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Business community welcomes progress in 2011 on pro-growth agenda
Looks to continue momentum on improving biz climate in 2012
2011 was a good year for PA Chamber members, who collaborated with lawmakers and the Corbett administration to realize progress on several pro-business, pro-growth policies. Key legislative accomplishments during the first half of the 2011-12 session included enactment of the Fair Share Act, which modified the unfair legal doctrine of joint and several liability, replacing it with a system that ensures that liability better matches degree of fault in civil lawsuits. This critical lawsuit abuse reform measures begins to bring balance to Pennsylvania's legal system, recognized as one of the worst in the nation and one that hinders business investment and job growth. Another new law begins to bring cost savings and commonsense reforms to the state's unemployment compensation system. Act 6 of 2011, while not addressing the UC Trust Fund debt (see below), makes changes that will save the system about $133 million annually. Additionally, the law requires UC recipients to prove that they are actively looking for work, and establishes a 40 percent severance pay offset. The PA Chamber also backed the administration's successful effort to adopt an on-time state budget that begins to restore fiscal discipline to state government; continues the phase-out of the Capital Stock and Franchise Tax – an uncompetitive tax on business assets regardless of whether or not a business makes a profit; and does not raise taxes on businesses and individuals struggling in a still fragile economy. As part of the focus on fiscal discipline, taxpayer approval is now required for school district property tax increases above the rate of inflation. The PA Chamber supports this measure. The PA Chamber also spent 2011 helping to lay the groundwork for a number of pro-growth measures that are poised for passage in the new year. These include additional legal reform measures, notably the expansion of venue reform to all civil liability cases, as well as certificate of merit and apology legislation. In addition, the PA Chamber has been working with state lawmakers on legislation (S.B. 1310) that would begin to address Pennsylvania's nearly $4 billion debt to the federal government resulting from borrowing needed to pay state UC benefits. This legislation, which awaits a Senate concurrence vote, would allow the Pennsylvania Economic Development Financing Authority to issue low-interest bonds in an amount that would pay off the debt to the federal government and improve the UC Trust Fund's cash flow. Additionally, the bill would establish a temporary amnesty program that would permit delinquent businesses to waive 50 percent of their interest payments if they pay the principal debt in full; and would authorize the Department of Labor and Industry to target businesses evading UC taxes and recoup illegitimate overpayments to claimants. These and other provisions would increase annual revenue to the fund. PA Chamber members believe that refinancing the federal debt through bonding makes smart financial sense because it allows the state to address what has become a substantial drain on the Commonwealth without raising taxes. Other 2012 priorities include quick enactment of a responsible Marcellus Shale oversight bill in order to bring predictability to the oil and gas industry and foster its growth and economic potential without compromising public health and safety. This issue will be debated in a Senate/House Conference Committee in January. Stressing that market-driven competition is integral to helping students receive a quality education, the PA Chamber remains hopeful that the legislature will pass education reform initiatives in the new year that include school choice, expanding the successful Educational Improvement Tax Credit program, authorizing more charter schools, and improving the teacher evaluation process. Finally, the PA Chamber has been working over the past several months with its Workers' Compensation Executive Committee and other associations in developing a comprehensive WC reform proposal. ### 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 Business. |
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