Infinite Erie leaders optimistic about Shapiro budget, proposed investment in housing
Erie's community and economic development leaders gathered Wednesday morning to discuss Gov. Josh Shapiro's proposed state budget and the implications it will have on the region, including the efforts of Infinite Erie and its plans to implement Erie's "Investment Playbook," a series of 35 transformational initiatives and projects.
Shapiro's proposed spending plan, Executive Director Kim Thomas said, could help Infinite Erie meet more of its goals.
"We remain committed to catalyzing economic growth, turning community aspirations into actionable outcomes," Thomas told the audience that met Wednesday for the "post-budget breakfast" at the Erie Insurance Events Center at the Firehouse. "And Gov. Shapiro's proposed budget offers significant opportunities to advance our very own investment playbook, fostering inclusive growth, workforce readiness, and overall sustained prosperity."
That's especially true when it comes to addressing the city and county's housing needs, she added.
There's not enough housing stock, much of what does exist is aging and antiquated, and blight runs rampant in areas across the state, county and city.
Last fall, Shapiro signed an executive order calling for a Housing Action Plan to address high housing costs and homelessness, among other things. The state's Department of Community and Economic Development held a roundtable in Erie recently to learn more about the housing issues facing the area.
Thomas expected an investment after the Housing Action Plan is released later this year, so she was surprised Tuesday when Shapiro proposed millions to meet the state's housing demands.
"Truly we weren't really expecting much by way of additional investment in the housing realm until perhaps next year's budget proposal, once that action plan has the recommendations come out of it a few months from now," said Thomas, who attended and was recognized by House Speaker Joanna McClinton on the House floor ahead of the governor's presentation Tuesday. "However, the governor has proposed to add $50 million, recognizing that the Commonwealth of Pennsylvania has significantly aging, antiquated housing stock. I think we all recognize the level of that here in Erie."
The $50 million will specifically be used to help struggling homeowners make repairs to their properties. Shapiro is also proposing $10 million to help first-time homebuyers cover closing costs, an idea that state Rep. Ryan Bizzarro, D-3rd Dist., had been advocating for in Harrisburg.
He's also proposing an additional $10 million for the Pennsylvania Housing Affordability and Rehabilitation Enhancement Fund (PHARE), in an effort to bring the tax credit program up to $110 million by 2028. The program led to the construction of 2,000 new homes and repairs to 3,200 others the last two years, according to Shapiro's office.
Shapiro is also expanding the homestead and farmstead exemptions on property taxes to $1 billion for the first time, creating an Interagency Council on Homelessness, and sealing eviction records for people who were never actually evicted.
"There were a number of opportunities to be addressed around housing, mass transit, infrastructure, workforce development, early education, childcare and the like," Thomas said in an interview after Wednesday's presentation. "I think what we most heard based on the work that we've been doing with our partners in neighborhoods and main street's portfolio is that there truly is going to be an opportunity around housing efforts. We're really focused on working throughout Erie's housing continuum and what that means for permanent, supportive housing, what that means for affordable, attainable workforce housing, and what resources are there that we can leverage."
Shapiro's Northwest Pennsylvania Regional Director Mike Ferritto, an ex-officio member of the Infinite Erie board, reminded the group that the governor's proposal is just the start of lengthy negotiations between a Democratic-controlled House and Republican-controlled Senate.
"The budget address that the governor delivered (Tuesday) is really the high-water mark," he said. "This is where we start. And so everyone in this room — as we move forward through this process and work out where we fit into those budget priorities — we need to figure out what we lean into and then advocate on behalf of the priorities that mean the most to us."
Thomas said she was proud of Erie's delegation in both Harrisburg and Washington D.C. for their work on behalf of Northwest Pennsylvania.
"It's just really critical that Erie is in the room for the conversations," Thomas said.
Infinite Erie's projects will have an economic impact of $500 million, create 3,500 jobs and add $21 million to the state and local tax base, if fully funded. It has secured nearly $45.5 million so far, including $25.8 million from the state, $10.7 million from the federal government and nearly $8 million locally.
In 2024, Thomas said Infinite Erie "significantly moved the needle."
"We were created to build these coalitions," Thomas added, "to truly reverse Erie County's economic decline by activating large-scale, high-impact projects that are outlined in Erie's Investment Playbook."
While there was optimism about both the progress made by Infinite Erie, the direction it's heading and how the state budget might help those efforts, several people expressed concern about potential loss of federal funding under President Donald Trump, who is making deep, across-the-board cuts to the federal workforce and department budgets.
Last week, the Office of Management and Budget sent out a memo notifying department heads that it was temporarily freezing grant and loan funding to review those expenditures and ensure they are in line with Trump's executive orders, only to rescind the memo days later amid nationwide panic and confusion.
Tina Mengine, the executive director of the Erie County Redevelopment Authority, said in her remarks to attendees that "the scare last week on the federal side really impacted us."
Mengine fears that federal funds could be in jeopardy for, among others, its Ironworks Square project, which would create a new business park at the former Erie Malleable Iron site and could cost $25 million. More than half of the project relies on federal funding, she said. Ironworks Square is among the 35 projects in Infinite Erie's Investment Playbook.
More: EMI demolition project in Erie is a rumbling, crumbling sight for West 12th Street drivers
"That project, which we hope to see substantial completion on in 2025 and full completion in 2026, will be directly impacted by federal funding and whether we can get that done," Mengine said. "So to my state rep. friends, we may be coming back for more money."
Matthew Rink can be reached at mrink@timesnews.com or on X at @ETNRink.
This article originally appeared on Erie Times-News: State budget offers 'significant opportunities' for Infinite Erie work
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