given year

02:10 - 29.710 but in terms of like the policy implications like a

02:10 - 32.742 companies make decisions for lots of different reasons.

02:10 - 35.262 What I will say to you I guess is.

02:10 - 36.992 We are now winning

02:10 - 38.232 more than we're losing

02:10 - 40.962 and we're winning deals that

02:10 - 43.361 are just being candid with you before governorship here

02:10 - 45.782 was here like we just would not have had a chance to win

02:10 - 48.302 like there's a zero percent chance in my view.

02:10 - 51.692 That Pennsylvania would have been able to compete for and win

02:10 - 54.731 a national bake off from the largest from a company in

02:10 - 57.002 the world Eli Lilly in the year two twenty twenty three

02:10 - 00.392 because of the tools you've helped us put in place financially

02:11 - 02.372 because of the permit focus

02:11 - 05.402 frankly because the governor and to some extent our teams

02:11 - 09.512 just like relentless personal engagement we're now in a position to win

02:11 - 10.458 deals like

02:11 - 13.592 deals which by the way are also energy intensive and where

02:11 - 16.352 collaboration with utilities and others is required to get them and

02:11 - 17.012 so

02:11 - 18.782 It's a complex kind of

02:11 - 20.432 matrix that companies

02:11 - 21.702 determined here

02:11 - 23.492 but I this is really like.

02:11 - 26.678 If you want to like nerd out with us on this we'd love to do it like this what we

02:11 - 29.742 think about all day every day which is like how can we make Pennsylvania like

02:11 - 33.002 even that much more competitive and and welcome a conversation

02:11 - 36.152 so so in wrapping up earlier you had mentioned

02:11 - 37.994 itchy I think it was g Eve

02:11 - 38.538 or

02:11 - 38.954 Yeah

02:11 - 42.494 they are building their energy climate so that they are

02:11 - 44.994 successful in any economy

02:11 - 48.134 are there other policies that we could be looking at with them

02:11 - 51.554 to build out our grid our own infrastructure

02:11 - 54.674 so that we can get that competitive edge back

02:11 - 56.714 over Maryland Ohio

02:11 - 58.284 in west Virginia.

02:11 - 59.724 I think that

02:12 - 02.624 energy access and availability is like

02:12 - 03.744 a core

02:12 - 05.024 among the top

02:12 - 07.409 considerations that companies think about and I would love

02:12 - 10.214 to to partner with you to think about that I do think that

02:12 - 12.734 when you think about hitachi or or you know

02:12 - 14.844 nova or other companies.

02:12 - 16.854 That's like a sort of.

02:12 - 19.754 Really productive by-product where we're seeing

02:12 - 22.025 because there's so much energy build up happening

02:12 - 24.554 not just with data centers but in the grid broadly

02:12 - 26.774 companies that build the stuff at like

02:12 - 30.494 hairline towers and transformers and all that like heavy machinery

02:12 - 32.894 are scaling really rapidly

02:12 - 34.194 we're seeing

02:12 - 37.154 I would say outsized benefit from that another one is mitsubishi electric

02:12 - 37.964 beaver can I see

02:12 - 38.324 a

02:12 - 39.584 Rep reptile sitting up here

02:12 - 43.340 like there's a lot of companies that are doing this we want to attract those

02:12 - 44.834 companies to Pennsylvania and again

02:12 - 47.054 those companies are building like the guts of grit

02:12 - 49.410 whether it's like solar or wind or gas or whatever

02:12 - 52.124 it is they're they're in business and succeeding so I

02:12 - 54.740 love to talk to you more about that thank you Robert perfect thank you

02:12 - 55.764 thank the gentleman

02:12 - 57.654 representative guzman.

02:12 - 59.004 Thank you mr chair

02:12 - 01.574 thank you mr secretary for your time this morning

02:13 - 02.984 mr secretary

02:13 - 06.074 I know that no matter what we look like or where we come from

02:13 - 09.254 working families in my district have sent me here to fight for them.

02:13 - 12.374 I speak often about my mother who raised five kids

02:13 - 14.074 on five dollars and twenty five cents an hour

02:13 - 17.094 and then on seven dollars and twenty five cents.

02:13 - 20.378 This budget mr secretary has the potential to deliver

02:13 - 22.994 real change for the sixty thousand people that I represent

02:13 - 25.194 in reading and kenner's

02:13 - 26.784 I heard earlier

02:13 - 30.854 in the earlier question about how our economy depends on energy

02:13 - 34.484 while mr secretary I would say that our economy depends on people as well

02:13 - 37.274 in fact I would say that it depends a lot more on people

02:13 - 40.824 and so in that vein mr secretary

02:13 - 44.264 according to the governor's proposed budget and raising the minimum wage

02:13 - 47.624 roughly seventeen thousand people within my district would see

02:13 - 49.304 an increase within their pay

02:13 - 50.354 and so

02:13 - 53.054 mrs secretary what would you say to those

02:13 - 56.774 thousands of people within my district currently right now who are currently making

02:13 - 57.704 seven dollars

02:13 - 59.234 twenty five cents an hour in our

02:13 - 01.664 in our urging the legislature

02:14 - 04.074 to do something to raise their wages.

02:14 - 05.774 I'd say it's time to act here

02:14 - 09.344 it's time to increase the wage to fifteen dollars in addition to the

02:14 - 12.354 to the tens of thousands in your district the number

02:14 - 14.372 across the state is estimated by Elena at five

02:14 - 16.784 hundred and fifty three thousand eight hundred folks

02:14 - 20.184 that make like between seven twenty five and fifteen

02:14 - 21.734 and again as I said earlier

02:14 - 23.234 these are not just like

02:14 - 24.944 kids summer job

02:14 - 25.724 you know people

02:14 - 27.883 these are families to add to your point I didn't know that

02:14 - 31.074 about about your mom but this is like a perfect example

02:14 - 32.184 and.

02:14 - 34.577 It's a fairness questions an economic question it's

02:14 - 36.944 about lifting people out of poverty giving them

02:14 - 38.564 a fair shot to move Ford

02:14 - 41.112 let's get this done let's raise the wage to fifteen

02:14 - 43.754 dollars every state surrounding Pennsylvania has done this

02:14 - 49.124 and you know out we hear a lot lately in an elliptical or rhetoric about

02:14 - 52.874 affordability in fact the president talked in length last night about affordability

02:14 - 55.934 in my opinion one of the best affordability program

02:14 - 57.404 is a good paycheck

02:14 - 00.644 for the over seventeen thousand people that I represent and so

02:15 - 03.024 do you believe that they deserve dignity.

02:15 - 04.964 In their reach of course sir.

02:15 - 07.154 Thank you thank you mr secretary

02:15 - 09.264 I'd like to move on to.

02:15 - 11.324 The housing plan that the governor talked about

02:15 - 12.564 and of course

02:15 - 13.934 in my district again

02:15 - 16.352 of roughly families are roughly paying about

02:15 - 18.764 forty eight percent of their income towards rent.

02:15 - 23.474 I personally know warehouse workers that are working at the Amazon fulfillment center

02:15 - 24.344 who sleep

02:15 - 26.054 in their cars between shifts

02:15 - 29.514 because they can't afford an apartment and or childcare

02:15 - 32.414 I also know that they're reading housing authority has a wait list

02:15 - 33.974 stretching for years

02:15 - 35.394 mr secretary

02:15 - 38.174 how does this housing plan ensure that the folks

02:15 - 40.544 who live live on tenth street in my district

02:15 - 43.154 are not only able to stay in their homes but also

02:15 - 46.634 be able to enjoy the new homes that this hopefully plan will be building

02:15 - 48.744 yeah thanks for the question.

02:15 - 52.434 This plan is about.

02:15 - 55.284 People and it's about.

02:15 - 57.854 Putting rules and policies in place

02:15 - 59.484 to enable people.

02:16 - 01.634 To have access to homes

02:16 - 02.624 and so

02:16 - 05.204 a couple of examples there's a bunch of stuff in this plan

02:16 - 07.254 but number one.

02:16 - 08.924 We've just got to build more housing

02:16 - 10.968 that's true for organizations like the reading

02:16 - 12.644 housing authority like we need to do more

02:16 - 14.144 low income tax credit deals

02:16 - 16.784 we also just need to build more housing period

02:16 - 17.994 at all levels

02:16 - 19.764 attainable housing.

02:16 - 22.224 Market rate housing.

02:16 - 22.874 That sort of

02:16 - 26.270 core supply and demand question is important and we've actually seen this right we

02:16 - 28.014 did a lot of benchmarking around the country

02:16 - 31.334 places that have built really significant additional housing have seen

02:16 - 32.624 prices go down this is true

02:16 - 34.914 in the sun belt in the south in particular.

02:16 - 36.794 Number two though

02:16 - 39.544 especially for folks I think like the ones you're talking about

02:16 - 42.404 we've got to make sure that people can access homes

02:16 - 44.234 and have protections that they need

02:16 - 46.484 so whether they're renting or owning a place

02:16 - 50.024 they're not being unfairly treated or unfairly targeted

02:16 - 50.790 and I think there's

02:16 - 51.252 a

02:16 - 53.534 Whole bunch of policy elements we talked about some

02:16 - 56.664 of them with the rep over here a minute ago go.

02:16 - 59.204 That we think can help just like make it easier

02:16 - 00.104 cheaper

02:17 - 01.284 less friction

02:17 - 02.694 less difficulty

02:17 - 04.334 for ordinary folks

02:17 - 05.354 to find

02:17 - 07.004 housing solution for themselves

02:17 - 08.876 and I think there's a whole bunch of other

02:17 - 10.784 detail in here but like at it's core it's like

02:17 - 12.674 help people attain housing

02:17 - 13.784 build more housing

02:17 - 15.704 like that's the simplest way to think about it

02:17 - 17.533 I think that's going to have impact in rural

02:17 - 19.197 areas at certain that have impact in third

02:17 - 22.760 in third class cities across pants and time the two questions together do you believe

02:17 - 24.646 that raising the minimum wage will help

02:17 - 26.984 families in including those within my district

02:17 - 29.071 be able to not only obtain their piece of the

02:17 - 32.484 American dream but stay in their homes I do.

02:17 - 33.074 So

02:17 - 36.770 Mr secretary at the end of the day this isn't about budgets it's about people like

02:17 - 39.044 Maria in my district who takes two buses on

02:17 - 41.744 barter to get to her shift at the Amazon warehouse

02:17 - 44.504 it's about the tenth grader in my district who can't read

02:17 - 47.594 and it's about my mother who works every day and people like her

02:17 - 49.784 who worked to the bone are not getting paid enough

02:17 - 51.464 in order to keep a roof over their heads

02:17 - 54.500 we have the opportunity to change that and this budget and I'm looking forward to

02:17 - 56.644 working with you to get that done thank you very shred

02:17 - 59.094 thank the gentleman representative Kale.

02:17 - 03.153 Thank you mr chairman it's good to see you here today I'm glad you got outta

02:18 - 07.884 Philadelphia with all the snow and hopefully that's the last storm that we see.

02:18 - 11.015 In Pennsylvania this year but year you never

02:18 - 13.274 know mr secretary thank you for being here

02:18 - 15.134 you know affordability

02:18 - 19.454 has been something that that we've been hearing as of late I

02:18 - 21.674 heard it last night we've been hearing it

02:18 - 23.174 today

02:18 - 25.995 but I know at least within the house republican

02:18 - 28.784 caucus we have been talking about affordability

02:18 - 32.491 in particular as it relates to energy policy since two

02:18 - 35.804 thousand and nineteen that's when I got first sworn in

02:18 - 40.244 and it's been a subject that we have been talking about

02:18 - 43.494 continuously since two thousand and nineteen

02:18 - 49.580 and one of the things that I find remarkable here today is that we I have all of this

02:18 - 52.064 economic opportunity and it's around

02:18 - 53.994 energy affordability

02:18 - 55.694 and you mentioned it earlier

02:18 - 58.753 we have manufacturing opportunities and and data

02:18 - 01.424 centers and and all these different things that are

02:19 - 05.444 potentially coming because we have energy resources while at the same time

02:19 - 09.570 we have skyrocketing energy costs for ca consumers

02:19 - 13.374 both large and small residential and manufacturing

02:19 - 16.674 and I have to ask

02:19 - 18.868 and this first question isn't what I'm going

02:19 - 22.644 to ask you to to answer the second question is.

02:19 - 28.394 Since two thousand and nineteen there has not been an announcement of a major base

02:19 - 30.752 load energy eg production project in the

02:19 - 33.944 commonwealth of Pennsylvania and what I mean by that

02:19 - 39.174 by base load is a coal fired plant or a natural gas plant.

02:19 - 42.744 A energy electricity source.

02:19 - 44.354 That that doesn't

02:19 - 47.894 isn't dependent on the weather that isn't dependent on

02:19 - 54.444 what's happening that is independent an unreliable Chinese produced renewable energy.

02:19 - 56.987 We have not had an announcement of anything

02:19 - 59.384 of that sort since two thousand and nineteen

02:19 - 00.314 now.

02:20 - 04.190 I'm not going to ask you why we haven't had a thing since two thousand and nineteen

02:20 - 06.308 because frankly if you answer that question honestly

02:20 - 09.014 you may not be the secretary going forward and

02:20 - 11.474 I I'm appreciate the work that you have been doing

02:20 - 16.100 but moving forward now that we are out of the regional greenhouse gas initiative now

02:20 - 18.464 that we are focused on permitting

02:20 - 20.244 and other factors

02:20 - 23.274 what is the administration's strategy.

02:20 - 27.374 For new base load energy production

02:20 - 30.524 because if we're going to stay away from brown outs

02:20 - 35.274 if we're going to have energy costs actually go down

02:20 - 38.174 if we're going to enjoy the fruits of our own

02:20 - 41.114 natural resources in the commonwealth of Pennsylvania

02:20 - 44.084 we need more base load energy

02:20 - 44.954 production

02:20 - 48.284 does the administration have a strategy for increasing

02:20 - 50.748 base load energy production does the administration

02:20 - 53.564 have a strategy for using more Pennsylvania coal

02:20 - 57.324 and more Pennsylvania natural gas to generate electricity.

02:20 - 00.774 Yeah I think thanks for the question.

02:21 - 03.834 Let me just say this.

02:21 - 09.564 I think the governor's lightning plan.

02:21 - 11.724 Is specifically about

02:21 - 13.194 building more.

02:21 - 14.634 Energy generation

02:21 - 16.014 it's a plan that he outlined

02:21 - 18.254 last year it's a plan that he's brought forward

02:21 - 21.264 again this year to plan that in the speech which he gave.

02:21 - 23.624 Right here to all of us he said

02:21 - 27.284 he wants to work with folks to come up with the right plan and let me

02:21 - 30.087 let me call out let me call it to two specific pieces

02:21 - 32.197 here which I think gets specifically to your question

02:21 - 36.624 one is repositioning the edge tax credit to support new generation

02:21 - 38.654 and one is the creation of

02:21 - 42.274 this board we call the reset board which would be a board I would be a member of.

02:21 - 43.614 Two essentially.

02:21 - 45.584 Rapidly so

02:21 - 47.112 and permit

02:21 - 48.122 strategic

02:21 - 50.282 energy initiatives such as by the way

02:21 - 51.002 and I don't

02:21 - 51.722 the the

02:21 - 53.102 point the word base load is

02:21 - 54.882 confusing me a bit rep I'm sorry but like

02:21 - 00.012 homer city as an example in registers the district is currently under construction

02:22 - 01.742 significant construction as you know

02:22 - 03.542 to build four point seven

02:22 - 06.842 gigawatts seven new combined cycle natural gas the turbans

02:22 - 08.912 in Pennsylvania right now today

02:22 - 12.212 I dunno if that's like doesn't meet your your definition but I do think

02:22 - 14.702 we're seeing significant new generation

02:22 - 16.202 starting to come online

02:22 - 18.212 and I think that the lightning plan

02:22 - 19.412 can help us

02:22 - 23.168 accelerate that we need more power that on that point I agree with all due respect a

02:22 - 26.072 lightning plan though is really nothing more than Reggie to point out.

02:22 - 30.008 It's good for Chinese renewable energy that that isn't

02:22 - 33.962 reliable that's going to continue this this process of

02:22 - 38.412 potential brownouts and not getting enough electricity demand.

02:22 - 42.848 I don't see anything within the lightning plan that's going to bring new natural gas

02:22 - 45.422 fired plants and and coal plants in fact

02:22 - 50.583 my guess is if it were to get into place it would actually drive them away again as

02:22 - 54.428 so I guess my my question is beyond the lightning plan is there any plan in

02:22 - 58.982 particular to use Pennsylvania based natural resources coal or natural gas

02:22 - 01.072 and to use that for electricity so that we

02:23 - 04.392 can have a reliable grid and affordable grid.

02:23 - 06.492 I think on the question of.

02:23 - 09.222 Whether we want to have reliable affordable grid.

02:23 - 12.242 The governor has led with a lighting plan

02:23 - 13.652 is led by engaging

02:23 - 15.992 pjm to cut costs for consumers

02:23 - 17.382 we are seeing

02:23 - 18.642 with our own eyes

02:23 - 21.542 like substantial new industrial growth here

02:23 - 23.042 in power generation

02:23 - 25.022 in manufacturing based around

02:23 - 26.612 our energy companies

02:23 - 27.422 and

02:23 - 31.452 I would be pleased to work with erupted to try to keep this momentum going.

02:23 - 32.862 Thank you mr secretary

02:23 - 33.752 thank you mr chairman

02:23 - 35.942 thank the gentleman representative bellman

02:23 - 38.162 thank you chair and thank you secretary

02:23 - 39.552 for being here

02:23 - 42.842 so I have a couple of business corridors in my district

02:23 - 44.677 and I wanted to get a little bit more

02:23 - 47.282 information about the mainstream matters program

02:23 - 51.522 oh so what's the demand like for the main street matters program

02:23 - 53.596 and is twenty million dollars in funding

02:23 - 55.802 enough or do you think we need to increase it

02:23 - 57.422 yet thanks for the question

02:23 - 01.298 when I came in we had a program called keystone communities the competitive part of

02:24 - 03.812 it was like six million dollars which

02:24 - 05.912 for a state of thirteen million people it

02:24 - 07.262 was like a little bit limited

02:24 - 08.652 we pushed hard

02:24 - 10.212 you know this

02:24 - 11.918 body in the senate you know we're able to

02:24 - 15.162 support a growth to twenty million dollars which.

02:24 - 17.612 Is substantial enables us not just to

02:24 - 19.572 fund more communities

02:24 - 22.352 but actually enables us to change the rules a little bit to expand

02:24 - 24.443 like do you happen to have a like total demand

02:24 - 26.522 of the industry yeah the total demand for

02:24 - 29.052 main street matters was fifty three million.

02:24 - 30.192 So fifty three million

02:24 - 30.752 so look

02:24 - 32.833 I mean we think twenty million is a good number

02:24 - 35.012 to to continue that's obviously what the governor

02:24 - 36.032 proposed

02:24 - 38.614 but our belief in main streets as like a theory of

02:24 - 41.582 the case to help grow communities urban suburban rural

02:24 - 43.774 like has not changed we're all in on it it's been

02:24 - 46.142 I think a program that has seen a lot of success

02:24 - 48.282 and we expect a lot of success in the future

02:24 - 50.592 and what about the demand for designations.

02:24 - 53.772 And we have.

02:24 - 56.472 Who.

02:24 - 59.558 Is going to take me a minute to get there to get in front of you have a higher ratio

02:24 - 00.582 thank secretary

02:25 - 02.687 I can tell you that we had five new designations

02:25 - 05.622 we had nine prior software to total fourteen

02:25 - 07.212 and is there any

02:25 - 11.562 trouble or complications with municipalities getting new designations.

02:25 - 14.172 Is there anything that we can do about that.

02:25 - 16.582 I think it's been pretty good but if there

02:25 - 17.712 if there are specific

02:25 - 18.872 communities that

02:25 - 22.328 you have that have like experienced some difficulty we do I mean you can't just like

02:25 - 24.332 apply and get it right you've got up

02:25 - 25.572 and.

02:25 - 27.612 Commit to

02:25 - 31.352 taking certain steps you know visa be the main street strategy you've got to

02:25 - 32.882 make a multiyear commitment

02:25 - 35.382 of funding and things and then we're happy to work with you

02:25 - 39.332 if if there are communities in your district though that have had some difficulty

02:25 - 42.392 or issues just send them our way because we do think that

02:25 - 44.472 again this could be.

02:25 - 47.192 In in my city of Pittsburgh can be like a commercial corridor and

02:25 - 48.812 in in a neighborhood

02:25 - 50.282 or it could be like

02:25 - 52.543 a town itself like honesdale or something in a smaller

02:25 - 56.352 area that has a beautiful main street for example so.

02:25 - 00.242 We want to make us as flexible and useful as possible for communities

02:26 - 00.812 and by the way

02:26 - 02.191 you know you don't as you know I'm sure rep

02:26 - 04.872 like you don't have to be a main street designee

02:26 - 07.748 to apply for the funds it's sort of both you get preferential treatment you get

02:26 - 09.752 technical assistance but any community

02:26 - 11.882 any eligible community can apply for the funds

02:26 - 12.482 alright

02:26 - 14.132 thank you mrs secretary think of your

02:26 - 15.792 you sir thank you.

02:26 - 19.881 Thank the gentleman represented riker.

02:26 - 23.702 Thank you mr chairman thank you secretary was a pleasure to meet you as.

02:26 - 25.903 I mentioned obviously I'm new here so you'll

02:26 - 28.232 have to excuse the the basic question but

02:26 - 31.712 in my observation and I think some of the members here have been touching on

02:26 - 33.762 the housing crisis in Pennsylvania.

02:26 - 37.418 Appears to really be more of a function of geography than much else you know there's

02:26 - 41.258 certain areas of Pennsylvania that are experiencing in a blight in the need for tax

02:26 - 43.712 credits to spur investment and you have other areas that are

02:26 - 45.632 very rapidly growing and there's

02:26 - 47.172 some shortages

02:26 - 49.512 across all levels of housing.

02:26 - 51.182 How how does the governor's

02:26 - 53.732 housing plan seek to address these these

02:26 - 54.872 two very different than

02:26 - 57.972 it sounds kind of competing priorities.

02:26 - 01.352 Yeah thanks for the question rep and I think god that's actually

02:27 - 03.602 a really smart question in the sense that

02:27 - 06.042 it's like the hardest part of my job.

02:27 - 08.972 Which is that Pennsylvania is an amazing place but

02:27 - 11.402 the challenges that face individual regions and

02:27 - 14.232 in parts of Pennsylvania differ pretty widely.

02:27 - 16.600 I will say in the case of housing they differ less

02:27 - 19.752 widely than usual as my sort of anecdotal observation.

02:27 - 22.862 Even in in Philly or you know

02:27 - 24.068 the Philly suburbs

02:27 - 24.902 and

02:27 - 26.702 you're seeing like

02:27 - 29.502 significant gaps in supply

02:27 - 30.122 and

02:27 - 34.418 even where like what city economics would would you would think would enable home

02:27 - 36.662 builders or others to to make dollar make money

02:27 - 37.872 building new homes

02:27 - 39.612 and so what we tried to do with this plan

02:27 - 42.212 is put together like a set of interventions and funding

02:27 - 44.042 that would work everywhere

02:27 - 45.442 maybe in slightly different ways

02:27 - 45.943 so

02:27 - 48.552 Let's take the one billion dollar critical infrastructure

02:27 - 51.402 plan for example this should be like a reimbursable program

02:27 - 51.932 and

02:27 - 54.842 as we developed guidelines we would do so in a way

02:27 - 57.122 that we're like tailored for a local need

02:27 - 00.042 so like the requirements would be.

02:28 - 03.092 Like like we run many of our other programs

02:28 - 05.822 we would sort of assess local context

02:28 - 08.052 as we before we make an award.

02:28 - 11.712 Similarly there may be interventions around for example.

02:28 - 13.632 Some of.

02:28 - 17.272 Trailer park or mobile home park interventions that are

02:28 - 19.682 sort of more relevant to some communities than others

02:28 - 22.112 but they could be sort of broadly he understood

02:28 - 24.092 as sort of good for housing in Pennsylvania

02:28 - 24.872 so I think

02:28 - 26.672 the plan does a pretty good job

02:28 - 29.252 balancing the needs of rural suburban urban communities

02:28 - 30.872 but also respects your

02:28 - 32.282 obvious and very good point

02:28 - 32.882 that

02:28 - 35.812 not everywhere is the same the dynamics aren't the same everywhere

02:28 - 37.752 last point is really quick.

02:28 - 41.552 The reality is like more than any issue actually I've encountered in this job

02:28 - 43.422 housing is.

02:28 - 45.302 Uniformly

02:28 - 47.492 considered a key issue to solve for

02:28 - 49.262 in like every part of Pennsylvania like

02:28 - 51.962 every conversation every time everywhere

02:28 - 55.418 it's actually quite amazing it's been a very surprising revelation it's one of the

02:28 - 57.794 reasons we put so much time and effort into building

02:28 - 59.852 this plan because we do think there's like a real

02:29 - 01.532 abroad probably be solved here

02:29 - 05.432 is there is there any sort of look geog graphically I mean certain areas like

02:29 - 08.083 where my district you know there's there's competing

02:29 - 10.322 interests for land right you have housing you hire

02:29 - 11.559 you know business

02:29 - 14.262 but traditionally we have farming and we have some of the best

02:29 - 17.702 in a non irrigated soils in the united states in our district so we have

02:29 - 19.844 a lot of competing pressures on the use of this

02:29 - 22.322 land and obviously we're not making more land so

02:29 - 23.342 does does

02:29 - 26.012 the housing plan I look to to rectify that maybe

02:29 - 26.912 you know

02:29 - 29.892 right size things for different parts of the commonwealth

02:29 - 32.612 look land use decisions are made locally as you know

02:29 - 35.282 what the plant does do is acknowledge that

02:29 - 39.902 and put forward a set of ideas for how the state can partner with

02:29 - 44.263 municipalities and counties through things like developing model zoning codes or

02:29 - 45.572 judge the municipal planning code

02:29 - 47.840 to make sure that local governments have the tools

02:29 - 50.502 they need to make smart decisions for themselves.

02:29 - 53.042 I can't tell municipality in your district

02:29 - 56.492 and whether they should have more farmland or less housing or more industry

02:29 - 58.752 what we can try to do is.

02:29 - 59.802 Make a case

02:30 - 03.632 develop kinds of resources for these municipalities to make these decisions

02:30 - 05.402 in a way that sort of smartest

02:30 - 06.792 for their efforts

02:30 - 09.692 I do think that this plan on housing

02:30 - 11.082 does.

02:30 - 12.212 Push

02:30 - 13.412 push it a little bit though

02:30 - 14.882 we need more housing

02:30 - 17.282 what we're doing the status quo is not working

02:30 - 21.068 and therefore I think we've put forward a bunch of ideas around zoning and other

02:30 - 22.832 things to work with local governments

02:30 - 26.612 to try to unlock more housing but always with local contexts in mind.

02:30 - 29.072 That thank you mister sector I look forward to

02:30 - 31.262 exploring this little bit further with you and again

02:30 - 33.722 to trying to balance again those competing interested

02:30 - 35.082 in or the need for

02:30 - 37.982 producing food and jobs as well as housing and everything so

02:30 - 39.342 thank you rep yet

02:30 - 40.772 thank the gentleman

02:30 - 42.672 representative malaga.

02:30 - 45.096 Thank you mr chairman and thank you secretary saga for

02:30 - 47.582 your time and testimony and thank thanks to your team for.

02:30 - 49.352 Preparing for today

02:30 - 53.172 I represent a district in north center oral Montgomery county.

02:30 - 55.385 You mentioned during your opening remarks about

02:30 - 58.382 the large investment in the lehigh valley Eli Lilly

02:30 - 02.222 in manufacturing I was honored to attend last week along with you

02:31 - 06.188 the Johnson and Johnson announcement of over a billion dollars in investment for an

02:31 - 09.062 additional manufacturing site in Montgomery county as well

02:31 - 13.988 representing a neighboring area too to that project I have many constituents that

02:31 - 16.952 actually work within the bio pharmaceutical inch industry

02:31 - 20.552 or at growing companies at places like the spring house innovation

02:31 - 21.392 park

02:31 - 23.874 so Montgomery county in the local area to

02:31 - 26.552 my district is rich in life sciences we know

02:31 - 32.558 and talent and companies like Johnson and Johnson gsk merck pfizer and all Mac which

02:31 - 35.086 we are all thankful for but I want you to

02:31 - 38.192 speak to some of the other multiplier effects

02:31 - 38.972 that

02:31 - 41.762 these companies and the effects of these companies

02:31 - 42.542 have

02:31 - 46.772 and why their work matters outside of places like southeastern Pennsylvania

02:31 - 48.212 yeah thanks for that question

02:31 - 50.522 that was a great day thank you for being there

02:31 - 52.082 it's like it's always fun to

02:31 - 56.722 celebrate the combination of you know what you can imagine just a mass amount of work

02:31 - 00.196 by the company and by our team to to ensure that investment came to Pennsylvania

02:32 - 02.566 huge opportunity for for Montgomery county

02:32 - 03.586 and for

02:32 - 06.593 a long long time employer like jj and they're they're no

02:32 - 09.536 stranger to Pennsylvania we thank them for the investment.

02:32 - 10.006 Look

02:32 - 11.126 and.

02:32 - 13.002 It is incumbent upon us to

02:32 - 13.364 to

02:32 - 16.166 Share why we believe.

02:32 - 18.496 Life sciences is not just about

02:32 - 19.886 that sort of

02:32 - 22.486 intense farm ecosystem for example Montgomery county

02:32 - 25.066 and and here's a couple of examples that I think

02:32 - 26.456 are interesting

02:32 - 28.466 and one is.

02:32 - 30.616 The manufacturing base around life science

02:32 - 33.106 so of course there's a huge amount of that by huh

02:32 - 37.216 but you know Eli Lilly when fifty sixty miles to the north

02:32 - 39.066 made a really significant investment

02:32 - 41.336 actually if you go even further north.

02:32 - 43.106 You'll find Santa fe.

02:32 - 45.776 Which is a massive life science.

02:32 - 47.096 Manufacturer

02:32 - 49.676 in the northeast in swiftwater Pennsylvania

02:32 - 51.916 employing thousands and thousands of folks

02:32 - 52.936 directly

02:32 - 53.746 and really

02:32 - 54.316 you know

02:32 - 57.676 forming the tax base and and community for a significant part

02:32 - 58.456 of that region

02:32 - 59.206 and

02:32 - 00.646 these companies

02:33 - 01.976 and.

02:33 - 03.226 Make stuff

02:33 - 04.546 all over Pennsylvania

02:33 - 07.256 in that kind of like manufacturing play.

02:33 - 09.316 Is a really important part of

02:33 - 11.236 let's say extending the benefits

02:33 - 12.446 of the life science

02:33 - 14.449 ecosystem on all across Pennsylvania and in here's one

02:33 - 16.886 more point about Santa fe which is pretty interesting.

02:33 - 18.796 For the vaccines that they manufacture

02:33 - 21.526 they're the largest single purchaser of eggs

02:33 - 24.537 of any organization in the entire come off they

02:33 - 27.346 buy millions and millions and millions of eggs

02:33 - 28.756 from Pennsylvania farms

02:33 - 32.696 to make their vaccine so there's a huge ag benefit there too.

02:33 - 34.606 There are many stories like that.

02:33 - 39.146 Where we see the benefits of these life science organizations

02:33 - 41.056 extending well beyond our urban centers

02:33 - 42.596 thank you.

02:33 - 43.736 Sir thank you.

02:33 - 46.766 Thank the gentleman chairman Lawrence.

02:33 - 54.586 Thank you mr chairman good morning mr secretary

02:33 - 56.540 when I shit you being here today and appreciate

02:33 - 58.946 your continued service to the commonwealth.

02:33 - 03.796 Almost a month ago the Pennsylvania supreme court issued a long awaited opinion

02:34 - 05.889 regarding attempts by the city of Chester to

02:34 - 08.696 order a sale of the Chester water authority.

02:34 - 12.806 Supreme court held that the city has no unilateral authority

02:34 - 15.146 to order a sale of cwm.

02:34 - 16.786 As you know this is an issue

02:34 - 19.756 of keen interest to hundreds of thousands of

02:34 - 23.516 cw a ratepayers across Chester and Delaware counties.

02:34 - 25.406 Dcd

02:34 - 29.746 your agency oversees financially distressed communities in Pennsylvania

02:34 - 31.706 including the city of Chester.

02:34 - 36.292 The receiver for the city of Chester who is a governor appointee and paid out of d c

02:34 - 39.926 d's budget has decision making authority for the city.

02:34 - 42.286 In light of the court's recent

02:34 - 43.156 decision

02:34 - 47.996 I want to know what DC edis position is today regarding

02:34 - 51.577 any potential sale of Chester water authority from

02:34 - 54.796 d c e d s perspective given the court's ruling

02:34 - 56.806 is a sale of cw a

02:34 - 58.526 off the table.

02:35 - 01.636 Thanks for the question rep

02:35 - 04.226 and you are absolutely correct of course.

02:35 - 05.756 That we

02:35 - 07.736 recently very recently.

02:35 - 10.766 Were made aware of the supreme court ruling.

02:35 - 13.486 As a result of that ruling

02:35 - 14.176 it's

02:35 - 15.746 clear that

02:35 - 18.716 the city of Chester as you point out does not.

02:35 - 20.696 One.

02:35 - 22.636 The authority in fact it's owned by

02:35 - 26.606 the three taxing bodies if I'm not mistaken the city in the two counties.

02:35 - 29.396 And as a result.

02:35 - 31.456 Of the receiver who works for

02:35 - 35.156 you is paid by us as you point out but is legally independent

02:35 - 37.166 and for good reason.

02:35 - 39.046 Is reassessing options here

02:35 - 40.826 but the

02:35 - 42.266 the plane.

02:35 - 45.046 Reading of that

02:35 - 45.856 decision

02:35 - 47.846 would imply that.

02:35 - 48.886 You know

02:35 - 49.726 we've

02:35 - 51.376 he's got a shift his strategy

02:35 - 53.846 you know with respect to the water though.

02:35 - 57.106 So it's

02:35 - 58.546 your position then that the

02:35 - 01.746 strategy has been shifted could you expound upon that a

02:36 - 04.846 little bit about what that strategy might be going forward.

02:36 - 07.076 I guess my point is.

02:36 - 09.306 This is an.

02:36 - 10.336 Or maybe like

02:36 - 12.376 three weeks ago I like a very recent decision

02:36 - 13.946 and.

02:36 - 15.776 We reviewed it.

02:36 - 17.006 Obviously.

02:36 - 20.176 Following the oral argument which is I believe over a year ago

02:36 - 21.626 we knew that this was

02:36 - 22.766 a possibility

02:36 - 24.236 but I think.

02:36 - 24.856 It's

02:36 - 26.726 premature for me to.

02:36 - 29.956 Articulate the receivers strategy coming out of this

02:36 - 31.796 I do think that.

02:36 - 35.476 The north star of this whole process

02:36 - 37.226 remains the same.

02:36 - 38.056 Which is

02:36 - 39.746 Chester is bankrupt

02:36 - 41.996 and the people of Chester

02:36 - 43.636 deserve a functional government

02:36 - 44.966 they deserve.

02:36 - 51.026 High quality of life as a great city in Pennsylvania.

02:36 - 53.156 I think the receiver is actually made.

02:36 - 55.994 Really enormous progress in the last year in terms

02:36 - 58.786 of like the day to day management of the city itself

02:36 - 01.526 there are professional department heads

02:37 - 02.026 and

02:37 - 05.396 they are working to a budget effectively

02:37 - 06.826 and the city is running better

02:37 - 09.136 but that doesn't change the core question here

02:37 - 10.556 which is.

02:37 - 13.766 There are significant bankruptcy liabilities that need to be.

02:37 - 15.376 Disposed of in the

02:37 - 17.146 most advantageous way

02:37 - 18.316 and

02:37 - 20.326 the receiver continues to work hard at that

02:37 - 24.082 so I would agree with some of the things that you've just said they're the front of

02:37 - 27.376 the financial problems facing the city of Chester are not going away

02:37 - 31.196 and the good folks who live in the city of Chester do deserve

02:37 - 33.656 a reliable and competent services.

02:37 - 37.792 I will say I was surprised I don't see anything in the governor's proposed budget

02:37 - 40.419 regarding this and this is a long standing ongoing issue

02:37 - 43.406 this isn't something that just cropped up yesterday

02:37 - 44.936 and.

02:37 - 50.296 Is is there any thinking from d c e d about the way forward for the city of Chester

02:37 - 53.456 a state bail out is there what.

02:37 - 54.976 As you

02:37 - 55.876 mentioned

02:37 - 56.596 the

02:37 - 01.522 court decision that came down was a distinct possibility I have to imagine that there

02:38 - 05.216 is some thinking going on about what the way forward might be.

02:38 - 07.336 I guess I'd say like

02:38 - 08.656 two buckets of effort

02:38 - 10.196 one is.

02:38 - 12.116 I've been actually really.

02:38 - 14.606 Pleased at the progress we've made.

02:38 - 19.496 In engaging with the mayor with stakeholders in the city about.

02:38 - 22.306 Like a forward looking proactive economic development plan

02:38 - 22.966 for the city

02:38 - 23.416 like

02:38 - 25.306 like what would it mean for Chester to win

02:38 - 29.086 going forward in terms of housing or industry or

02:38 - 32.486 you know place making or beautification and I think.

02:38 - 33.626 That's been

02:38 - 38.486 a good process thus far actually we've used a model that we developed and in

02:38 - 40.648 a revalidation effort of downtown Pittsburgh obviously

02:38 - 42.556 Chester smaller but the same kind of opportunity.

02:38 - 45.506 I think with respect to the bankruptcy overall

02:38 - 46.616 and.

02:38 - 48.176 You know.

02:38 - 51.806 We are at arm's length from the receiver for a reason.

02:38 - 53.670 We monitor the situation very carefully at noon

02:38 - 56.696 I've talked about this many times of course rep.

02:38 - 57.856 And I think

02:38 - 00.296 based on the outcome of this decision.

02:39 - 04.338 We're going to continue to pursue a strategy that's

02:39 - 06.466 in the best interest of the residents of Chester and

02:39 - 07.616 and.

02:39 - 10.386 That's where I think I should leave it.

02:39 - 10.966 Very good

02:39 - 12.146 thank you mistake around

02:39 - 14.726 thank the gentleman representative mais.

02:39 - 17.456 Hi secretary.

02:39 - 20.836 As a mom of a toddler I understand

02:39 - 24.146 ad directly that affordable childcare.

02:39 - 26.396 Is essential

02:39 - 31.226 and affordable childcare is essential to a thriving economy and our commonwealth

02:39 - 35.438 right now at average costs of childcare in Pennsylvania

02:39 - 38.146 Anya may range from eight hundred dollars a month

02:39 - 40.666 to two thousand dollars a month

02:39 - 42.376 and so at

02:39 - 45.993 dcd has invested in programs like the urban redevelopment

02:39 - 48.466 authority in the city of Pittsburgh where I represent

02:39 - 52.696 and that childcare reinvestment business fund which provides for

02:39 - 54.136 forgivable loans

02:39 - 55.966 below market interest rate gates.

02:39 - 00.416 They are also models in other states like Maine and Connecticut.

02:40 - 04.396 That are building childcare Incubator labs so that we can

02:40 - 08.156 stimulate our business growth among childcare providers

02:40 - 10.670 and we know that the governor's administration

02:40 - 13.196 has provided retention and recruitment.

02:40 - 18.206 Bonuses to childcare workers all those types of models are essential

02:40 - 21.706 to affordable childcare in our commonwealth my question to you is

02:40 - 24.766 what is the department's strategic vision around

02:40 - 26.366 our economic

02:40 - 30.892 business and business investment in childcare whether it comes to the operators or

02:40 - 34.436 the workers themselves and just building childcare infrastructure

02:40 - 35.776 across Pennsylvania

02:40 - 37.586 yeah thanks for the question.

02:40 - 38.116 I

02:40 - 39.526 Couldn't agree with you more

02:40 - 42.236 that childcare is like a critical enabling.

02:40 - 44.746 Capability for our economy I'm not

02:40 - 45.466 I'm now the

02:40 - 47.476 dad of a five year old Mike as a five year

02:40 - 49.306 old us like we totally get it we're like in

02:40 - 49.876 with you

02:40 - 51.746 and it's tough.

02:40 - 54.136 Our department does not

02:40 - 57.206 other than a few limited grants like we don't.

02:40 - 02.122 Provide grants to or like support child care agencies the the channel by other

02:41 - 04.181 colleagues in other departments who had encourage you to

02:41 - 04.393 to

02:41 - 07.036 Talk to about it but but what I will say about it is

02:41 - 08.840 from an economic perspective it's like a key

02:41 - 11.636 barrier to entry for people to enter the workforce

02:41 - 14.572 and so like when you look especially in rural Pennsylvania but all of Pennsylvania

02:41 - 17.132 our labor participation rate that is the percentage

02:41 - 20.456 of like working age people who are in a job.

02:41 - 22.526 Is lower than some.

02:41 - 25.336 Bordering are competitive states

02:41 - 28.486 this childcare question is a big part of that

02:41 - 30.226 transportation is a big part of that

02:41 - 34.612 and I think when we look at these issues by broadly like yes we need childcare to

02:41 - 36.496 have like safe healthy successful

02:41 - 37.156 kids

02:41 - 40.846 but we also needed to grow our economy it's kind of how we think about housing too

02:41 - 42.676 like I think it's just a more powerful

02:41 - 44.996 way to think about it and helps us.

02:41 - 47.756 Move some of these policy initiatives forward.

02:41 - 51.526 More effectively so I I'm I'm with you on this I think childcare is important

02:41 - 52.946 or departments dearer

02:41 - 55.438 like purview and funding is is fairly limited

02:41 - 57.690 but I know the governor's overall budget

02:41 - 59.970 the administration folks and this is really keen.

02:42 - 03.876 Well thank you for that I just would like to encourage continued and expanded

02:42 - 06.052 investments in the grants that you do making

02:42 - 08.340 this emphasis in that childcare infrastructure

02:42 - 11.850 like the credit program in in Pittsburgh I think it can

02:42 - 17.130 be a powerful way way to catalyze more classrooms opening more spots for

02:42 - 20.006 our our youngest learners to have the opportunity

02:42 - 21.690 for education thank you so much thank you

02:42 - 22.560 thank you

02:42 - 23.370 thank you chairman

02:42 - 24.850 thank the gentle lady

02:42 - 26.440 chairman Miller.

02:42 - 32.280 Thank you

02:42 - 35.190 mr chairman and thank you mr secretary appreciate

02:42 - 36.700 this opportunity

02:42 - 38.470 I want to.

02:42 - 42.090 Just offer a bit of clarification on a

02:42 - 43.330 a

02:42 - 46.770 Reference to house bill nine eighty five which was referenced previous

02:42 - 48.070 related to

02:42 - 52.390 money's coming out of the johns town flood tax and then going to municipalities

02:42 - 55.380 just to put a little bit of context in that

02:42 - 57.580 if that were to be accomplish

02:42 - 00.750 the money going from the johns town flood tax it would

02:43 - 02.703 then go to various municipalities but it would

02:43 - 05.070 leave a four hundred and fifty million dollar hole

02:43 - 06.510 in our general fund budget