Representative Millard highlighted the increasing burden of the pension plans. In the upcoming fiscal year, more than $2 billion will be dedicated to pension obligations. Over the next four years, those costs will increase by more than $1 billion. Rep. Millard has co-sponsored legislation which would put all new hires in a 401k plan, which would ease the burden long-term. Representative Masser reiterated that it’s past time for Pennsylvania to get out of the liquor sales business, which only generates a 3% profit. “If any CEO was running a monopoly and could only return three percent, I don’t think your days in that position would be long,” said Masser. Privatization of the system could generate significant revenues. 
Masser also stated that this year’s budget negotiating process is better. During an abbreviated, two-day session week last week, the state House positioned H.B. 1999 – the General Appropriations bill for the 2016-17 fiscal year – for a final vote. After bringing up the bill on the House floor, lawmakers withdrew all of their amendments with the understanding that their funding priorities would be addressed at a later date. The PA Chamber also expects the proposal to increase the minimum wage to be revisited. Earlier this year, Governor Wolf increased the minimum wage for State employees to $10.15 per hour. The Independent Fiscal Office projected in November that an increase in the minimum wage to $10.10 per hour could result in 31,000 lost jobs in Pennsylvania and 500,000 nationwide. The PA Chamber has been advocating for workforce training programs and tax credits to help low wage earners rather than mandated wage increases. Millard and Masser said they are still looking at the potential impacts and solutions to the minimum wage discussion.Residential and commercial property owners in flood-prone areas of Columbia and Montour counties are facing dramatic increases in flood insurance. The Columbia County Housing and Redevelopment Authority recently received grant dollars to help some homeowners mitigate these higher costs and future flooding risks. Information sessions are scheduled for May 11th to explain the reasons for the insurance increases, and the grant assistance program. In addition to property owners, lenders, realtors, and insurance agents are welcome to attend to learn more.
In 2012, Congress passed the Biggert Waters Flood Insurance Reform Act. This legislation phases out flood insurance subsidies, which impacts many properties in our area that were built prior to the creation of the program. When the subsidies are fully phased out, property owners could be facing premiums many times higher than current rates.
Additionally, FEMA is remapping flood elevations along the Susquehanna River Basin following the flooding in 2011. This is likely to result in many more properties being included in flood zones. The remapped zones are scheduled to take effect in 2018.
The Redevelopment Authority has received funding to help homeowners in some sections of Columbia County to elevate their homes and/or utilities above base flood elevations. There are income guidelines associated with these Federal dollars. The informational sessions will be held from 2 to 4 p.m. and 6 to 8 p.m. on May 11th at the Espy Fire Hall to provide additional details, distribute applications, and help residents determine if their properties will be impacted by remapping.
The state’s Independent Fiscal Office released an analysis last week that anticipates the tax increases proposed by Gov. Tom Wolf in his 2016-17 budget plan would generate $2.66 billion for new state spending. This is slightly less than the $2.7 billion that the governor’s budget office estimates would be the full amount of tax hikes under his proposal. The IFO estimates that the proposed retroactive Personal Income Tax increase would generate the most revenue, netting $1.27 billion.
The IFO analysis also examined the impact of the governor’s proposed severance tax – a 6.5 percent levy that maintains the current impact fee but allows drillers to claim impact fee payments as a credit against the severance tax. The IFO notes the significant discount that Marcellus drillers are being paid compared to that of other major national hubs, and projects that this discount will remain in effect for the next several years. Because the governor’s proposal does not allow for deduction of post-production costs, the effective rate of the proposed severance would be the highest among other states that, along with Pennsylvania, lead the country in gas production: Ohio, West Virginia, Texas and Oklahoma.
FO also examined the employment effects of raising the state’s mandated entry wage to $10.15 per hour. The analysis projects a loss of nearly 30,000 jobs due to the increase, with the job losses felt disproportionately by part-time employees, as well as a “slower rate of hiring compared to a counterfactual where minimum wage did not increase.”
The final piece of the 2015-16 budget becomes law following an announcement by the Wolf administration last week that the governor will not veto or sign H.B. 1589, the Fiscal Code Bill. Per the Pennsylvania Constitution, legislation passed by the General Assembly automatically becomes law if the governor does not act on it within 10 days.
PPL Electric Utilities has made significant improvements to customer reliability in recent years through line clearing, capital investments, and new technology. Assisted by mild weather, 2015 service reliability was the best in more than 20 years across its 29 county service area. The company plans to invest nearly $1 billion per year over the next five years to further improve reliability.
An overview of the company’s service performance was provided to business and community leaders at the Pine Barn Inn recently by Greg Dudkin, President of PPL Electric Utilities. Mr. Dudkin explained that the company is responsible for transporting electricity from power generation facilities to 1.4 million customers in Pennsylvania. Once a part of PPL Corporation, the power plant at Washingtonville and the Susquehanna Steam Electric Station are now owned by Talen Energy, created in June of last year.
According to Dudkin, PPL customers experienced 30 percent fewer outages than in 2007, with tree-related outages down 37 percent compared to an average of the previous 10 years. The company expects to improve overall reliability another 15 percent. In addition to line clearing, reliability has improved through installation of new lines, rebuilding older lines, and installing technology to allow power to be rerouted automatically in a matter of minutes during an outage. During an outage, customers receive alerts and have access to outage maps and better estimated restoration times. These resources are available at www.pplelectric.com.
Dudkin also talked about their energy conservation programs. In the past six years, customers have saved enough electricity to power over 240,000 homes for a year, and saving $218 million annually. Programs are available for residential, government, non-profit, education, commercial and industrial customers. The company and its employees continue to be highly engaged in the community. More than $2 million has been donated to United Ways by their employees, retirees, and corporate giving. Employees volunteered over 15,000 company-supported hours last year. PPL Corporation has supported over 90 organizations in the Susquehanna region, including the Chamber, its Foundation, and other economic development organizations.
Mr. Dudkin’s presentation is available here.
With the State’s 2015-16 budget finally completed, legislators are well into the 2016-17 process. Will the next budget be passed on time? Get insights from our State delegation and the Pennsylvania Chamber of Business and Industry at an upcoming breakfast.
Jennifer Reis, Manager of Government Affairs with the PA Chamber, will provide an overview of the 2016-17 budget proposal, highlighting issues which impact business. Representatives Kurt Masser and David Millard with provide updates on the negotiations. Attendees will also be invited to ask questions.
The program will be held Friday, May 6th from 8:00 to 9:30 a.m. at the Pine Barn Inn, Danville. Cost is $18 for members and includes a buffet breakfast. Register for the event online or by calling the Chamber office at 570-784-2522.
Last week, an overwhelming majority of House and Senate lawmakers sent Gov. Wolf an amended version of the Fiscal Code Bill that provides direction for how certain state funding should be spent. The governor vetoed a previous version of the legislation in March, based on his resistance to provisions relating to school funding distribution, environmental regulation and other issues – an action that led to the loss of $439 million to public schools and the threat of lawsuits. The newly passed Fiscal Code – H.B. 1589 – contains borrowing to reimburse for school construction costs and the distribution formula that was approved last year by the Basic Education Funding Commission and earned bipartisan support. In his veto last month, Governor Wolf bypassed this formula in favor of funding schools through his own distribution formula, which left legislative leaders questioning whether he had the authority to do so.
Unlike last month, the governor has made no threat to veto H.B. 1589. This is perhaps because the broad-based support for the measure in both chambers indicated that there would be enough votes for a two-thirds veto override in the legislature. A number of members in the governor’s own party voted with Republicans to pass the bill. It passed by a 149-45 vote in the House; and cleared the Senate in a 37-11 vote. Should the governor choose to veto the bill, a veto override would require a total of 136 votes in the House and 33 votes in the Senate (although this will jump to 34 following the special election on April 26).
While the administration was mum on what action Gov. Wolf intends to take with the new Fiscal Code bill, Wolf spokesman Jeff Sheridan told reporters that the governor plans to review the legislation in its entirety.
On March 1st, the Columbia-Montour Visitors Bureau unveiled two new interactive kiosks located in the Danville area. The first kiosk was placed at Geisinger Medical Center in the Atrium Café, which is a heavily trafficked area of the hospital complex. The other kiosk is located in the lobby of the Pine Barn Inn. These displays are linked to the Visitors Bureau website to assist users in finding information about local businesses, upcoming events in the area, dining and shopping options, local attractions and other activities in Columbia and Montour Counties. Jim Wilson, Executive Director of the Danville Business Alliance, highlighted the impact of the new technology on the area. “The kiosks are strategically placed in two of the busiest pedestrian locations in Danville and Montour County: Geisinger Medical Center and the Pine Barn Inn. Literally thousands of people (patients, their families, visitors) will pass by them every day. They will provide an unparalleled opportunity to promote the many natural, historic, cultural and commercial assets of both Columbia and Montour Counties.”
Data trends show that the new kiosks are indeed having an immediate impact on the area. In the months preceding the installation of the new kiosks, the Visitors Bureau website averaged 300-400 unique page views from the Danville area every month. In the one month after the kiosks were placed, this number dramatically increased to reach nearly 2,000 unique page views in the month of March. Several local business owners have expressed their excitement about the new installations, and hopes are high that downtown Danville will see greater foot traffic in the upcoming summer months.
More than 600 businesses and organizations belong to the Columbia Montour Chamber to receive benefits and support efforts to strengthen our region. Increased membership allows us to offer additional programs and benefits, have a stronger voice in advocacy, and be involved in more activities and initiatives in our communities. The Chamber welcomes six organizations that joined in March to help us fulfill our mission:
487 Rustics – 1549 State Route 487, Orangeville
Can U Xcape – 95 East 10th Street, Unit 1, Bloomsburg
Keystone Payroll – 355-C Colonnade Boulevard, State College
Resurrection Movement Studio – 1408 Montour Blvd, Danville
Sokol Quarries, Inc. – 3860 State Route 487, Stillwater
Susquehanna Valley Limousine, Inc. – 2225 Ridge Road, Northumberland
Additional contact information is available on the Chamber’s Online Directory. A reminder that anyone who recommends Chamber membership will receive a $25 gift certificate when that organization joins.
From PA Chamber of Business & Industry
The 2015-16 PA budget was finalized last week as Gov. Tom Wolf allowed various appropriations bills to become law. Of the number of bills sent to the governor’s desk, only one – the Fiscal Code – was vetoed. The veto reduces by $439 million the amount of money that Pennsylvania’s public schools will receive – an interesting result given that the Wolf administration continuously pushed for more education funding during the budget impasse. Senate Republicans say that a $150 million increase in basic education funding and $289 million in school construction reimbursements can’t be distributed due to the Fiscal Code veto – a fact the Wolf administration is trying to make up for by proposing $200 million in PlanCon funding in the 2016-17 budget. Senate Majority Leader Jake Corman, R-Centre, decried the governor’s action as making the schools a pawn in a tax and spend agenda. “At the tip of the governor’s veto pen are schools left searching for ways to pay the interest on loans or school construction costs,” Corman said.
Capitolwire reports that the governor is defending his Fiscal Code veto by stating that the bill contained objectionable provisions including the funding formula for new money – which the governor agrees with, but only after more basic education funding has been distributed via the old funding formula – and a borrowing plan for school construction, which he claims would be too costly given the state’s current credit rating situation. It was further reported that the veto affects more than $25 million in agricultural funding, as the Fiscal Code bill would have allowed for spending from a restricted receipt account within the supplemental appropriations bill that became law. House and Senate lawmakers returned to Harrisburg this week for session to examine the implications of Gov. Wolf’s veto and spending levels for the 2016-17 budget.
With the start of the Chamber’s new fiscal year on April 1, several new members will be welcomed to the Board. Incoming members are as follows:
Martin Bowman, Columbia Alliance for Economic Growth
Diane Ljungquist, Berwick Hospital Center
Travis Petty, Borough of Berwick
Denise Stone, Geisinger Health System
Jeff Whitenight, First Columbia Bank & Trust
Sharon Wilkin, CSS Industries
Officers are as follows:
Mark Gardner, Chair, M&T Bank
Karen Wood, Vice Chair, Service 1st Federal Credit Union
Diana Verbek, Treasurer, Danville Child Development Center
Fred Gaffney, President
A complete list of Chamber Board members is available online.
Exiting the Board are Jim Nemeth, Autoneum, and Andrew Pruden, Inn at Turkey Hill. Chair Mark Gardner expressed appreciation for their service at the March Board meeting. Both continue to be active on the Partnership Board and committees.