The Current

He's under 40?

Congratulations to Jim for being named one of Central Pennsylvania's Top 40 Under 40 by the Central Penn Business Journal!!

We think it's because he has a blog!

From your friends and colleagues at the Chamber!!

Try some teenage advice for a change...

So, after waiting for my niece to finally get off the phone (she’s a teenager, what do you expect?), I asked her what it means if someone says, “Things seem to be going well, but if I could leave here I would.” You know what she said? “Sounds like things are better somewhere else.”

Well, as they say in the Guinness commercials, “BRILLIANT!”

Now if my teenage niece can figure that out, why can’t the Rendell Administration?

You see, the Administration just “commended” the Chamber for saying our economy is improving. They were referencing the recent release our 15th Annual Economic Survey. Of course, in true political opportunistic fashion, they used the survey as “proof” that the big cardboard checks that the Governor is dolling out around the state are working to stimulate the economy.

But let’s try and be a little more accurate, Governor. Yes, our economic survey indicates that the economy is improving. After all, we’re not going to hide what’s been happening nationally (although, the survey was taken before Hurricane Katrina). But more importantly, the survey also reveals some disturbing things about the business climate in Pennsylvania:

1. We saw a significant drop in the number of respondents who felt Pennsylvania was business friendly. In fact, only 18% felt PA was business friendly, down from 41% in 2001!

2. 40% of businesses said they would leave the state if they could. That’s 4 out of every 10 businesses, up from a mere 16% in 2001!

Given that these two indicators were a continuation of an ongoing slide from last year, I think most average folks would agree that the news is not all rosy. But I guess not-so when you have a political agenda that ignores the business community’s wishes (see The Chamber’s Agenda for Jobs). It isn't just us either, according to the Bureau of Labor and Statistics, Pennsylvania CONTINUES to lag behind the rest of the country in economic growth.

So, let’s keep the cheering down a bit Governor and perhaps not take all the credit for just a modicum of economic progress since clearly companies are saying it’s not good to do business in the Commonwealth and that they would to leave if they could. The Administration should try consulting people that understand the warning signs before it’s too late and try to look at the big picture rather than cherry pick info suitable for a press release.

Heck, I can give you my niece’s phone number, she'd love to talk to you. (never mind that she'd talk to anyone.) Oh yeah, and if you get through… tell her that her Uncle said hi and not to date the skater guy with the tattoo. (uh oh, now Uncle Jim’s in REAL trouble!)

I'm Baaack...

So I haven’t been around in a while. But it’s probably not a bad thing because those who don’t get away from the political scene tend to lose perspective on reality.

Right now I’m typing this in Hilton Head, South Carolina. And I can’t understand a darn thing half the people are saying down here! (Sorry Tara.)

Just so you know, I’m not on vacation. I’m working. And I don’t care how much grief I get, YOU try sitting through eight hours of presentations by chamber marketing folks.

By the way, you know how you can tell who the marketing people are in any given room? They’re the ones with the name tags on the right side of their body. Why? Because that’s the side of your body you put forth when you shake hands with someone. See… and you think this isn’t painful? By the way, I have to say… I’ve never had a problem reading nametags on the left side of the body. If you do, I’m guessing you need the nametag just to remember your OWN name.

So why am I here? Well, I’m at the Association of State Chamber Professionals (ASCP), a group of chamber professionals from all over the country who get together to share ideas and information on how state chambers conduct business. It used to be comprise just marketing folks, but I’ve crashed the party and they’re now expanding to include other chamber professionals. So why am I being so hard on them? Because they’ve given me grief for days, and I know they’re reading this now.

Seriously, though, this conference is also a means by which states can share issue information. I hear what works and doesn’t work for advocating any particular issue, and I learn what’s going on in other state capitols -- issues that may be making their way toward Harrisburg. And it sounds as if we may have some doozies coming that could cost you a lot of money and cost Pennsylvania more jobs!

So what’s this have to do with what’s going on in Harrisburg right now? NOTHING! Don’t tell me YOU drank the same water that some state government people have and think that Harrisburg is the center of the universe. Come on, I’m not ALL about providing useful information – after all, I’m with chamber marketing people. (Sorry Joyce, Maura, Mark, Dick, Drew and the rest of my ASCP friends, but I warned you!)

Healthy Dose of Skepticism

Jim? Has anyone seen Jim? He seems to be missing in action. He was last seen running towards Senator Brightbill's office mumbling something about the minumum wage.  If you see him, tell him his blog editor is looking for him.

That's OK though, we have a special guest blogger today.

Meet Kirk Liddell, CEO of Irex Corporation in Lancaster and the PA Chamber's First Vice Chair. He'd like your undivided attention on the results of this year's economic survey,  so listen up...

As a business owner who continues to be concerned about our economy, our ability to create jobs and our ability to keep young people here, I ask the members of the General Assembly to look seriously at the results of this years Economic Survey.

Earlier this year the Chamber unveiled a package of bills, called the Agenda for Jobs. The Agenda is designed to reduce the cost of doing business and strengthen our competitiveness in the Commonwealth. The results of the Economic Survey underscore the critical need to enact job creation measures contained in the Chamber's Agenda for Jobs.

In general, businesses here in Pennsylvania are optimistic about the potential for future growth but retain a heavy dose of skepticism about our current economy. The majority of companies indicated that the economic situation in their community had improved over the past year, and that they expected it will continue to get better over the next 12 months. Additionally, more than half experienced increased sales over the last 12 month and half are expecting sales to improve over the next 12 months.

While the percentage of businesses that did not make investments in Pennsylvania operations in the past 12 months is the highest in five years, 83 percent of respondents indicated that they plan to make either significant or limited investments over the next year.

This is where the optimism ends...

The survey contains several warning signs that Pennsylvania's business climate is still ailing and lagging behind other states.

There was a significant drop in those who perceive Pennsylvania as business friendly, which is the second lowest score in five years.

In fact, only 18.2 percent of respondents perceive Pennsylvania's friendliness toward business as either excellent or good, an almost 10% drop from last year's percentage of 27.7%. 37.6 percent perceive Pennsylvania's friendliness towards business as poor, which is up significantly from 2004 when only 13.7 percent of the respondents indicated was not.

Perhaps one of the most alarming aspects of the survey is that the number of businesses that would consider leaving the state due to the business climate increased to four in ten, virtually tying the highest number in five years. When you compare that to 2001, when only 16 percent said they would consider leaving. Where would they go? To our competitor states in the south. It's obvious Pennsylvania is heading in the wrong direction.

Taxes, the business climate in general and health-care costs top the list on reasons for leaving the state. It's not surprising then that health care costs, and business taxes are the top issues Pennsylvania's job creators want the Chamber to focus on.

So, where do we go from here?

We said it in February and we're saying it again today. Real jobs don't come from government. They come from a free market within an environment of competitive business taxes, limited and efficient regulation, balanced labor laws and freedom from the risk of arbitrary confiscation due to lawsuit abuse. It's time to enact pro-jobs legislation so that next year, the news out of the Economic Survey is nothing but positive.

To review the details of the survey visit: www.pachamber.org

Magic Carpet Ride

So now the big issue in Harrisburg is raising the minimum wage. One has to wonder why it’s so important NOW?? Could it be an attempt to assuage some guilty feelings? Hard to say and who am I to speculate. I’ll let you decide.

What I do know is that raising the minimum wage has been positioned by proponents as the “magic pill” for improving the lives of Pennsylvania’s working families and low-income residents. What they fail to mention is the negative side effect of mandatory wage hikes – that raising the minimum wage hurts the very people it purports to help.

Mandated wages are job killers. Unless business productivity increases sufficiently to generate enough revenue to pay what is essentially a small employer tax, affected businesses will have to spread the same amount of money over fewer workers. The least skilled workers in the labor pool – those that most need to get and keep their feet on the first rung of the job ladder – will be the first to lose their jobs. Because higher mandated wages cause shifts in the profile of those who get hired, as employers favor more highly skilled workers, these low-skilled workers will also be denied opportunities to enter the work force.

Businesses unable to absorb the cost of a mandated wage hike may also be prevented from hiring additional workers, or be forced to decrease the number of hours worked by current employees or reduce health-care benefits (if they are able to offer them to employees in the first place given years of double-digit premium increases.)

Finally, higher minimum wages have a negative ripple effect on other businesses by artificially increasing wages across the board.

Pennsylvania does in fact have an opportunity to help better the lives of working families. Business growth is the real cure. Reducing taxes, providing affordable health care, and improving our legal environment – all ideas being advanced by the PA Chamber’s more than 9,000 members in its Agenda for Jobs – is the source of economic opportunity and advancement. This would do far more good than hiking the minimum wage, which would benefit some to the detriment of those most in need of employment.

If Pennsylvania truly wants to help people, it must reduce the barriers and mandates placed on employers that inhibit job creation. There is no magic pill, no magic carpet ride to creating jobs. It will take some hard work.

Katrina provides us with a sobering reality…

It just doesn’t seem right to publish a witty blog in the aftermath of Hurricane Katrina. The videos and stories are heart-wrenching, to say the least. My eyes welled-up (and I get choked-up at the thought) at one particular interview of a man who had just lost his wife in the storm. He indicated that as she let go of his hand and disappeared into the water, her final instructions were to take care of the children and grandchildren.

For arguably one of the most devastating natural disasters in our country’s history, Katrina has left its mark, as did the tsunamis in south Asia last December. While the death toll from Katrina may pale in comparison, its affects are none-the-less severe to the areas and individuals impacted by the hurricane and its aftermath. And it’s a certainty that we will all feel the affects of Katrina for quite some time, as our economy struggles to handle the increased pressures in the wake of the storm.

All that said, I find it equally disturbing that some of my fellow bloggers and other individuals with political motivations find it necessary to place blame for this situation. I believe rational people recognize that no individual is to blame for this or any similar disaster, and rather than seek political and/or personal gain at others’ tragedies, we need to lend support and encouragement. As I type, heroes are working desperately to save lives and provide relief to the ravaged area, and Americans are coming together, as we always do, in times of need.

There is little doubt that over the next several weeks and months, hundreds of stories of both devastation and survival will flood the media. As personal tragedy headlines, it’s only a matter of time until the impact on businesses on the gulf coasts are reported. Entire business districts have been wiped out and many local chambers will not survive the aftermath of this event.

Yesterday, the US Chamber hosted a conference call to discuss ways businesses can help with the recovery and rebuilding efforts. The Pennsylvania Chamber will be working with the US Chamber, the American Chamber of Commerce Executives, the Council of State Chamber and other similar groups to provide direction for our members and assistance to the individuals and businesses impacted by this disaster.

Please stay tuned to the Chamber’s website for additional information in the weeks ahead. In the meantime, let’s keep the victims in our thoughts and prayers, and please visit the American Red Cross or the Federal Emergency Management Agency (FEMA) sites for additional ways to help.

Pay Raise Furor?

So a lot of people have asked me why I haven’t discussed the pay raise issue. Since “I don’t want to,” doesn’t seem to satisfy, let me try this…

Rule #1 of any communication/advocacy effort is to STAY ON MESSAGE. Our members are concerned about the economy and the Commonwealth’s competitiveness for jobs. So, to embroil ourselves in the public furor over the pay raise only distracts from the Chamber’s Agenda for Jobs.

Secondly, The Chamber has not heard an outcry from our membership over the pay raise. Rather, the outcry has been over the lack of movement on our Agenda for Jobs. Therefore, see above for Rule #1.

Now, I know what you’re going to say to me... “Jim, the pay raise is a symptom of a larger problem…this is about the priorities of government and the pay raise demonstrates Government’s priorities are out-of-touch with the needs of Pennsylvania. And that dynamic is why nothing has been done on The Chamber’s Agenda.”

But this democracy thing goes both ways, and it’s not enough to complain about real or perceived problems, it’s our DUTY to do something about them. And if that’s your belief, it’s your duty, on November 7th 2006, to change the dynamics of government to ensure better priorities. In short, it’s your duty to vote accordingly.

Which brings me back to why I’m not discussing the pay raise -- As a lobbyist for the business community, I’m focused on creating a better job creation climate. I push for the issues of The Chamber’s membership and then report to the Chamber’s members who was with us and who was against us. All so they can vote accordingly.

As a voting citizen of this Commonwealth, I will join the rest of you in 2006 and decide who is worthy of election/re-election to state government. The first 6 months of this session have been evaluated, and I will evaluate the remaining 15 months before I make my decision. And in my humble world, I will do this REGARDLESS of what salary they may or may not make.

Ok. Now that I’ve stoked the fires, I’d like to know what YOU think.

(Editor’s Note: the aforesaid pay raise statement is not, was not, and will not heretofore be the official position of the Pennsylvania Chamber of Business and Industry, its subsidiaries, its assigns, our friends and relatives, our doctors and lawyers, the vending machine repair man, the cute water guy or anyone passing on the street.)

More partners in crime...

I’m back from a week vacationing, and I have some interesting observations to share, but I’m going to hold that for a future discussion.  Instead, I’m going to take advantage of some ill-timed vacations and introduce you to a couple of other folks at the Chamber.  While everyone in this building is important to our organization’s success, the following two individuals work almost daily with government affairs on our legislative efforts. 

First, there’s Lesley Smith, the Chamber’s Director, Communications.  Lesley came to us from the House Democratic press room.  She writes almost all of our regular publications and serves as the Chamber’s prime contact for the press.  She’s our gatekeeper when reporters call for comment on even the most innocuous issue.  She’s also one who, if necessary, is willing to sacrifice her time when the legislature is in session at all hours.  That says a lot, because if you knew Lesley, you’d know that pulling her away from shopping is a miracle in-and-of-itself.  So to VISA and MasterCard, we do apologize.

The other person I must introduce is Lesley’s boss, my colleague and friend, and my pesky editor, Maura Donley. Once a lobbyist for the Chamber, Maura now serves as the Chamber’s Vice President, Membership and Communications.  Maura has been with the Chamber for many, many moons (and that’s not a comment on age, before anyone thinks I should pay for that one), originally coming to us from former Governor Casey’s administration. 

Since Maura is not here to defend herself, I’m going to take this opportunity to tell you a little bit more about her; She’s Irish, which means she knows the good bars; She’s a family person, which means she’s quick to tell stories about her siblings and parents (o.k. that applies to being Irish, too); and she’s never wrong.  Well, she thinks she’s never wrong – it’s actually ME that’s never wrong.  (And with that, is it any surprise I now understand what it means to “get one’s Irish up”?)

Kidding aside, Maura is a great asset to this organization and the business community as a whole.  She has a sharp mind and a sharp wit (which means I’ll be paying for this blog at some point).  When Maura’s not yelling at me because she thinks she’s right and I’m wrong, she’s usually getting a 100 yard advantage off the ladies’ tee, which I still contend is unfair!

Ouch!

Ever feel like you’re hitting your head against a brick wall? I feel that way every time I open a newspaper these days or listen to the administration's rhetoric on business taxes.

The business tax reform debate here in Pennsylvania continues to be clouded by a misunderstanding of the negative effects the governor’s mandatory unitary combined reporting proposal (MUC) would have on job creation. The editorial writers and anyone who chooses to listen only to the Governor, fail to understand the business community’s position on this issue.

The administration claims that the Commonwealth would capture approximately $100 million in revenue by addressing “abuses” in the tax system. MUC, on the other hand, is estimated to capture nearly half a billion dollars, and many experts suggest this number is underestimated. This burdensome proposal has not been adopted by any major state in the past 20 years, and with good reason!

Clearly, MUC goes well beyond capturing any “abuses” there may be in the system, as the governor purports to address. Therein lies the business community’s objection.

The PA Chamber has continuously expressed its willingness to sit down with the administration to identify these abuses. The administration, on the other hand, would rather continue using sensationalized figures to imply that a majority of corporations are unethically avoiding taxes – all part of an effort to gain support for a flawed plan.

If the governor truly regrets not helping Pennsylvania’s job creators in the new budget, as he recently told an audience at the Harrisburg Regional Chamber, he should work with the business community to create a competitive tax system that fosters job creation, not one that merely shifts the tax burden, creating winners and losers.

Until we hear from him, I'll stock up on bandaids!

Post-depart them impressions…

The Commonwealth got a budget.

The Governor got his programs.

Public officials got their pay raise.

And the rest of us got nothing.

O.k. Maybe that’s harsh.

At least we didn’t get tax increases.

But maybe they’re saving that that for next year.

But I’ll make you the following “political” promise…

I’m done griping.

I’m done complaining.

I’m done speeding.

Hey, I said it was a "political" promise.