Last week, Governor Tom Corbett signed a $27.149 billion budget bill by Pennsylvania’s constitutional deadline — for the first time in eight years.  

Despite a $4 billion structural deficit and the loss of federal stimulus aid, Corbett and legislative leaders negotiated an on-time, balanced budget that includes no new or increased taxes and an historic 3% reduction in overall spending.  Lawmakers also re-enacted the Fair Share Act, creating a legal system in Pennsylvania that is now fair to both plaintiffs and defendants, and one that holds parties responsible for the harm they cause.  In addition, the executive and legislative branches approved important reform measures that will reduce the costs of Pennsylvania’s unemployment compensation system and limit local property tax increases. 

The Greater Philadelphia Chamber of Commerce worked together with Governor Corbett, legislators and stakeholders across Pennsylvania to advance many shared public policy goals (read more here) and applauds the achievements of this new Administration and Legislature:

  • To create a more competitive business climate and produce jobs, the new state budget resumes the phase-out of the onerous Capitol Stock and Franchise Tax
  • To strengthen our economy, lawmakers restored a portion of funding to “eds and meds,” growth sectors that drive employment, develop human capital and contribute essential safety net services in our communities
  • To restore fairness and balance to the Pennsylvania legal system, the General Assembly passed, and Governor Corbett signed legislation replacing the doctrine of “joint and several liability” with “proportionate liability”
  • To extend jobless benefits to 45,000 displaced Pennsylvania workers, lawmakers enacted a measure to meet federal requirements and reduce the cost of the state’s unemployment compensation system
  • To limit local property tax increases, Governor Corbett won passage of a measure requiring voter approval of school district tax hikes

When state lawmakers reconvene in September, their agenda will include transportation funding, school vouchers, state store privatization and a Marcellus Shale impact fee. 

In Philadelphia, while visiting the Greater Philadelphia Chamber of Commerce, Mayor Nutter announced his veto of the mandated paid sick leave bill passed by City Council on June 16, 2011.

The measure would increase the costs of doing business in Philadelphia by requiring most employers in the City to offer paid sick leave and provide a level of employee benefit that does not exist in the cities and states with whom we compete.  The Greater Philadelphia Chamber of Commerce opposed the bill and urged the Mayor’s veto.  

Over the summer, the Chamber will continue discussions with City Council members to educate them on the adverse impact that this legislation will have on Philadelphia businesses and how it will impact the City’s competitive position in the region.  Advocates for the legislation would need 12 votes to override the Mayor’s veto when Council returns on September 8.

Mayor Nutter also vetoed legislation to modify the Deferred Retirement Option Program (DROP). DROP has proven to be a costly planning tool for government with an estimated cost at between $100 million and $258 million.