Lt. Gov. Davis talks tax cuts, inclusive procurement, housing investment to expand opportunity statewide

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by Marco Cerino PHILADELPHIA TRIBUNE STAFF WRITER

Austin Davis is one of five Black lieutenant governors across the United States. Last month, he spoke with two of them at the Black Economic Alliance’s Solutions Summit, discussing policymaking to advance opportunity and prosperity.

Davis joined his counterparts Lt. Gov. Garlin Gilchrist from Michigan and newly elected Lt. Gov. Dale Caldwell from New Jersey. He spoke about the work being done by the Pennsylvania Advisory Committee on Inclusive Procurement.

The Pennsylvania Department of General Services reported in January that small business contracts surpassed $1 billion each of the past two fiscal years. Black and brown-owned businesses have seen a 45% increase in spending, while veteran-owned businesses received 70% more in that time.

It’s not lost on the first-term lieutenant governor from McKeesport that he’s in a unique position. The 36-year-old father of one started his career in the General Assembly in 2019, serving two terms before winning the primary to serve with Gov. Josh Shapiro.

“The office of lieutenant governor is really an interesting role because in a lot of ways, it’s what you make of it,” Davis told The Tribune’s editorial board on Wednesday afternoon. “None of us have really strong statutory duties. We all have the responsibility or the ability to craft what your portfolio area is.

“All of us, in each of our own unique ways, have taken on economic issues as a part of our work as lieutenant governor,” Davis added. “It’s great to have a sounding board of colleagues in other states who are doing good work to bounce ideas off of, to keep in contact with, but also folks who have a very similar experience. There just aren’t many people who serve at that high level in government and represent such a big area as we do.”

The economy has become an increasing concern for families. Davis pointed to seven rounds of tax cuts by the Shapiro-Davis administration. The new budget includes $1 billion to fund housing production. Residents can utilize the Working Families Tax Credit for the first time this year, worth an additional 10% of their Earned Income Tax Credit at the federal level. Those eligible could receive $805 in credits on state taxes.

Pennsylvania has landed some high-profile business investments so far this year, including Eli Lilly adding a pharmaceutical manufacturing site in Lehigh County to office space they’ll open soon on Market Street near the Schuylkill River. Davis said that reflected changes to policy made since taking office to attract large employers.

Work also continues for smaller firms, including mentorships and $15 million spent to help “historically disadvantaged businesses.” Davis told The Tribune the state has also emphasized inclusive procurement “on the front end” when pursuing contractors for government business.

“I think the government should be a force for good in our lives and should make an impact on folks who need it the most,” Davis said. “I think that’s right where our priorities should be.”

In addition to supporting businesses of all sizes, tens of millions have been allocated in the state budget to directly support the hiring and retention of childcare workers.

State Rep. Darisha Parker said Thursday that Davis was instrumental in helping daycare operators access federal funding that had been frozen following the backlash over fraud investigations in Minnesota. Money for food programs was withheld by the Treasury Department, according to Parker.

“It was a very very long, stressful wait period for our day care workers,” Parker said in a phone interview. “I worked hand-in-step with our leadership, with (state) Sen. (Sharif) Street, and we made sure that our day care providers were paid and compensated, and we haven’t had a little glitch since then. I can say because of our current administration working hand-in-hand with our Black caucus and our other members that we make sure that there is an advocate for small business owners.”

Parker mentioned the state’s minimum wage, which hasn’t budged from $7.25 an hour since 2009, as a problem for daycare operators keeping workers.

The state House again passed legislation to increase that number, as they have in previous years with a Democratic majority. The barrier continues to be the Republican-controlled Senate. Davis praised the House for their work and chided the Republicans for not even offering a proposal on the topic.

“The reality is the Republicans in the state Senate have refused to engage in a good-faith discussion around minimum wage,” he said. “The governor and I have been very clear that we believe the minimum wage should be raised to $15 an hour, and that we should tie that increase to inflation, so that every year inflation goes up, the minimum wage gets adjusted and so we can stop having this constant conversation every year to raise the minimum wage.”

Mayor Cherelle Parker has been a frequent visitor to the Capitol since taking office in 2024. Davis said the former Philadelphia delegation chair has worked with him on gun violence reduction, a priority for both leaders.

The city is experiencing overall and violent crime down year-to-date to start 2026, while homicides are down over 80% from the peak in 2022 so far this year. Shapiro and Davis have both championed violence prevention programs and their efficacy.

“I think she is somebody that uniquely understands how Harrisburg operates, primarily because she served there,” Davis said of Parker. “It’s a place where she has a lot of relationships and I know it’s a place where a lot of people have a lot of respect for her and the work that she’s done.”

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mcerino@phillytrib.com 215-893-5782

https://www.phillytrib.com/news/local_news/lt-gov-davis-talks-tax-cuts-inclusive-procurement-housing-investment-to-expand-opportunity-statewide/article_b3bb816f-089c-4ae0-bc58-91164cc25f4d.html

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