Gov. Josh Shapiro often brags about “moving at the speed of business.” But his efforts to draw private investment to Pennsylvania rely heavily on corporate welfare, rather than addressing the burdensome regulations that bog down the commonwealth’s economy.

On paper and at public events, Shapiro says the right things about regulatory reform. The governor recently boasted about how his administration “repealed or modernized 10 outdated regulations.

However, more than 164,000 regulations remain on the books, making Pennsylvania the 14th-most regulated state, according to the Mercatus Center.

And the governor’s “reforms” favor a select few. After a yearlong delay, Shapiro’s primary permitting reform — namely, the Streamlining Permits for Economic Expansion and Development (SPEED) program — applies to only a small percentage of Pennsylvania permits.

Shapiro’s other half-baked reform, the PAyback program, promised a money-back guarantee for any delayed permits, licenses, and certifications. However, a Right to Know request by the Commonwealth Foundation revealed that PAyback denied 95 percent of its claims.

The governor would prefer that Pennsylvanians focus on the “success stories.” During his campaign-style budget address, Shapiro touted Eli Lilly, the large pharmaceutical company, moving its manufacturing to Pennsylvania. But, to land this deal, the Shapiro administration put taxpayers on the hook for $100 million in public funds and tax credits for the global giant.

The return on investment for this corporate welfare doesn’t add up. The Pennsylvania Independent Fiscal Office found that most tax credits have a gross return of less than 25 cents per tax dollar spent.

Also, for every Eli Lilly, there is a FairLife. In 2024, the Coca-Cola subsidiary considered building a milk-processing plant in Pennsylvania, but our notoriously slow permitting process forced the company to choose New York instead.

Corporate welfare–whether it’s tax breaks, grants, or sweetheart incentive packages — isn’t genuine reform. It favors connections over competition, rewarding greased palms in Harrisburg, rather than elbow grease on Main Street or in the heartland.

Yet, if we listened to the governor, Pennsylvania’s economy has never been stronger.

But the numbers don’t lie: Pennsylvania isn’t as economically robust as the governor claims. Instead, our commonwealth certainly isn’t at the top most national rankings.

Pennsylvanians aren’t buying Shapiro’s economic gaslighting. Polling reveals that only 3 out of 10 Pennsylvanians rate the commonwealth’s economy as either “excellent” or “good.”

This cynicism isn’t just reflected in the polls; Pennsylvanians are also voting with their feet. In 2025, we lost nearly 3,000 residents to other states, according to the most recent U.S. Census data. Recent reports by U-Haul, United Van Lines, and Vote with Your Feet confirm this exodus from the commonwealth.

And this most recent year isn’t an anomaly. In 15 of the last 16 years, our commonwealth lost more Pennsylvanians than it gained. If this trend persists, Pennsylvania will lose another congressional seat in the next census reapportionment, marking the third consecutive decade of electoral decline.

Why are Pennsylvanians moving? Polling reveals that lower cost of living, lower taxes, and better job opportunities were the top three reasons Pennsylvanians have either relocated or considered moving. This explains why families are looking toward states like Florida, the Carolinas, and Texas — where tax burdens are lower and business climates are friendlier.

To stop this exodus and create a Pennsylvania that increases opportunity and prosperity, we need real regulatory reform. Instead of favoring a select few, genuine reform cuts red tape and taxes for everybody.

Fortunately, we have made some headway. State lawmakers, primarily Republicans in the Pennsylvania Senate, negotiated “deemed-approved” permitting into the 2025-26 budget — a reform that automatically approves unprocessed permits, allowing businesses to start building faster.

But we can’t rest on our laurels; more reforms can steer the commonwealth in the right direction.

One option for reducing our regulatory burdens is the Regulations from the Executive in Need of Scrutiny (REINS) Act. The REINS Act would require legislative review and approval of new regulations, especially those with significant economic impacts. Currently, there are two proposals — one at the federal level, the other stalled in Harrisburg.

The Pennsylvania version, Senate Bill 333, passed the Republican-controlled state Senate. However, the Democrat-controlled House refuses to put it to a vote. Senate Bill 6, another comprehensive regulatory reform package with bipartisan support, has suffered a similar partisan fate.

Yet, polls show overwhelming approval of such reforms. An astonishing 88 percent of Pennsylvanians support the REINS Act.

Slashing red tape will pay significant dividends. Cutting only one-third of statewide regulations would add more than $9 billion and 180,000 new jobs to the commonwealth’s economy.

Pennsylvania stands at a crossroads. We cannot afford to settle for superficial PR victories. Real growth requires real reform, and if we want an economy that benefits the good people of our great commonwealth, we need policies that advance — not hinder — their entrepreneurial spirit.

Pennsylvanians don’t need Harrisburg picking winners and losers; they need it to get out of the way.

Megan Martin, a former state Senate parliamentarian, is the chief operating officer and general counsel for the Commonwealth Foundation