PA Budget Proposal Reflects Lessons From Lost Fairlife Bid

Last year, when the big dairy brand Fairlife picked New York over Pennsylvania for its new factory, lawmakers and business leaders didn’t hold their tongues. They said that Pennsylvania’s licensing process, a lack of construction-ready sites, and a shaky supply chain were to blame for the failed bid and the lost $650 million investment.

Democratic Gov. Josh Shapiro didn’t directly talk about Fairlife in his budget speech, but his $48.3 billion plan is based on what he learned from the case. His budget includes hundreds of millions of dollars to get commercial and industrial sites ready for new owners, bring in new businesses, and pay for grants for farmers.

Officials in charge of agriculture and business development say that the budget plan and Shapiro’s earlier this year development strategy, which names agriculture as a sector to focus on for economic growth, will help existing farms and make Pennsylvania a desirable place to run a business.

“The agriculture industry is very important to Pennsylvania’s economy.” As well as that, it affects many employers further down the line, according to Alex Halper, vice president of government relations for the Pennsylvania Chamber of Business and Industry. “It is smart to think about agriculture as part of the economy as a whole and as a way to keep moving Pennsylvania forward.”

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During events promoting the spending plan and in his budget speech, Shapiro has said that these planned investments will make Pennsylvania a better place for businesses to set up shop and more competitive. Shapiro recently talked about a $10 million grant and loan deal that his government gave to the Maryland & Virginia Milk Producers Cooperative Association. This group just bought a factory in Philadelphia. A governor’s office spokeswoman said the government wants to see more projects like these.

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Pennsylvania tried to get Fairlife to move there by offering $15 million in tax breaks as part of a larger, quickly passed $2 billion tax credit plan. Officials from the state told Spotlight PA that New York made a better offer to the company in the end.

During a press meeting in Juniata County last year, Shapiro talked about the failed bid. “It was all hands on deck.” “What we learned during this process might be even more important than getting that deal in the end.”

Shapiro said that Pennsylvania’s leaders knew they needed to speed up the process of getting permits, give businesses better financial incentives, and make sure the state had the resources to make sure there were enough cows to produce milk.

“I am sure that we will use that tax credit. “Prince William County will get a big farming deal, and we’ll be ready to rock and roll soon,” he said. “Did we make it?” No. What did we learn? Yes. Also, are we going to get one more time? Of course.”

State Sen. Elder Vogel (R., Beaver) said that Pennsylvania did not have a place ready to hold the about 100-acre building. He also said that getting licenses would have slowed down the building process for months.

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