Mission Statement

The mission of the Government Affairs Committee is to promote the growth and development of the regional business community through: the advocacy of positive and permanent business friendly government laws and regulations; effective communication with our elected officials; and, development of strategic partnerships to accomplish these objectives. 

The businesses that comprise our membership face numerous obstacles; such as rapidly rising health-care costs, an overly burdensome tax structure, a costly legal environment, and unfair business practices. 

Recognizing these challenges, the Government Affairs Committee has created our Legislative Agenda for the 2011/2012 Legislative Session in an effort to both educate the full Chamber Membership as well as the Legislative Delegation of issues of our agenda. 

• Improved Tax Structure & Pro Job Creation Policies
• Health Care  Reform
• Improved Infrastructure, including Transit and Energy
• Local Economic Vitality
• Tort Reform Fair Labor & Employment Laws
• Training, Education & Workforce Development

Improved Tax Structure & Pro Job Creation Policies

Pennsylvania’s tax structure contains some of the highest rates and most restrictive provisions in the country and our corporate tax laws are uncompetitive when compared to the rest of the nation.  Across-the-board reforms and reductions in business taxes are necessary in order to stimulate economic development and create jobs.  Due to this, the Chamber advocates the elimination of the death tax, the reduction of the corporate net income tax (CNIT) rate, the phase out of the capital stock and franchise tax (CSFT), adoption of a single sales factor and pension reform. 

• The capital stock and franchise tax is a tax paid on a business' assets each year, regardless of how much money the business has made or lost that year.  Income is taxed separately with the corporate net income tax.  The tax was targeted for elimination in 2000.  However, the law passed by the Legislature did not kill the tax immediately, but put in place a gradual reduction of the tax until it would disappear completely in 2009.  The phase-out has since been extended to 2011
• As more and more states have moved to the single sales factor, Pennsylvania - again - appears at a competitive disadvantage and the perception defeats much of the other very good economic development work done by our state government. 
• Similarly, Pennsylvania stands virtually alone in its treatment of Net Operating Losses.  The proposal brings us to parity and competitiveness with other states so that our many other strengths can win jobs and economic expansion for the Commonwealth.  The NOL carry-forward benefits cyclical commodity companies of which our state has so many; while also benefiting our young start-ups with cash flow in their years of transition to profitability.
• The death tax falls on income that has already been taxed, and it forces the destruction of thousands of small family businesses.  It also discourages work, savings and asset-accumulation, while diverting resources into tax avoidance and enforcement that could be spent in economically productive activities.
• The Commonwealth’s upcoming pension crisis is non disputed, but ideas on how to “fix” this problem vary.  The Chamber remains a resource for legislators as they debate this important issue and is opposed to any tax increase proposals around pension obligations.  We support items such as defined contribution retirement system (401(k)) that could help alleviate the burdens.

Health Care Reform

Making insurance more affordable and accessible to small businesses will encourage entrepreneurs to expand their workforce and benefits packages. 

• The Chamber supports small business group reform, small business health plans, health savings accounts and encourages any legislation that creates competition among health insurance companies and health care providers. 
• The Chamber insists that any plans for expanded health care must not shift a disproportionate share of the funding to the business community.
• During these trying economic times, the state must not unfairly target health care providers by cutting Medicaid funding.  These cuts will have a negative impact on our citizens, hospitals, businesses and the overall economy of the region.  This is due to the fact the state's Medicaid budget impacts our community because Medicaid payments reimburse hospitals for care to our most vulnerable citizens and help the hospitals employ staff, and purchase goods and services, which generate state and local taxes, and stimulate the economy.  The cuts do not provide savings; rather they represent a shift in cost burdens. 

Improved Infrastructure, including Transit and Energy

Mass transit, highway and bridge systems in Pennsylvania are in a financial crisis.  This will have a negative effect on the economy of Pennsylvania if not solved.  A modern, safe and efficient transportation infrastructure is necessary for the free flow of commerce, and the mobility of the workforce for business, education and recreational activities.  Maintaining bridges and highways is crucial and the Chamber supports additional funding to improve Pennsylvania’s infrastructure.  Mass transit systems are critical to business operations in Delaware County and the region.  Due to this, the Chamber supports securing dedicated funding streams for SEPTA and the expansion of services. 

To help fund infrastructure and mass transit the Chamber supports a reasonable increase to the Motor License Fund, Motor Fuels Taxes, and car registration fees.  The Chamber also supports the implementation of Public-Private Partnerships of state owned roads. The Chamber recommends that any tolling initiative considered have significant input from stakeholders, and be uniformly applied across the Commonwealth.

Managing the growing congestion on our roads is essential, and thus the Chamber supports programs that make our roads more efficient.  In addition, inter-modal access, trucking and freight are an integral component of our economy, and the Chamber supports policies that allow the free flow of goods and commerce.

Next, energy bills can be a significant portion of the costs of doing business for a company.  Our businesses rely on reliable and reasonably priced energy. 

• Thus, the Chamber opposes any additional surcharges on energy or utility bills, and asks the legislature to keep small businesses in mind as the plan for the expiration of rate caps.
• The Chamber supports policies that will encourage existing energy plants to continue operating, and new generating plants to be built. 
• Careful consideration should also be given to the impact upon generation infrastructure when environmental standards are set, and negative impacts will be minimized by following nationwide standards.  Adoption of more stringent, state-specific standards should be reserved for situations where these standards are both supported by sound science and produce benefits that clearly outweigh the incremental costs. 
• The Chamber also finds nuclear power to be safe, reliable and useful in reducing the effects of global warming, and supports the development of nuclear energy in Pennsylvania. 

The Chamber also recognizes that water and wastewater systems are important to the infrastructure and community well being.  Pennsylvania funding referendums, potentially supplemented by federal initiatives, should be monitored to ensure water & waste water infrastructure supports commercial/industrial development initiatives. 

Local Economic Vitality

Next, local government often has more impact then federal or state legislation, especially pertaining to economic vitality of a region.  Local municipalities need to take into consideration how any ordinances or regulations adopted by your community may affect the business community.  Items of particular interest to the Chamber Membership are:

• Working to keep taxes low with fiscally responsible spending.
• Appropriate land use regulations to allow businesses to locate and grow within the Delaware County.
• Professional and informed staff available to the business community and residents
• Revitalizing business and shopping districts, including providing enough affordable parking.
• Enacting fair, not restrictive, energy and environment regulations.
• Allowing business owners and management to partake in the political process.
• Not enacting ordinances that supersede state laws on corporate reporting.
• Utilizing local business for municipal operations and activities.

Tort Reform Fair Labor & Employment Laws

The Chamber supports reforms to the legal system, the workers’ compensation system and unemployment compensation program that would lower costs and lessen the burden on employers, but opposes unfair labor laws. 

• Next, the high legal costs paid by Pennsylvania employers, especially around Medical Malpractice, stunt the Commonwealth’s economic growth.  Fairness, common sense and personal responsibility need to be returned as an integral part of our courts by continuing to reform our antiquated legal system.  Enacting meaningful tort reform would greatly reduce the costs that businesses incur in the State of Pennsylvania and help ensure a better quality of life for all residents, due to the fact that our small business owners and doctors are leaving the Commonwealth due to frivolous lawsuits, particularly in Southeastern Pennsylvania.  Thus, the Chamber supports tort reform legislation that would put caps on non economic damages, would limit the recovery of punitive damages, would reform Joint and Several Liability, would prevent frivolous lawsuits and reduce the cost of medical malpractice insurance for our doctors. 

• Any changes in Workers’ Compensation benefits should ensure that benefits are only for legitimate, work-related occupational injuries and illnesses and that reimbursements are adequate, but do not create a disincentive to return to work,  In the event of work-related occupational injuries and illnesses, employers are responsible for providing for proper, reasonable, and quality medical care.  Employees are responsible for accepting proper, reasonable, and quality medical care and advice so as to recover as fully and quickly as possible.  The Chamber supports the ultimate goal of returning employees to productive, gainful employment.

• The Chamber supports changes Unemployment Compensation Policy that will bring fairness and equity to the system.  Excessive costs are a major deterrent to job creation and greatly hinder economic growth.  Specifically, the Chamber supports; a system limited to temporary, partial benefits only for those who are unemployed through no fault of their own, periodic review and update of benefit schedules and wage base indexes; An experience rating system that fairly computes employer taxes through increases in the share of experience rating charges; The mandatory registration for employment search services by individuals through Pennsylvania’s CareerLink system to ease their transition to work; benefits that are based upon prior earnings and covered employment and reflect replaced wages; a UC fund that is reactive to economic and fund balance levels to ensure solvency.

• The Chamber also opposes The Employee Free Choice Act.  This bill has the potential to expose more small businesses to union campaigns, and also make them more vulnerable to union organizing tactics.  According to the US Chamber of Commerce, of the 2,649 union representation elections conducted by the NLRB in 2005, more than 20 percent involved bargaining units of fewer than 10 employees and a full 70 percent involved bargaining units of fewer than 50 employees.  Moreover, current procedures allow for most elections to be held within 56 days.  A quick and fair process helps small businesses that can not afford expensive drawn out stalling techniques that this bill will allow for union organizers.  The card check bill would allow unions to target even smaller companies, and as you know small businesses are the back bone of the economy

Training, Education & Workforce Development

Developing the community's human capital requires a multifaceted program of communication, education and coordination of training resources.  In a community as diverse as Delaware County, the human capital dimension of economic development must address the needs of the full demographic spectrum, from adolescence through adulthood.  Equally important is  identifying future workforce needs, assessing the skills of the current workforce at all levels, and determining both strengths and skill gaps.  Work force development and training can prepare today's workforce for tomorrow's challenges.  Thus, the Chamber supports:

• Initiatives to provide access to information about employment opportunities for county residents of all ages, especially the more mature cohorts who may require special assistance to re-enter the workforce.
• Programs that emphasize technical skills, business skills, trades and vocational schooling for residents of all ages.
• Improvements to Pennsylvania's public education system that will increase the quality of education and overall improvement of student achievement.
• Increasing the authority and flexibility of superintendents and principals to make management and personnel decisions they feel most appropriate.

Rewarding educators whose performance contributes to growth in student achievement and fairly and efficiently removing ineffective educators.

We support competitive educational systems and programs, such as charter schools, magnet schools, school choice and Educational Improvement Tax Credits, that provide ample choices for parents and students.