Pennsylvanias complacency is driving decline. Its time we stop masking the failures and start building for the future.
If Pennsylvania were a business, would you invest in it? In a July op-ed, senior fellow with the Commonwealth Foundation Guy Ciarrochi didnt sugarcoat anything. Pennsylvania punishes innovation and energy production, traps children in failing schools, and looks the other way as we fall in the rankings. Whats worse is that too many have stopped noticing. “If the fifty states were companies,” Ciarrochi said, “investors would avoid putting their money in Pennsylvania.”
Ciarrochi is right: We are managing decline, not building the future. Pennsylvanias economic foundations remain shaky. Costs are rising, state budget decisions are increasingly difficult, and were losing jobs and investment to surrounding states. Yet, Gov. Josh Shapiro and House Democrats continue to stifle innovation, putting Pennsylvania at a disadvantage instead of building an economy that benefits consumers and businesses.
The Commonwealth ranks 41st among U.S. states based on 71 metrics in eight categories. Weve fallen behind in nearly every measurable area, yet no one in Harrisburg seems to notice. In fact, were told the opposite is true. In his most recent budget addressin February, Gov. Shapiro said seven separate times, “Pennsylvania is on the rise.”
If Pennsylvania is on the rise, why are we 38th in education and 41st overall? Why are we losing more residents and businesses than we gain? The numbers dont lie, and no feel-good speech – or Obama-esque cadence – is going to make them look any better. While the governor is spending nearly $3 million a year in taxpayer dollars to craft a highlight reel for shameless self-promotion, Pennsylvanians are left behind, languishing in a broken education system, stuck in permitting purgatory, and crippled by soaring energy costs.
The governors rosy narrative collapses further when you take a closer look at our schools. Pennsylvania is spending more money per student than ever before, ranking seventh in the nation as of 2023, with per-pupil spending exceeding $23,000 in 2024. Yet, despite record investment, student outcomes remain dismal. According to the 2024 Pennsylvania System of School Assessment (PSSA), only 30% of eighth graders are proficient in math and reading.
These numbers should sound the alarm and catalyze an education overhaul, but Harrisburg hits snooze. Low scores and lost potential should prompt us to reimagine how we fund schools, how we define success, and how we empower educators. That means giving teachers flexibility to create dynamic classrooms, rethinking our overreliance on standardized testing, and expanding options so families can choose the learning environments that best fit their childrens needs and strengths. Instead, Gov. Shapiro has broken his promise to help students in failing schools three years in a row. And now Pennsylvania Democrats are caving to special interests, putting politics ahead of our kids once again.
Education isnt the only system overdue for renovation. Pennsylvanias permitting process -both for construction and oil and gas wells is notoriously slow and inefficient.Our regulatory environment is equally burdensome, discouraging small businesses, startups, and professionals from putting down roots in the state. Its no surprise the Cato Institute ranks Pennsylvania 37th in regulatory policy, and the Mercatus Center ranks us as the 14th most regulated state. Meanwhile, neighboring states like West Virginia and Ohio offer far more streamlined processes, often granting approvals in a matter of weeks rather than months or years.
In response to these critical concerns, Gov. Shapiro launched the PA Permit Fast Track Program with great fanfare. But rather than genuinely reforming the system and reducing permitting time, the program allows him to pick winners and losers. The program gives him the power to personally choose the programs that are most likely to benefit him politically, instead of clearing the way for the infrastructure that Pennsylvania needs. Its central planning disguised as progress. This politicized red tape stifles housing development, infrastructure, and job creation across the state.
The consequences of Pennsylvanias regulatory chokehold are tangible and growing. As Ciarrochi noted in his piece, the states failure to embrace bold, pro-growth decisions – like welcoming a major Wawa distribution hub – is more than just a missed opportunity. Its a warning sign. Outdated regulations and inconsistent leadership send a clear message: Pennsylvania is closed for business. From AI data centers to manufacturing jobs, tomorrows industries are bypassing Pennsylvania for states that make it easier to build and grow. Unless we change course, we risk losing the next generation of economic momentum.
Perhaps the most damaging policies lie in our energy sector. Pennsylvania has the potential to be a global leader, delivering reliable and affordable power, strengthening the grid, and reducing U.S. dependence on foreign oil. We have more energy potential than many countries, yet were squandering it. Under former Gov. Tom Wolf, short-sighted policies (that are being continued by the Shapiro administration) led to rising utility costs and billions in lost investment. In 2023, the Pennsylvania Commonwealth Court ruled that the Regional Greenhouse Gas Initiative (RGGI), an emissions cap program, was an unconstitutional tax on consumers. Rather than working with the Legislature to recover the estimated $7 billion in lost private investment, Shapiro appealed the ruling to the state Supreme Court, where it remains unresolved.
Since then, Shapiro has floated two flawed alternatives. The first, known as the Pennsylvania Reliable Energy Sustainability Standard (PRESS), mandates increased reliance on intermittent sources like wind and solar, without guarantees of grid stability. The second, the Pennsylvania Climate Emissions Reduction Act (PACER), is a cap-and-trade scheme that mirrors RGGI and would force taxpayers to subsidize higher energy costs, including in-state nuclear power.
Both PRESS and PACER would raise electricity rates, hitting low-income residents the hardest. The proposals from the governor faced such backlash, including from members of his own party, that even Democratic committee chairs refused to call them up for a vote last session.
Even more troubling is the entrenched culture within the Department of Environmental Protection (DEP). When new projects are proposed, DEPs default is to deny or delay, rather than ask, “How do we get to yes?”Other states foster a collaborative relationship between regulators and stakeholders, creating a pathway to responsible growth. We must do the same before we fall even further behind.
Pennsylvania is at a crossroads. We can either continue managing decline or demand better. We can race to the bottom, or we can lead the way forward.
Its time to reject the failed policies of this administration and the complacency of the status quo. If we want to make our state a place worth investing in again, we must stop settling for less and start demanding more from our colleagues across the aisle. Pennsylvania can be the keystone of Americas next great chapter, but only if we choose to write it.
