Pennsylvania's new budget provides the money Gov. Ed Rendell needs to help persuade Harley-Davidson stay in York, a spokesman said.

Rendell has pledged $15 million to help Harley revamp or rebuild its York facility. But the funding was threatened during budget negotiations.

The spending bill approved Friday provides "adequate economic development" funding for Rendell to offer an incentive package to Harley, spokesman Gary Tuma said Monday.

Rendell said Tuesday the offer would range from $15 million to $20 million depending on job creation and retention numbers to be provided by the company. He said Pennsylvania's offer is competitive with "generous" offers from other states hoping to land the Harley plant if company officials decide to relocate.

Harley is undergoing a study to determine whether it will be able to make its Springettsbury Township manufacturing complex more efficient or if it should relocate to another state.

It has narrowed its search to Shelbyville, Ind., Shelbyville, Ky., or Murfreesboro, Tenn.

Tuma said Rendell took a hard line in negotiations that lawmakers budget enough for economic development.

"That was one of the main criteria the governor set forth in this very difficult budget year," Tuma said. "He understood there had to be a lot of cuts in a lot of areas. But he didn't want to cut things that really had an impact on the state's economic future."

History: Company spokesman Bob Klein, who could not be reached

Advertisement
for comment, has previously said Rendell's offer of $15 million alone is not enough to guarantee the company will stay in York County.

But he has said the company would consider Rendell's offer as it analyses its future in York.

The company all along has said it needs the plant to be competitive and sustainable long-term and is awaiting the results of its study this fall to guide its decision, Klein has said.

A decision is expected by the end of the year.

Good news: Positive news has come out of the plant recently.

Employees earlier this month held a meeting during which the company announced that a joint team of union leadership and company officials has agreed on a "viable restructuring plan" for the plant.

But the plan is only a portion of the company's consideration when deciding whether to stay in York, and company officials have said the union's support of the plan will be crucial.

- Reach Carl Lindquist at 505-5432 or clindquist@yorkdispatch.com.