McGarrigle, Killion hold economic roundtable

Several state senators participated in an economic roundtable discussion in Morton on Wednesday afternoon.

MORTON » State Sen. Pat Browne, R- 16, of Allentown, chairman of the state Senate Appropriations Committee, brought his roundtable to Delaware County Wednesday afternoon in the midst of taking a tour of the state to see what communities’ priorities are.

“We’re visiting all parts of the state primarily because we’re trying to respond to what we believe is a different financial situation for Pennsylvania and to take input from community business leaders as to what the priorities should be,” he explained.

His discussion at the Delaware County Intermediate Unit was the fifth so far, with Erie his next location. On hand were state Sens. Tom Killion, R- 9 of Middletown and Tom McGarrigle, R- 26 of Springfield.

“There’s a real shortage of skilled labor in Southeastern Pennsylvania,” McGarrigle said. “Companies want to expand and they just can’t find the bodies to fill the positions they need.”

That is a concern Browne said he’s heard throughout the state.

“What we’re hearing primarily on ... economic development – and this makes things relatively easy to prioritize – is workforce development,” he said. “We’re hearing this around the state ... Everyone is saying the same thing.”

He pointed to Gov. Tom Wolf’s PA smart initiative unveiled in his $ 33 billion budget proposal. PA smart earmarks $ 50 million to expand science, technology, engineering and mathematics education; help students and adults get career technical education; encourage employers to get involved in job training; and expand apprenticeships.

Browne said he wasn’t certain if the full $ 50 million would be able to be funded but it was an important conversation to have considering the needs of the state.

In his presentation, Browne explained that the financial situation for Pennsylvania has changed.

“I’m happy to say that some of the dynamics that have existed over the past 10 years ... have improved dramatically,” he said. “It’s a good time for us to maybe reconsider how we go about making appropriations decisions in Harrisburg.”

He explained that in the past 10 years, Pennsylvania has gone from looking at deficits of $ 11 billion by 2022 to a deficit at that time of $ 4 billion.

“We’re still not out of the woods,” Browne said, “but things are getting a lot better.”

He identified the personal and state tax as two drivers of state revenues, both of which were impacted by the recession. In addition, he noted that the corporate net income tax, while among the highest in the country, only supplies 9 percent of Pennsylvania’s revenue.

Browne said expenditure areas that need watching included public pensions, corrections and Medicaid.

As Pennsylvania is an older state, the needs for Medicaid will continue to grow, he said.

Browne said when he first went to Harrisburg 24 years ago, there were 17,000 inmates in Pennsylvania’s prisons and now, the system is capped at 51,000. Part of that, he said, is due to the three- strikes- you’re-out policy although there is a move towards looking at howmuch of a risk a person is to society than solely the three strikes.

He also pointed to the Public Pension Reform Act of 2017 as a helpful first step toward moving that forward.

Browne said whatever occurs in Pennsylvania’s finances, the Delaware Valley will have a pivotal place in that.

“The conversation for the Southeast is always going to be ... targeted to how we compliment what happens rather than trying to solve problems,” Browne said. “The economic receipts that come out of this region are what make what we do in Harrisburg possible. Five counties, it’s 50 percent of our total receipts. It is the economic driver of our total receipts. Our financial decisions in Harrisburg have to meet the objectives of the Southeast.”