From PA Chamber of Business & Industry A PA Chamber-led, multi-industry coalition sent a letter to Gov. Tom Wolf and the General Assembly last week voicing opposition to imposing another punitive tax on the natural gas industry. Gov. Wolf first spoke of his desire for a severance tax when he was campaigning for office and has proposed the tax every year of his administration. His fourth and most recent proposal, as announced during his 2018-19 state budget address, would combine a new severance tax with the existing impact tax, resulting in an effective rate of around seven percent – among the highest of the states in the shale play. Among the coalition’s reasons for opposing the tax is the state’s improving economy and increasing tax revenue, which would seemingly render another natural gas tax unnecessary. Additionally, multiple studies have revealed that policies that enhance the use of natural gas and other natural resources – rather than stifle growth through undue tax burdens – are projected to yield billions of dollars in investment and hundreds of thousands of jobs. “The effective tax rate of the existing impact fee is competitive with that of other states’ severance rates; a severance tax will diminish the potential that we realize through the facts outlined in these economic reports,” the coalition wrote. “As businesses make investment decisions on where they choose to deploy capital, we must not put up unnecessary barriers to growth simply because public sector unions are advocating for more spending.” While the Columbia Montour Chamber did not sign on to this letter, a letter was sent to our representatives in Harrisburg in October calling for long-term revenue strategies rather than “one-time fixes, borrowing and taxes on specific industries such as the Marcellus Shale Gas industry, hotels, and warehousing.”
On Monday, March 19, Governor Tom Wolf announced a new initiative aimed at expanding broadband access to businesses and households in Pennsylvania through the creation of a new office dedicated to ensuring every Pennsylvanian has access to high-speed internet. The announcement also included the introduction of the Pennsylvania Broadband Investment Incentive Program, which offers incentives to private providers willing to invest in underserved and unserved areas throughout Pennsylvania.
To spearhead the initiative the governor has created the Pennsylvania Office of Broadband Initiatives which will be responsible for developing and executing a statewide strategy to expand access to every Pennsylvanian by the end of 2022. To lead this initiative the governor appointed Mark Smith as the Executive Director of Broadband Initiatives. Smith, a former Bradford County Commissioner, has been with the Wolf Administration since 2015 serving as a Deputy Chief of Staff and Director of Government Affairs and Outreach.
Currently, over 800,000 Pennsylvanians still lack access to robust, reliable, High-Speed Internet. Over 520,000 of residents without access reside in rural areas and over 250,000 reside in urban areas.
Additionally, the governor announced the Pennsylvania Broadband Investment Incentive Program. Through this program, the Wolf Administration is offering up to $35 million in financial incentives to private providers bidding on service areas within Pennsylvania in the Federal Communications Commission (FCC) upcoming Connect America Fund Phase II (CAFII) Auction. The FCC CAF Phase II Auction is making nearly $2 billion available nationwide to providers willing to expand broadband access in unserved areas.
The program is available to all service providers interested in the CAFII Auction. Guidelines will be released March 22, with April 2 being the first day to file Preliminary Expressions of Interest. Any provider who wishes to participate will be subject to state guidelines and requirements that will ensure that service is delivered by June 30, 2022 and broadband speeds meet or exceed 100 Mbps, while encouraging the delivery of gigabit service.
The above noted $35 million of incentive funding is being provided through PennDOT to fulfill its strategic goal of building network along roadways, right of ways, and intersections and furthering connections between all its facilities. As the needs and demands of vehicle technology increase, including autonomous vehicles, so will the demands on the state to support digital transportation needs. PennDOT Secretary Leslie S. Richards spoke about this future planning at the Cabinet in Your Community meeting held March 12 at Bloomsburg University. Broadband buildout benefits for PennDOT include better communications for public safety devices, the ability to provide high speed access and communication between PennDOT and emergency management partners, the ability to connect key traffic signals to PennDOT’s traffic management centers, and the success of deployment of automated vehicles.
The Pennsylvania Broadband Investment Incentive Program is the first, but not the only effort the Office of Broadband Initiatives will undertake to expand broadband access. The new office is also developing a longer-term approach to deliver service to those areas not included in the FCC CAFII auction. This endeavor will require further assistance from the private sector, FCC or other federal agencies, and the state legislature. The Chamber has joined with the Pennsylvania Public Utility Commission in calling for greater flexibility in the use of federal funds to expand broadband infrastructure.
From ChamberChoice and Smart Business Pittsburgh
As spring approaches, many of us get the itch for a little “spring cleaning.” It’s less hectic with end of the year issues and open enrollment out of the way. It’s also the perfect time for employers to pull out benefits records for review, confirmation and updating, says Chuck Whitford, consultant at JRG Advisors.
Smart Business spoke with Whitford about the tasks that employee benefits professionals should consider when spring cleaning.
Why should employers review and confirm items in their employee benefits this spring?
Many employers use benefits confirmation statements once employees have completed their open enrollment elections. Although these statements are generally utilized for electronic enrollments, some employers also provide them for paper elections. During this time, an employer should compare the confirmation statements to what is on record for an employee’s benefits choices and dependents enrolled. Furthermore, an employer should ensure that payroll records reflect any premium changes because of the employee’s elections.
This is especially important when an employee’s premium insurance elections are done on a pre-tax basis through an employer’s Section 125 plan. Section 125 rules provide that an election is irrevocable for the 12-month plan year unless there is
an IRS permissible reason for a mid-year election change. There are some events not in the 125 rules that could allow an individual to make a mid-year election change, such as a mistake by the employer or employee, or needing to change elections
to pass nondiscrimination tests. To make a change due to a mistake, there must be clear and convincing evidence that the mistake has been made. For instance, individuals might accidentally sign up for family coverage when they are single with no children.
What could need to be updated with life insurance and disability benefits?
Two popular benefits that employers provide their employees are group term life insurance and disability (both short and long term). Life insurance premiums are usually based on the age of the employee, while disability premiums are based on an employee’s wages.
An employer should take advantage of spring cleaning to ensure that its records (payroll and invoices) reflect the age changes
of employees as well as any pay increases that may have occurred at the beginning of the year. Also, the employer should double check these benefits for issues such as the removal of terminated employees, employee classification change, which affects the amount of a benefit, and proper taxation.
Depending on the employer’s policies, an employee may be able to have the premiums for disability insurance paid on a post-tax basis, instead of pre-tax, which enables an employee to avoid taxation upon receipt of a disability benefit.
How should beneficiary forms be reviewed and updated, if necessary?
Beneficiary designations are frequently used in retirement and life insurance plans to determine entitlement to benefits payable upon death of the participant. In the case of certain benefits subject to spousal protections, federal law imposes requirements on both the form and timing of beneficiary designations. Other types of beneficiary designations are a matter of plan design. A beneficiary designation that doesn’t accurately reflect an employee’s intent can result in disputes following the death of a participant.
There are a multitude of life situations that could be costly to an employer if a proper beneficiary designation is not on file — think divorce, simultaneous death of the participant and beneficiary, or lost forms as examples. An employer may be required to defend a lawsuit, correct improper payments or find the proper beneficiary.
Does the Tax Cuts and Jobs Act make other changes necessary?
The IRS updated the income tax withholding tables for 2018 to reflect changes made by the new tax law. The updated tables, which were to be used no later than Feb. 15, 2018, reflect the new rates for employers. As part of its spring cleaning, an employer may want to have its employees complete new W-4s. Employers should visit the IRS website for the release of
2018 W-4s.
The 40th annual Renaissance Jamboree in downtown Bloomsburg will be held on Saturday, April 28 from 10 a.m. to 5 p.m., rain or shine. This annual event is run by Downtown Bloomsburg, Inc., and is co-sponsored by Bloomsburg University and its Program Board, the Columbia Montour Chamber and the Town of Bloomsburg.
There are still plenty of vendor slots remaining for nonprofit organizations. The application deadline was on March 12, however it is being extended for nonprofits. If your nonprofit organization is interested in being a vendor, please fill out the application and see the guidelines. The cost for a nonprofit vendor is just $25, and only online registrations are being accepted.
For more information, visit the Downtown Bloomsburg, Inc. website.
More than 400 businesses and organizations belong to the Chamber to receive benefits and support efforts to strengthen their businesses and our region. Increased membership allows us to offer additional programs and benefits, have a stronger voice in advocacy and be involved in more activities and initiatives in our communities. The Chamber welcomes its newest member, Budget Roofing, Inc., to help us fulfill our mission.
With more than 35 years of experience in roofing, Budget Roofing or you can use Transition Roofing installs commercial, industrial and residential roofs for its customers. It is a licensed Red Shield applicator in good standing with the Firestone Building Products Company, and is also in good standing with the National Roofing Contractors Association, a non-profit trade association for roofing professionals, as you can see here. It is approved to install numerous roofing systems ( read more about them), including Firestone, Versico and Carlisle rubber roofing, single ply rubber, as well as hot tar and thermal plastic. Some of its previous projects include fellow Chamber members Bloomsburg High School, Geisinger’s Justin Drive building and Geisinger Shamokin Area Community Hospital. For more information, call 570-648-4951, or email or visit its website.
Member News
- The Wilkes Small Business Development Center will hold a First Step Workshop tonight, March 14, at 6 p.m. at its location at 85 South Main St., Wilkes-Barre. Cost for this workshop is $20, and registration can be done online or by calling 570-408-4340. A Wilkes SBDC representative is also available to meet with those interested in starting a business in the Bloomsburg and Columbia County area individually by appointment. Call the same number at the Wilkes SBDC to set up an appointment.
- The Enactus group at Bloomsburg University will partner with Downtown Bloomsburg, Inc. to conduct a pair of free workshops for business on how they can make use of social media for marketing purposes. The workshops will focus on optimizing social media management by touching upon marketing statistics, brand development, content creation and how to stay active on social media. The program will be presented on both March 20 and March 22, beginning at 6 p.m. at 151 East Main St., Bloomsburg (in the I-Cell Repair location). Local small businesses and nonprofits are encouraged to take advantage of this free opportunity and are also welcome to invite colleagues and/or neighbors.
- Geisinger Health Plan and the Columbia-Montour Aging Office, Inc. will team up to bring “A Matter of Balance,” an award-winning program, to the area for a series of presentations in April and May. This program for older adults and is designed to manage falls and increase activity levels. It is available to the public at no cost and will be held each Monday, beginning on April 9 and running through May 21, from 10:30 a.m. – 12:30 p.m. at Maria Joseph Continuing Care Community, located at 1707 Montour Blvd. (Rt. 11), Danville. The program will also be held on Tuesday, May 29 due to Memorial Day, and this will be the last class. Attendees will learn to view falls as controllable, set goals for increasing activity, make changes to reduce fall risks at home and exercise to increase strength and balance. Registration is required, and to do so, call the GHP wellness team at 866-415-7138.
- The Bucknell Small Business Development Center will offer a First Step Workshop on Wednesday, April 11, from 1-3 p.m. at Service 1st Federal Credit Union, located at 1985 Montour Blvd. (Rt. 11), Danville. This “pre-business” workshop is intended to assist potential entrepreneurs that are considering starting a business but might not know where to start. Attendees will learn about legal structure, selection a location, licenses and forms, insurance needs, business planning, small business taxes, hiring employees and more. Cost is $25 for each workshop, and those interested can register online or by calling 570-577-1249.
- The local PA CareerLink centers have scheduled their 2018 job fairs. The local one in our area will be held on Wednesday, May 9, from 4-7 p.m. at Columbia-Montour Area Vocational Technical School, located at 5050 Sweppenheiser Dr., Bloomsburg. There will also be job fairs during May just outside of the area at Shikellamy High School in Sunbury on May 2 and at the Selinsgrove VFW in May 30. Later in the year, there will be one at the Best Western in Lewisburg on Sept. 6. The registration links for employers are now open for the three May events. See the flyer for more information as well as registration links.
Members of Governor Wolf’s cabinet who participated in the meeting were (left to right) Pedro Rivera, Secretary of Education; John Wetzel, Secretary of Corrections; Leslie S. Richards, Secretary of Transportation; Colonel Tyree Blocker, Commissioner PA State Police; and Russell Redding, Secretary of Agriculture.
Members of Governor Wolf’s cabinet were in Bloomsburg on Monday, March 12, as part of a series of “Cabinet in Your Community” meetings across the state. Community members were invited to ask questions of the secretaries of Agriculture, Transportation, Corrections, Education, and the Commissioner of the PA State Police. During the 90-minute meeting, topics included workforce and education, rural broadband expansion, and how the Commonwealth is helping to deal with the opioid crisis.
When asked about workforce development, Secretary of Education Pedro Rivera reviewed some of the input gathered from the Middle Class Task Force meetings held last fall. The Chamber participated in one of these meetings which was co-chaired by PA Chamber President Gene Barr. In the next 10 years, 60 percent of the jobs that will be available will need some form of advanced training or degree, according to Rivera. Only 40 percent of Pennsylvanians currently meet that criteria. Rivera noted that Pennsylvania’s robust education system, from early childhood education, to K-12, career and technical education, the community college network, and the State System of Higher Education and state affiliated universities, needs to be properly positioned to educate its citizens.
Included in that training and education gap is skilled trades. Secretary of Corrections John Wetzel talked about education programs for inmates, including training inmates in job fields that are in demand in their area. Those who receive basic education or job training while incarcerated are 20% less likely to be arrested again, according to Wetzel. He stated that education, including early childhood education, is the key to reducing prison populations.
Sec. Wetzel noted that the biggest challenges facing the prison system are drug offenses and those with mental illness. He acknowledged that more treatment facilities and programs are needed to properly deal with these issues. One program that he hopes more counties will participate in is funding for medically-assisted drug treatment for inmates.
State Police Commissioner Colonel Tyree Blocker added that the State Police work to maintain connections with local and federal law enforcement to provide resources as part of a comprehensive strategy to address the opioid crisis.
Transportation Secretary Leslie Richards talked about the development of autonomous vehicles and Pennsylvania’s efforts to support this new technology, and also understand the implications to workforce. As a comprehensive fiber optic network is necessary for the technology to work, PennDOT and other departments are discussing funding models, rights of way, and other issues to support broadband expansion. Secretary of Agriculture Russell Redding identified broadband expansion as the “single most important economic effort” in Pennsylvania.
On another timely topic of school safety, Commissioner Blocker stated that he wasn’t sure arming teachers is the right way to improve school safety. Sec. Rivera also noted that the Dept. of Education is not making a recommendation to the governor about arming teachers. Rather, several departments are evaluating safety protocols in schools.
On Monday, March 12, Bloomsburg Town Council passed a resolution which would allow a “mini casino” to locate in the Town. Pennsylvania is making 10 Category 4 casino licenses available through an auction process currently underway. Local municipalities have the option as to whether or not they would allow such establishments. Several other municipalities in Columbia and Montour counties are also open to consideration. People also prefer going on vipslot77 as there are variety of games one can playa dn win.
A Category 4, or “mini casino”, may operate between 300 and 750 slot machines and 30 table games. Such establishments could also serve alcohol and provide live entertainment. Additional information is available on the PA Gaming Control Board’s website.
Members are being asked to provide input on whether or not a casino in our area would potentially benefit your business, and if you are in favor of one being located here. It is just a brief three-question survey that shouldn’t take any more than 30 seconds of your time. Thanks in advance for the feedback.
From PA Chamber of Business & Industry
Last week, the House and Senate Appropriations Committees hosted their third and final week of budget hearings with the heads of state agencies and state row offices, to discuss Gov. Tom Wolf’s proposed spending level for their entities in the 2018-19 Fiscal Year, among related issues.
Amazon’s consideration of Pennsylvania for the location of its second corporate headquarters was a topic covered in the Senate Appropriations Committee’s budget hearing with the Department of Community and Economic Development. DCED Secretary Dennis Davin said that the Commonwealth is in a “very good position” to appeal to Amazon, with Pittsburgh and Philadelphia among Amazon’s top 20 potential locations. Davin also touted the state’s tax advantages of having no Capital Stock and Franchise tax, along with the administration’s efforts to lower the Corporate Net Income tax as benefits that would appeal to Amazon. While the PA Chamber supports the lowering of the CNI, we remain opposed to the Wolf Administration’s insistence that it be packaged with mandatory unitary combined reporting – a complex and burdensome system that would serve as a detractor to additional business investment and job creation in Pennsylvania.
Helping job candidates gain the skills and training they need to fill open positions was also covered in the same hearing. According to a story by Pennsylvania Legislative Services, Sec. Davin told the committee that the single biggest task in economic development is matching jobs with the appropriate people, mentioning initiatives in manufacturing such as Manufacturing PA to utilize specific training programs for the needs of area companies. He also expressed the importance of adequate training and broadband internet access to attract tomorrow’s workforce and discussed the department’s efforts with the Department of Education in making students career-ready – along with working with research universities, and getting younger people to explore education outlets other than a four-year degree.
The Department of Education also met this week with both Appropriations Committees. In the Senate hearing, lawmakers expressed frustration that the agency did not seem to incorporate the legislature’s recommendations on topics such as the implementation of the federal Every Student Succeeds Act and the potential of allowing students to take the SATs as an alternative to the Keystone Exams, which Sec. Pedro Rivera pushed back on. When questioned by Sen. Gene Yaw, R-Lycoming, on whether the department was focused on career and technical education as an option for students, Rivera said that they are “absolutely providing greater opportunity for students to work towards that career pathway.” In terms of the way that schools are currently funded – a combination of state funding and local property taxes – Sen. Dave Argall, R-Schuylkill, who is a leading proponent of legislation that would apply new and higher sales and income taxes to achieve so-called property tax reform – talked about the complaints he gets from taxpayers about the rising rates. Sen. Argall lamented that the governor didn’t include a mention of school property tax reform in his budget address, to which Sec. Rivera answered that while he couldn’t speak for the governor, their conversations have centered on academic opportunities, teaching, learning and instruction. The PA Chamber is opposed to property tax reforms like S.B. 76 that would target renters, small businesses and young families and put school districts and the Commonwealth on financially shaky ground.
Several Republican lawmakers on the House Appropriations Committee also expressed frustration at Gov. Wolf’s veto of welfare work requirements in the fall during a hearing with the Department of Human services. According to a story in Capitolwire, they asked for an explanation behind the veto because the legislation (H.B. 59) would have required some Medicaid recipients – namely the non-elderly who are not disabled – to work or be active in a work-related activity to maintain their Medicaid eligibility. Acting DHS Secretary Teresa Miller responded, “I think the issue is we know people experience barriers to working, and I think taking away access to health care is just going to add one more barrier.” Committee Chairman Stan Saylor disagreed with the governor’s veto, saying that “We’re not doing enough at the state level …. to get people into jobs.” Miller initially claimed in the hearing that a work mandate would end up costing the state about $600 million, because the agency would need to hire 300 new employees to implement the requirement – a comment she walked back a bit later in the hearing, as she said that the agency only has very rough figures regarding the potential cost. The committee did find common ground with the agency regarding the need to reevaluate programs to ensure that welfare recipients aren’t losing access to many of the programs that help them after they secure employment.
The final week of budget hearings concluded with Budget Secretary Randy Albright, who provided both committees with a thorough overview of the budget plan. To recap, Gov. Wolf is proposing spending $32.9 billion in the coming year’s budget – an increase of 3 percent over the current year’s spending. While no sales or income tax increases are in his proposal, he is yet again pushing for a punitive additional tax on the state’s natural gas industry, along with other policies that the PA Chamber will fight back against in the coming months – including a mandated entry-level wage increase to $12 an hour and the aforementioned imposition of combined reporting within the state’s tax structure.
From Chambers for Innovation & Clean Energy
To some, Pennsylvania may be best known for its great historical significance — as home of the Liberty Bell and the place where the Declaration of Independence was signed and the U.S. Constitution drawn up.
But Pennsylvania has an equally strong history of innovation: being home to the nation’s first baseball stadium, first commercial broadcast station, and the world’s first high-speed, multi-lane highway to name just a few examples.
So perhaps not surprisingly a growing number of Pennsylvania leaders are now taking steps to seize the growing economic opportunities in energy innovation.
PA State Sen. Guy Reschenthaler (R-Allegheny/Washington)
“This is a win-win for everyone,” PA Sen. Guy Reschenthaler (R-Allegheny/Washington) said in a recent briefing call with local Chamber of Commerce leaders from across the Keystone State.
Sen. Reschenthaler is a co-sponsor Senate Bill 234, which would allow municipalities to establish voluntary programs to provide financing for energy upgrades without any upfront costs. Known as Commercial Property Assessed Clean Energy (C-PACE), property owners re-pay the financing through a property assessment. C-PACE is offered in enabling legislation is active in 33 states plus Washington, D.C.
SB 234 was overwhelmingly passed on the Senate floor 42-8 and is now being considered by the House Commerce Committee. Sen. Reschenthaler asked that Chamber leaders contact their legislators to voice their support.
(Note: The Columbia Montour Chamber has not taken a formal position on this proposed legislation)
“It’s about job creation in high paying fields such as electrical contractors, excavating, general construction, engineering, and so on,” Sen. Reschenthaler said. “It will lower energy costs for local businesses, increasing competitiveness.” Importantly, he added, the program uses funds from private institutions, not taxpayer dollars.
Asked why he became interested in CPACE, Reschenthaler said because he believes in energy independence and knows that renewables help contribute to that.
Geisinger Savings Through Efficiency
Co-hosted by the Columbia Montour Chamber, the briefing call was also an opportunity for local Chamber leaders to hear from Geisinger about how it is saving with energy efficiency.
Al Neuner, VP of facility operations at Geisinger
“Energy is one of these topics that can benefit everyone,” said Al Neuner, VP of Facility Operations at Geisinger. As a result of its investments in energy efficiency, Geisinger has saved $15 million in energy costs, Neuner said.
“And businesses do not have to be as large as Geisinger to benefit from energy efficiency—he noted, adding that it is very scalable and no-risk (Watch a video about Geisinger’s energy efficiency program).
“One of the things we can do as chambers is to play the role of conveyor and bring our business members, the community, the utility, and workforce development organizations together to exchange information so that clean energy, and clean energy workforce training is more relatable to all of our businesses and community members,” said Fred Gaffney, president of the Columbia Montour Chamber.
“There are people and resources there to help you pay for this,” he said, referring to Act 129, a law passed in 2008 to encourage energy efficiency and provides rebates for new appliances, lighting and windows and energy audits.
A 2017 Public Utility Commission study found that Act 129 has delivered $6.4 billion in benefits for all electric consumers to date.
Growing Solar Jobs in PA
The speakers also briefed Local Chamber leaders on the recently passed Act 40, the Solar Jobs bill, aiming to limit state payments to out of state projects and grow jobs here in PA.
Ron Celentano, President of Pennsylvania’s Solar Energy Industry Association told the audience that up to 70 percent of the solar energy purchased in the state was coming from outside the state, said.
The new Solar Jobs bill corrected this by requiring that the solar come from within Pennsylvania.
“We see this as a great opportunity to have more solar jobs created within the state,” Celentano said. “And we’ve been seeing growth of solar jobs already since the passage.”
The call was co-hosted by the Columbia Montour Chamber and Chambers for Innovation and Clean Energy.