Activities & Results

Numerous projects demonstrate the value of PEL. Although the full scope of PEL’s research activities and involvement in legislative and policy initiatives and management improvements statewide is too extensive to report here, a representative listing of recent activities and result include…

PEL’s comparative analysis of Pennsylvania’s business tax burdens concluded that tax relief was needed to make Pennsylvania more competitive. The report and the publicity it received contributed to the business tax reductions reflected in the 1994-95 and 1995-96 state budgets. Similarly, PEL worked successfully to reinstate the manufacturing exemption under the capital stock and franchise tax, which had been eliminated in the 1991-92 budget proposal. As has long been the case, in each of these situations PEL provided accurate, thorough, and definitive data which helped produce significant improvements in Pennsylvania’s business tax climate.

PEL analyzed Pennsylvania’s Prevailing Wage Act and concluded that the current law and the way it is administered could add as much as 20 percent to the cost of public construction projects in the state. The Department of Labor subsequently announced that it is revising its methodology for determining the prevailing wage rates, and it estimated that the new methodology will save taxpayers up to $200 million annually.

PEL has been very active in assisting school districts-the largest consumers of state and local tax dollars-in long-range planning for facilities, staffing, and programs. PEL’s role is to perform a detailed review of demographics, community growth patterns, and enrollment trends, and to provide accurate and reliable projections of enrollments. This aids district boards, administrators, and taxpayers in making key decisions regarding their future needs and helps ensure that school buildings are constructed in keeping with realistic expectations of enrollments.

PEL served as “a friend of the court” on behalf of Pennsylvania’s taxpayers in a case which would have overturned major and widely acclaimed reforms to the state’s public pension system which PEL helped bring about. This role paid off when Commonwealth Court unanimously ruled against an action brought by three legislators and, again, when Pennsylvania’s Supreme Court denied the legislators’ appeal of the Commonwealth Court decision. If the legislators had won their case, taxpayers would have been forced to pay tens of millions of additional tax dollars each year to meet the cost of the liberalized pensions.

PEL was selected by the Pennsylvania Department of Community Affairs to serve as Recovery Plan Coordinator for the City of Scranton which was declared a financially distressed municipality by the state. As coordinator, PEL developed a plan to balance the city’ s budget and ensure that future deficits are avoided, and it is currently charged with overseeing the implementation of the recovery blueprint. PEL has successfully served in this capacity in several other municipalities in our state.

PEL’s research was translated into action when the Commonwealth’s 1995-96 budget provided for double-weighting the sales factor in apportioning corporate net income tax liabilities to Pennsylvania. This action was in keeping with PEL’s study of the positive impact that this change would have on improving Pennsylvania’s business climate. Specifically, PEL’s analysis found that this significant competitive disadvantage should be removed, thereby providing a much needed boost to the business climate of the state, enhancing the effectiveness of existing Commonwealth programs designed to promote economic growth, and generating even greater potential for job retention and expansion.

PEL developed action plans for increased cooperation among local governments, particularly in the area of public safety which represents the largest single expense item in many municipalities. PEL has also been deeply involved in promoting consolidation of municipalities where feasible, and it facilitated the first consolidation in Pennsylvania in more than twenty years. PEL’s ongoing focus with respect to modernizing local government involves addressing the Commonwealth’s antiquated and inadequate legal process and identifying potential legislative and policy changes and incentives to encourage municipal consolidations.

Now that you know that membership investment in the Pennsylvania Economy League supports effective professional and unbiased analyses of the important public policy issues facing all Pennsylvania taxpayers and produces significant improvements in government decisions and Pennsylvania’s competitive position, we hope you will recognize the value of being a part of this vital organization.

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