Pittsburgh Chamber lists municipal and state pension reform as a must do. Cite me as leading the charge! THANKS! Pensions, immigration top local agenda By DeWitt Peart, President, GPCC It’s an election year in Pennsylvania. While Gov. Tom Corbett and members of the Pennsylvania General Assembly and federal congressional delegation begin to gear up for re-election, we must not forget that much work is left to do at the state and federal levels to make our region more competitive. In his annual budget address Feb. 4, Corbett placed state pension reform high on his list of priorities. The governor asked lawmakers to approve changes to the pension system that could save $300 million for the state and school districts next year. While I applaud the governor’s leadership on an issue so critical to our region and state’s future, reform to the state employee and public school pension systems will only solve part of the problem. What is also needed — and what state lawmakers must act on this year — is reform to the retirement plans for municipal public safety employees. Twenty-six Pennsylvania municipalities have pension plans officially designated as severely distressed by the commonwealth. An additional 125 have moderately distressed plans. In total, our state employee, public school and municipal pension plan spending is projected to double from $3.5 billion last year to $7 billion in 2016. At a time of tightening state and local budgets, every dollar spent on increased pension obligations is a dollar not spent on critical government services. Without addressing the rising costs of municipal pensions, we are headed toward a downward spiral of cuts to programs and services combined with higher property taxes that will negatively affect everyone. Legislation introduced by Rep. Seth Grove, R-York County, changes the way municipalities will handle pensions for future employees. New municipal employees would participate in a hybrid defined benefit and defined contribution plan, representing an important step in controlling costs. On the federal front, there’s reason for measured optimism that progress can be made in 2014. Although political gridlock has stymied action in recent years, the passage last month of a bipartisan $1.1 trillion spending plan and the recent passing of the Farm Bill may indicate a willingness of our federal lawmakers to work together. The Pittsburgh Chamber is a member of the Great Lakes Metro Chambers Coalition — an alliance of more than 40 chambers of commerce across the Great Lakes region — that has come together around a unified federal agenda. A top priority for our coalition is immigration reform, particularly for a highly skilled workforce. As our region competes globally for talent, our outdated immigration system is creating barriers to individuals who want to live here and work in growing industries in southwestern Pennsylvania. The provisions in the legislation now being debated in the House, including the expansion of H-1B skilled worker visas, will make it easier for employers to secure highly skilled workers to meet their needs. Immigration reform is not just an issue for Capitol Hill. It will make a real difference in keeping the Pittsburgh region competitive as well. Whether it is municipal pension or federal immigration reform, significant challenges lie ahead for lawmakers this year. Yet, the competitiveness of our region — now and into the future — depends on these issues being resolved sooner rather than later. Dewitt Peart is president of the Greater Pittsburgh Chamber of Commerce.
Posted on: Thu, 20 Mar 2014 19:00:01 +0000
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