Begin Main Content Area

Goals of RACP Redesign

Return to main RACP page


What are the primary goals of the RACP redesign?

  1. To define the application process with published guidelines and procedures
  2. To implement merit-based evaluation and selection
  3. To promote transparency
  4. To maintain rigorous monitoring, measurement and reporting


Why is RACP being redesigned?

  1. To attract and retain jobs in Pennsylvania by targeting large, economically transformative projects for development
  2. The program had strayed considerably from its intended purpose of encouraging and assisting in regional economic development projects.
  3. The program’s prior level of debt borrowing was unsustainable for the commonwealth and its citizens.
  4. The former selection process lacked transparency and had no apparent strategy. 
  5. To introduce regularity, dependability and objectivity to the selection and release of RACP funds


How will the goals of RACP redesign be achieved?

  1. Projects will be selected for funding on a merit based, objective scoring methodology that takes the "politics" out of the selection process.  That methodology includes

    a.  Prioritizing projects that will have the greatest financial impact on Pennsylvania’s economy
              i.   large, regional, economic development projects that are transformative in nature,
              ii.  projects that have the greatest impact in job creation/retention,
              iii. projects that maximize generation of new tax revenue and
              iv. projects that demonstrate long-term sustainability
    b.  Prioritizing projects that are "shovel ready" i.e. ready to begin construction in 365 days or fewer
              i.  projects that take longer than one (1) year to begin construction would be deferred to a
                  later funding round and
              ii. prior completed projects will not be funded
    c.  Prioritizing projects that leverage maximum private sector capital
              i.  projects that have a permanent financing structure that is fully amortized if debt is to be
                  used as local match and
    d.  Focusing on strategically important industry clusters and
    e.  Prioritizing projects that have local community impact

  2. Projects will be evaluated through a submitted business plan and an objective scoring matrix.  The scoring matrix will be based on the following criteria 

    a.   jobs created or retained,
    b.   community impact, 
    c.   strategic cluster for development,
    d.   financial impact/long-term sustainability and 
    e.   construction shovel readiness

  3. Project selections will be made through a transparent process that benefits all interested parties

    a.  all project selection criteria, guidelines and the scoring matrix will be posted to the Office of the
         Budget (OB) website,
    b.  after review of OB staff analysis, completed pursuant to published program guidelines,
         a muti-agency Selection Committee will be established to determine which projects will receive
         funding, pending approval of the Governor,
    c.  selection committee members may include the agencies listed below along with the Secretary of
         OB as Chairman
              i. DCED/GAT
              ii. Revenue
              iii. Banking
              iv. Policy
              v. Legislative Affairs
              vi. Labor and Industry
    d.  a list of all applicants per funding round will be posted to the OB website
    e.  all selected projects per funding round will be posted to the OB website

When will RACP funding be available?

  1. Funding Rounds will be held for the program 

              a.   funding is to be approximately $125 million each year,
              b.   semi-annual funding rounds will introduce regularity to the selection process,
              c.    funding awards will generally be made each April and October 
              d.   projects that are not shovel ready within 365 days will be deferred to a later round

  2. Funding releases will be set at a much lower level than in previous years
  3. All projects remaining on the legislative authorization list will have to meet new program criteria.