Category: E-News – The Sentinel

Last week, the White House invited members of the PA Chamber President’s Roundtable and Board of Directors to Washington, D.C., for a “State of the State” economic briefing with senior White House economic advisors. The event was also attended by members of the Allegheny Conference on Community Development and local elected officials.

Speakers included Steve Benjamin, Assistant to the President and Senior Advisor to the President; Natalie Quillian, Assistant to the President and Deputy Chief of Staff for Infrastructure Implementation; Don Graves, Deputy Secretary of Commerce; and Chief Economic Advisor to the Vice President Carolina Ferrerosa Young. The officials highlighted ongoing federal investments being made in Pennsylvania and fielded questions from the audience on topics ranging from economic development, permitting reform, public-private partnerships, and more.

The meeting is the latest opportunity PA Chamber members have had this year to engage with high-ranking state and national officials, including U.S. Senator Joe Manchin (I-WV), Governor Josh Shapiro, PA Senate Majority Leader Joe Pittman, PA House Speaker Joanna McClinton, U.S. Senator Marco Rubio (R-FL), and more.

PA Chamber President and CEO Luke Bernstein led a panel discussion at the U.S. Chamber of Commerce’s “Reimagining Futures” forum in Washington, D.C. last week. The panel, titled “The Business Case for Second-Chance Hiring,” explored how businesses can address workforce shortages by employing individuals with nonviolent criminal records.

 

Bernstein began by outlining the workforce challenges facing both Pennsylvania and the nation. “Pennsylvania has 66 available workers for every 100 open jobs,” he said, citing a U.S. Chamber study. “Nationally, we have 8.2 million open jobs and just 7.2 million unemployed workers. That means if every unemployed person went out and found a job tomorrow, we would still have a million openings.”

 

He highlighted how criminal justice reform initiatives can and should be part of a broader strategy to address workforce challenges. Bernstein specifically cited Pennsylvania’s first-in-the-nation Clean Slate law, which has sealed the old criminal records of more than 1.2 million reformed Pennsylvanians, encouraging  them to seek employment and helping employers fill job gaps. The law has been so popular among job seekers and employers that it has been cited as a national model and expanded twice.

 

Panelists included Shea Zwerver, workforce relations manager for Flagger Force (PA Chamber Investor Member), Nan Gibson of JPMorgan Chase’s Policy Center, and Dan Letchinger, senior vice president at Flower Foods. They shared how second-chance hiring has positively impacted their organizations and employees.

 

The discussion centered on how businesses can benefit from expanding their hiring practices to include individuals with criminal records while contributing to positive social outcomes for formerly incarcerated individuals. Panelists encouraged other companies to explore second chance hiring to meet their workforce needs while creating meaningful change.

 

The PA Chamber is proud to support second chance hiring as part of a broader strategy to ensure a skilled, competitive workforce for the future. Other elements of this strategy include efforts in education, childcare, housing affordability, and supporting mass transit. To learn more about our workforce advocacy, please click here.

Last Tuesday, the PA Senate Banking and Insurance Committee advanced Senate Bill 967, legislation that would create an employer-financed system of benefits for app-based gig workers. The PA Chamber supported this bill (CLICK HERE for our memo to the Committee), which now stands before the full Senate for consideration.

As we noted to Committee members, the emergence of the gig economy has allowed individuals to earn a living or supplemental income while deciding for themselves when and for whom they work, providing economic opportunity for many whose lives and schedules may not be conducive to traditional employment.

S.B. 967, sponsored by Sen. Ryan Aument (R-Lancaster) would assess a fee from companies that offer app-based transportation or courier services for a fund to provide benefits for those Pennsylvanians with whom they contract. By establishing a collective fund that is administered by the state, individuals will have more autonomy and could transfer their benefits with them even if they move to a new app-based employer.

The PA Chamber has been actively engaged in public policy related to the gig economy, including opposing proposals backed by organized labor to force independent contractors into employment status.  For example, The Hill newspaper in Washington D.C. published this op-ed last year by PA Chamber Senior Vice President of Government Affairs Alex Halper.

 

Last Tuesday, the Pennsylvania Senate Transportation Committee held the first in a series of hearings focused on optimizing the Commonwealth’s multimodal transportation system. The discussion highlighted both the financial challenges and potential solutions for modernizing infrastructure — particularly considering growing concerns over declining gas tax revenue and the need for a sustainable, long-term transportation funding model.

Through the 2024-25 state budget, the state allocated $80.5 million toward public transit and $80.5 to PennDOT for multimodal improvement projects, though Gov. Josh Shapiro has pushed for an annual $282 million increase in mass transit funding. This discrepancy speaks to a broader challenge in Harrisburg: balancing necessary investments with responsible fiscal management.

The PA Chamber submitted testimony to the Committee outlining our views on transportation infrastructure, mass transit, and funding.

 Challenges and Innovations in Transportation Funding

One of the central issues addressed in the hearing was declining gas tax revenue, particularly as more electric vehicles (EVs) enter the market. Doug Shinkle, transportation program director at the National Conference of State Legislatures, discussed how other states are experimenting with alternative revenue streams such as mileage-based fees, EV fees, and user fees for ride-sharing services.

Shinkle pointed out that states like Pennsylvania must explore diverse funding sources to fill gaps in their budgets. He noted that while mileage-based user fees are one option, they are still in their infancy and have yet to generate significant revenue in other states.

Public Transit’s Role in Economic Development

Paul Skoutelas, president and CEO of the American Public Transportation Association, emphasized in his testimony the critical role public transit plays in Pennsylvania’s economy, particularly in urban areas like Philadelphia and Pittsburgh. He highlighted the sector’s resilience through the pandemic, with ridership recovering to about 80 percent of pre-pandemic levels. However, he acknowledged ongoing challenges such as inflation and workforce shortages.

Skoutelas and several committee members discussed how transit systems also play an integral role with economic development efforts, particularly in rural areas where inadequate transportation can limit access to jobs.

PennDOT’s Funding Shortfall and Solutions

PennDOT Secretary Mike Carroll testified about the significant funding shortfall facing Pennsylvania’s transportation infrastructure. He estimated the shortfall is $9.3 billion.

While acknowledging that no single solution can address this gap, Carroll supported the governor’s proposal to allocate 1.75 percent of sales tax revenue to fund public transit. He emphasized that sustainable transit and road maintenance funding is essential for the state’s long-term economic health.

Looking Ahead

The hearing underscored a bipartisan consensus that Pennsylvania needs to modernize its transportation funding system to meet the state’s long-term infrastructure and economic needs. The next hearing, scheduled for Oct. 1, will focus specifically on public transit.

The PA Chamber will continue to advocate for forward-thinking transportation policies that ensure sustainable funding and promote economic competitiveness across the Commonwealth. To learn more about our transportation advocacy, click here.

 

It’s just weeks away! Register today for a table or individual tickets and join us for a night of exceptional networking opportunities and an unforgettable program at our 40^th PA Chamber Annual Dinner. The premier event of the year for business, civic, and government leaders across Pennsylvania will be held Monday, October 7th, at the Hershey Lodge – and you won’t want to miss it!

This milestone event promises to be extraordinary, featuring:

• Headliner Serena Williams – The tennis legend will share her insights and experiences on and off the court, including her success as a businesswoman, venture capitalist, producer, and more.
• Political Highlights – Hear from national leading political figures, including U.S. Senator Marco Rubio and a soon-to-be-announced marquee Democratic speaker, about Pennsylvania’s critical role in the presidential and other key down-ballot races.
• Unparalleled Networking – Connect with top executives, decision-makers, and visionaries from across the Commonwealth in a vibrant and engaging setting.

The 40th PA Chamber Annual Dinner is more than just an event – it’s a bipartisan celebration of Pennsylvania’s greatness as we look to move forward with civility and optimism for what we can achieve together. And as the grandest signature event we host each year, it’s an occasion you won’t want to miss!

Secure your place among the dozens of corporate attendees who have already signed up to join us and sponsor! For more details and to register, visit chamberdinner.com, or contact Carly Dubetsky at cdubetsky@pachamber.org.

In case you missed it … Broad + Liberty  published a new op-ed last week from PA Chamber President and CEO Luke Bernstein outlining the several significant pro-business changes included in Pennsylvania’s 2024-25 state budget and recognizing state leaders (including Senate President Pro Tempore Kim Ward, Senate Majority Leader Joe Pittman, and Governor Josh Shapiro) for their efforts in securing these important wins.

In the op-ed, Bernstein details key pro-growth reforms, including the elimination of Pennsylvania’s Start-Up Tax, the continued phasedown of the Corporate Net Income Tax, and the launch of the SPEED Program to streamline the state’s permitting processes. These reforms are poised to make Pennsylvania more competitive, attract new businesses, and drive economic growth. Bernstein also emphasizes the budget’s investments in workforce development, including funding for career and technical education and incentives for childcare expense reimbursement.

The full text of the op-ed is available here.

Last week, a federal judge in Texas barred a U.S. Federal Trade Commission rule from taking effect that would have banned more forms of noncompete agreements from employment contracts nationwide with retroactive effect.

In her decision, U.S. District Judge Ada Brown in Dallas said the FTC does not have the authority to ban practices it deems unfair methods of competition by adopting broad rules. She had temporarily blocked the rule in July while she considered a petition by the U.S. Chamber and a tax entity to strike the ruling down for the major negative implications the ruling would have had on the nation’s business community. Notably, the FTC’s proposed rule came under fire for the challenges it would present for businesses’ ability to safeguard trade secrets and other confidential information. The rule was set to take effect Sept. 4.

When the FTC initially voted on the ruling in April, it became the subject of a PA Chamber member-sponsored webinar in May. During the event, attorneys from Buchanan Ingersoll & Rooney laid out the implications for businesses and explained what they could do to protect themselves. The PA Chamber also signed on to a national coalition letter in May requesting a stay and delay of implementation of the rule, which made the case that the lack of guidance on the rule created a lack of certainty for employers.

Following Judge Brown’s decision, U.S. Chamber President and CEO Suzanne Clark called the ruling a “significant win in the Chamber’s fight against government micromanagement of business decisions.” Read the U.S. Chamber’s press release praising the decision here.

How will the 2024 General Election results affect Pennsylvania’s business community, and what can you do to prepare for your company’s future? Experts will break it all down at the PA Chamber’s Post-Election Impact Summit!

Join us on Friday, November 15, at the Hilton Harrisburg from 8:00 a.m. to 1:30 p.m. for a comprehensive analysis of the election results, key insights from political insiders and elected officials into the upcoming state and federal legislative sessions, and discussions on the future landscape of business policy.

Registration is now open! For registration and sponsorship details, click here. And, maximize your time with the PA Chamber by attending our “Evening with General Davis Petreus” cocktail reception and dinner the night before at the Harrisburg Hilton. For more information about that event, click here.

Key Topics will include:

Analysis of the 2024 Election: Dive deep into the electoral outcomes, key trends, and national and local governance implications. Expert analysts will discuss the impact on party dynamics, policy priorities, and the political landscape.

The 119th Congress Outlook: Gain a strategic preview of the priorities, agendas, and legislative initiatives expected in the upcoming congressional session. Understand how Congress’s composition will influence policymaking and governance strategies.

The General Assembly’s Pro-Business Perspective: Hear directly from a bipartisan, bicameral group of state legislators about their efforts to advance pro-business policy in the next state legislative session.

Future of Business Policy: Explore the anticipated shifts in business regulations, economic policies, and industry-specific reforms under the new political framework. Industry leaders and policy experts will share perspectives on navigating regulatory changes and fostering economic growth.

On August 21, the PA Chamber Foundation hosted a meeting to update stakeholders about progress made on development of the Keystone Initiative, a guide that will ultimately serve as a long-term economic strategy to make Pennsylvania more competitive.

The meeting featured an overview of Gov. Shapiro’s recently unveiled 10-year economic development strategy, Pennsylvania Gets It Done, including the plan’s assessment of the commonwealth’s strengths, areas of concern, top industry sectors, and five strategy areas.

Attendees were also briefed on responses to a survey of PA Chamber members focused on Pennsylvania’s competitiveness.

Overall, PA Chamber members rate the Pennsylvania economy as “good,” with room for improvement. They stressed that we are not realizing our full economic potential. Respondents said that Pennsylvania needs to be more welcoming to business activity and improve our business climate through permitting modernization, tax reform, and legal reform, among other areas.

This information, along with additional research and data collection conducted during the Keystone Initiative’s Phase 2, will inform the final phase, during which the PA Chamber Foundation, Keystone Initiative Co-Chairs, PA Chamber Policy Council members and other contributors will develop a final report with recommendations to improve Pennsylvania’s competitiveness.

For more information, visit www.pachamber.org/keystone_inititiative/.