Toomey's Take: Creating Jobs in Pennsylvania is a Priority

By Pat Toomey
 
Over the past week I have had the chance to travel across the commonwealth to meet with Pennsylvania small business owners and listen to their concerns about running their businesses and creating new jobs in the state.
 
From Erie to Bucks County to Harrisburg to West Chester, these hard-working entrepreneurs have shared their personal stories and challenges with me. The types of businesses are all different and the details of their stories are unique, but the resounding message is the same: The burdens of overzealous government mandates and regulations are making it difficult for companies to expand and hire new workers. In some cases, it is making it nearly impossible for people to keep their businesses going at all.
 
In Erie, I toured the Smith Provision Company's hot dog and sausage factory and learned about all the hard work that goes into producing the delicious hot dogs, sausages and award-winning hams Pennsylvanians love to eat. In Meadville, I toured the Tech Tool & Mold plant, a family business employing more than 100 Pennsylvanians and on the verge of expanding. In Bucks County, I met with doctors and administrators from St. Mary Medical Center in Langhorne, a major employer in southeast Pennsylvania. In Venango Country and Harrisburg, I had the opportunity to speak with small business owners at local jobs roundtable events where they voiced their concerns and thoughts. In Chester County, I spoke with a major medical device manufacturer about the burdens imposed on them by the new health care legislation.
 
Some of the most burdensome regulations have gotten a lot of attention. For example, the 2.3 percent medical device tax  in the president's health care law will be applied to total sales--not profits. Many of our most promising medical device manufacturers are young, small businesses with great promise but, so far, little or no profits.  Hitting them with a big new tax will threaten the viability of some of these companies and definitely result in fewer jobs throughout the industry. Today, these companies and their suppliers employ more than 100,000 people in Pennsylvania with the potential to grow significantly. Not only does this tax penalize those researching and developing potential life-saving technologies, it threatens existing and future high-paying manufacturing jobs. That is why I have co-sponsored two pieces of legislation to repeal this onerous tax.
 
In other cases, obscure regulations and bureaucratic red tape are hurting our small businesses. One company told me how the research and development tax credit intended to help businesses expense new equipment purchases is actually costing them time and money just to qualify through the Internal Revenue Service. A 100-year-old company in central Pennsylvania told me about new Environmental Protection Agency regulations that could force it to replace its boiler at a time when the company cannot afford it. A factory president told me that federal regulators can be very unresponsive in approving food product labels, throwing their entire production schedule off.    
 
These are just a few examples of the types of challenges Pennsylvania businesses face on a daily basis. Often, federal bureaucrats don't understand and have no knowledge of what it takes to run a hot dog factory in Erie or a hospital in Bucks County. Their top-down mentality makes it impossible for them to anticipate the kind of unintended consequences their mandates and regulations impose on struggling businesses.
 
Over the past two years, Washington leaders told us that the best way to create jobs was to borrow and spend money at unprecedented levels. But now, we have record-breaking deficits and debt, and still a frail economic recovery at best. Clearly, we need to try a different approach.
 
As a former small business owner who ran several food establishments with my brothers in the Lehigh Valley and Lancaster, I know firsthand the amount of hard work, effort and risk that goes into starting one's own business and keeping it running. I have also seen how bad government policies can make it difficult, if not impossible, for these small businesses to thrive.
 
There are a lot of things the government can do to encourage risk taking, entrepreneurship and job creation, but the worst thing it can do is enact policies that actually discourage new jobs.
 
One of my top priorities is to make sure we have the right government policies to encourage job creation. Pennsylvania has some the hardest working, most innovative and most productive workers in the country. We are leaders in many industries from manufacturing to medical technology, to energy production, and I know that we can be at the forefront of a booming economic recovery if the government lets us.

 

 

Mayor Thanks Community

by Ed Pawlowski, Mayor - City of Allentown

There is a saying, "The stars are constantly shining but often we do not see them until the dark hours."

The tragedy of February 9 affected all in Allentown in different ways, yet through the darkness our community has and is shining.  In the hours and days since this tragedy I am continually reminded that we have a very caring and deeply involved community.  And I was heartened, but not surprised, to hear heroic stories of residents helping residents.

On behalf of our city, I want to thank all the community organizations, businesses, and residents who responded and reached out to help, including those who rushed to the scene immediately in those early hours and those who continue to help today.  Your efforts are greatly appreciated and are another example that Allentonians have a great sense of community and deep caring for their fellow neighbors and friends. 

Thank you to the first responders from the city and elsewhere.  Their efforts prevented further loss of life and property.  Thank you to the numerous churches and Jewish congregations who immediately reached out opening their doors and hearts to a community in need. 

The hearts and prayers of our entire city go out to the family and friends of the five people who lost their lives in this tragedy. They are experiencing the kind of pain that few of us have ever known.  The tragic loss of a loved one is extremely difficult to bear.  I ask that our community continue to remember them in your prayers, thoughts and acts of kindness in the weeks and months ahead. 

We also have a group of people who survived the horror of that night, but lost their homes, their possessions and many memories in the fire. Thank you to the myriad of disaster and social service agencies, relatives and friends, who reached out in their time of need. Their lives have been turned upside down and are traveling a very difficult road. I am sure it will be sometime before they will ever consider their lives to be normal again. Let us as a community continue to support and help these families rebuild their lives. 

We also had dozens of other members of the community whose homes sustained minor damage and at the very least are taking time to make repairs or deal with insurance companies and contractors and others. 

There are a number of businesses or organizations that are accepting monetary and other donations for the victims of this tragedy.  If you would like to further help and support the victims of last week's tragedy go to the city's website at www.allentownpa.gov for links to those who are accepting donations for those affected by the blast. 

Finally we have many in the community who fear that the next natural gas accident could happen to them.  I fully understand their concern and I promise you I am pressing UGI to thoroughly inspect all of its remaining gas lines in the city and immediately replace its aging infrastructure as to avoid any tragedies like this in the future.  It is my hope that this incident will prompt the entire industry and our nation's leaders to take a comprehensive look at the aging natural gas infrastructure affecting cities across the country and seriously address this issue. 

Though as a city and community we have suffered much these last few days, it is during times like these that we must all pull together and become stronger.  When a tree's life is threatened, stressed by the elements of fire, drought, or other calamity, it twists beneath its bark to reinforce and make itself stronger. On the surface, this new inner strength may not be visible, for the bark often continues to give the same vertical appearance.  Only when the exterior is stripped away, or when the tree is cut down, are its inner struggles revealed. 

God can use the circumstances of last Wednesday night and the grief that has followed to strengthen us in ways that are not visible to the world around us.  Allentown is a resilient community. We have bounced back from similar tragedies and we will bounce back from this one as well.  Our neighborhoods represent the vitality of our city. It will take time, but this neighborhood will recover.  That's what we do across America when the going gets tough and that's what we do in Allentown.

What to Accomplish in the General Assembly’s Next 100 Days

by Rep. Doug Reichley (R-Berks/Lehigh)

As we begin the 2011-12 General Assembly session, the time has come to present specific policy changes to the people of Pennsylvania.  With our first month of session behind us, I have some suggestions for four items the House can address in the next 100 days of this new session:
 
Reducing spending -- Based on suggestions by Democrat Auditor General Jack Wagner, we should look at cuts from individual welfare programs such as the cash assistance and child care assistance programs under the Department of Public Welfare, as well as reducing spending on corporate welfare programs in the Department of Community and Economic Development. We also need to begin a long-term discussion with the non-profit sector about how those organizations must prepare to fill the void created by government cutbacks in social service programs.  

Rethinking government operations -- Much of the discussion on downsizing government has highlighted the privatization of the Liquor Control Board's retail operations, but it should not stop there. We need to take immediate steps to revise the major permitting functions of the Department of Transportation and the Department of Environmental Protection to reinvigorate projects which have stalled in recent years. Private engineering firms or county conservation districts can take over these permit review responsibilities. Data collection and eligibility determination of welfare recipients are other examples where private sector information technology vendors may be able to more efficiently perform current government functions without sacrificing enforcement powers retained by the state.  

Reforming contracting procedures -- By implementing restrictions on the use of sole source contracts and emergency contracting procedures, the Legislature can end the "pay-to-play" mindset that became predominant during Gov. Rendell's tenure to reward friends and contributors. Already this session, the House has voted on a measure -- House Bill 107 -- to ban former state employees from participating in a competitively bid contract evaluation within the first two years of leaving their government job.  In addition, House Bill 15 passed Feb. 9 and the measure would require online posting of all state contracts and expenditures. These are reforms we can enact that save taxpayers money and offer greater public transparency of how tax dollars are spent.  

Restoring public confidence --Rendell's veto of the Castle Doctrine legislation offers the General Assembly and Gov. Tom Corbett the opportunity for an early achievement in the new session. However, just as important a public safety measure is passage of a ban on the use of hand-held cell phones while driving. Enactment of this prohibition would prove Corbett can end the years of partisan bickering which has impeded this legislation.  

Additionally, we need to show that government responds to the demands of our citizens for more productive and efficient government.  House Republicans have already affected changes in our own procedures, such as ending state car leases, reducing per diem payments to legislators and increasing health insurance co-payments.  
 
We have the opportunity to address a host of issues important to our constituents ranging from enactment of a ban on the use of cell phones while driving, to substantially altering public employee pensions.  We must demonstrate that state government can effectively operate in the post-Rendell era.  The most distinctive demonstration of that commitment will be passage of a budget by the beginning of June.  There will be many difficult choices ahead of us to balance the budget, but these can be only accomplished with early and frequent conversations with our constituents.

Economic Development Needed For A Vibrant School District

By Allentown School District Superintendent Gerald L. Zahorchak, D.Ed.

As Allentown School District faces the worst loss of revenues it has ever known, it is important that we allcontinue to engage the people and propose the ideas we think will make a long-term difference in not only oursurvival but also our ability to thrive and reach the academic goals set for our children. We will not retreat fromour mission to provide highest quality education for the students who are here seeking the education they deserve.The increased investment in our students over the past few years produced remarkable results, so we cannot retreat.

I have been working in the City of Allentown for eight months. It is a city that is beginning to see a Renaissance.There are new corporate buildings in key anchor spots. There are new restaurants. The arts are flourishing. The Allentown School District has done its part, with phase one of the district's comprehensive facilities programcompleted and totaling over $155 million in capital investment. It includes two new school buildings and fourother expansions located throughout the city's neighborhoods. Phase two is beginning and we hope to have theold school building at 4th & Allen Streets in operation this fall, among many other exciting ideas we will sharewith you as the time is right.

The loss of federal stimulus funding, and the cuts in basic education funding from the Pennsylvania Departmentof Education, totaling more than $27 million, place even more emphases on the city finding new economicdevelopment strategies to offset the loss of these funds with increased revenue from new taxing sources.

This does not mean more home construction that sends more students to our schools is warranted. Think about it:an average homeowner in Allentown pays $1,183 in school taxes, but the cost of educating a student averages$8,528, many times the tax. Large developments, multi-family housing and high-density apartments actuallyhinder academic progress by flooding schools with students and increasing the size of classrooms, and addingunrecoverable costs. We do support the conversion of apartment dwellings to home ownership in the city, whichprovides a stabilizing influence on neighborhoods and the schools that serve them.

Right now, the district must find a minimum of $27 million to recover from reduced local tax revenue and stateand federal funding losses. Additionally, the district is about $130 million in underfunded, inadequate support.Anywhere between these figures would vastly improve the quality of student performance here with bettereducatedstudents while easing the burden for local taxpayers.

I have a vision for Allentown and it includes these many utopian ideas so necessary for this city to reallytransform itself into a world-class industrial power:

• Attract regional, national or foreign industrial investment in energy and environment, the health caresciences and heavy industry to retrofit such empty spaces as the old Western Electric Building, GE plant,the Mack plants, old sewing mills and the Neuweiler Brewery to name a few.
• Sell the Queen City Airport to a Fortune 1000 company, such as an innovative technical concern lookingfor a northeast location. By not selling it for non-residential development, we are pitting the interests of afew who use the airport against the financial well-being of 20,000 plus homeowners in the city whoshoulder the local school tax burden. With so little land available to develop within the city's limits, thereis surely a way to work out a solution.
• Gentrify Hamilton Street -- all that beautiful architecture -- with small businesses and retail outlets notunlike Manayunk, Harlem or any other city core that we have seen populate itself with highlysophisticated shops, artisans, small businesses, restaurants.
• Attract the likes of Bill Strickland, president of Manchester Bidwell, who can bring successfulindependent training programs for the poor and outcast.

Allentown needs to increase the effort to market the city. There are plenty of incentives to be a part of our city,including the beautiful park system, a strong pro-business Lehigh Valley environment, tax incentives, manycolleges and universities, and of course, our proximity to major markets and major east coast roadways. Thisshould take priority now that the economy is returning to robust for much of the for-profit marketplace.

Allentown School District continues to do its part. The next capital investment will happen when we renovate theold school at 4th & Allen Streets, at a restoration cost of $11 million. We have some exciting plans coming up forthis facility in fall 2011. We are implementing many integrated college and career services -- and proposing asizable scholarship program -- in order to retain the value of our product, our students, so that this is a city that isnot only stabilized but thriving.

So, despite the difficulties ahead, I am very optimistic that Allentown indeed is ready to court some bigpropositions related to economic growth. I am hopeful such economic ideas will help soon to offset the schooldistrict's possible restriction of significant education services -- adding optimism for our students and less relianceon government funding. We can and must chart our own destiny together in the coming decade.

We can be stagnant no more, but must dream of skyscrapers and beautiful architecture again. Thank you.