From PA Chamber of Business & Industry

Among the notable budget hearings in Harrisburg last week included the House Appropriations Committee meeting with the Department of Community and Economic Development where Secretary Dennis Davin estimated no jobs would be lost if Pennsylvania raised the minimum wage to $10.10 an hour. According to a Pennsylvania Legislative Services story, Davin said in his experience meeting with companies that pay various levels of compensation, the only effect of a higher minimum wage would be to “raise people out of poverty.” Davin was also asked if any analysis was done on the impact that the proposed retroactive increase to the Personal Income Tax would have on small businesses in the coming year’s budget (Gov. Wolf wants to raise the PIT by 11 percent and make it retroactive to Jan. 1). Davin said Pennsylvania’s PIT is second lowest among those states that have one, and would rise to only the third lowest after the increase. He said he thinks it is competitive and stressed DCED’s job is to look at the whole picture. The minimum wage was a central topic in the Senate Appropriations Committee’s budget hearing with the Department of Labor and Industry. Secretary Kathy Manderino said the Department of Revenue estimates an increase to $10.10 an hour would generate $60 million in sales and income revenue and reduce the number of people in poverty. Sen. Mario Scavello, R-Monroe, doubted these statistics and said the focus should be on creating jobs, which in his region has increased the average wage. Democratic Appropriations Chairman Vince Hughes, D-Philadelphia, said every surrounding state has a higher minimum wage than Pennsylvania and has higher levels of job growth. “I would suggest that we kick start much harder the drive for raising the minimum wage in Pennsylvania,” Hughes said. “Those who are opposed to raising the minimum wage have a philosophy that just wants to keep people in poverty…we’re going to fight and I’m glad this governor has decided to stand up and fight to raise the minimum wage in Pennsylvania.” On Monday, Governor Wolf signed an executive order raising the minimum wage for employees under the governor’s jurisdiction to $10.15 an hour. The order also covers employees of organizations that negotiate state contracts or that lease property to the commonwealth. This provision will take effect when contracts or leases are solicited or bilaterally modified on or after July 1, 2016.

The March edition of ChamberPack is overflowing with offers from members and information on the Chamber’s schedule of events. The bi-monthly mailing should arrive in your mailbox this week. Look for Chamber information about an opportunity for members to have exclusive savings on Hershey Park admission tickets, the upcoming Business After Hours at Service 1^st Federal Credit Union, sponsorship and business registration forms for the 4^th Annual Celebrate Berwick festival, and relevant forms for the Chamber Golf Outing in June. This month’s mailing also features the spring season schedule for Bloomsburg University’s Celebrity Artist Series, information about free corporate luncheons hosted by Rodman Natural Health Solutions, and services offered by Erie Insurance and Mutual of Omaha. ChamberPack is a cost-effective way to direct mail your information to hundreds of business decision makers in the area. The next mailing will be sent in May. Download the reservation form or call Eleanor at 570-784-2522 for more information or to reserve your space today!

SEDA-Council of Governments has reduced the cost of borrowing for an SBA 504 loan to further assist small businesses with the financing of their expansion needs.

SEDA-COG will cover half of the 0.5% fee on the bank loan involved in the financing package for SBA 504 loans approved by the SBA this year. For example, for a $1 million expansion project, borrowers would save $1,250. For much larger projects, the savings could be thousands of dollars.

For more information about this SBA 504 fee reduction or to learn more about the SBA 504 program for small businesses in Pennsylvania, visit www.sedacogldc.org or contact the Business Finance Department at 570-524-4491 or finance@seda-cog.org.

A reminder that the Chamber’s low interest loan fund now offers loans of up to $20,000. Call Fred Gaffney at the Chamber at 570-784-2522 for details.

Lawmakers on the House and Senate Appropriations Committees engaged in a somewhat tense exchange with Wolf administration officials last week as the first week of budget hearings kicked off.

In the most widely reported budget hearing, Budget Secretary Randy Albright faced off with Senate Republicans in the first Senate Appropriations budget hearing. Over five and a half hours, Albright defended the governor’s proposed $33.29 billion spending plan and warned of a $2 billion structural deficit going into the 2016-17 fiscal year. Sen. Randy Vulakovich, R-Allegheny, stated plainly that he and many other Senate Republicans had voted on the long-defunct “framework” agreement because there was an understanding that pension reform and liquor reform would be included in a final deal. With those two issues no longer on the table, he told Albright “You’re asking a lot… and you’re going to have to work a lot harder to get that (tax increase) vote out of me.”

Auditor General Eugene DePasquale appeared last week before the House and Senate Appropriations Committees, where he was asked whether he would be willing to audit Gov. Wolf’s expenditures during the first six months of the fiscal year when no spending had been authorized – a fact reported in the Pittsburgh Tribune Review. His office is now said to be reviewing the audit request. DePasquale also discussed school district borrowing during the budget impasse, saying that districts incurred up to $45 million in interest charges. He also warned that the six months of education funding the Governor approved in December will soon run dry; and that schools will need to borrow within a matter of weeks if the 2015-16 budget remains unresolved. Another important topic addressed during the Auditor General’s budget hearings was the Wolf administration’s intention to eliminate the Public Employee Retirement Commission, which analyzes municipal pension budgets. Calling PERC’s work “critical,” DePasquale said that independent analysis of the pension systems is necessary to address the real level of debt and work toward solutions on making the pension systems sustainable.

The House and Senate Appropriations Committees also hosted the Independent Fiscal Office last week. The IFO confirmed that the state faces a nearly $2 billion structural deficit for 2016-17 and there will be a residual shortfall of roughly $300 million this fiscal year; but that revenue estimates for 2015-16 are expected to be about $200 million more than originally anticipated. When asked how not replacing federal stimulus dollars would impact the structural deficit, IFO Director Matthew Knittel told House Appropriations members that the federal stimulus money was meant to be temporary and not meant for long term purposes. “Long term computations would not enter into the deficit projections,” he stated. “If the federal funds were there and then removed then I would think it would appear as though there were a deficit.” PLS also reported that when asked what portion of the increased expenditures in the proposed budget is caused by mandatory increases, Knittel noted that they are made up by pensions, debt and increases in certain programs in the Department of Human Services and the Department of Corrections.

Budget hearings continue this week.

The Columbia-Montour Partnership for Community Development has engaged National Travel Center (NTC) to investigate the possibility of moving the Chamber and Visitors Bureau from fair share membership dues to a hybrid structure where the amount assessed to each constituent depends on the services provided. Under such a structure, members have the opportunity to determine the specific package of services that benefit them most from a menu. Other chambers and visitors bureaus that have made this change believe the structure enables them to be more responsive to member needs.

Before deciding whether or not a change in membership structure is appropriate, we are holding a focus group meeting with members to brainstorm the types of services that would be of greatest benefit if offered by the Partnership. NTC will begin the session with information about the types of programs that are being offered by chambers and visitor bureaus. Participants will be encouraged to suggest services that would be particularly valuable, beyond any list offered by others. The focus group will be held on Wednesday, March 2^nd at the Bloomsburg Fire Hall from 3:30 – 5:00 p.m.

Please consider taking the time to attend this focus group and provide your input.  To register, please click here.

Congratulations are in order for the recipients of awards presented at the first combined Annual Dinner for the Chamber and Columbia-Montour Visitors Bureau.  The event, sponsored by PPL Electric Utilities, was held at Rolling Pines Golf Course this past Thursday, February 11^th.

Mary Clapp received the Outstanding Citizen Award, sponsored by BIDA.  Geisinger-Bloomsburg Hospital was named the Large Business of the Year. This award was sponsored by the Columbia Alliance for Economic Growth.  Key Partners Realty, LLC received the Small Business of the Year award, sponsored by First Columbia Bank & Trust Company. Pump House Weddings and Bed & Breakfast was awarded the Community Progress Award, which was sponsored by the Berwick Hospital Center. Bill’s Bike Barn won the Visitors Bureau’s Travel & Tourism Buddy Award, presented by Knoebels Amusement Resort.   Be sure to congratulate all winners when you next see them!

On Tuesday, Gov. Tom Wolf unveiled his 2016-17 state budget proposal to a joint session of the state House and Senate. The address was different than any other in the Commonwealth’s history, as the Governor gave it at the same time that parts of the current fiscal year’s spending plan remain unfinished.

While the Governor did not mention any details in his address, the 2016-17 proposal includes an 11 percent increase in the personal income tax from 3.07 to 3.4 percent, an increase in the minimum wage from $7.25 to $10.15 an hour, a natural gas extraction tax, and expanding the sales tax on some items. Wolf had proposed a number of these changes in the 2015-16 budget, but backed off as the negotiations continued.

One of the major unresolved issues for 2015-16 is education spending levels. The governor continues to demand $377 million more for basic education funding this year – a number that was reached in a budget framework agreement that crumbled in December. He added another $200 million in the 2016-17 budget proposal plus an additional $60 million for pre-K education

In response, Republican legislative leaders told reporters that the governor is acting irresponsibly with his spending demands.  Senate Majority Leader Jake Corman said Gov. Wolf is “doubling down on his failures to provide leadership on accomplishing a bipartisan budget agreement by asking for even more taxpayer money without addressing the changes needed for long-term relief for Pennsylvania schools.”

On Monday, February 8th, Bloomsburg Town Council did not approve changes to parking meter enforcement times. The majority of Council members agreed to let a newly-formed sub-committee on parking discuss management issues and make recommendations. Members of the business community were on hand to restate their concerns and thanked Council for listening.

Prior to two votes on the issue, Council heard several statements opposing the changes, including one developed by the Chamber and co-signed by 51 business people, who are listed below. The first vote to adopt the changes as advertised did not pass with a 3-3 vote. A member of Council was absent. A motion was then made to re-advertise the ordinance, which included a number of changes to parking enforcement, but without the changes to enforcement times. That vote passed 4-2.

Prior to that meeting, the Town’s Community and Economic Development Committee agreed to create a parking sub-committee involving community stakeholders. The Chamber and Downtown Bloomsburg, Inc. have been invited to participate. “We look forward to working with the Town and other stakeholders to develop long-term strategies for parking management in Bloomsburg,” said Fred Gaffney, Chamber President.

Thanks to the members of Town Council for listing to the concerns of the business community, as well as those business people that signed on to the joint statement to express their concerns:

On Monday, January 25th, Bloomsburg Town Council voted to advance proposed changes to parking enforcement in the downtown. The Chamber and WHLM Radio presented results of polls that showed significant opposition to the plan. While increasing parking fees on Main Street was approved by resolution, a final vote on enforcement times is scheduled for February 8th.

The Town’s Administrative and Finance Committee recommended the plan to increase fees on Main Street and in the Square from 25 cents per hour to 50 cents per hour. The reason given by members of Council for this increase is to help pay for new parking meters. The increase was approved by resolution on a 5-2 vote.

Changing the enforcement times requires an ordinance change. Enforcement on Main Street would change from 9 a.m. to 5 p.m., Monday through Friday, to 10 a.m. to 7 p.m., Monday through Friday, and 10 a.m. until 2 p.m. on Saturday. The reasoning for this change is to deter people living in the downtown area from parking in public spaces, keeping those spaces available for business customers. Advertising the changes was approved 4-3. Council is expected to vote on the ordinance change at their meeting at 7 p.m. on February 8th.

The Chamber has heard concerns from a number of business and property owners that these changes could impact customer patterns and be harmful to businesses in the downtown. A poll was created asking if people supported or opposed these two changes. Of 299 respondents that provided their contact information, 77 businesses and property owners were represented. Of the total respondents, 90.6% oppose the fee increase, and 93.5% oppose the new enforcement times. The WHLM poll asked only about the parking fee increase. With over 500 responses to that poll, 77% were opposed to the fee increase.

Detailed results of the Chamber’s poll are available here.

Following the January 25th meeting, a meeting was organized for business and property owners in the downtown to discuss the changes. A joint statement was developed and has been forwarded to Council.

Downtown businesses and property owners are also strongly encouraged to attend Council’s February 8th meeting. To guarantee that your comments are heard prior to the vote, contact Amy Seamans at Town Hall at 570-784-7123 ext. 117 no later than Friday, February 5th at noon.