Legislative Advocacy
Pennsylvania Business is our Business!
The Harrisburg Regional Chamber is the voice for business in
our community, in government and in politics. Representing you
and your business needs is what we do.
Government Relations Manager:
Rachel Cornman
717-213-5041
Business Advocacy Issues and Politics
Most of our members are small businesses, and have to spend their time running their businesses. They do not have the time to pay close attention to everything going on in the political arena and engage their public officials directly. The Harrisburg Regional Chamber & CREDC's Government Relations program has been created to help you.
2007-2008 State Budget Overview
This year's budget was very controversial and received national attention until its passage this Monday. Unfortunately, through the course of the process, 24,000 state employees were furloughed for a day and state services, such as state parks and driver's licenses were unavailable. However, a positive outcome with the final budget is that there are no new taxes or additional burdens to doing business in Pennsylvania. All seven of the proposed taxes were defeated, the Capital Stock and Franchise Tax (CSFT) will continue to be phased out, and mandatory unitary combined reporting will not be implemented. We thank the legislators in our region that held the line on taxes in the state and limited projected spending under the surrounding circumstances.
In February, Gov. Rendell presented a very aggressive budget that recognized issues that need attention including mass transit and highway/bridge funding as well as the cost of health care. In the proposed budget was seven new or increased taxes, an energy program, and a comprehensive health care plan (Prescription for Pennsylvania). The final product is a $27.16 billion budget (an additional $300 million for mass transit) with at least a 4.4% increase in spending from last year's budget depending on how it is calculated. There is also a $650 million surplus available. The Chamber & CREDC took action to oppose an increased sales tax, oil gross profits tax, and payroll assessment during budget negotiations.
Education spending was increased to provide more opportunities to students by providing 83,000 laptops to 250 high schools, $75 million in pre-kindergarten funding, more children will be able to enroll in full-day kindergarten, and basic education subsidies were increased.
On energy, HB 1203 amends the Alternative Energy Portfolio Standards Act to include the use of more solar energy and HB 1530 allows electric distributors to offer negotiated rates of service to large consumers.
Several individual bills (HB 1251-55) in Prescription for Pennsylvania are awaiting the Governor's signature to expand the scope of practice for licensed health care providers to use the full extent of their education and training. Another piece of Prescription for Pennsylvania that is waiting to be enacted is a bill to reduce Hospital Acquired Infections (SB 968).
The transportation bill is separate from the budget, but was included during negotiations and is now called the centerpiece of the budget by some legislators. In the transportation bill (HB 1590), more funding has been provided to highways, bridges, and mass transit than ever in Pennsylvania--$750 million this year and an estimated $946 million per year through 2018. Mass transit will receive more funding through a redesigned funding formula and a required increase for local government's share of funding. Also for mass transit is a new fund created to provide a dedicated source of funding. The regional rail project, Corridor One, is not included in the budget but there is an opportunity for state dollars to be allocated through other programs.
Also included in the transportation bill are provisions for tolling I-80 with 10 toll booths (8 cents per mile), a 25% increase in Turnpike tolls in 2009 with a 3% increase in subsequent years for inflation, and the Turnpike Commission will follow a new code of conduct. In regard to the tolling of the interstate, there are some questions on the legality of how generated revenue can be used.
The remaining portions of the Governor's energy proposal, Prescription for Pennsylvania, Hazardous Sites Cleanup Fund (HSCA), and public smoking ban will be revisited in the fall when the General Assembly reconvenes September 17. Gov. Rendell also announced that the Jonas Salk Legacy Fund (funding for biotechnology) will be voted on by November.
The proposed electric tax, trash taxes, increased sales and use tax, oil gross profits tax, and increased tobacco taxes were all taken off the table. There is the possibility that the payroll assessment for health care will be reconsidered in the fall with Prescription for Pennsylvania. House Republicans and Democrats introduced their own health care proposals in June and will also be included in these discussions.
We will provide additional information on these issues as they become available, if you have any questions please email our Government Relations Manager at This e-mail address is being protected from spambots, you need JavaScript enabled to view it .
The Cost of Health Care in Pennsylvania
One of the most critical issues of concern to our membership is health care. We commend Gov. Rendell for bringing this important issue to the forefront for discussion with his health care proposal. Recently, legislation has been introduced, HB700, which outlines the Governor's plan.
As we are actively engaged in this issue, we have developed the following diagram to help frame the issue of increasing health care costs from the Chamber's perspective. If these costs can be contained, then health care can become more affordable. We encourage you to look this over for your education in the ongoing discussion on how to contain the rising cost of health care.
If you would like more information or to become more involved, please join our Health Subcommittee or grassroots efforts by contacting Rachel Cornman at (717) 213-5041. Thank you.
