Gov. Rendell Says Two Projects Will Create 185 Jobs, Inject $21 Million in Blair...

Gov. Rendell Says Two Projects Will Create 185 Jobs, Inject $21 Million in
Blair County
Warns Senate Republicans' Drastic Budget Cuts Threaten PA's Economic Growth
Prospects, Will Lead to Local Tax Increases

ALTOONA, Pa., July 10 /PRNewswire-USNewswire/ -- Governor Edward G. Rendell
underscored the importance of strategic investments by the commonwealth to
help Pennsylvania rebound from the national recession as he announced two
major economic development projects in Blair County today. The projects --
Diversapack LLC and Advanced Metal Processing -- will establish new facilities
that will bring $21 million in total investment to the region and create 185
jobs within three years.

The Governor said the state's aggressive economic development efforts and
innovative programs helped make these projects possible and have helped
Pennsylvania and Blair County fare better than many other areas of the country
during this downturn. He cautioned, however, that drastic budget cuts by the
Senate Republicans risk hindering future job creation efforts.

"These projects are particularly good news now, because our state is
struggling through the worst economic recession since the Great Depression and
it's taken its toll," said Governor Rendell. "In the last year, Pennsylvania's
number of unemployed people has jumped 206,000, pushing our unemployment rate
to 8.2 percent. Here in Blair County, that rate is somewhat better at 7.6
percent, but it's still far higher than the 5.0 percent it was a year ago.

"These numbers show that Pennsylvania and Blair County have fared better than
our nation; the U.S. unemployment rate is now at 9.4 percent. How have we been
able to do that? By investing in ourselves -- in our communities, in our
employers, and in our workforce.

"Some believe that we should cut funding for programs that help attract
companies to the state, that help communities revitalize their downtowns and
make needed infrastructure improvements, and that help train workers to meet
the challenges of a competitive 21st century economy. That's the Senate
Republicans' plan, which is already $1.5 billion out of balance, but I'm not
willing to accept that. Now is the time, more than ever, to continue making
investments that will spur our economy and help us emerge from this
recession."

Diversapack LLC, a manufacturer and printer of flexible films for packaging,
will receive $3.2 million in state assistance to open a state-of-the-art film
manufacturing facility at the Jubelirer Business Park in Tyrone. The $7
million project will create 150 jobs within the next three years.

Advanced Metal Processing, a secondary aluminum recycling business, will
receive $1.5 million in state assistance to open an innovative facility at the
DeGol Industrial Center in Hollidaysburg. The $13.8 million project will
create at least 35 jobs in the next three years.

The Governor said the Governor's Action Team (GAT) coordinated the two
projects, adding that GAT has completed 20 projects in Blair County during his
administration, leveraging more than $88 million in private investment. Of
those projects, 17 included opportunity grants as part of the state's funding
offer, and 14 included customized job training -- two programs used to help
attract Diversapack and Advanced Metal Processing.

The Senate Republicans' budget eliminates the opportunity grant program and
severely cuts the customized job training program. It also eliminates the
infrastructure development program that was used in the Advanced Metal
Processing investment package.

"Make no mistake -- we must make cuts to the budget, and we are," said
Governor Rendell. "I have proposed $2 billion in cuts over the last year, but
I will not stand by and allow cuts that threaten our ability to dig ourselves
out of this recession and compete in the long-run. Instead, we simply must
find more revenues. That's why I have put forth a plan that is balanced and, I
believe, fair."

In February, Governor Rendell proposed an increase in the cigarette tax, a tax
on cigars and smokeless tobacco, and a tax on companies that drill for oil and
gas in our state.

Because the amount of these proposals will not generate enough to overcome the
state's $3.2 billion budget deficit, the Governor reluctantly proposed a
temporary increase in Pennsylvania's income tax, the nation's second lowest.
Even with this increase, Pennsylvania will have the third lowest personal
income tax rate in the nation. At the end of three years, in 2012, the
increase would expire.

The Governor has also proposed that businesses pay their fair share by
suspending the phase out of the Capital Stock and Franchise tax for three
years. Businesses have saved more than $4 billion in less taxes under the
Rendell administration -- nearly $3 billion of which has come from the Capital
Stock and Franchise tax.

"Critics have attacked us for raising taxes, but this is about the state
living up to its obligations and its responsibilities rather than doing the
politically expedient thing by passing the buck to local governments and
school districts," said the Governor. "The Senate Republicans claim that their
budget is a tax-increase-free budget, but that's not the case. If we cut
spending to the levels they propose, it will only force local entities to make
up this difference by raising property taxes."

For more information about Diversapack, LLC, visit www.diversapack.com. For
more information about Advanced Metal Processing, visit amphomepage.com.

To learn about the Governor's budget proposal, visit www.pa.gov. For
information on the Governor's Action Team and other DCED initiatives, visit
www.NewPA.com or call 1-866-466-3972.

CONTACT:
Michael Smith
717-783-1116

Luke Webber (DCED)
717-783-1132

SOURCE Pennsylvania Office of the Governor

Michael Smith of the Pennsylvania Office of the Governor, +1-717-783-1116; or
Luke Webber of the Pennsylvania Department of Community & Economic
Development, +1-717-783-1132