Politics & Government

State Senate Democrats Unveil $1 Billion Job-Creation Plan

The plan would create 80,000 jobs, Senate Democrats said.

State Senate Democrats Monday unveiled their revised job-creation plan, called PA Works Now, which they claim would create 80,000 new jobs and leverage billions in private investment to generate jobs and economic activity. 

State Senate Democratic Leader Jay Costa, D-Allegheny County, said in a statement that job creation is the number-one priority for this fall’s session of the General Assembly.  

He added that the PA Works Now package does not require new broad based taxes, is fully paid for and does not put additional strain on the state general fund.

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“PA Works Now features a new investment vehicle called the Pennsylvania Investment Bank that will quickly pump $1.2 billion into the economy and create jobs,” Costa said. “Our goal is to jump start the economy and create new jobs in the shortest possible time. Job creation is the most important issue lawmakers must tackle this fall.” 

The Democrats’ plan includes renewed investment in job-producing programs and public works such as water and sewer projects as well as money for new business investments. 

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The plan also provides a new round of capital infusion for the state Machinery and Equipment Loan Fund and would establish Pennsylvania’s version of the successful Georgia Works on-the-job training program. 

The Pennsylvania Investment Bank would target more than $1.2 billion for water and sewer system reconstruction, new business investment and other public works. 

The bank would capture funds generated from existing borrowing capacity. The bank would use $500 million in Commonwealth Finance Authority dollars plus a half-billion from the Pennsylvania Infrastructure Investment Authority. 

The investment bank would also utilize $80 million in funds from a proposed Marcellus Shale tax or fee along with surplus state revenues.  Democrats estimate that these sources would generate $180 million.

“There are so many workers who are looking for jobs and even more who are worried about what is next for them in this very difficult economic recovery,” Costa said.  “Our comprehensive PA Works Now plan addresses job creation and presents an opportunity to move our economy forward.”

Democrats said action is needed now on their job creation plan because of the recent increase in unemployment.  Pennsylvania’s unemployment rate spiked by nearly a half percent from July to August—rising to 8.2 percent. 

Since May, the number of unemployed Pennsylvanians grew by 45,000. 

Senate Democrats unveiled a previous version of PA Works earlier this year. 

State , D-Canonsburg, lauded the plan Monday.

"Our infrastructure is continuing to crumble around us. From highways to bridges to utility infrastructure," he said. "Moving money to these areas makes job opportunities available and jobs move the economy."


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