Every other Friday morning, I join with my counterparts from throughout Pennsylvania, for an update of business happenings in the communities of our beautiful state. These bi-weekly calls were initiated by the PA Chamber during the darkest days early in the pandemic as an effort to get as much ‘boots on the ground’ input from the business community, particularly small business, into the policy makers in Harrisburg. To a large degree the conversations during these calls have done nothing less than keep lots of Pennsylvanians alive while lessening the overall negative impact of the business closures which were mandated to help slow the spread of COVID-19.
While the pandemic has waned, the importance of these conversations has grown. One example of how much impact these calls can have is the recent successful coalition which was formed in support of the passage of Senate Bill 1083. This bill created what I’ve termed to be a ‘curative amendment’ to our state’s Unemployment Compensation Law. As you may recall, in Pennsylvania unemployment compensation is an insurance program requiring premiums to be paid by employees and matched by their employers. It’s not a typical government entitlement program.
For this reason, Chamber members are always keenly interested in their Chamber advocating on their behalf to ensure that the benefits paid for are received and that the premiums are affordable and not bogged down by abuse, fraud, or waste.
My counterpart at the Schuylkill Chamber of Commerce, Bob Carl steadily built the coalition of Chambers to support the passage of SB 1083. He wisely ‘hitched his wagon the PA Chamber’s star.’ Working together, Bob and the PA Chamber got over 60 Chambers of Commerce and other business groups from every part of Pennsylvania, including your Chamber-The Greater Susquehanna Valley Chamber of Commerce, to sign off on a letter which read:
To the Honorable Member of the Pennsylvania General Assembly:
On behalf of our chambers of commerce, we write to urge your support for legislation to help employers avoid an unfair increase to their unemployment compensation (UC) taxes. Multiple bills have been introduced to address this situation, and we understand S.B. 1083 is the likely vehicle.
According to the Department of Labor & Industry, around 2,700 Pennsylvania employers are being assessed a UC tax increase based on two factors: 1) they were forced into a prolonged pandemic-related shut down; and 2) they had previously earned a lower, experienced-based UC tax rate by avoiding layoffs over the years.
Under current law, an employer who reports no payroll in one of the last three years loses their experience-based rating and reverts to the higher default tax rate. Businesses who were compelled to shut down during the pandemic should not receive a tax increase and it is particularly unjust that this policy impacts those employers with a history of avoiding layoffs.
We urge you to support legislation, including S.B. 1083 as amended, to provide a targeted, temporary exemption so employers forced to shut down during the pandemic can maintain the positive experience-based UC tax rating they have earned.
Thank you.
Early last Wednesday evening, this note dropped into my email inbox from Alex Halper, PA Chamber Vice President for Governmental Affairs, “Hey everyone, the Senate passed SB 1083! While we did have to fight off several amendments, I’m happy to say the bill passed unanimously in both the House and Senate. That means everyone gets to send Thank You notes to your local legislators!”
We are privileged and truly fortunate to have one of our state’s finest legislative delegations representing us in Harrisburg. Taking my cue from Alex, please let me very publicly and enthusiastically thank:
Sen. John Gordner, co-sponsor and highly effective whip to line up a 48-0 vote for SB 1083
Sen. Gene Yaw
Rep. Kurt Masser, member of House leadership and essential administrator in delivering a 199-0 vote for SB 1083
Rep. Lynda Schlegel Culver
Rep. David Rowe
Rep. Joe Hamm
Thank you one and all for being there when the members of the Greater Susquehanna Valley Chamber of Commerce needed you. We will not forget your good work.
The Anatomy of a Legislative Victory
