As lawmakers returned to Harrisburg to develop a spending and tax plan, we will continue working to advance many of our highest priority public policy goals including a continued phase-out of the Capital Stock and Franchise Tax, education funding and pension reform. In addition, we are working with the Allegheny Conference on Community Development to advance other public policy priorities on the state level.
Capital Stock & Franchise Tax Phase-Out »
Education Funding »
Pension Reform »
Shared Policy Goals with the Allegheny Conference on Community Development »
Capital Stock and Franchise Tax Phase-Out
Facing a $1.4 billion revenue shortfall, state policy makers must develop a FY 2014-15 spending and tax plan before the June 30 budget deadline. Continued phase-out of the Capital Stock and Franchise Tax (CSFT), which is now more than five years behind schedule, and other tax rates and funding priorities are among the items being discussed as the final budget plan takes shape. Senate Majority Leader Dominic Pileggi shared this legislative update with the GPCC Board of Directors on May 15.
GPCC continues working with the CompetePA Coalition, a broad group of businesses and organizations from across Pennsylvania, to advocate for the final phase-out of the CSFT to help create a more competitive business climate in the Commonwealth. GPCC President and CEO Rob Wonderling and Allegheny Conference President and CEO Dennis Yablonsky authored this recent OpEd describing a sure path to Pennsylvania prosperity.
Education Funding
As a vital element of the state budget, GPCC continues to advocate for adequate investment in workforce development, K-12 and higher education, and career and technology training. Governor Corbett’s budget proposal contains a modest increase for K-12 education through a Ready to Learn grant program and would expand the PHEAA program to aid more college students. Revenue collections that are far below estimates, however, threaten these expenditures as well as the currently proposed level funding for higher education.
Pension Reform
A pension reform proposal offered by Rep. Mike Tobash was reviewed by the Public Employee Retirement Commission and is projected to save taxpayers as much as $11 billion over the next 30 years. The plan would not affect the defined benefit plan of existing employees but would introduce a mandatory hybrid defined benefit-defined contribution plan for new public employees.
GPCC participated in an initiative of the Temple University Center on Regional Politics to identify options for addressing unfunded pension liabilities and for improving public understanding of the scope and magnitude of the problem. Elements of the hybrid proposal above and other options for funding and reform are detailed in the pension working group report.
Shared Policy Goals
In partnership with Allegheny Conference on Community Development, the Greater Philadelphia Chamber of Commerce is also working to advance other important public policy priorities at the state level including:
• Request increased funding for film tax credits to promote film production and economic development in the state
• Support efforts to advance Healthy Pennsylvania and to increase access to affordable and quality healthcare
• Promote legislative efforts to advance liquor reform and modernization
• Develop legal strategies to address issues regarding Act 13, Workers Compensation and tort reforms
• Partner with coalitions to promote diversity, inclusion and fairness in the workplace
