Community and Economic Development 

Governor's Executive Budget Program Measures


Business Financing Programs

Jobs pledged to be created
Jobs pledged to be created are legally binding pledges by the companies to add permanent, full-time positions on company’s payroll, paying at least 150% over the federal minimum wage, as a direct result of funding received from the department.
Pledges to create jobs helps ensure that businesses provide opportunities for all the commonwealth’s residents, improve the local tax base, achieve prosperity, and attain a higher quality of life for families and communities.
The number of jobs pledged to be created fluctuates every year depending on the level of legislative appropriations to job creation programs, the state of the economy, and the nature of financed projects. Some high dollar value company projects that are vital to local communities, such as machinery and equipment purchases, or building and construction financing are sometimes not associated with large pledges to create jobs. FY2021-22 decline is mainly due to the sunset of the JCTC program and continued economic slowdown from the COVID-19 pandemic.
Jobs pledged to be retained
Jobs pledged to be retained are legally binding pledges by companies to preserve permanent, full-time positions on the company’s payroll, paying at least 150% over the federal minimum wage, as a direct result of funding received from the department.
Financing company job retention is just as critical in many communities as financing job creation. This is especially true during an economic downturn, when companies that are economic anchors in communities face decisions surrounding employee layoffs, closure of operations, or relocation to other states.
A greater proportion of job growth in many communities is usually generated by businesses already located there. Systematic and comprehensive retention efforts help to create a strong business climate, along with a vibrant community. Many communities find business attraction efforts to be more difficult, expensive, and time consuming than business retention initiatives.
Jobs pledged to be retained numbers also tend to fluctuate every year depending on program appropriation levels, state of the economy and nature of the financed projects.
FY2021-22 decline is mainly due to the sunset of the JCTC program and continued economic slowdown from the COVID-19 pandemic.
Private funds leveraged
Private funds leveraged are private investments or matching funds on a department’s funded project. o The department requires private funds match for all business financing projects. The department’s funds act as the catalyst that helps spur economic growth in communities. The leverage ratio varies by project or program and ranges from 1:1 to 1:10 and above. The amount of private investments leveraged has fluctuated every fiscal year, since the types of projects financed varies. For example, large capital projects, such as building or machinery purchases, attract more private than working capital financing. FY2021-22 decline is mainly due to the sunset of the JCTC program and continued economic slowdown from the COVID-19 pandemic.
Businesses assisted
Businesses assisted are businesses which have received funding or technical assistance through a project or program from the department. The assistance is aggregated by type of assistance and not by unique businesses receiving assistance such that if a business applies for a loan and separately applies for a grant for a different project, this will be aggregated as two types of assistance.
The number of businesses assisted in any fiscal year depends on the number and types of business assistance programs, the level of program appropriations, the demand for the programs, the maximum limit of application amounts, and the types of projects.
For the last several fiscal years, the number of businesses assisted has fluctuated within a narrow range due to the constant number of business assistance programs with flat appropriations over the years for the programs. FY2021-22 decline is mainly due to the sunset of the JCTC program and continued economic slowdown from the COVID-19 pandemic. Since JCTC tended to have fewer projects, the drop in number of businesses assisted was less proportional to other metrics.
Number of trainings to PA workers (WEDNet, PREP, LGTP, and CSBG)
Number of trainings to PA workers (WEDnetPA, PREP, LGTP, CSBG): These are trainings offered to Pennsylvania residents to obtain or retain employment through programs funded by the department. The focus is on the number and types of trainings offered to Pennsylvania residents, as opposed to the number of individuals trained.
Workforce development through targeted job trainings helps bridge the current skills gap while maintaining a high-quality workforce. This creates a sustainable competitive economic environment, while also supporting the critical current and future needs of individuals, local governments, businesses, and industry.
The number of training programs and the level of funding has been constant over the last few fiscal years, hence the number of trainings offered to Pennsylvania residents has remained constant within a narrow range, with a slight dip in FY2021-22, due to the continued COVID-19 economic slowdown.

Technology Investments Programs

Jobs created
Jobs created are full time jobs or positions added to companies payroll as a direct result of funding through DCED Technology Investment Office’s programs.
Technology-based companies in such sectors or subsectors as bio and life sciences, energy (e.g., shale gas, advanced batteries), advanced manufacturing, nanotechnology and telecommunications/information technology provide high growth potential, as well as ripple effects into other economic sectors, effectively building individual, business and community wealth.
The jobs created by technology-based companies from all sectors tend to exceed the state median wage. However, since these jobs are highly specialized and require technical trainings, the volume of jobs created are less than jobs created in other sectors.
The number of jobs created through the DCED Technology Investment Office’s programs are actual jobs that companies report after creation, as opposed to job pledges from other programs.
FY 2021-22 saw a slight increase in jobs created, mainly due to a new mix of projects financed. The reporting from companies is based on calendar years, so a great number of projects do carry over to new fiscal years.

Jobs retained
Jobs retained are full time jobs or positions preserved by companies as a direct result of funding through the DCED Technology Investment Office’s programs.
The number of jobs retained through the DCED Technology Investment Office’s programs are actual jobs retained that companies retain after the fact, as opposed to jobs retained pledges from other programs.
Job retention of highly skilled staff helps technology-based companies in the commonwealth grow venture capital investments to support early stage and emerging technology firms, accelerate technology transfer to commercialize new products and services, enable universities to engage in research and development with commercial potential, and prompt community organizations to focus on technology infrastructure, training, and facilities.
Over the last several fiscal years, the number of jobs retained has fluctuated fairly within a narrow range since the number and types of programs together with the funding levels has been constant. FY2021-22 saw a decline due to new mix of projects financed.
New technology companies established
New technology companies established are technology companies formed within three years of having received funds from the DCED Technology Investment Office’s programs.
Taking technologies from the lab to the market and commercializing business ideas requires company formation. The commonwealth supports a multitude of commercialization activities and offers assistance that help take a company from the concept phase to the formation phase of the business lifecycle. In Pennsylvania, many institutions of higher education and non-profit organizations also play a critical role in driving young companies along this continuum. Scientists, researchers, students, and entrepreneurs know they can turn to institutions of higher education and non-profit organizations for help in building a business around an emerging or newly developed technology.
The three years for company formation after funding also covers the important lifecycle of these businesses: from the concept phase, where the idea is explored, the value proposition for customers is determined, and potential markets, customers, and delivery portals are identified; to the formation phase that focuses on applied research and development, and includes ramping up the business and commercializing the product; to the growth phase defined by value proposition that is embraced by the market; and to the final maturity phase where companies typically have found their niche in the marketplace, have a steady stream of business, have modest upward revenue, and generally play a key role in their region’s economy.
Businesses assisted
Businesses assisted are businesses which have received funding or technical assistance through a project or program of the DCED Technology Investment Office.
Financial and technical assistance enables technology-based companies to create and retain jobs and hence revitalize communities. A large portion of assistance is comprised of technical assistance offered by Small Business Development Centers (SBDCs) in the form of workshops and counselling to entrepreneurs. Other companies receiving assistance are also small, early-stage, and entrepreneurial.
FY2021-22 saw a return to the typical number of businesses assisted, a trend that is likely to continue, for the entrepreneurial and technology companies assisted.
Private funds leveraged
Private funds leveraged are private investments or matching funds on the DCED Technology Investment Office’s programs funded project, including venture capital, private equity invested, first time funding, and follow-on funding.
Funding is considered “leveraged” when, as a result of a DCED grant and/or investment, another funding source also contributes to the project. Funding is strictly cash, not in-kind contributions, and can come from a broad variety of sources such as philanthropic foundations, angel investors, venture capitalists, commercial banks, and/or other financial institutions. For institutions of higher education, funding could also come from contracts for industry sponsored research.
Private funds leveraged is projected to increase over the next several fiscal years due to the Federal SSBCI program, which contains matching requirements.

International Business Development

Estimated state and local tax revenues generated
Estimated tax revenues generated is the estimated state and local tax revenues generated as result of export sales and foreign direct investments facilitated by the Office of International Business Development (OIBD). This number is calculated using economic modeling software (IMPLAN and EMSI). Tax revenues generated is one of the ROIs to the state resulting from DCED’s financial and technical assistance. The number, in thousands, has increased due to larger projects in FY2021-22 and is forecasted to continue the next several fiscal years if the economy maintains its current trajectory.
Amount of export sales facilitated
Export sales facilitated are companies’ export sales generated that are directly attributed to financial and technical assistance from the Office of International Business Development (OIBD).
DCED’s OIBD provides transaction-based technical assistance and marketing services to Pennsylvania companies to develop their exports and expand their presence in foreign markets. The office leverages the state’s overseas network and local partnerships to increase DCED-facilitated export sales and global opportunities in targeted markets, ultimately creating and retaining jobs in the commonwealth.
The exports sales number is calculated using IMPLAN, an economic modeling software. FY2021-22 numbers increased due to larger projects and is forecasted to continue the next several fiscal years if the economy maintains its current trajectory.
Jobs supported
Jobs supported is the estimated number of jobs directly related to Office of International Businesses Development (OIBD) export and foreign direct investments assistance to companies. o The jobs supported number is an estimate calculated using IMPLAN, an economic modeling software, and the number includes created, retained, direct, indirect, and induced jobs supported as a result of the export assistance and foreign direct investment assistance provided by OIBD to companies. FY2021-22 numbers increased due to larger projects and is forecasted to continue the next several fiscal years if the economy maintains its current trajectory.
Foreign direct investments (FDI): projects completed
Foreign direct investments (FDI) projects completed are the number of successfully completed international investment projects facilitated by the Office of International Business Development (OIBD).
OIBD offers customized services to help international companies looking to locate or expand in the commonwealth and create jobs. This includes assistance to set up a U.S. business entity, identify and visit business sites, do in-depth research on available workforce, infrastructure, taxes, do introductions to regional and local economic development partners and elected officials, and customized financial assistance including grants, low-interest loans, tax credits, bond financing, and job training.
Businesses assisted
Businesses assisted are the number of businesses accessing the services and programs offered by the Office of International Business Development (OIBD).
OIBD works to promote the export of Pennsylvania goods and services and to enhance the export capacity of businesses by organizing company participation in trade initiatives, assisting companies with licensing of their products abroad, and helping companies obtain export financing and grant assistance. The Regional Export Network (REN), an integrated, coordinated, and customer-focused group of key export assistance partners helps coordinate more effective export assistance initiatives that meet the needs of commonwealth companies. In addition, OIBD works with overseas contractors and partner organizations to develop and implement direct investment attraction strategies, action plans, and opportunities with the purpose of increasing the flow of foreign investment into Pennsylvania to create jobs and economic opportunity in strategic business sectors.
FY2021-22 saw a slight decline in the number of businesses assisted.

Destination Pennsylvania

Number of hotel rooms sold
Hotel rooms sold are the number of hotel rooms sold in Pennsylvania per year as reported by Smith Travel Research (STR). STR provides premium data benchmarking, analytics, and marketplace insights for global hospitality sectors.
Hotel rooms are sold for use to guests in a given time frame. Most of the time, that time frame is a single night. Hotels will use this information over given time periods to help get a better idea of how they can improve their overall sales of rooms. The higher the number, the better it is for the hotel’s business. This is one of the important measures of tourism activity in the state.
The numbers provided by STR are in millions and are projections using analytics and benchmarks, by calendar year. FY2021-22 saw a significant increase reflecting a recovery of the travel industry from the pandemic
Travelers' expenditures
Travelers’ expenditures are an estimate of the amount of money visitors spend during a visit to or within Pennsylvania. Travel is defined as a trip that involves an overnight stay or a daytrip of at least 50 miles one-way from home. Data on traveler expenditures is provided by Smith Travel Research, a private company specializing in traveler economics. The data is generated from surveys of US households and is available only on a calendar year basis roughly 9 months after the end of a calendar year.
This is the total consumption expenditure made by a visitor, or on behalf of a visitor, for and during their trip and stay at the destination. The data is used for monitoring and assessing the impact of tourism on the national economy and on the various sectors of the industry. This data, in billions of dollars per calendar year, represents tourism demand and is among the most important indicators required by the tourism industry, especially for policy makers, marketers, and researchers. FY2021-22 saw a significant increase reflecting a recovery of the travel industry from the pandemic
Estimated tax revenues generated
Estimated tax revenues generated is the estimate of total state tax and local revenues generated by visitor spending, including hotel rooms, car rentals, entertainment expenditures, shopping, and food service.
The tax revenues generated is considered as an important economic impact indicator of tourism that helps local and state governments with revenues to maintain some of the assets and infrastructure that support tourism. FY2021-22 saw a significant increase reflecting a recovery of the travel industry from the pandemic.

Local Governments Assisted

Strategic Management Planning Program: Local governments assisted
These are the number of municipalities receiving financial and technical assistance through the Strategic Management Planning Program.
The Strategic Management Planning Program was established to help Pennsylvania local governments address financial management and fiscal difficulties in a timely and planned manner, averting an adverse impact on the health, safety, and welfare of their residents. It was established in recognition of an increase in fiscal stress being experienced by several municipalities across the commonwealth.
The program provides matching grants to municipal and county governments to develop and implement multi-year financial management plans and provides both short- and long-term direction to address fiscal difficulties before they reach a crisis point (Act 47). The program is designed to train and increase the capacity of local officials on how to implement sound financial management practices, along with methods for tracking revenues and expenditures over a multi-year period.
Number of designated distressed communities in Act 47
Act 47 designated distressed communities assisted are the number of designated distressed municipalities receiving technical and/or financial assistance under the Act 47 program.
Act 47 empowers DCED to declare certain municipalities as distressed and provides grants and loans through the Financially Distressed Municipalities Revolving Fund to aid in the recovery process. The fund assists municipalities in recovery from conditions which caused them to become fiscally insolvent and provides a holistic approach to the recovery process. The resources provided are vital to municipalities that experience severe fiscal distress to ensure their ability to provide for the health, safety, and welfare of their residents.
After a municipality is designated as distressed, a recovery plan coordinator, funded by the program, is designated. The coordinator develops a comprehensive fiscal recovery plan for the municipality, assists the municipality to implement the plan, monitors its progress and provides further amendments to the plan to move the municipality to a point where rescission of their Act 47 status is warranted. The recovery plan addresses all operational aspects of the municipality and includes strategies to revitalize the local economic base and corresponding tax base through development of effective public-public and public-private partnerships and the use of targeted state funds.
The anticipated communities entering Act 47 because of the pandemic did not happen due to a few factors including, the historical amounts of federal funding and revenues not falling off drastically as was previously anticipated.
Keystone Communities projects
Keystone Community projects are the number of Keystone Community program grants projects financed that supports such activities as planning, operations, downtown reinvestment, and anchor building in Pennsylvania communities.
The projects assist communities that have the leadership to pursue and effectuate development opportunities. The projects are a nexus of community and economic development and financing tools that help to integrate community and economic development efforts. The program encourages the creation of partnerships between the public and private sectors that jointly support local initiatives, such as the growth and stability of neighborhoods and communities; social and economic diversity; and a strong and secure quality of life. Grant funding is used by designated communities for façade programs, planning, implementation of the five-year strategy, accessible housing programs, and public improvement projects. Funds are also provided for grant-to-loan projects to assist with redevelopment projects.
The number of Keystone Community projects varies every fiscal year depending on the number of legislative projects added in the budget process, in addition to the Governor’s budget request. Keystone Community projects for FY2021-22 are higher than normal due to two competitive funding round awards made in the same fiscal year.
Municipal Assistance Program: number of local governments assisted
The Municipal Assistance Program (MAP) represents the number of municipalities receiving financial assistance through the Municipal Assistance Program.
The MAP helps local governments plan efficiently and effectively implement a variety of services, improvements, and soundly managed development. The program provides funding for three groups of activities: shared service activities and community planning.
Funded projects are those that support DCED’s strategic principles including forging new public and private partnerships, promoting innovation, demonstrating real and long-term commitments, and achieving results such as cost savings, cost avoidance, improvement in levels of public service, and improvement in community livability and attractiveness for investment.
The number of local governments assisted varies every fiscal year depending on the types of projects funded. A single county project will assist many municipalities compared to a project assisting just one municipality. It is hard to project the types of projects that will be funded. The number of governments assisted decreased in FY2021-22 due to the transfer of the floodplain management portion of the program to PEMA.
Homes weatherized
Homes weatherized are the number of occupied single family or multi-family dwellings that received program services designed to make housing more affordable to low-income families by cutting their heating costs and improving living conditions.
The weatherization program provides energy conservation and weatherization services to low-income families. Services are provided through a statewide network of 36 sub-grantees (non-profits, local governments, and local housing authorities). The program is intended to increase the energy efficiency of owner or renter-occupied, low-income housing through the addition of energy conservation measures to the building envelope. This includes the installation of weather-stripping, insulation, caulking, the repair or replacement of furnaces, windows, or doors, and the education of clients about energy savings practices. Program benefits include reduction of client residential energy costs, the safeguarding of client health and safety, and improved living conditions.
The homes weatherized data is collected and reported by federal fiscal year which ends September 30th. The figures displayed are for the state fiscal year ending June 30th, and therefore FY2021-22 only represents six months of data. Over the last several fiscal years, the number of homes weatherized has fluctuated within a narrow range due to level funding.