Keystone Today

On July 11, the Pennsylvania General Assembly passed a $47.6 billion state budget for 2024-25, which Governor Shapiro subsequently signed into law. This action ended an 11-day budget impasse. The new spending plan is approximately $2.7 billion, or 6%, more than last year's budget. Notably, no new or increased taxes affecting small businesses were included in this budget.

The National Federation of Independent Business (NFIB) expressed satisfaction with the outcome, particularly regarding regulatory reform provisions incorporated into the state's fiscal code. These reforms include the Streamlining Permits for Economic Expansion and Development (SPEED) Program aimed at expediting the permitting process managed by the Department of Environmental Protection (DEP) and county conservation districts.

Key elements of this program are:

- Expedited Permit Review by a Third-Party: Applicants can choose third-party entities approved by the state to speed up reviews for air, land, and water permits.

- Permit Application Tracking System: This allows applicants to monitor their permit status online with details such as processing times and review dates.

- Increased Accountability for DEP: The department will be responsible for costs incurred by applicants if it fails to make permit decisions within set timeframes.

Melissa Morgan, NFIB Pennsylvania Assistant State Director, stated, “The state budget included solid provisions for small businesses, and we are pleased that no tax increases were included.” She added that NFIB would now focus on advocating policies to strengthen the economy and support pro-small business candidates in upcoming elections.

Additional allocations in the budget include:

- A $740 million contribution to the state's rainy-day fund.

- An incremental increase of Net Operating Loss (NOL) threshold to 80% by 2026.

- Continuation of corporate net income tax decrease.

- An increase of $1 billion in K-12 education funding.

- $5 million in new funding for the Attorney General’s office to enhance community safety, including $2.7 million dedicated to combating organized retail crime.

Further details about the enacted state budget can be accessed through official channels. The Pennsylvania General Assembly is scheduled to reconvene on September 16.