What Is Holding Pennsylvania Back?

WalletHub recently published what far too many of us knew to be true: Pennsylvania is the 44th “best” state. Persistent negative trends led to the low ranking.

This wouldn’t be merely to secure some favorable review or ranking, but instead because it’s our home – and hopefully the same for our descendants.   

My recent column discussed the first missing ingredients to turn things around: leadership and hope. Pennsylvania needs executive leadership willing to be bold -- to set forth a vision and business plan, and to invite entrepreneurs and legislators of all parties to partner to get it done. To offer hope based in reality.

At a recent RealClearPennsylvania roundtable discussion among policy-makers, entrepreneurs, and media members, we discussed the challenges and opportunities to growing Pennsylvania’s economy. As can be done in off-the-record conversations, we touched on some of the “third rails” – what’s really holding back our state. The things that those who follow the economy and public policy know discourage and impede growth, but no one will say out loud.

There are missing ingredients for economic success beyond leadership and hope built on a plan for growth.

Candor and courage. 

California, which has four times our population, has only 4,000 local governments. Meanwhile, Florida – with nearly twice our population – has only about 2,100 local governments – with a top 5 economy, growing population, and the best public schools in the nation with full school choice.

Taxpayers – including small and large business owners, plus farmers – have to pay for countless duplicative bureaucrats, administrators, and pinstripe patronage. Each has its own governing bodies, along with zoning boards, planning commissions, zoning codes, and municipal plans.

These local governments often have sole authority as to whether a business opens or grows – sometimes impacting hundreds, if not thousands, of jobs and millions in potential tax revenue.

Democrats won’t admit this because they see government as the answer to every problem, and they are interconnected with government unions.

Republicans won’t say it because it’s a conservative touchstone that local governments are most accountable – not “bureaucrats” in Harrisburg or Washington.

And both avoid it because they have dozens and dozens of local officials, professional staff, and white-collar patronage that would be offended in their districts.

But it’s a problem – and other states (even red ones) do it much better.

Our public schools are failing us, especially in our cities. About a decade ago, Amazon wanted to build a major Mid-Atlantic HUB. Greater Washington (i.e., northern Virginia) beat out Greater Philadelphia, in part, because Amazon didn’t believe that we could supply the necessary, educated workforce.

As I have written, the “nation’s report card” is shocking: America’s public education is “sick” –falling behind the world. Pennsylvania’s public schools “have the flu.” Our urban school districts are in the “ER.”

It’s not money. Pennsylvania spends about $24,000 per student – more than 44 states. Policy-makers allow school districts (numbering 500) to grow their bureaucracies – the fastest growing parts of district budgets (not teachers’ salaries). Layers and layers of assistant superintendents, “specialists,” and directors counting everything – except student performance. And this is with almost zero accountability.

Lower standards, lower expectations, artificially higher report cards – more time teaching political and sociological agendas. Plus, selfish teachers’ union-driven agendas that purposely limit if not outright oppose all school choice options that would empower parents, rescue children from failing pulic scools, and hold district schools accountable. 

Our taxes are too high, and our regulations are cumbersome – even Gov. Josh Shapiro admitted it, sort of. But he lacks the courage to offer a real fix that holds bureaucrats accountable. Think of all the regulations thrown aside to get I-95 repaired? It begs the question: why do we have them if we all know they get in the way?

How do we know it’s so bad here? Because whenever politicians want to “woo” a new, would-be company or investor, the first thing our politicians offer them is: waiving all the regulations and taxes that discourage them from coming here – and assigning them a VIP concierge to get them up and running.

What about the unfortunate small businesses, legacy companies, and farmers already here – trying to earn a living, trying to grow their companies?

High taxes and red tape for all – except for the newest kid on the block – is not how growth happens.

Pennsylvania has too many local governments, with too much power over our economy. This, in turn, allows, teachers unions and the education industrial complex to hold our students and our economy hostage. And it leads to among the highest corporate taxes and the most confusing, slow-moving bureaucracies in the nation.

Add in no business plan – and no leadership to admit what’s wrong.

We know why we’re 44th.

We need leaders with the courage to tell us the truth, offer us a hope-filled plan using our countless resources to grow our economy, empower parents to find schools that work – and the commitment to get it done.

Guy Ciarrocchi is a Senior Fellow with the Commonwealth Foundation. He writes for RealClear Pennsylvania and Broad+Liberty. Follow Guy @PaSuburbsGuy