In the Philadelphia region, Harrisburg and Washington, DC, the Greater Philadelphia Chamber of Commerce strives to promote public policy that will bolster regional economic growth and improve our competitiveness nationally and globally. We urge cooperation and partnership among governments and the business and civic communities to achieve these goals.

In Pennsylvania

Throughout the Legislative Session, GPCC advocated for action in three areas critical to Pennsylvania's competitiveness and future prosperity: economic stimulus, workforce development and infrastructure investment. On July 5, 2008, Pennsylvania lawmakers enacted a $28.3 billion general fund budget that reflects modest elements of these priorities.

Key provisions of Pennsylvania's 2008-09 spending and tax agreement include:

* No new taxes on Pennsylvania businesses or residents.

* The mandated phase-out of the state's onerous Capitol Stock and Franchise Tax.

* A new funding formula and a record $274 million funding increase for Pennsylvania's public school districts. The compulsory school age in the Philadelphia School District will drop from 8 to 6 under the legislation, and many hope that law will be expanded throughout the state.

* $2.9 billion in new borrowing to address infrastructure needs and spur the state's economy:

* $800 million increase to the debt ceiling on the Redevelopment Assistance Capital Program, which funds construction and other redevelopment projects, from $2.65 billion to $3.45 billion.

* $800 million in bonds for water and sewer maintenance that would be paid back from slots funds and another measure instituting a voter referendum to borrow an additional $400 million for water and sewer repairs.

* $665 million package to spur development of alternate forms of energy such as wind and solar power and provide a first-time state subsidy to biofuel producers.

* $350 million, repaid from motorist fees and taxes, to fix about 400 of the state's most dangerous bridges; and $15 million, repaid from motorist fees and taxes, to improve airports and railways.

The GPCC also worked to win legislative approval of the following measures designed to promote economic development and business growth throughout the region:

* Legislation to expand and continue the state's Keystone Opportunity Zone [KOZ] program. KOZs are under-used sites, such as old industrial parcels, where discounts or breaks on certain taxes are offered if the land is developed.

* Legislation enabling the City of Philadelphia to enact a Hospitality Promotion tax not to exceed 1.5% which will be applied to hotel room rentals and used to further support tourism and convention promotion efforts in Philadelphia.

* A new law to reform Earned Income Tax collection in the Commonwealth that will ease the withholding burdens on employers by reducing the number of tax collectors from 560 to 69, streamlining the system and creating uniform rules.

The GPCC was disappointed, however, that lawmakers did not act more decisively to improve the state's competitiveness by addressing modest structural changes to the Corporate Net Income Tax through an increase in the cap on Net Operating Losses and shift toward a Single Sales Factor. The Chamber will continue to advocate for passage of these important tax changes.