Statement on the Governor’s 2026-27 Budget Address

A Statement from our CEO, Stefani Pashman

February 2, 2026 - We were pleased that Governor Josh Shapiro's 2026-27 budget address continues to prioritize business, as well as investments in economic development.

Building on three years of strong economic momentum, the budget aims to further increase business investment, while improving site readiness and permitting. Pennsylvania has impressively climbed seven spots in Site Selection Magazine 2025 State Business Climate ranking, now standing at No. 11 nationally. This is a testament to our ongoing commitment to fostering a favorable business environment.

One of the key elements of the proposed budget is the continued reduction of the corporate net income (CNI) tax rate, which is crucial to our strategy. Additionally, the budget emphasizes the importance of investing in PA sites to boost business investment and improve Commonwealth permitting processes, ultimately unlocking regional growth through both attraction and in-market expansion. Speed to market is a critical focus for businesses of all sizes.

As the lead economic development organization for the 10-county Pittsburgh region, the Allegheny Conference supports innovation in key clusters including robotics, energy, AI, advanced manufacturing, and life sciences. Governor Shapiro's budget includes significant investment in economic development, including the Innovate in PA 2.0 Program which proposes a $100 million investment in the biotechnology/life sciences industry.

We applaud the Governor's recognition that the Commonwealth needs a comprehensive all-of-the-above energy policy to position PA as a global energy leader and keep energy as a key economic driver. With increasing demand for power generation and projected energy shortages, the time is now to develop a plan. We look forward to working alongside the Governor and other stakeholders to ensure the Commonwealth leverages Southwestern Pennsylvania's abundant natural resources and expertise to expand reliable baseload generation.

We recognize that our region and state only flourish when communities thrive. Governor Shapiro's budget proposes concrete action steps to address housing accessibility, so Pennsylvania keeps pace with demand. The budget proposes a $1 billion bond sale to support critical infrastructure investments across energy, housing, school districts, and local governments.

We appreciate the proposed investments in workforce, as well as the continued investment in our mass transit systems.

While we supported continued investments in our region and its people, we appreciate the fiscal discipline in the Governor's budget - a budget that promotes economic growth without calling for a broad-based tax increase.

The Allegheny Conference stands ready to work alongside the Governor and our stakeholders to finalize a budget that drives opportunity and job creation for Southwestern Pennsylvania.