2024 was the second year of Josh Shapiro’s first four-year term as Governor. As it’s been throughout his time in office, and even during the campaign, this year the Governor focused on “getting stuff done”.
2024-2025 Budget
On July 11, 2024, the Governor signed the FY 2024-2025 General Appropriations Act and corresponding Code bills into law. This year’s budget reflects $47.598 billion in enacted state appropriations from the General Fund, which is a $2.72 billion (6.2%) increase from last year’s budget.
One of the biggest budget items was the establishment of the Pennsylvania Strategic Investments to Enhance Sites (PA SITES) program. The program received $400 million in funding and will spur economic growth through the development of commercial and industrial sites. Furthermore, there was $20 million for Main Street Matters, to support small businesses and commercial corridors, and $15 million for tourism marketing.
Protecting health care and delivering for seniors was a key tenant of this year’s budget. This included $354.8 million in federal and state funding for intellectual disability/autism services: $280 million to help raise wages for direct support professionals; and $74.8 million to transition 1,500 individuals off the emergency waiting list for services and into home and community-based services. Furthermore, there was a $75 million increase to care for seniors and adults with physical disabilities living in skilled nursing facilities, including a 7.04% provider rate increase.
Mental health services, gun violence prevention, and public safety were other areas of emphasis. Of note, there was $100 million made available for student mental health services and a $20 million increase for county mental health services. Also, there was a $11.5 million investment to create a statewide Building Opportunity through out of School Time (BOOST) program that will provide more after-school learning opportunities to young people. Two other programs each received a $5 million increase: the Violence Intervention and Prevention (VIP) program, which reduces community violence and relies on community groups; and the Nonprofit Security Grant Fund, which provides resources for places of worship, community centers, and other entities.
Housing and homelessness were the last main issues tackled in the budget, which included an increase in the Pennsylvania Housing Affordability and Rehabilitation Enhancement Fund (PHARE) cap by $10 million annually, until it reaches $100 million in 2027. In addition, the Neighborhood Assistance Program cap was doubled from $36 million to $72 million.
Administration Actions
In non-budget related news, on January 30, 2024, Governor Shapiro announced the Commonwealth’s first statewide economic development strategy in nearly two decades. The goals of the plan include investing in economic growth to compete, making government work at the speed of business, opening doors of opportunity for all Pennsylvanians, innovating to win, and building vibrant and resilient regions. Five key industry sectors will be targeted to maximize opportunities for growth: agriculture, energy, life sciences, manufacturing, robotics and technology.
Then on March 20, 2024, the Governor launched the Pennsylvania Outdoor Business Alliance. The Alliance will create opportunities for outdoor recreation businesses to collaborate with one another, develop a one-stop shop for questions related to permits, regulations, and help small businesses compete in the national outdoor recreation economy.
The first Executive Order (2024-01) of the year was signed on May 13, 2024. It established the Hire, Improve, Recruit, Empower (HIRE) Committee, which will help to strengthen the Commonwealth’s recruitment, hiring, development, and retention of high-performing employees. The HIRE Committee will: (1) develop a pilot program to create financial incentives to help recruit employees with non-English language proficiency; (2) develop a mentorship and networking program to support recently discharged veterans; (3) promote pathways to employment for recently incarcerated individuals returning to their communities; (4) expand childcare options in state-owned building; and (5) widen pathways to employment for individuals with disabilities.
The second Executive Order (2024-02), which updates an executive order issued by former Governor Tom Wolf, was signed on September 9, 2024. It re-establishes the Pennsylvania Office of Gun Violence Prevention (OGVP), which will: (1) convene an advisory group; (2) develop a gun violence prevention plan; (3) partner with state agencies to create and maintain a comprehensive online gun violence data dashboard and resource hub; (4) apply for non-state funding; (5) work to improve services and support for gun violence victims; and (6) collaborate with state agencies and stakeholders to increase awareness of firearm safety practices.
On September 12, 2024, Governor Shapiro signed Executive Order 2024-03, establishing Pennsylvania’s first comprehensive Housing Action Plan, which will guide efforts to expand affordable housing and provide support to the unhoused. It also ensures a coordinated, multi-agency approach, and directs the Department of Human Services to develop recommendations on policies and best practices for addressing homelessness and supporting individuals in need by collaborating with stakeholders.
On October 25, 2024, the Governor announced a plan to revitalize downtown Pittsburgh. The plan includes seven major mixed-use development and housing projects and revitalizing three iconic public space. Nearly $600 million has already been committed toward specific, shovel-ready projects as part of the initial phase of this plan. Projects are scheduled to be completed by the end of 2028. As part of this effort, the Administration is investing $62.6 million and the City of Pittsburgh is committing $22.1 million through the Urban Redevelopment Authority. Additionally, private sector leaders and regional foundations already committed more than $40 million. It’s estimated that the plan will create over 3,500 construction jobs over the next four years.
Governor Shapiro signed The last Executive Order of the year (2024-04) was signed on November 19, 2024. It created the Pennsylvania Permit Fast Track Program (Fast Track) to speed up government, drive economic growth, and make the Commonwealth more competitive. Fast Track identifies key economic development projects and assists with permitting processes by organizing agency meetings, coordinating key parts of the project, and enhancing transparency and accountability through a public-facing online dashboard. The program, ran by the Office of Transformation & Opportunity, was piloted on three key economic projects earlier in the year.
Lastly, on November 22, 2024, Governor Shapiro directed Department of Transportation Secretary Mike Carroll to begin the process of transferring $153 million in federal highway capital funds to the Southeastern Pennsylvania Transportation Authority (SEPTA). This action will prevent immediate service cuts and a planned fare increase, allowing the transit agency to maintain critical operations through at least July 2025. The Governor proposed in his budget $282.8 million in new funding over the next year five years, but the enacted budget only included a $80.5 million increase.
