An economist on state growth, lessons from an apparent Dem victory in a red district, and Shapiro pivots on data centers. I'm Capitol reporter Stephen Caruso.
This is Access Harrisburg.
One State, Many Economies
Officials take part in a ceremonial groundbreaking for the Bette Brown Slayton Business Park, a project that received a $2.8 million PA SITES grant. (Commonwealth Media Services)
I’VE OFTEN SAID IN THIS NEWSLETTER THAT PENNSYLVANIA’S STRUCTURAL DEFICIT HAS ONLY TWO SOLUTIONS: RAISE TAXES OR CUT SPENDING. But I should nod to a third option — economic and population growth.
If the commonwealth experiences a boom — inspired by, say, some smart investments in education, biotech, and site development and some selective red tape cutting — that growth could mean more tax revenue to fill the state’s coffers and avoid any politically painful choices.
Gov. Josh Shapiro frequently claims that Pennsylvania has the only growing economy in the Northeast. He’s also pointed to rankings from business journals to argue his administration’s policies have made a meaningful difference in the state’s future economic prospects.. Top legislators in both parties and chambers have also taken credit for the same.
But do state policymakers really have the ability, through their existing toolkit, to improve our short-term fiscal future through some incremental changes? Or is the Capitol huffing hopium? To answer this, I reached out to University of Pittsburgh economist Chris Briem. Here are takeaways from conversations conducted via phone and email on the state of the state’s economy.
Subscribe to Access Harrisburg to read the rest.
Scoops, expert analysis, and more from Capitol reporter Stephen Caruso. Exclusive insight into Pa. politics you won’t find anywhere else. All delivered straight to your inbox weekly for just $4/week.
Subscribe