Shapiro Administration Allocates $16.2M for City Revitalization

Revitalization Efforts in Pennsylvania: $16.2 Million Allocated to Boost Economic Growth

Harrisburg, PA – A significant financial boost is heading to communities in Pennsylvania as Secretary of Revenue Pat Browne has announced the allocation of $16.2 million through the City Revitalization and Improvement Zone (CRIZ) program. This initiative aims to invigorate municipal areas that have faced economic hardships by transforming vacant spaces into thriving business hubs.

The funding, covering the fiscal period from January 1, 2024, to December 31, 2024, is directed towards Bethlehem, Lancaster, and Tamaqua. These cities are set to benefit from projects designed to attract new business ventures and stimulate job creation.

Erie and Reading: The Next Steps

In addition, Erie and Reading have been given a forward push in their economic development journey. The Department of Revenue has established the state tax baselines for these cities, a pivotal step in calculating the financial support they will receive starting in 2026. This development comes after Governor Josh Shapiro's decision to reopen the CRIZ program, allowing new communities to join for the first time since 2013.

According to Secretary Browne, “Since its inception, the CRIZ program has delivered a total of nearly $102 million to participating communities, helping them to attract development, revitalize their downtowns, and bring new jobs to their regions.” This sentiment underscores the program's success and potential to impact cities like Erie and Reading positively.

Governor Shapiro's signing of the 2024-25 bipartisan budget into law marked the beginning of this new chapter. Following the reopening of the program, applications from Erie and Reading were approved, setting the stage for detailed assessments of their economic zones.

Understanding the CRIZ Program

The CRIZ program, established under Act 52 of 2013 and later amended by Act 84 of 2016, is modeled after Allentown's successful Neighborhood Improvement Zone (NIZ) program. Designed to rejuvenate struggling cities, it provides a framework for capturing state and local taxes within designated areas up to 130 acres for development purposes.

This financial model, similar to tax increment financing, ensures the protection of existing tax bases while channeling new growth revenues to foster economic development. Funds allocated to local development authorities can cover expenses such as debt service, property acquisition, and new construction within the CRIZ zones.

Administered by the Department of Revenue, the Department of Community and Economic Development (DCED), and the Governor’s Budget Office, the CRIZ program stands as a testament to Pennsylvania's commitment to revitalizing its cities and enhancing opportunities for its residents.