Pa. business leaders react to Shapiro’s budget proposal

Gov. Josh Shapiro delivered his 2025-26 executive budget proposal Tuesday, and response was swift from business leaders across Pennsylvania.   

There was optimism from many, albeit guarded, along with criticism and a wait-and-see attitude.

“Pennsylvania needs to be more competitive,” PA Chamber President and CEO Luke Bernstein said in a statement. “We have made significant progress by working with Governor Shapiro and the General Assembly to improve our tax structure, modernize permitting, and invest in workforce development — all of which are key steps toward a stronger economy.

“We look forward to reviewing the details and working toward solutions that drive economic growth. We are encouraged by Gov. Shapiro’s commitment to accelerating the Corporate Net Income (CNI) tax reduction, which is critical for attracting and retaining jobs and investment. We appreciate the shared goal of reducing business taxes and improving competitiveness, however, we do have significant concerns regarding the proposal to implement a new business tax structure. The governor’s proposal is the first step in the annual budget process and starts the conversation. We look forward to continuing the dialogue with Gov. Shapiro and the General Assembly.”

The Pennsylvania AFL-CIO commended Shapiro for including initiatives in his executive budget proposal that provide opportunities for Pennsylvania workers to earn union jobs with benefits.

“From the Lightning Plan, which draws a clear connection between the clean energy economy and union workers, to plans to increase wages and benefits for direct care workers, and dependable investments in mass transit, the proposal shows the governor cares for the future of the working men and women who built our country,” Angela Ferritto, president, Pennsylvania AFL-CIO, said.

“Governor Shapiro’s commitment to creating more good-paying union jobs in a clean energy economy is in alignment with our Union Energy campaign. We are dedicated to creating an energy economy that allows all Pennsylvania residents to work in union jobs with union benefits. Working together with the PA Building Trades, Climate Jobs National Resource Center and Cornell University we have launched a non-partisan campaign called Union Energy – together, we can increase union opportunities, anticipate the challenges of tomorrow, and create a sustainable energy economy.”

The Pennsylvania Workforce Development Association (PWDA) also welcomed Shapiro’s focus on workforce development.

“Workforce development has been a bipartisan priority in Harrisburg and remains at the forefront of priorities for Pennsylvania employers, job seekers and communities,” said Carrie Amann, Executive Director of the Pennsylvania Workforce Development Association. “We are encouraged by the governor’s commitment to Pennsylvania’s economic growth and stand ready to collaborate with policymakers to make Pennsylvania’s workforce development system the strongest in the nation.”

The PWDA encouraged the administration and the legislature to invest in youth workforce development. As Pennsylvania’s workforce ages, state-wide investments and programs to help prepare young people for careers are needed, the PWDA said.

The Pennsylvania Health Care Association (PHCA) also addressed the aging workforce.

“In just five years, the number of Pennsylvanians aged 65 and older will surpass those Pennsylvanians 19 and younger,” Zach Shamberg, president and CEO of the PHCA. “This dramatic shift demands we prioritize a corresponding shift in our state budget priorities.”

The PHCA called on the General Assembly and the Shapiro administration to address the needs of the aging population and secure the resources necessary to stabilize senior care in the commonwealth.

Better PA Executive Director Angela Valvano issued a statement celebrating Shapiro’s budget plan and its support of working families.

“Governor Shapiro’s proposed budget demonstrates a clear commitment to economic security for Pennsylvania families,” Valvano said. “The increase in minimum wage to $15/hour will not only help workers but generate an additional $100 million in annual revenue for critical infrastructure and economic development. A minimum wage increase would benefit more than just the 870,000 Pennsylvania workers who earn below $15 an hour now – local economies across the state benefit when workers have more to spend in their communities.”

Pennsylvania Association of Community Bankers President and CEO Kevin Shivers said the organization looks forward to collaborating with Shapiro and the state legislature to make bank tax rates fairer and competitive.

“Pennsylvania’s community banks appreciate that Governor Shapiro has acknowledged our state’s tax policy is not fair or competitive for Pennsylvania’s financial institutions and hurts bank customers,” said Shivers. “Some banks in PA pay income taxes as high as 11.5 percent, while other financial institutions, like credit unions, pay zero taxes. If a credit union markets banking services to the public, then they should be taxed, just like banks.”

Mobilify Southwestern Pennsylvania supports Shapiro’s draft budget including $292.5 million for mass transit.

“A robust, well-funded, transportation system is a core function of government and crucial for our economy,” Mobilify Executive Director Chris Sandvig said. “Public transit support is particularly welcome. Every county in the state has some form of transit. Pennsylvanians literally everywhere rely on that ride to see their doctor, get and keep a job, and live life. Making sure they can get to work, school, the doctor, or get together with friends and family is one of the building blocks that makes our commonwealth work for residents and attracts new businesses and families to locate in the Keystone State.”

LeadingAge PA President and CEO Garry Pezzano said that although Shapiro did not include critical funding increases in his budget address, there is a need to address the state’s growing older adult population.

“As we’ve said before, Pennsylvania has the opportunity to create a national model for how we care and support older adults, demonstrating that no one does it better than the Keystone State,” said Pezzano. “However, this can only happen if we fully commit to confronting this challenge head on and collaborate on sustainable solutions.”

Keystone Research Center Executive Director Stephen Herzenberg said the governor’s proposed minimum wage increase to $15 per hour is a long-overdue step that will boost the economic security of nearly a million Pennsylvania workers.

“We’ve spent the better part of 16 years researching the impact of a minimum wage increase while 30 states—including every PA border state—took action to raise theirs,” said Herzenberg. “How much more time do we need? This increase would particularly benefit women and workers of color who are overrepresented in low-wage jobs, while also generating additional state revenue through increased income tax collections. The evidence from states that have already moved to $15 shows that these increases can be implemented without job losses, while reducing poverty and income inequality.”

PA Family Institute Chief Strategy Officer Dan Bartkowiak said it was irresponsible of Gov. Shapiro to put claims of profits over the health and safety of Pennsylvania citizens by calling for high potency THC to be commercialized in every community across the commonwealth.

“This type of irresponsible marijuana legalization would put more people at risk on Pennsylvania roadways and workplaces and jeopardize the health and safety of our children,” said Bartkowiak. “There’s nothing recreational about more people harmed by addictive substances, which is what we’re seeing in states experimenting with unleashing the marijuana industry through a retail recreational use market.”

The budget increase of $40.349 million for the Pennsylvania State System of Higher Education (PASSHE) enables the Board of Governors to freeze tuition for an eighth consecutive year.

“We are most appreciative of Gov. Shapiro’s strong support of PASSHE and for proposing to invest in our students,” said Board of Governors Chair Cynthia Shapira. “The State System has kept tuition frozen since 2018 thanks to recent funding increases, and the governor’s proposal would help us to freeze tuition again for next fall. PASSHE universities are proud to offer students a high-quality, high-value education that prepares students for in-demand careers and strengthens communities.”

The Pennsylvania Association of Career and Technical Administrators (PACTA) welcomed the governor’s commitment to strengthening CTE programs and expanding opportunities for students to gain real-world skills that lead to high-quality jobs.

“We appreciate the governor’s acknowledgement that career and technical education will help ensure that our students are prepared for in-demand jobs, our educators are empowered to succeed, and our economy remains strong and competitive,” said John Pulver, executive director of PACTA. “Additionally, the governor’s investment in career and technical education is crucial to preparing our students for in-demand careers while supporting Pennsylvania’s businesses with a skilled workforce.”