The Current

Excuses, excuses

My editor left. 

I know, it’s not a good excuse for not blogging in the last month – it’s sounds a bit like “the dog ate my homework.”

But hey, if the governor can do it, why can't I?

The Governor's latest excuse for vetoing a bill he supported as candidate for governor?  A bill that business worked hard to get to his desk.  A bill that re-instates present statutory law that was overturned by the courts on procedural grounds because it violated the single subject rule.  A bill that limits personal injury attorneys’ abilities to go after deep pockets and extract unfair settlements or awards.  Rendell’s excuse for his veto?

It doesn’t go far enough…

PALEASE!  What a load of horse-hockey.

First, the original bill was found to violate the single subject rule of the Constitution and he says he wants to add more provisions.  Hmmm….

Also, if he was so interested in seeing legal reform, why did he wait until after the bill passed the Senate and after the bill pass the House to indicate his position? If he was a true leader for legal reform, you think he would have weighed in earlier – after all, Governor Schweiker did four years ago.

Most importantly, Governor, despite your words, we know for a fact that your office was calling democratic members on the floor of the House during the final vote to get them to defeat the bill.  You never wanted this bill in the first place. 

I guess that’s what happens when the fox is watching the henhouse.  We should have known where your loyalties rest since your an attorney. 

It’s certainly not with improving the legal system for consumers, patients, hospitals, businesses, non-profit groups….

Oh well… gives ME an excuse to shift focus away from me!

“The future ain’t what it used to be.”

Yogi Berra certainly was the master of the obvious.  Yogi also once said, “It’s tough to make predictions, especially about the future.”

But you know what, Yogi wasn’t from Pennsylvania…

In 1990, the late Governor Robert P. Casey was facing Auditor General Barbara Hafer in the general election. That year, the General Assembly and Governor Casey adopted an election year budget with no tax increases and with increased spending on “populist” programs. 

Hafer warned of election year politics and that financial disaster was on the horizon for Pennsylvania.  But nobody took her seriously.  Governor Casey won in a landslide and members of the General Assembly managed to maintain the status quo.

A year later, Pennsylvanian's faced the largest tax hike in history.

Within a year, Pennsylvanian’s became victims of the largest tax increase in history.

Fast forward 16 years….

Despite months of warnings that Pennsylvania has financial troubles that are rooted in Pennsylvania’s Medical Assistance programs, Governor Rendell introduces what he calls, “A terrific budget.”  Others caution that financially for the Commonwealth things aren’t as rosy as they are being portrayed.  But who do you think will prevail in the budget debate in an election year? 

My money (while I still have it) is on elected officials who will employ Yogi Berra’s philosophy of not wanting to make “too many wrong mistakes,” and the budget will fail to address costly programs and encourage economic growth.  And since I’ll need it for next year, I’ll take double or nothing that we’re all going to pay for the short-sightedness one way or another a year from now.

I promise you, Yogi was right about at least one thing, “This is like déjà vu all over again.”

So just remember to hold on to your wallets next year!

We Love Jerome Bettis!!

Jim will be returning soon to address the issues -- right after he recovers from his Super Bowl party which should be just in time for the Governor's budget address!

John Madden was in Atlanta to announce a football game one weekend when he noticed a special telephone near the Falcon's bench. He asked Dan Reeves what it was for and was told that it was the hotline to God. John asked if he could use it. Dan told him "Sure, but it will cost you $100." Madden scratched his head, then thought, what the heck. I need a break picking the games. He pulled out his wallet and paid the $100. Madden was perfect that week.

The next week Madden was in Florida when he noticed the same kind of telephone on the Miami bench. He asked Jimmy Johnson what the telephone was for and was told "It's the hotline to God. If you want to use it, it'll cost you $100." Recalling the previous week, Madden pulled out his wallet and made the call. Madden was perfect that week.

The next weekend Madden was in Pittsburgh at Heinz Field, when he noticed the same kind of telephone by the Steelers bench. He asked Coach Bill Cowher, "Is that telephone the hotline to God?" Bill said "Yes and if you want to use it, it'll cost 35 cents." Madden looked incredulously at Bill and said, " Wait a second, I just paid $100 at Atlanta and $100 at Miami to use the same telephone to God. Why does Pittsburgh only charge 35 cents?"

Bill looked at Madden and replied, "In Pittsburgh, it's a local call."

Bring it on…

In reaction to the rollercoaster ride of Sunday’s incredible Steeler’s win, I was curious about what the Indianapolis papers were saying in reaction to the Colt’s stunning loss.  My “research” led me to blogger Raygan Swan.  And I have to say, I’m jealous.

Raygan’s a blogger for the Indianapolis Star who has fun swimming with dolphins, wakeboarding and kickboxing and then writing about it.  You don’t have to have Peyton Manning’s intelligence (o.k., so maybe after Sunday that’s not a good comparison) to see who has the better blog deal.

This led me to an idea… I’ve decided to take on a challenge the next time Governor Rendell proactively supports and fully implements a business-sought initiative.  And this is where you come in… you get to help choose the challenge.  Now, certain stipulations must apply, such as it must be legal and relatively safe (i.e. no poisonous snake kissing, in fact, no snakes at all!).  But I’m open to almost all challenges.

Reply with your suggested challenges and a committee of Chamber staffers will select the most appropriate one for me to undertake.  The ball is in your hands, not Bettis’, so don’t fumble this opportunity.

By the way, some have suggested that this is a shameless self-promotion to draw the attention of Ms. Swan. I assure you, such is not the case… I have only the business community’s best interests at heart. 

Besides, if she were to see my picture on this website (ahem, marketing department), I’d have as much success at a date with her as Vanderjagt’s game-tying field goal attempt on Sunday.

…but if you happen to have her number…

My new years’ resolutions for government…

I recently read that on average, people make three new years’ resolutions every year.  I also read a list of the top ten resolutions people tend to make.  Well here are my top three from that list for government…

Lose weight – state and local governments have to trim the fat because government can’t continue to outspend the rate of inflation by 165%.  It’s time to begin scaling back on the size of our government.  Personally, money for libraries is a laudable concept, but is it an essential function of government in light of our economic situation?

Get out of debt – we are projected to have deficits over the next 4 – 5 years because the cost of our medical assistance programs continue to grow as federal reimbursements shrink.  Perhaps it’s time to start thinking about reforming eligibility and benefits to what many consider as one of the richest medical assistance programs in the country.  Other states have done it, and with a little political courage, so can we.

Learn something new – try not to approach issues when they have become a “crisis.”  This only leads to short-term solutions which tend to create long-term problems.  Let’s try something different, like long term goals.  Let’s set a direction for Pennsylvania and make the difficult decisions to achieve our goals over a period of time.  I’d start with cutting the highest business tax rates in an effort to improve job creation and reverse the trend that continues to rank Pennsylvania’s population growth in the bottom 5 states in the country.  After all, increased population would mean a larger tax base. 

Hey, call me crazy, but I think these are good goals.  Never mind that studies show that on average only 46% of new years’ resolutions are maintained after 6 months.  I think those are pretty good odds of at least one of these becoming a lasting effort and I’ll take it! Happy New Year!

Common Sense II

Thomas Paine I'm not.  And I swore I’d never do it, but I did.  What a moron.  What was I thinking?!  And to choose the worst possible place to try it… And it just goes to show there’s no amount of education can make up for a lack of common sense.

I’ll get back to my idiocy in a moment, but it provides a great opening for my subject…

The Governor threatens to veto a minor tax cut bill that costs $46 million in the first fiscal year (starting next July), because his administration is on a “pay as you go” system. (By the way, corporate tax collections exceed estimates by nearly $65 million year-to-date, so the money will be there to afford the cut.)

Yet, at the same time he threatens to veto our tax cut proposal, he pushes for and will sign increases in spending that have no offsets to pay for them --

• The Low Income Housing Energy Assistance Program (LIHEAP) bill costs around $25 million in THIS fiscal year;
• The $500 Million expansion to the Redevelopment Assistance Capital Project (RACP) will cost well-over $50 million in debt service for the next 20 years.

Veto a tax cut bill because there’s no money while signing bills despite having no money to pay for them.

Will Rogers said, “common sense ain’t common.”  I didn’t know he worked for our Governor!

This administration actually makes me look like I’m loaded with common sense for trying to shop at Toys R’ Us at 6:00 in the morning on Black Friday!  (Told you I was a moron, but it's all in perspective, now. )

A big week...

It's been a great week here in Pennsylvania for business. First, the General Assembly passed House Bill 515 and it is on its way to the Governor for signature (see below) and even though the Governor says he'll veto the bill, there's still cause for celebration. In addition, Senate Bill 435 (Fair Share Act) passed the Senate! That's really not the biggest news on that bill though -- the trial lawyer attempt to water down the bill failed by a vote of 26-24. It doesn't get any closer or any more exciting that that!! Below is the press release the Chamber issued today on the Fair Share Act.

HARRISBURG, PA – The Pennsylvania Chamber of Business and Industry today thanked Senate lawmakers for taking a stand against lawsuit abuse by voting to re-enact the Fair Share Act. “The business community fought tremendous opposition in an effort to restore fairness and common sense to our legal system, and we won round one,” said Jim Welty, PA Chamber vice president of legislative and corporate affairs. “Inequities in our legal system are just another burden facing job creators; one more factor that has the potential to send job opportunities elsewhere. Improving our legal climate through the repeal of the unfair legal doctrine of joint and several liability sends the right message to job creators that we welcome their presence in Pennsylvania.”

A trial lawyer supported amendment designed to water down Senate Bill 435, the proposed Fair Share Act, failed by a vote of 24-26 before the bill passed the Senate by a vote of 32-18. The law will create a legal system that is fair to both plaintiffs and defendants, holding business responsibly only for the harm it caused and preventing lawyers in personal injury lawsuits to go after companies with “deep pockets.”

This legislation was originally enacted in 2002 through a bipartisan effort. However, House Democratic leaders challenged the law, and this year, Commonwealth Court overturned it based on a procedural error in its passage in 2002. The merits of the law were never in question.

“Repealing joint and several liability was a difficult fight in 2002, and getting the Fair Share Act back on the books as originally passed will be no less of a challenge,” Welty said. “Opponents will attempt to undermine the effort to restore fairness, common sense and personal responsibility to our legal system every step of the way.”

Welty said the PA Chamber and its more than 12,000 members would remain a visible force in ensuring that joint and several liability is repealed for good, as lawmakers from both sides of the aisle set out to do in 2002.

“Many members of Senate sent a clear message that they are not willing to surrender to special interests that reap the benefits of a costly and out-of-control legal system,” Welty said. “The Chamber strongly urges pro-jobs lawmakers in the House to do the same by passing Senate Bill 435 without amendment.”

Time to Walk the Talk...

The General Assembly is considering two critical pieces of business legislation this week. One is the re-enactment of the Fair Share Act (contained in Senator Corman's bill SB 435) that the courts threw out on procedural grounds this past summer and HB 515 which contains several significant business tax changes. Here is the press release we issued today after we participated in a press conference with many other business supporters on HB 515.

PA Chamber: time is now to improve competitiveness of Commonwealth’s job creators

HARRISBURG, PA -- The Pennsylvania Chamber of Business and Industry today praised pro-jobs lawmakers for their commitment to creating a more competitive business climate in the Commonwealth by advancing needed business tax reforms (H.B. 515), and urged Gov. Ed Rendell to sign the legislation when it reaches his desk.

“Bold changes to the state’s business tax structure are needed to boost job growth, and ensure that jobs created today are here for residents tomorrow and in the future,” said Jim Welty, PA Chamber vice president of legislative and corporate affairs, speaking at a Capitol news conference organized by members of the CompetePA Coalition. “The Senate’s pledge to deliver House Bill 515 to the governor this year sends a message to the state’s job creators that it understands what is needed to support job growth in the long-term.”

Welty said the governor will soon have an opportunity to send a message about his commitment to the Commonwealth’s economic vitality.

“On behalf of our more than 12,000 members, and all job creators in the state, the Chamber urges the governor to support House Bill 515 and give business a framework to be competitive. Pennsylvania consistently lags behind our competitor states. With these tax reforms, the state can start to reverse this trend.”

Welty said establishing a Single Sales Factor for Corporate Net Income tax apportionment; raising the cap on Net Operating Losses; and reducing the Personal Income Tax are steps in the right direction toward giving businesses large and small the ability to grow and prosper.

Improving Pennsylvania’s business tax structure is a priority for the PA Chamber, and is a key component of its members’ Agenda for Jobs, a plan developed by job creators for job creation.

The "forbidden" topic...

…the state of affairs in the Capitol.

I will begin by saying that there are folks that have been around this town much longer than me who agree that the animosity in the capitol is as bad as it’s ever been. I’m not saying this to cast aspersions on any one individual or group of individuals, but to indicate that these new challenges prevent constituencies from moving forward on issues of importance for Pennsylvania.

The core problems are not partisan in nature. Philosophical differences between the parties can surface on any given day, but they do not necessarily displace productive public policy action. Rather, there is a lack of trust. And that lack of trust has threatened to bog down state government (which some argue is a good thing).

Ralph Waldo Emmerson once said, “Our distrust is very expensive.” How fitting -- as leaders in Harrisburg struggle to regain the ability to constructively approach the important public policy matters that are at hand.

The pay raise issue has certainly shaken Pennsylvania’s trust in our leaders, but we can not allow that distrust to topple the institution itself.

If anything, our role is to re-establish ourselves as leaders. And in so doing, we must have respect and tolerance for individuals, as well as the institution itself. That is not to say we can’t have differences and debate the merits of any issue. It is to say, however, that we are ALL responsible for setting Pennsylvania on a track that allows us to become economically, ethically and politically an example of which to be proud. This is a great state whose image has been tarnished nationally by the events of recent weeks. Let’s get back to being a Pennsylvania we are all proud of.

With that off my chest, I welcome your comments.

Lessons Learned...

...from guest blogger Maura Donley

This week…

T.O. learned that there really are consequences for your actions, something his parents must have failed to teach him as a child.

A Pittsburgh man discovered what a woman scorned is capable of, and the woman scorned learned that a tube of super glue can be VERY expensive.

And PA Supreme Court Justice Nigro learned the hardest lesson of all. After nearly 200 years of retention votes in PA – Nigro lost his bid for retention -- first time in history. It wasn’t because he himself was a bad judge, showed bad character, got caught doing something nefarious. Nope, he was just in the wrong place at the wrong time. And while there, he learned never to underestimate the power of the people.

The pay raise fever that has gripped Pennsylvania since July came to a head in the last week, first in the General Assembly as it grappled with how to repeal the raise and then in the voting booths as Pennsylvanians sent a clear message of displeasure regarding the whole matter.

There’s a lesson here for all of us, one that businesses in Pennsylvania should sit up and note. It is possible to have an impact; it is possible to be heard.

We spend hours talking here at the Chamber about our “grassroots effort.” Yep, it’s exciting stuff I know. But it can work.

Right now, at an odd time of year, there’s a business tax reduction bill sitting in the House of Representatives. It passed the Senate last week. This is highly unusual -- tax bills typically move during the budget process. This is a rare opportunity.

The bill – House Bill 515 - will, over the next few years, reduce the Corporate Net Income tax to 9.59%, increase the net operating loss cap to $20 million, increase the sales factor from its current 60% for CNI apportionment purposes to 90%, and reduce the Personal Income Tax to 2.98%.

How can we seize this opportunity to create jobs here in Pennsylvania? Call your representatives today; tell them to pass House Bill 515. Call your senator next, thank him or her for passing the bill. It’s that simple; it’s that easy. It will work.

My quote for the day: If you must hold yourself up to your children as an object lesson, hold yourself up as a warning and not as an example. -- George Bernard Shaw