Message from the Pennsylvania Chamber of Commerce

Hi Everyone,

I thought I would share some information that I receive every month from the Pennsylvania Chamber.  When you see all the cuts in the budget, one of reasons is that collectively, the State Employees’ Retirement System and the Public School Employees’ Retirement System–face an unfunded liability of between forty billion and fifty billion dollars.  One of the solutions to this problem is to switch future state employees from a defined contribution plan similar to private sector 401k style programs, among other similar proposals under consideration.

Also on the Mid-Year Legislative Accomplishments in Harrisburg, Pennsylvania’s corporate tax apportionment formula will now be based only on sales, not property and payroll.  The old formula was a disincentive for hiring and growth.  This change will save job creators about $12 million this year, and around $40 million annually beginning next fiscal year.

Finally, the authorization of transportation public-private partnerships is a small but welcome step toward resolving the state’s nearly $3.5 billion infrastructure funding shortfall.  This concept will inject private-sector capital and innovation into the infrastructure equation.

See you on Main Street.

Ron Orris


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