Back to School: Brought to You by American Business
Source: U.S. Chamber of Commerce
The back-to-school season is in full swing, with families, students, and teachers gearing up for another school year. The season marks the beginning of another year filled with fresh starts, new academic opportunities, and giving back to local communities.
From pencils to sports equipment, businesses across the nation continue to ensure that American families, students, and teachers have everything they need for an enriching school year.
Businesses Support a Huge Market to Advance Academic Excellence
Back-to-school spending for 2024 is estimated to reach between $32 billion to $39 billion, with Americans expected to spend about $590 per child on back-to-school shopping in 2024, according to Deloitte Insights and the National Retail Federation (NRF).
Additionally, back-to-college spending is expected to reach $87 billion, with each collegiate household spending, on average, $1,365 on essentials like pens and pencils, notebooks, new clothes, and classroom electronics.
This reflects the significant investment families make in discretionary and non-discretionary items for the new school year while also highlighting the massive expectations businesses face in providing products to meet these needs.
Students and parents purchase everything from shoes to calculators to lunchboxes to prepare for the school year. Retailers are prepared to facilitate this with a wide variety of products.
This spending also contributes to economic activity in communities of all sizes around the country. From drug stores to dollar stores to big box shops to online retailers, U.S. businesses of all shapes and sizes fuel the back-to-school season for Americans.
- NRF data shows 95% of shoppers purchase back-to-school essentials, followed closely by clothing and accessories (94%), shoes (92%), and electronics (66%).
Meeting Demand: Businesses Support Shopping Trends
How consumers shop for back-to-school items is evolving, with a notable mixture of online and in-person shopping providing families with flexibility in meeting their needs.
- According to NRF data on back-to-school shoppers, 57% are engaging in online shopping, 50% are visiting department stores, and 47% are opting for discount stores.
- Similarly, the 19 million college students engaging in back-to-college shopping show a strong preference for online shopping (50%), with significant numbers also visiting department stores (35%) and discount stores (31%).
This multichannel shopping approach highlights the adaptability of businesses in meeting consumer needs across various platforms. Whether through e-commerce websites, brick-and-mortar stores, pharmacy drug store chains, or hybrid models like buy online and pick up in-store, retailers are providing convenient and flexible options for families.
Several reports find that consumers now show a significant preference for early shopping as well, with the NRF reporting that 55% of consumers began back-to-school shopping in July.
Deloitte Insights supports these findings, with shoppers reporting a considerable 66% of their back-to-school budgets being spent by the end of July as well. Sixty-six percent of consumers indicated that they engage in early back-to-school shopping as businesses offer affordable prices and attractive deals at earlier points in the shopping season.
Retailers throughout the U.S. serve American families and respond to consumer preferences by offering competitive price points and sales throughout the entirety of the back-to-school shopping season. This allows consumers to take full advantage of the discounts over several weeks while gearing up for the new school year.
Businesses Help Local Schools and Education Programs
In addition to providing families and students with the tools they need to get back in the classroom, businesses across the country also support local schools, students, and teachers.
Many local small businesses donate funds and back-to-school essentials, while others serve as community donation sites to pool resources for students and educators in need of extra supplies.
The school year offers learning opportunities outside of the classroom, and companies like Tractor Supply support important community programs, like local National FFA Organization chapters and 4-H clubs.
Youth sports also play a major role in the school year for students and families in communities of all sizes, and companies large and small contribute to team fundraisers and sponsor teams through ads in programs and banners lining sports fields. Recognizing the importance of youth sports, companies like DICK’s Sporting Goods partners with public schools to help fund sports programs across the nation.
Bottom Line: Back-to-School Can’t Happen without American Business
The back-to-school season is a testament to the dynamic relationship between businesses and American families. This dynamic not only drives economic growth but also ensures that students across the U.S. are well-equipped for a fruitful and informative academic year.
As we look forward to the 2024 school year, businesses are playing a fundamental role in fueling the back-to-school experience for millions of American families.
About the authors
Nicholas Molinari
Nicholas Molinari is an associate manager for the Tax and Economic policy teams at the U.S. Chamber of Commerce.
Rachel Ledbetter
Rachel Ledbetter is a senior manager for communications and strategy at the U.S. Chamber of Commerce.
World Kinect – Connecting your business to the right energy deal
World Kinect is the expert energy brokerage and services team we’ve chosen to partner with to support businesses like yours, helping you reduce your energy cost, consumption and carbon footprint.
World Kinect has been delivering energy procurement and management services for over 40 years. Coupled with its expertise and great range of services, it’s this kind of stature that made us choose World Kinect as a trusted partner to work alongside.
How does this help our chamber members?
One of their key areas of expertise is energy brokerage. It means the team there has the knowledge, resources and contacts to identify the perfect suppliers and tariffs to match the needs of individual businesses like yours, both for natural gas and electricity. Through its brokerage service, they can help businesses save significant time and money as well as simplify their everyday admin.
World Kinect also provides useful advice and information aimed at helping businesses reduce their energy consumption. World Kinect consultants can share their expertise with you and your staff, from auditing usage and validating bills to making practical recommendations around everyday efficiency and sustainability.
Just as with your natural gas and electricity, these specialists can also help you with your sustainability goals in reducing your carbon footprint.
Why World Kinect?
This all sounds great, but you probably need to know about some of the particular benefits that come with enlisting the help of World Kinect. What is it that makes its team and their services special?
Face-to-face contact
A business proudly built on relationships, their energy experts will come to you in person and take the time to really understand the ins and outs of your business, including its unique everyday operations and long-term goals.
Saving time, not just energy
They understand that their job isn’t just about reducing utility energy consumption; it’s about reducing the energy and time that individual staff spend on managing those utilities. That’s why World Kinect focus on providing solutions that reduce workloads, minimize risk and streamline entire energy processes, from procurement to paperwork and everything in between.
Expert advice on everything energy
From how to monitor and understand your energy consumption to whether solar panels would make a sound investment for your facility they’ll give you clear, honest and up-to-date advice, all as part of the service.
As well as explaining the energy market to you, they will identify the suppliers and tariffs that make the most sense for your business. They’ll even factor in the different considerations that matter to you most, whether that’s price, customer service or a supplier’s green credentials. Not just that, they’ll also sort the dreaded ‘switchover’ for you, meaning one less hassle for you to worry about.
More than ever, we understand that the energy market can be a confusing and daunting place for our members. Knowing whose advice to trust, how to switch and what energy prices will do next are all difficult enough challenges, without having to juggle it all as part of a hectic and stressful workload. We believe that our energy partners can help, and we certainly think that a free consultation with them is an ideal place to start.
For more information about World Kinect and its services relevant to businesses like yours, book a no-obligation consultation with your local energy expert Loren Martelo at 724-263-8353
7 Effective Budgeting Strategies for Small Businesses
Source: CO by U.S. Chamber of Commerce
Author: Kaytlyn Smith
Creating a budget is vital for the financial health and longevity of your small business. However, it can also be a daunting task.
From monthly budgets to vendor choices, there are many elements to plan for and incorporate into your broader budget. Here are seven strategies you can use to develop a strong business budget.
Know your numbers and plan with purpose
Yvonne Cobb, CPA and Founder and CEO of TakeAway Tax, recommends small business owners take a goal-oriented approach to financial planning.
“The key to effective budgeting is setting a specific financial goal — ‘finding your number’ — and working backward,” Cobb explained. “This … offers a clear benchmark and ensures that all decisions contribute directly to the business's goal.”
Be strategic about every expense
According to Karla Dennis, an Enrolled Tax Agent and Founder of KDA, Inc., small business owners often spend money without an expectation or purpose for that expense. She advised asking yourself, “What will this expense get me in return?” before making any purchases.
“Ensure every dime being spent is going to get you to your goals,” Dennis said. “This will help eliminate expenses that are not needed. Then, make sure you stay within the budget you set.”
Start with a month-to-month budget before planning longer-term
Ryan Carrigan, CEO and Founder of MoveBuddha, recommends small businesses start with short-term or activity-based budgeting before looking too far into the future. The process of tracking every cost-related activity can help you plan your future budget in whatever increment you choose.
“It can be beneficial to analyze all costs and profits in the beginning,” Carrigan said. “Then create a monthly budget until you grow enough to create a sustainable budget that can last a quarter, six months, and eventually annually.”
Build a zero-based budget
Every dollar counts in a small business, said Jason Manar, a former FBI Agent and CISO at Kaseya. That’s why he recommends adopting a zero-based budget strategy.
“During my time in the FBI, I found most successful small businesses used a zero-based budget,” Manar told CO—. “They built the budget from scratch, justifying every dollar spent that had to be directly correlated to necessities. Those businesses that were transparent and involved in all departments had a more comprehensive understanding of the needs and priorities of the company.”
Choose your vendors wisely
Michael Sawyer, Operations Director at Ultimate Kilimanjaro, noted that small businesses should take great care when choosing which vendors to partner with.
“Just because you have an opportunity doesn’t mean you should jump on it,” Sawyer said. “You don’t want to invest and waste money on a poor partnership.”
Before signing any contracts, Sawyer recommends taking the extra time to determine the quality and values of any prospective vendors to ensure they align with yours to make a positive impact on your business.
Be flexible
Rigid budgets that account for every dollar and cent aren’t necessarily the best strategically, according to Jan Brandrup, CEO of Neurogan.
“Choosing a flexible budgeting strategy has been most beneficial for us, and it is helpful because it’s adaptable and allows you to track the ups and downs of spending and revenue,” Brandrup said.
Although it’s great to have a budget that is planned on a monthly basis, flexibility can help manage any unexpected expenses that pop up.
“Having a flexible budget that forecasts as opposed to structures your money will ultimately promote and drive profit,” said Brandrup.
Review and adjust your budget periodically
A good business budget isn’t something you set and forget. Sofia Perez, Owner and Content Manager at Character Counter, says business budgets — whether yearly, quarterly, or monthly — should be reviewed often.
“You need to have your eyes on the dollars at all times,” she said. “I recommend planning two months in advance, [including] expenses that could throw off estimated revenue as well as gross profit to ensure the company’s money is accounted for.”
CO— aims to bring you inspiration from leading respected experts. However, before making any business decision, you should consult a professional who can advise you based on your individual situation.
CO—is committed to helping you start, run and grow your small business.
The Critical Role of Child Care in Boosting Economic Development and Supporting Small Business Employment
- Access to quality child care is crucial for economic growth and small business sustainability, reducing employee absenteeism, and boosting productivity.
- Employers, including big brands like Patagonia, are finding innovative ways to offer childcare solutions, enhancing hiring and retention.
- Small businesses can support childcare by partnering with local centers, offering discounts, or supporting community programs.
Investing in childcare creates jobs within the sector, stimulates local economies, and fosters a sense of community. - Offering childcare support can lead to long-term savings for businesses by reducing turnover and fostering a more dedicated workforce, making it an economic imperative.
663 words ~ 3.5 min read
Access to quality child care is a significant yet often overlooked factor that influences economic growth and the sustainability of small businesses. For small business owners and employers, understanding the vital role that reliable childcare services play in the workforce is essential for fostering a productive environment and supporting the local economy.
Reliable Child Care Reduces Employee Absenteeism
The availability of trustworthy childcare plays a crucial role in enabling parents to seek and maintain employment. Quality child care reduces absenteeism by allowing parents to commit to their work schedules without the stress of worrying about their children's safety and well-being. When parents are confident their children are in nurturing environments, they are less likely to miss work, ensuring consistency and reliability in their professional roles.
A Proven Way to Boost Productivity
High-quality child care also positively impacts job performance. Parents who know their children are well cared for can focus more fully on their job responsibilities. This heightened focus and reduced stress lead to better job performance, benefiting employers with a more engaged and productive workforce. This increase in productivity and engagement drives overall economic activity, showcasing the broader benefits of investing in quality child care.
Childcare Solutions Supported by Employers
To address the pressing need for childcare, some employers are taking action. In addition to offering flexible work schedules or subsidies for external childcare solutions, some offer on-site childcare. The outdoor clothing company Patagonia was a trailblazer in offering onsite childcare starting in 1983. In addition to paid maternity and paternity leave, employees have access to childcare at their Ventura headquarters and at their Reno distribution center.
Childcare gives brands like Patagonia maintain a significant advantage in hiring and retention. By solving this major employment challenge for parents, they’re able to enhance employee loyalty and job satisfaction.
Of course, many small businesses cannot build a childcare center on-site. However, there are some things employers can do to alleviate childcare stress. Some solutions include partnering with childcare centers to offer discounts to their employees, providing workers with backup child care solutions, and working with their community leaders to support after school programs and summer camps.
Childcare Solutions Benefit Families, the Community, & The Economy
Investing in childcare is not just an employee benefit; it creates job opportunities within the childcare sector itself. By supporting local childcare services, small businesses can stimulate job creation, ranging from educators and childcare providers to administrative staff. This ripple effect not only creates employment but also fosters a sense of community. When businesses invest in local childcare, they are not just supporting families; they are investing in their own future and that of the local economy.
The economic implications of quality childcare extend even further. As working parents allocate a portion of their income to childcare services, they inject funds back into the community, stimulating local economies. This spending supports not only childcare providers but also related services such as grocery stores, restaurants, and other local businesses. In essence, investing in childcare is an investment in the community's economic vitality.
The Takeaway
For small business owners concerned about costs, it is crucial to recognize that investing in childcare can lead to long-term savings. Providing child care assistance or establishing partnerships with local childcare providers can reduce turnover and the associated costs of recruiting and training new employees. Additionally, businesses that offer flexible work arrangements, such as remote work or adjusted hours, can help accommodate parents’ childcare schedules, resulting in a more dedicated workforce.
In short, access to quality child care is not merely a family issue; it's an economic imperative that small business owners and employers must take seriously. By recognizing the importance of reliable childcare, businesses can create a thriving workforce and foster vibrant local economies. The benefits of investing in childcare are manifold: it supports families, enhances employee productivity, creates job opportunities, and stimulates local economic growth.
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The Columbia Montour Chamber of Commerce is a private non-profit organization that aims to support the growth and development of local businesses and our regional economy. We strive to create content that not only educates but also fosters a sense of connection and collaboration among our readers. Join us as we explore topics such as economic development, networking opportunities, upcoming events, and success stories from our vibrant community. Our resources provide insights, advice, and news that are relevant to business owners, entrepreneurs, and community members alike.
Member News ~ August 19, 2024
46th Annual Fall Arts & Craft Festival happening as part of Danville Heritage Festival
Held the first Saturday after Labor Day in September, 46th Annual Fall Arts & Crafts Festival is a celebration of the foods, shopping, and sounds that make it a special place. More than 125 vendors, activities for the kids, and bands rocking the Canal Park stage. Learn more.
Bloomsburg Fair Entries are Now Open
Are you crafty? Good at baking? Can grow a garden? Have a farm animal? Love photography? Well if you answered yes to any of those questions you may want to enter an exhibit into the fair! Learn how to enter here.
Bloomsburg Chevrolet hosting Car Show
The 17th Annual Car Show will be happening September 7th 9:00 am - 3:00 pm. Call 570-784-2720 or check out their Facebook page for more info.
Fulton Bank Invests $3,000 to Support Regional Growth in Central PA
Fulton Bank invested $3,000 in Focus Central Pennsylvania for 2024 to support smart regional economic growth by marketing the region to attract quality investment projects that cultivate economic growth. See full details here.
Commonwealth University – Bloomsburg Community Day Fair & Carnival August 23rd
The BU Community Day Fair and Carnival provides an opportunity for new incoming students at Commonwealth University - Bloomsburg to meet and begin to build relationships with the leaders and organizations that are part of the local community. Learn how to register your organization to attend.
Danville Child Development hosting Enrollment/Open House on August 22nd
Thursday August 22nd Danville Child Development will be hosting an Enrollment/Open House event from 5:30 - 7:30. There will be tours, facility tours, special guests from the Bloomsburg Children’s Museum, supporters from Service 1st, and opportunities for visitors to win prizes. Learn more.
Investing for Success as a Nonprofit Organization webinar happening September 12th
McKonly & Asbury will be hosing a free Investing for Success as a Nonprofit Organization on September 12th. Gain insights on specific ways to improve board of directors’ oversight of organization investment programs, effective strategies to structure investment accounts for long-term success and ideas on asset allocation practices for nonprofit organizations. Register here.
Commonwealth University offering Fall Workforce Development Courses
Check out the Fall training schedule of workforce development courses include Management and Leadership, Healthcare and more. Get more details about all their programs!
Bloomsburg Children's Museum Featured on WVIA
Listen to WVIA's story on the Bloomsburg Children's Museum's 40th Anniversary!
PA Careerlink Awareness Day Happening in September
Save the date for PA CareerLink® Awareness Day, 2024! All six PA CareerLink® sites in the Central Region will be holding events on Thursday, September 12th from 11am - 2pm. More details!
Brookdale hosting Hydrated Happy Hour
There’s no better way to beat the heat than by socializing over seasonal summer drinks, especially if they’re hydrating! Join Brookdale Senior Living and fellow professionals for light bites and a variety of unique, -refreshing beverages made by their culinary team. Call 570-249-6533 to RSVP!
T-Ross Brothers hosting Scavenger Hunt
Back by popular demand! Starting November 1st The Susquehanna Valley Scavenger Hunt, presented by T-Ross Brothers Construction, is in the works! Participants will navigate a gauntlet of puzzles, decode cryptic clues, and complete fun challenges throughout our community! If your business or organization would like to be apart of this event contact robertt@trossbrothers.com.
Columbia County Traveling Library hosting Verses in the Vineyard
Join CCTL for an evening of wine tastings, small bites, and literary delights. Visit www.travelinglibrary.org/verses to purchase tickets online. The event will be held Saturday, September 14, 6-8 PM at Freas Farm Winery - 30 Twin Church Rd Berwick, PA. Learn more!
IMC Partnering to Offer Electrical Safety Training
The Innovative Manufacturers’ Center (IMC), Inc. is excited to announce its continued partnership with The Manufacturers' Association to support training in electrical safety in central and southcentral Pennsylvania through December 2024. Open enrollment opportunities scheduled are August 21 – Williamsport, September 9 – Lewisburg, and October 8 – State College. Learn more.
The Women's Center of Columbia and Montour Counties Hosting 50th Anniversary Celebration
The Women’s Center, Inc. is thrilled to invite you to their 50th Anniversary Celebration happening November 16th at the Barn at Frosty Valley. Learn more about the celebration here.
Commonwealth University Hosting Fall Management, Supply Chain, Marketing, Technology & Analytics Career Expo
Commonwealth University of Pennsylvania is pleased to announce its Fall 2024 Management, Supply Chain, Marketing, Technology & Analytics Career Expo at the Bloomsburg campus. Meet students and potential hires from Bloomsburg, Lock Haven, and Mansfield who are interested in careers in Logistics, Information Technology, and Management. For more information reach out to Darwin Kysor at dkysor@commonwealthu.edu or call 570-484-2181.
Pennsylvania College of Technology offers Workforce Development Courses
Check out PCT's full listing of Workforce Development Courses happening all year long! Courses include Excel Training and Fundamentals of GD & T.
Camp Victory hosting Dr. O's Victory Ride August 25th
Camp Victory in Millville, PA is hosting Dr. O’s Ride for Victory on August 25th. The event will feature a scenic ride through the mountains surrounding Camp Victory. Learn more.
Servpro of Columbia, Montour & Sullivan Counties offering CE classes
5 CE classes will be offered by Servpro of Columbia, Montour & Sullivan Counties. Get the full schedule.
3rd Annual Photo contest hosted by Journey Bank
Community Giving Foundation partnering on a regional nonprofit Conference in October
Community Giving Foundation and First Community Foundation Partnership of Pennsylvania (FCFP) are thrilled to partner together to create Elevate2, a new regional nonprofit conference. The inaugural conference will be held on October 14-15, 2024, at Bucknell University in Lewisburg. More information is available online at elevate2.org
Resources for you to prepare for the upcoming storm from PPL and Columbia County Emergency Management.
FAR 31 Allowability: Marketing Expenses Versus Bid & Proposal Costs
Source: McKonly & Asbury
When it comes to A&E Firms undergoing a FAR Overhead Rate Audit, understanding allowable costs is essential. Among the various cost categories, marketing expenses and Bid & Proposal (B&P) costs play critical roles. However, distinguishing between the two can be challenging. Understanding the differences between marketing expenses and B&P costs under FAR 31 can help a firm optimize their overhead rate.
Marketing Expenses
What Are Marketing Expenses?
Marketing expenses encompass a wide range of activities aimed at promoting products, services, or the organization itself. These costs include advertising, public relations, trade shows, and promotional campaigns.
Key Points About Marketing Expenses:
1. Allocability: State DOTs may challenge selling and marketing costs if they are deemed unnecessary or not related to government contracts. To determine if these costs are reasonable, state DOTs consider several factors: the nature and amount of the expenses compared to what a prudent businessperson would spend, the proportion of costs allocated between government and commercial business, how current costs compare to historical costs, industry benchmarks for selling costs, and the extent of selling and marketing efforts relative to the contract value.
2. General Advertising: Costs of promotional materials, brochures, handouts, magazines, or other media designed to call favorable attention to the Company and its activities are unallowable.
3. Direct Sales Type Marketing: Including B&P costs, direct sales type marketing is generally allowable under FAR 31.205-18 and FAR 31.205-38.
Bid & Proposal Costs (B&P)
What Are B&P Costs?
B&P costs refer to the costs incurred in preparing, submitting, and supporting bids and proposals (whether or not solicited) for potential government or non-government contracts. These costs are essential for winning contracts and securing business opportunities.
Key Points About B&P Costs:
1. Allowability: Since 1997, all B&P costs are allowable if they are reasonable and allocable to a contract. This is a significant shift from earlier rules that restricted reimbursement for B&P and independent research and development costs.
2. Not Sponsored by a Grant: B&P efforts must not be sponsored by a grant.
3. Not Required in Contract Performance: The costs should not be required for contract performance.
4. Accurate Time Keeping: Senior managers and executives must accurately track and record their time associated with B&P activities.
5. Clear Guidelines: Process and procedures regarding specific activities that comprise B&P activities should be established and communicated to all staff members.
Examples of B&P Costs:
1. Proposal Development Labor: The salaries and wages of employees directly involved in creating proposals fall under B&P costs. This includes proposal writers, graphic designers, and subject matter experts.
2. Proposal Materials: Costs related to printing, binding, and distributing proposal documents are considered B&P costs. These include paper, ink, and other supplies.
3. Travel Expenses: If employees travel to meet with potential clients or attend pre-proposal conferences, their travel costs (airfare, lodging, meals) are part of B&P expenses.
Timekeeping and Allocation
Why Separate Timekeeping Matters?
If there’s marketing employees who also work on bids and proposals, it’s crucial to have a system that can track their time separately. Here’s why:
1. Allocation: By tracking time separately, one can allocate the time spent on bid and proposals as allowable indirect labor. This ensures that these costs are recoverable.
2. Unallowable Expenses: Simultaneously, one can identify the portion of time spent on general marketing as an unallowable expense. Unallowable costs should be excluded from any billing or proposal applicable to a government contract.
Conclusion
Understanding the nuances of B&P costs versus marketing expenses is vital for FAR compliance. Implementing proper timekeeping practices and maintaining accurate records will help organizations navigate these cost categories effectively. Remember to consult the specific FAR provisions and seek professional advice to ensure compliance with regulations.
By adhering to the rules and making informed decisions, companies can optimize their overhead rate while staying within the bounds of FAR 31 regulations.
McKonly & Asbury’s Architecture, Engineering, and Construction (AEC) team is ready to serve your overhead rate audit needs. Our experienced AEC team is prepared to guide you through the audit process, so don’t hesitate to contact us for any additional information or questions.
The post FAR 31 Allowability: Marketing Expenses Versus Bid & Proposal Costs appeared first on McKonly & Asbury.
Protecting Businesses from Cyber Threats
Source: U.S. Chamber of Commerce
Businesses in communities nationwide face growing and ever-evolving cyber threats that risk disrupting our everyday lives, with severe consequences for our economy.
The U.S. Chamber of Commerce recently hosted the Threat Intelligence Forum, where experts from industry and government discussed how the public and private sectors can work together to protect businesses and consumers.
What they said:
- Emphasizing the need for better information sharing, Laura Galante, Director of the Cyber Threat Intelligence Integration Center, remarked, “Understanding who’s behind these attacks and what’s happening is crucial. Private sector intelligence is key to responding effectively.”
- Jeff Greene from the Cyber and Infrastructure Security Agency urged businesses to collaborate with government agencies, stating, “Work with us to improve security. Tell us where we’re falling short, and help us get better.”
Why it matters: Cyberattacks—whether from lone actors or rogue nation-states—are becoming more frequent and sophisticated. They target everything from personal data to a country’s critical infrastructure. These attacks can cause severe disruptions, affecting our daily lives and businesses of all sizes.
AI and cybersecurity: The forum also revealed insights into how artificial intelligence (AI) is reshaping the cybersecurity landscape as a tool for attackers and defenders alike.
- Cyber threats and AI: Cyber attackers increasingly use AI to create fake videos (deep fakes), manipulate large language models (LLMs), and spread false information. Conversely, AI equips U.S. intelligence agencies to detect and counter these attacks, strengthening our overall cybersecurity.
- Potential risks to infrastructure: AI is crucial for resilience against cyber threats. However, misuse can endanger critical infrastructure, such as power grids and energy pipelines. Collaboration, transparent information sharing, and strategic alignment are vital for ensuring the safety and reliability of essential services.
- Insights from the FBI: As the nation's top law enforcement agency, the FBI plays a pivotal role in leveraging insights from private companies to identify and combat emerging cyber threats more effectively. This collaboration is crucial for safeguarding vital industries like healthcare and finance, which are prime targets due to their sensitive data. The FBI's proactive approach should instill a sense of security in the audience.
State Fiscal Office Warns of General Fund Surplus Depletion
Source: PA Chamber of Business and Industry
Pennsylvania’s nonpartisan Independent Fiscal Office recently issued a research brief that updates its revenue projections against expenditures based on the FY 2024-25 enacted budget. And, according to the IFO, spending is now outpacing revenue and the revenue estimate for the current fiscal year is $320 million lower than the official estimate certified by Gov. Josh Shapiro. This has the office warning that, unless steps are taken to lower spending or boost revenue, the result could be a budget deficit of close to $1.6 billion by next year.
The IFO projects that if education spending increases by 2.4 percent, human services spending increases by 5.2 percent, and personnel-related spending increases by 4.2 percent, the state budget will be close to $50 billion in 2025-26 even though the state is projected to only bring in about $45 billion in revenue.
“For FY 25-26, revenue growth is modest (1.4 percent) due to the ongoing corporate rate cut, the reduction in interest that accrues on General Fund balances (-$240 million) and the deduction of newly enacted tax law changes (-$304 million),” the IFO said in its analysis.
The IFO notes in its analysis that the Shapiro administration has projected that Pennsylvania will get $300 million more in revenue in this fiscal year than the IFO has projected, meaning the deficit would be slightly less (if the administration’s estimates hold true.)
The 2024-25 budget will require about $3 billion of surplus cash to balance, leaving about $10.5 billion in reserve.
The IFO’s analysis warns that the cost of tapping into its reserves to pay for this year’s budget will leave the state with just under $3 billion in general fund surplus at the end of 2024-25. That surplus is on pace to become a $1.57 billion deficit by the end of 2025-26.
The state ended 2023-24 with a $6.6 billion surplus, plus almost $7 billion in the Rainy Day Fund.
To read the full report, click here.
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Founded in 1916, the Pennsylvania Chamber of Business and Industry is the state's largest broad-based business association, with its membership comprising businesses of all sizes and across all industry sectors. The PA Chamber is The Statewide Voice of BusinessTM.
State Budget Included Several Pro Business Victories
Source: PA Chamber of Business and Industry
Pennsylvania’s recently enacted state budget includes several pro-business victories including eliminating Pennsylvania’s Startup Tax by raising the cap on net operating losses, modernizing our permitting processes, and advancing workforce initiatives. These provisions will help attract new economic opportunities, expedite project approvals so that businesses can grow and create jobs, help employers address workforce challenges, and equip Pennsylvanians with the skills needed for the future. See the highlights below!
Tax Reform
- The 2024-25 PA budget eliminates the startup tax by improving the
treatment of net operating losses (NOLs). This change makes PA more attractive for new and growing businesses. - NOL reforms now aligns with federal tax standards on carrying business losses forward.
Permitting Reform
- PA’s new state budget streamlines the permitting process, reducing costs and delays for businesses.
- Reforms include third-party reviews and set response timelines.
- PA's budget reforms our outdated permitting system, promoting transparency and efficiency.
Workforce Development
- Investments in career and technical education, making it easier for qualified individuals to become CTE educators.
- New scholarships for in-demand fields and greater funding for workforce housing.
- Boosts investment in career and technical education and
incentivizes employer reimbursements for childcare expenses.