Pennsylvania

                          

The $28.05 billion budget was adopted without broad-based tax increases, as lawmakers rejected new taxes on smokeless tobacco and cigars, as well as the implementation of combined reporting, which would have been a tax increase for many Pennsylvania businesses. The governor

                          

PNPs located in Adams, Allegheny, Armstrong, Beaver, Bedford, Blair, Butler, Cambria, Chester, Cumberland, Dauphin, Delaware, Fayette, Franklin, Fulton, Greene, Huntingdon, Indiana, Juniata, Lancaster, Lebanon, Perry, Philadelphia, Somerset, Westmoreland and York counties in Pennsylvania are eligible to apply to SBA. Examples of eligible non-critical PNP organizations include, but are not limited to, food kitchens, homeless shelters, museums, libraries, community centers, schools and colleges.

PNP organizations may borrow up to $2 million to repair or replace damaged or destroyed real estate, machinery and equipment, inventory and other business assets. The SBA may increase a loan up to 20 percent of the total amount of disaster damage to real estate and/or leasehold improvements, as verified by SBA, to make improvements that lessen the risk of property damage by future disasters of the same kind.

The SBA offers Economic Injury Disaster Loans to help meet working capital needs, such as ongoing operating expenses to PNP organizations of all sizes. Economic Injury Disaster Loan assistance is available regardless of whether the business suffered any physical property damage.

Interest rates are as low as 3 percent with terms up to 30 years. Loan amounts and terms are set by the SBA and are based on each applicant

                          

According to the 2010 ALEC-Laffer State Economic Competitiveness Index, Pennsylvania ranked 46th for economic performance (no change from 2009) and 43rd for economic outlook (a one position drop from last year). Since 2008, the Commonwealth has dropped seven positions in the economic outlook category.

The annual study examines 15 policy variables that have a proven impact on the migration of capital — both investment and human — into and out of states. The state rankings are an equally weighted combination of these variables, and each of the factors is influenced directly by state lawmakers through the legislative process.

Pennsylvania ranked near the back of the pack in most of the 15 variables. The state received its lowest marks for its top marginal corporate income tax rate; recently legislated tax changes; debt service as a share of tax revenue; and for not being a right-to-work state.

The study is more evidence that state lawmakers must make economic growth and job creation a priority in the upcoming state budget debate. PA Chamber members are urging lawmakers to reduce government spending; resist placing additional tax burdens on job creators; and make sure that cost-control measures are part of the solutions to the fiscal challenges facing the Commonwealth. Specifically, the looming public pension crisis and the solvency concerns facing the state’ UC Trust Fund (which is broke and operating with more than $2 billion borrowed from the federal government) are two areas in which elected officials must do more than simply throw money at the problem.

The authors of the competitiveness index stressed the importance of controlled government spending in the study’s conclusion: “When government expenditures grow beyond the private sector’s ability to pay for them, economic growth suffers. Put simply, growth in government crowds out growth in the private sector. Nationwide, the burdens from total federal, state and local government expenditures have risen by more than 5 percent of GDP within the past two years — an extraordinarily high growth rate. These increased government expenditures will reduce private-sector growth and increase overall unemployment throughout the United States.”

PA Chamber members recognize the tremendous challenges ahead in the effort to restore the Commonwealth to fiscal and economic health. They are prepared to roll up their collective sleeves and work with state lawmakers to do what is needed to move Pennsylvania forward and ensure a prosperous private sector.

2010 ALEC-Laffer State Economic Competitiveness Index 10 best states:
Utah, Colorado, Arizona, South Dakota, Florida, Wyoming, Idaho, Virginia, Georgia and Tennessee

2010 ALEC-Laffer State Economic Competitiveness Index 10 worst states
Oregon, Ohio, Pennsylvania, Maine, Rhode Island, California, Illinois, New Jersey, Vermont and New York.

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During a presentation in January to the Huntingdon County Planning Commission, CATA representative Terri Quici pointed out the cost effectiveness of van pooling during a time of soaring gasoline prices as well as the convenience of the service.

                          

Small Business Advantage is a grant program providing 50 percent reimbursement matching grants, up to a maximum of $7,500, to enable small businesses to acquire equipment or processes that result in energy efficiency or pollution prevention. Eligible applicants must be a for-profit small business located in Pennsylvania with 100 or fewer total employees. Most small businesses are eligible, including manufacturers, retailers, service providers, mining businesses and agricultural concerns.

The project to which the grant will apply must be located within the applicant’s Commonwealth facility and save the business at least 20 percent annually in energy or pollution related expenses. Examples of eligible projects include HVAC and boiler upgrades, high-efficiency lighting, solvent and waste recovery systems.

All projects must be completed before June 30, 2010. Applications are available on the department’s website at www.depweb.state.pa.us (DEP Keywords: SBAdvantage). The application package contains the materials and instructions necessary for applying for a grant. Applications are also available by contacting the department of Environmental Protection, Office of Energy and Technology Deployment, by phone at 717 783-8411 or by email at epadvantagegrant@state.pa.us. The department began accepting applications on Dec. 7. Funds for this program will be allocated on a first-come basis. Applicants are encouraged to submit their completed application as soon as possible. The department will accept applications for the program if postmarked by Jan. 15, 2010, or hand delivered by 4 p.m. on Jan. 15, 2010.

                          

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