KCA Calls for Infrastructure Investment, Workforce Development & Modernization of the Separations Act in Governor Shapiro’s State Budget Address

Harrisburg, PA – As Governor Josh Shapiro prepares to deliver his State Budget Address, the Keystone Contractors Association (KCA) is calling on the Administration and General Assembly to advances policies and investments that strengthen Pennsylvania’s construction industry, protects taxpayers, and ensures the Commonwealth can efficiently deliver critical public and private-investment projects.

Representing commercial construction contractors across Pennsylvania, KCA urges state leaders to focus on strategic infrastructure funding, workforce development, regulatory efficiency, and modernization of the archaic procurement law known as the 1913 Separations Act.

“Pennsylvania’s construction industry is ready to build – but outdated laws and workforce shortages are making it harder and more expensive to deliver public projects,” said Jon O’Brien, Executive Director of the KCA. “Governor Shapiro’s budget presents an opportunity to modernize policy, improve efficiency, and ensure taxpayer dollars are spent wisely and show the country that Pennsylvania is open for business.”

KCA’s Budget Priorities:

• Infrastructure & Capital Investment: KCA supports sustained and predictable funding for public works, transportation, and economic development projects. Strategic capital investment drives job creation, strengthens local economies, and ensures Pennsylvania remains competitive with neighboring states.

• Workforce Development: The KCA urges increased funding for proven and registered apprenticeship programs, career and technical education, and industry-recognized and supported training initiatives. Addressing skilled labor shortages is critical to meeting project demand and creating long-term career pathways for Pennsylvanians. However, simply throwing money at the issue is not a solution, workforce programs need to be accountable and monitored.

• Modernizing the Separations Act: KCA strongly supports modernizing the Pennsylvania Separations Act, a 1913 law that mandates multiple prime contracts on public projects. While well-intentioned over a decade ago, the current structure leads to inefficiencies, delays, higher costs, and increased risk for taxpayers and project owners. Modernizing the Act would improve coordination and accountability on public construction projects and align Pennsylvania with best practices with the rest of the country, as the Federal Government and forty-nine states do not abide by such an outdated, costly requirement.

• Permitting & Regulatory Efficiency: KCA encourages budget investments that improve agency staffing and technology to streamline permitting and approvals. Faster, more predictable permitting reduces costs, accelerates project delivery, and supports economic growth without sacrificing safety or environmental standards. As demand for data centers accelerates nationwide, Pennsylvania needs to prepare by not only being site-wide but improving our permitting and regulatory processes. Data centers represent long-term investments in our Commonwealth and we are in competition with other states so we must show that we are open for business.

About the KCA: Founded in 1940, the Keystone Contractors Association is a Pennsylvania trade association representing commercial construction companies. KCA is dedicated to advancing safety, workforce development, labor relations, training and education, and sound public policy to ensure the construction industry can continue to build strong communities across Pennsylvania.