Legislators Pass Most of Rendell's $1B Stimulus Budget

Two economic development programs are at the heart of the budget. "Business in Our Sites" provides flexible loans and grants to local municipalities and their economic development partners to acquire and prepare key sites for development. "Building PA" provides funding for the development of real estate assets throughout the commonwealth. The funding will consist of loans to private investors and foundations looking to match funds in order to facilitate new projects.

Within these programs, over four years, $300 million is devoted to revitalizing aging industrial sites, and $150 million goes into real estate investment. The legislation also creates a new entity, Commonwealth Financing Authority, responsible for the financing and oversight of the programs.

Key development targets for job growth are manufacturing, advanced technology and biotechnology. Toward that end, the budget also contains a second-stage loan program that will provide guarantees for bank loans to second-stage manufacturers and technology companies for working capital and other financing needs, including expansion.

"PennWorks," a program to fund infrastructure improvements, and the "Redevelopment Assistance Capital Program," remain on the table. PennWorks would provide $250 million in loans and grants to projects that require improvements in water and sewer systems. It is designed as a companion to Business in Our Sites. This aspect of Rendell's plan will take the form of a referendum on the April primary ballot. If it gains approval, Rendell and the legislators will authorize a water and wastewater infrastructure program. Redevelopment Assistance is a grant program for the acquisition and construction of regional economic, cultural, civic and historical improvement projects.