Pennsylvania is gearing up for a busy 2025 as Governor Josh Shapiro unveils his budget proposal for the upcoming fiscal year. The governor's plan emphasizes workforce development, cost reduction in healthcare, housing, and energy, and continued investment in economic development and education. Shapiro's administration has already secured over $3 billion in private sector investments and created nearly 5,000 new jobs since taking office.

In economic news, the Shapiro administration is pushing to expedite corporate tax cuts by two years, aiming to reduce the current tax rate to 4.99% by 2029. The governor also plans to close the "Delaware Loophole," which allows some large corporations to avoid paying taxes in Pennsylvania. These moves are part of a broader strategy to make the state more competitive and attractive to businesses.

Philadelphia is preparing to host several major events in the coming years, including the sesquicentennial of the U.S. Navy and Marines, MLB All-Star games, NCAA men's basketball tournament games, FIFA World Cup games, and America's 250th birthday. City and state officials are working on comprehensive plans to manage these events and leverage them for economic growth.

The state's business outlook for 2025 appears mixed, according to a survey by the Federal Reserve Bank of Philadelphia. While 33% of Chamber of Commerce members expect business conditions to improve, 29% anticipate a decline. Labor costs, financing, interest rates, and poor sales remain top concerns for businesses.

In environmental news, Pennsylvania continues to grapple with drought conditions, which worsened in late 2024 due to below-normal precipitation. Climate change is also impacting the state, with fall temperatures increasing and the growing season extending slightly later into the year.

Weather forecasts for the upcoming winter suggest a 35% to 50% chance of wetter and warmer conditions, potentially influenced by a weak La Nina.

Looking ahead, Pennsylvania will be closely watching the implementation of Governor Shapiro's budget proposals and their impact on the state's economy. The upcoming major events in Philadelphia are expected to bring significant attention and economic activity to the region. Additionally, the state will continue to address ongoing challenges such as drought management and adapting to climate change impacts.