July 2011 - BIPAC

Budget Energy Environment Health Care Infrastructure Labor Legal Tax Workforce
DEFINING SUCCESS
Support the Center for Advanced Manufacturing Careers and
similar efforts to provide a trained workforce for Pennsylvania’s
manufacturing sector.
Produce more science, technology, engineering and mathematics
(STEM) graduates.
Improve interagency cooperation and state/local coordination
of workforce development policymaking and programs.
Ensure education accountability through common curriculum.
Educate parents, teachers and students about opportunities
in skilled careers.
Increase Career and Technology Education.
Maintain and Fund Industry Partnerships.
Strengthen our community colleges and mandate articulation
with four-year state universities.
GETTING IN THE GAME
Learn more about Industry Partnerships by checking out the
Pennsylvania Workforce Development’s website. Click here for
the page specific to Industry Partnerships.
Senate Bill 552, introduced by Senator Michael Brubaker (R-Lancaster) amends the Workforce Development
Act by adding a chapter that would codify Industry Partnerships. Unfortunately, Pennsylvania’s current workforce
has a severe shortage of skilled labor and is unable to meet the needs of the Commonwealth’s employers.
Industry Partnerships are an important tool in our workforce development portfolio that can help to bridge
this gap. Industry Partnerships have a successful track record. The initiative began in the Schweiker Administration
and was expanded during the Rendell Administration. Since the inception of the initiative, more than
6,300 employers have been involved and more than 73,000 workers have been trained. The business community
has long been a supporter of Industry Partnerships and hopes to see legislation enacted soon. SB 552
unanimously passed the Senate and the House and was signed by Governor Tom Corbett on July 7, 2011.
In April, Representative Thomas Quigley (R-Montgomery) introduced HB 1330, a bill that would expand the
Educational Improvement Tax Credit program (EITC). EITC’s are tax credits to eligible businesses for contributing
to a scholarship organization, an educational improvement organization, and/or a pre-kindergarten scholarship
organization. The purpose of the tax credit program is to enhance the educational opportunities available
to all students in this Commonwealth. HB 1330 would increase the maximum annual contribution rate. Currently,
contributions made to scholarship organizations and educational improvement organizations are
capped at $300,000 per year. Under HB 1330, this limit would be extended to 400,000 annually in FS 2011-
2012 and expand the program to $750,000 in FS 2012-2013 and years thereafter. Additionally, contributions
to pre-kindergarten scholarship organizations are limited to $150,000 per year whereas; HB 1330 increases
the amount to $200,00 in FS 2011-2012 and $250,000 in FS 2012-2013 and years thereafter. The bill stipulates
that not more than $60 million shall be used to provide tax credits for contributions to educational improvement
organizations, and not more than $20 million shall be used to provide tax credits for contributions
to pre-kindergarten scholarship organizations. The bill passed the House in a bi-partisan effort of 190-7 in early
May. HB 1330 is now in the Senate Education Committee but no action will be taken on this bill until the fall.
“School Choice” were the buzz words surrounding education policy for the first part of the 2011 legislative
year. Unfortunately, SB 1, introduced by Senator Jeffery Piccola (R-Dauphin), that promoted school choice
failed to gain traction despite pressure from the Governor’s office. Representative Jim Chrisitiana (R-Beaver)
and Representative Curt Schroder (R-Chester) also attempted to push legislation on the topic but never saw
their bills make the floor for a vote. Many feel the topic will come back to the forefront in the fall. The business
community supports school choice and has been advocating for passage of SB 1 since its introduction.
Pennsylvania Business Council 116 Pine Street, Suite 201 Harrisburg, Pennsylvania 17101 717-232-8700 www.pabusinesscouncil.org