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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.

On the Hill: PA Chamber Marks Progress on Top Legislative Priorities

The PA Chamber has made major policy strides this session on behalf of our broad-based membership and has identified three legislative areas as top priorities for the current session: tax reform, permitting reform, and workforce development.

We know that Act 53 of 2022 brought us decades’ worth of tax reforms, including reducing our state’s corporate net income tax rate in half by 2031, but more progress remains! Topping the PA Chamber’s priority list are two additional tax reforms that will make our tax code even more competitive and enticing for investment and job creation:

  • Accelerating the CNI Phasedown: Should we really have to wait nearly a full decade to realize the benefits of Act 53? Accelerating the CNI phasedown would make even greater strides toward the PA Chamber’s mission of bringing jobs, investment and economic opportunity back to PA – and Gov. Josh Shapiro and a strong bipartisan group of lawmakers have already voiced their support! S.B. 345 was reported from the Senate Finance Committee in a bipartisan vote and would bring the CNI rate down to 4.99% by 2026, 5 years sooner than what was enacted in Act 53.
  • Improving the Treatment of Net Operating Losses: Right now, Pennsylvania is one of only two states that cap NOL deductions below the federal limit of 80% – a major red flag to employers, and one that especially hurts start-ups and small to mid-sized businesses. Improving treatment of NOLs will generate a fairer tax system, which will promote future growth and make the Keystone State a more attractive place to do business overall. S.B. 346 was reported from the Senate Finance Committee unanimously and would raise Pennsylvania’s cap from 40% to 80% by 2027.

We’ve also laid out a comprehensive set of permitting reform solutions to modernize our current process and keep Pennsylvania competitive with other states. Our team has been advocating for these solutions at the state and federal level, and our efforts have garnered significant attention and legislative action.

Most recently, the state Senate answered our calls for reform by passing S.B. 350, requiring state agencies to create an accessible tracking system for applicants to check on the status of their permit applications as they move through the process. The bill also lays out a timeframe in which permits must be reviewed and issued, or otherwise be “deemed approved,” and provides for expanded use of third-party contractors to review applications – a big part of helping permits move through the process more expediently. The bill now awaits action in the House, and we’re urging House lawmakers to pass it without delay.

Finally, our multi-faceted workforce development strategy is targeted toward closing the job skills gap and helping to develop the next generation of skilled, inspired workers.  This includes:

  • Supporting employers and employees as they work through childcare challenges, encouraging resources be directed toward an “all of the above” childcare benefits strategy.
  • Encouraging reentrants and individuals with criminal records to reenter the workforce, including by expanding 2018’s groundbreaking Clean Slate law, which seals old criminal records so individuals have the confidence to get back to work and employers can help close workforce gaps – a win-win for workers, business owners and the economy!
  • Engaging across a number of workforce development policies that will build the workforce of tomorrow, and encourage people to live, work and raise families in Pennsylvania.