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Addressing Workforce Challenges in Rural PA

Last week, PA Chamber Director of Government Affairs Kevin Sunday testified on the ongoing workforce challenges that employers face in the Commonwealth’s rural communities during a public hearing at Penn College hosted by the Center for Rural Pennsylvania.

The hearing brought together leaders from Pennsylvania’s energy and healthcare sectors as well as educators, agency officials, and nonprofit associations. Participants included PA Chamber members UPMC, Coterra Energy, Penn College, Penn State, Shippensburg University, and the University of Pittsburgh. Senator Gene Yaw (R-Lycoming) – who also serves as the Center for Rural Pennsylvania’s board chairman – chaired the hearing.

During his testimony, Sunday emphasized the importance of improving Pennsylvania’s economic competitiveness through favorable tax and regulatory policies. “Our goal at the PA Chamber is to make Pennsylvania the most economically competitive state in the nation. This requires a tax and regulatory environment that encourages investment into the state,” Sunday said.

He also highlighted the need for modernized infrastructure to support economic growth throughout Pennsylvania. “We need modernized infrastructure across the state – from a safe and efficient system of roads and bridges to world-class airports and ports, to reliable gas, electric, and water infrastructure, and, just as important, access to high-speed broadband.”

Sunday also discussed recent legislative achievements, including the Senate’s advancement of comprehensive permitting and licensing reform legislation (S.B. 350) and tax reform measures (S.B. 345 and 346) that accelerate reduction of the state’s corporate net income tax and enhance businesses’ ability to carry forward net operating losses into future years, respectively.

The PA Chamber also supports efforts to improve the state’s workforce by addressing key barriers such as affordable childcare, occupational licensing requirements, and re-entry into the workforce after incarceration. In his testimony, Sunday reiterated the Chamber’s support for expanding Pennsylvania’s Clean Slate law and efforts to improve childcare for working families.

With Pennsylvania’s population decline being another major concern in the hearing, Sunday’s written testimony cited IRS data demonstrating that residents are leaving Pennsylvania for states with better economic climates. Sunday recommended targeted regional marketing efforts and greater collaboration with local chambers of commerce and economic development groups as a solution to help attract more residents to the Commonwealth.

Sunday urged policymakers to focus on creating an environment that attracts investment and promotes population growth. “We encourage the Center to take a close look at regional economic needs and population migration trends. Reforms to the state’s tax and regulatory structure help everywhere, but it is certainly the case that each region of the state has its own key industries.”

Sunday concluded his testimony by restating the PA Chamber’s commitment to working with stakeholders including the governor’s office, state legislature, and local communities to help move Pennsylvania forward.

Sunday’s full written testimony is available here. To watch his remarks, click here.

PA Chamber Calls for Clean Slate Expansion in NEW Op-ed

In case you missed it… The Pennsylvania Capital-Star recently published an op-ed by PA Chamber Vice President of Government Affairs Alex Halper in which he makes the business case for expanding Pennsylvania’s first-in-the-nation Clean Slate law in order to bolster the Commonwealth’s workforce.

First enacted in 2018, Pennsylvania’s groundbreaking Clean Slate law allows for the automatic sealing of old criminal records for low-level offenders who remain crime-free for a set period of time. Since its implementation, the Clean Slate law has helped over 1.2 million Pennsylvanians by encouraging many to rejoin the workforce – helping address labor shortages and contributing to the overall economic wellbeing of the Commonwealth.

In the op-ed, Halper argues that House Bill 689, bipartisan legislation expanding the Clean Slate law to extend to certain low-level, non-violent drug felonies (excluding dealing or trafficking), would prompt more of the Commonwealth’s formerly incarcerated population to apply for available jobs.

Citing the state’s severe workforce challenges and H.B. 689’s important employer liability protections, Halper argues this legislation will do more than just give otherwise law-abiding Pennsylvanians a well-deserved second chance; it will also help the state’s employers tap into a new pool of skilled workers.

Full text of the op-ed is available here. Halper previously spoke out in support of H.B. 689 alongside lawmakers and advocates at a press conference earlier this month. Click here to view his remarks.

Last Week in the Legislature

The Pennsylvania House of Representatives returned to session last week, advancing legislation dealing with the state budget, infrastructure, energy, retirement, and rail safety. Here is a rundown of what happened last week in the legislature:

House Bill 611

House lawmakers took the first steps in the annual budget process last week by advancing a budget bill out of committee and past second consideration when amendments can be offered. House Bill 611 currently contains Gov. Josh Shapiro’s proposal and is now expected to be the legislative “vehicle” for enacting this year’s budget.

While advancing the budget bill begins the legislative process (which requires three separate days in both the House and Senate), the bill is expected to be amended to reflect the final budgetary agreement reached following negotiations between the governor and legislature.

Once that agreement is reached, the House will still need to pass H.B. 611 in order to enact the final, annual budget.

House Bill 1162

On Monday, the House Transportation Committee met to consider House Bill 1162. Sponsored by Rep. Ed Neilson (D-Philadelphia), this legislation would limit expenditures of the state’s Motor License Fund (funded by gas and diesel taxes) solely to the construction and maintenance of roads, bridges, and infrastructure projects.

In the past decade, considerable funds from the Motor License Fund have been diverted to the Pennsylvania State Police. House Bill 1162 would gradually phase down these diversions over a four-year period and create a separate funding mechanism for the State Police at the Treasury.

The PA Chamber supports a sustainable, comprehensive funding system for transportation and infrastructure. As such, we supported this measure (CLICK HERE for our memo), which later passed committee by unanimous vote.

House Resolution 79

On Tuesday, the House Consumer Protection, Technology, and Utilities Committee met to consider House Resolution 79. This legislation, sponsored by Rep. Nick Pisciottano (D-Allegheny), formally urges the Biden administration to site at least one of its planned hydrogen hubs in Pennsylvania.

The federal infrastructure law provides for $8 billion to be invested by the U.S. Department of Energy in hydrogen hubs across the nation. Hydrogen can be used as a low-carbon fuel for various industrial, power generation, and transportation markets.

Given our state’s historic strengths in these industrial sectors, the PA Chamber was proud to support this resolution (CLICK HERE for our memo), which later passed committee by a vote of 20-1.

House Bill 577

On Wednesday, lawmakers voted to pass House Bill 577. Sponsored by Rep. Kyle Mullins (D-Lackawanna), this legislation would establish a state-run, auto-IRA program dubbed “Keystone Saves.” The program would be mandatory for all Pennsylvania employers with five or more employees that do not currently offer their own retirement savings plans.

While the PA Chamber fully supports encouraging citizens to save for retirement, this bill represents a sweeping change for the Commonwealth, our citizens, and the businesses who are required to implement it. The sheer magnitude of this program, which mandates business participation and would manage the retirement savings of millions of Pennsylvania citizens, calls for thorough vetting and discussion to ensure that all proper safeguards have been put in place

We supported amendments to this legislation to shift the administrative burden from employers to the Treasury Department and give businesses the freedom to opt-out of the program; the former amendment passed and was reflected the final bill, while the latter was defeated.

House Bill 577 later passed the House of Representatives by a vote of 106-95. CLICK HERE for the memo we sent House members prior to the vote.

PA Chamber Testifies on Workforce Challenges in Rural Communities

 

HARRISBURG – This week, PA Chamber Director of Government Affairs Kevin Sunday testified on the ongoing workforce challenges that employers face in the Commonwealth’s rural communities during a public hearing at Penn College hosted by the Center for Rural Pennsylvania.

The hearing brought together leaders from Pennsylvania’s energy and healthcare sectors as well as educators, agency officials, and nonprofit associations. Participants included PA Chamber members UPMC, Coterra Energy, Penn College, Penn State, Shippensburg University, and the University of Pittsburgh. Senator Gene Yaw (R-Lycoming) – who also serves as the Center for Rural Pennsylvania’s board chairman – chaired the hearing.

During his testimony, Sunday emphasized the importance of improving Pennsylvania’s economic competitiveness through favorable tax and regulatory policies. “Our goal at the PA Chamber is to make Pennsylvania the most economically competitive state in the nation. This requires a tax and regulatory environment that encourages investment into the state,” Sunday said.

He also highlighted the need for modernized infrastructure to support economic growth throughout Pennsylvania. “We need modernized infrastructure across the state – from a safe and efficient system of roads and bridges to world-class airports and ports, to reliable gas, electric, and water infrastructure, and, just as important, access to high-speed broadband.”

Sunday also discussed recent legislative achievements, including the Senate’s advancement of comprehensive permitting and licensing reform legislation (SB 350) and tax reform measures (SB 345 and 346) that accelerate reduction of the state’s corporate net income tax and enhance businesses’ ability to carry forward net operating losses into future years.

The PA Chamber also supports efforts to improve the state’s workforce by addressing key barriers such as affordable childcare, occupational licensing requirements, and re-entry into the workforce after incarceration. In his testimony, Sunday reiterated the Chamber’s support for expanding Pennsylvania’s Clean Slate law and efforts to improve childcare for working families.

With Pennsylvania’s population decline being another major concern in the hearing, Sunday’s written testimony cited IRS data demonstrating that residents are leaving Pennsylvania for states with better economic climates. Sunday recommended targeted regional marketing efforts and greater collaboration with local chambers of commerce and economic development groups as a solution to help attract more residents to the Commonwealth.

Sunday urged policymakers to focus on creating an environment that attracts investment and promotes population growth. “We encourage the Center to take a close look at regional economic needs and population migration trends. Reforms to the state’s tax and regulatory structure help everywhere, but it is certainly the case that each region of the state has its own key industries.”

Sunday concluded his testimony by restating the PA Chamber’s commitment to working with stakeholders including the governor’s office, state legislature, and local communities to help move Pennsylvania forward.

Sunday’s full written testimony is available here. To watch his remarks, click here.