From Negotiation to Legislation: Key Budget Outcomes for Lancaster Businesses - Lancaster Chamber of Commerce
From Negotiation to Legislation: Key Budget Outcomes for Lancaster Businesses
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by Kat DeSantis, Public Policy Coordinator, Lancaster Chamber


After months of negotiation, lawmakers finalized the 2025-25 state budget, which was signed into law just two weeks late by Governor Shapiro on July 11th. This was no small feat for a divided government (with a 1-seat majority in the House), exemplifying lawmakers’ commitment to bipartisanship and compromise as they brought this deal across the finish line. The Lancaster Chamber is pleased to see a budget package that includes several business wins and an investment in many initiatives that make our county and our Commonwealth stronger.

The Lancaster Chamber is committed to fostering a positive business climate for all Lancaster County businesses, and we work with elected officials at all levels of government to make this happen. Throughout this legislative session, we’ve held meetings, joined coalitions, written op-eds, and taken positions to ensure the business perspective was heard in Harrisburg. More importantly, we’ve engaged countless businesses and volunteers in grassroots efforts to ensure our lobbying efforts were reflective of the priorities and needs of Lancaster County’s business community. By working collaboratively, we were able to see progress in this budget cycle that will have a lasting positive impact.

One key win for workforce development was the creation of the Grow PA Scholarship Program and Merit Scholarship Program, led by Senator Scott Martin of Lancaster County, which provides scholarships for students who obtain their college degree in Pennsylvania and commit to working in high-demand occupations following graduation. This is critical to attracting and retaining the next generation of talent to start careers and lay roots in our communities. You can check out our op-ed in LNP here, expressing our support for this bill package.

Making Pennsylvania more business-friendly was a high priority this legislative session, with long-time efforts having paid off. The Lancaster Chamber was pleased to see permitting reform and NOL reform in the final package, both of which have a direct impact on how businesses grow and sustain themselves. The SPEED program provides an option for third-party review of certain permits, as well as establishes permit review timelines and a tracking system so that permit review processes are streamlined and efficient. This budget also makes improvements to Pennsylvania’s treatment of Net Operating Losses (NOLs) by gradually increasing the amount companies can deduct using losses incurred after Jan. 1, 2025. Additionally, this budget maintains the current phase-down schedule of the Corporate Net Income Tax (CNI) from 8.49 percent to 7.99 percent in 2025.

Allocating meaningful dollars to K-12 public schools was an important step forward in meeting constitutionally mandated adequacy standards. Ensuring students have access to quality education and career-exploration opportunities is essential to preparing the workforce of tomorrow, and we continue to work with our allies in education to make sure young people are equipped for the future. In the same lane, the Lancaster Chamber also supported the #PANeedsTeachers campaign, which increased the quantity of stipends available for student teachers. We applaud lawmakers for showing a commitment to bolstering the K-12 teacher pipeline at a time when the number of certified teachers is at an all-time low.

Lastly, we were glad to see economic development initiatives included in the final budget. The PA SITES program, the Main Street Matters program, and the Historically Disadvantaged Business Program will support small businesses and economic development across the Commonwealth. Our joint statement with the York Economic Alliance and Harrisburg Regional Chamber and CREDC details our firm support of sound economic planning to create prosperous communities.

While all these initiatives made it into this year’s budget, you can rest assured that we will continue to fight for the pro-business policies that we know are needed to make Pennsylvania a premier state to do business. Your feedback, comments, and questions guide this work, so please let us know the issues your business is facing or what you think is needed to strengthen our community. You can check out the Lancaster Chamber’s Position Statement on the 2024-25 State Budget to review all our policy priorities advocated for during budget negotiations, and our 2024 Pro-Business Agenda to see our comprehensive plan to create a positive business climate for Lancaster County businesses. Feel free to contact me any time to continue to conversation – kdesantis@lancasterchamber.com.

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