Pennsylvania, according to U.S. Sen. Dave McCormick, \u201cis in the middle of a really unprecedented economic transformation.\u201d On Thursday at Temple University, he convened a daylong gathering to accelerate that transformation: The Pennsylvania Red Tape Dialogues, which brought together politicians and industry stakeholders to brainstorm ways to improve Pennsylvania\u2019s business climate.<\/p>\n
Building on Gov. Josh Shapiro\u2019s efforts to streamline permitting and licensing, McCormick said his goal was to find ways to limit the onerous regulations that have long stymied the commonwealth\u2019s entrepreneurship. \u201cOur goal is to turn the frustration that many of you feel into a practical agenda,\u201d McCormick told an audience prior to the industry workshops.<\/p>\n
\u201cWe have about 1.2 million small businesses in Pennsylvania, and they account for about half of our economy,\u201d he said. \u201cThe small businesses are the economic engine for our growth \u2013 and they are disproportionately affected by the regulatory burden, by the cost of compliance \u2026 We need to deal with those frustrations in a commonsense way.\u201d<\/p>\n
McCormick\u2019s office touted the event as a first-of-its-kind, nonpartisan gathering of executives, business owners, policy experts and federal and state regulators from across the commonwealth. Those invited submitted 300 initial ideas to reduce the regulations the state imposes on businesses; after hashing them out in person, 10 industry groups presented their recommendations.<\/p>\n
\u201cOur commonwealth has more than 166,000 regulatory restrictions. That\u2019s 22% more, on average, than other states \u2013 and all of this comes at a cost,\u201d McCormick told the assembly. \u201cThe greatest costs are not just in price; they\u2019re unseen. They\u2019re the cost of investments that are never made, the businesses that are never started, the jobs that are never created.\u201d<\/p>\n
Ben Kirsch, the commonwealth\u2019s chief transformation and opportunity officer, updated the crowd on the Shapiro administration\u2019s efforts to facilitate entrepreneurship. After his office introduced the Permit Reform System, Kirsch said, the average permit processing time dropped from six to two days.<\/p>\n
\u201cWe\u2019ve helped close over $43 billion of new private investment in our administration the last three years, and created over 29,000 new jobs in the commonwealth. That\u2019s more than the last 15 years combined. So Pennsylvania is on the rise,\u201d he said.<\/p>\n
McCormick was also joined by former two-term Arizona Gov. Doug Ducey, the former CEO of Cold Stone Creamery. In office from 2015 to 2023, he imposed a moratorium on new state regulations and eliminated or reformed more than 3,100 rules during his tenure.\u00a0\u00a0<\/p>\n
Ducey told the gathering that his experience growing Cold Stone from a franchise to a 50-state, 1,440-store operation offered a unique perspective on the role of states\u2019 business climates.<\/p>\n
\u201cIn a state like Arizona, we could open up our first several stores for less than $150,000\u2026 Why does it cost $450,000 to open the same store in the state of California?\u201d he recalled wondering. As he championed reform, Ducey also cautioned that some regulation is necessary to protect public health and safety.<\/p>\n
The Red Tape Dialogues, McCormick said, aim to target those regulations that generate paperwork without measurably affecting the public welfare. \u201cThe idea is to really cross-pollinate,\u201d he said of the brainstorming sessions. \u201cAnd within 60 days, I will publish a report outlining your proposals and the plan for how we\u2019re going to pursue them to the benefit of all Pennsylvanians.\u201d<\/p>\n
Final recommendations<\/p>\n
The day\u2019s discussions culminated in representatives from each major industry presenting the policy recommendations agreed upon in their respective working groups.\u00a0<\/p>\n
\u201cWe need 100% oversight and accountability, and we embrace that,\u201d said final panel emcee John Fry, the president of Temple University, of the discussions. \u201cBut we also need to see processes that are streamlined and expedited from a regulatory standpoint \u2026 That\u2019s why today\u2019s event is so crucial for Pennsylvania\u2019s future business growth.\u201d<\/p>\n
The industry recommendations \u2013 aimed at reducing regulatory delays and improving business growth \u2013 ranged from immediate moves, such as fixing a tool or regulatory process, to wide-ranging changes, including agency rule changes and legislative reforms.\u00a0<\/p>\n
The industries represented included agriculture, farming and dairy; defense and advanced manufacturing; life sciences and biotechnology; food processing and distribution; housing and construction; higher education; retail and hospitality; transportation and logistics; independent healthcare and elder care; and early childhood education and childcare.\u00a0<\/p>\n
A common thread across several industry recommendations was the need to address worker shortages, particularly in farming and food.\u00a0<\/p>\n
Walt Moore, a fourth-generation dairy farmer from Chester County, said visa program reform \u2013 and a dairy investment tax rebate \u2013 would go a long way toward increasing dairy and milk production.\u00a0<\/p>\n