Posts Tagged community

Crash and Burn: Wolf Job Approval Rating Hits Record Low


There is an old Irish proverb that holds “There’s nothing so bad it couldn’t be worse.”  That applies to Governor Tom Wolf’s job approval rating with the owners and chief executive officers of businesses throughout Penn’s Woods.  It has now dropped to the lowest point ever recorded by a governor in the 21-year history of the Keystone Business Climate Survey. The poll is compiled each Spring and Fall by the Lincoln Institute of Public Opinion Research.

Eighty-nine percent of the business leaders surveyed said they have a negative view of Governor Tom Wolf’s job performance; just 5% give him a positive rating.  That eclipses the previous record disapproval recorded by Governor Ed Rendell in the Fall of 2009 when 86% offered a negative assessment of his job performance.  It is also a 20% drop in approval for Governor Wolf from one year ago.  In fact, the governor’s job approval rating has now sunk below that of President Barack Obama who tallied an 88% job disapproval rating.  It is the first time a Pennsylvania governor’s job approval has dipped lower than President Obama’s.

Business Climate

Driving the Governor’s record low job approval rating is a growing pessimism over the state’s economic climate.  In numbers not seen since the depths of the Great Recession in 2009, 54% of the business owners and CEOs say Pennsylvania’s business climate has gotten worse over the past six months.  That is up from 33% who experienced worsening economic conditions one year ago.  The number of respondents saying the state’s business climate has gotten better over the past six months stood at just 6%, down from 13% one year ago.  Looking ahead, 76% expect the state’s business climate to worsen over the coming six months, 8% look for conditions to improve.

In recent years, employment levels have held relative steady.  That has now changed as 22% said they employ fewer people than they did six months ago, 9% report an increase in employment.  In what passes for optimism in this poll, the same number (15%) predict employment levels at their business will rise or fall over the coming six months.

Another turn-around is in company sales.  After steady or moderate increases in sales, the Spring 2016 Keystone Business Climate Survey found sales had dropped at 39% of the companies responding, and increased at 18%.   But, 27% project a sales increase over the coming six months while 15% say they look for sales to decrease.

State Issues

About a third (30%) of the business leaders polled said their business had been harmed by the state budget impasse.  But, 85% think Governor Tom Wolf’s proposed state budget will harm Pennsylvania’s overall business climate; 65% say it will inflict significant harm. Seven percent see the Wolf budget as helping the state’s economy.

Governor Wolf claims the state has a “structural budget deficit” of over $1 billion dollars.  Assuming that is correct, 77% of the CEOs/owners said the state should cut spending to match revenue.  Eighteen percent support a combination of spending cuts and tax hikes to balance the budget.  About 1% suggested maintaining current spending levels and raising taxes to cover the deficit.  Just 1% support Governor Wolf’s approach which is to increase spending and increase taxes to cover both the deficit and higher spending.

As part of his budget proposal, Governor Wolf has included an 11% increase in the state income tax for all individuals and businesses.  Ninety-four percent oppose that proposal; 5% are in agreement.  Another Wolf initiative is to raise the state’s 6% sales tax to help balance the budget.  That idea was turned thumbs down by 73% of the poll respondents, but earned the support of 25%.  Opposition was especially strong to the idea of increasing the state’s Corporate Net Income (CNI) tax.  Ninety percent oppose the idea with 76% expressing strong opposition.  Six percent support raising the CNI.

In the absence of a state budget, Governor Tom Wolf has continued to spend money on those items he deems appropriate.  When asked if they think it is constitutional for the governor to spend state tax dollars on line items that have not yet been approved by the legislature, 87% said it is not; 5% think it passes constitutional muster.

The business owners and CEOs participating in the Spring 2016 Keystone Business Climate Survey do not want a state budget adopted at any costs.  When asked if they agree or disagree with this statement: A new state budget should be adopted immediately even if it means significant increase in my taxes, 89% disagreed – 80% strongly disagreed.  Nine percent agreed and said a state budget should be adopted regardless even if it means higher taxes.

On other issues, the Pennsylvania State House of Representatives is considering impeachment proceedings against Attorney General Kathleen Kane. Kane is under indictment for allegedly leaking Grand Jury information and has announced she will not seek re-election in November.  Fifty percent of the business leaders said the House should drop impeachment proceedings; 41% think impeachment proceedings should continue.

The Pennsylvania General Assembly is considering the legalization of medical marijuana.  Sixty-three percent support the legalization of medical marijuana; 31% oppose legalization.

By executive order Governor Tom Wolf has raised the minimum wage for state employees to $10.15 per hour.  Eighty-one percent of the CEOs/business owners said they oppose raising the minimum wage for the private sector to that level; 17% would support such an increase in the minimum wage.

Job Approval Ratings

President Barack Obama continues to receive strongly negative job performance reviews from survey participants.  Eighty-eight percent disapprove of the job the President is doing; 9% approve.  Janet Yellen, Chairman of the Federal Reserve Board also received negative marks: 44% negative to 18% positive as did U.S. Treasury Secretary Jack Lew with 39% disapproving of his job performance and 5% offering their approval.

The only official tested with a net positive job approval rating was U.S. Senator Pat Toomey.  The state’s junior senator was given a positive rating by 48% of the business leaders against a 24% negative rating.  U.S. Senator Robert P. Casey, Jr. scored a 14% positive, 56% negative rating.

As noted, Governor Tom Wolf received a record high disapproval rating at 89%.  That was worse than the negative rating given to Attorney General Kane.  The indicted top law enforcement official received a 75% negative rating and a 10% positive rating.  Two-thirds or more offered no opinion on the two statewide fiscal officers.  Auditor General Eugene DePasquale got positive marks from 15%, with 17% offering a negative view.  State Treasurer Tim Reese had a 17% negative rating against an 8% positive rating.

Participants in the survey offered a strong negative view of the job being done by the United States Senate: 77% hold a negative view of the institution’s job performance with 12% having a positive view.  The U.S. House of Representatives fared a bit better with 72% offering a negative assessment and 18% a positive view.  Fifty-one percent of the respondents give the Pennsylvania State Senate negative marks, 37% think the state senate is doing a good job.  Fifty-one percent have a negative view of the job being done by the Pennsylvania House of Representatives; 39% say the lower chamber is doing a good job.

Methodology

The Spring 2016 Keystone Business Climate Survey was conducted electronically from March 14, 2016 thru April 1, 2016.  A total of 367 individuals responded of which 84% are the owner of their business; 13% are the CEO/COO/CFO and 2% are a state or a local manager. Complete numeric results can be viewed at http://www.lincolninstitute.org.

For interviews on this survey please contact Lowman S. Henry at717 671-0776 or lhenry@lincolninstitute.org.

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This Week on American Radio Journal: John Gizzi Analysis of Governor Races


Radio Program Schedule for the week of October 4, 2014 – October 10, 2014

This week on American Radio Journal:

  • Lowman Henry talks with John Gizzi, Chief Political Correspondent for Newsmax for a state-by-state analysis of governor races
  • Andy Roth of the Club for Growth has the Real Story on why party control of the U.S. Senate may not be known until January
  • Eric Boehm and Mark Lisheron have a Watchdog Radio look at the legacy of U.S. Attorney General Eric Holder
  • Dr. Paul Kengor from the Center for Vision & Values at Grove City College has an American Radio Journal commentary on the rising cost of talk radio programming

This week on Lincoln Radio Journal:

  • Eric Boehm has news headlines from paindependent.com
  • Lowman Henry talks with Lebanon Valley College professor Dr. James Broussard about his new book Ronald Reagan: Champion of Conservative America
  • Joe Geiger of the First Nonprofit Foundation has Mark Ware from the Historical & Genealogical Society of Somerset County in the Community Benefit Spotlight
  • Beth Anne Mumford of Americans for Prosperity-PA has a Lincoln Radio Journal commentary on the political spending of labor unions

http://www.lincolnradiojournal.com

http://www.americanradiojournal.com

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A Taxing Tale


President Obama’s claim that “If you like your health care plan you can keep your health care plan” was dubbed by pundits as the 2013 lie of the year. Fast forward to this year’s gubernatorial campaign and two lies are competing for top honors.  Take your choice between: Governor Tom Corbett has slashed spending on public education; and Marcellus Shale gas drillers, unlike other states, are not paying high enough taxes.

Pollsters for the four remaining Democratic candidates for governor seem to have all discovered that education funding has surpassed unemployment and the melting polar ice caps as the main issue concerning likely voters in the upcoming primary.  Thus a happy convergence of the two lies has occurred.  The candidates can promise voters their cake – more education spending – and they can eat it too because they will tax the robber baron gas drillers to pay for it.

Setting aside the fact more state dollars are being spent on public education than at any time in the history of the commonwealth, let’s focus on whether or not companies drilling in Pennsylvania’s Marcellus Shale reserve are paying their fair share.  One candidate claims on his website that we are giving “. . . away our state’s valuable resources without generating revenue for critical investments like schools . . . ”  His television ads point out that gas drillers in Penn’s Woods do not pay a severance tax as do companies operating in every other state in the union.

That is a true, but misleading statement.  Pennsylvania does not levy a severance tax, which is a tax applied on gas as it leaves the well, but the commonwealth does charge gas companies – as it does all other businesses – both a Corporate Net Income Tax and a Capital Stock & Franchise Tax.  We are the only state in the nation that levies both of those taxes.  That alone would place Marcellus shale drillers on an equal footing with the 49 other states.

But, it doesn’t stop there.  Act 13 of 2012 imposed an impact fee on natural gas wells in Penn’s Woods.  It is called a fee because Republicans supporting the measure did not want to be accused of raising taxes.  A rose by any other name, however, is still a rose.  The dictionary defines the word tax as “a sum of money demanded by a government for its support, or for specific facilities or services.” Thus, the Marcellus Shale impact fee is, by definition, a tax.

The impact tax is levied based upon the price of natural gas traded on the market and on the age of the wells.  Thus the amount of revenue generated each year fluctuates depending on market performance and number of wells drilled.  According to the Allegheny Institute for Public Policy in Pittsburgh, the impact tax generated $204.2 million in revenue in 2011 and $202.5 million in revenue in 2012.  Less was generated in 2012 because the market price of the gas had decreased.

So, to put this into perspective, an industry that supposedly is not paying its fair share over the past two years paid every tax every other business in the state paid plus an additional $406.2 million.  What sort of outrage would there be if, for example, we asked farmers to pay an impact tax? They use natural resources – soil and water – to produce their product.  Or, perhaps to make it fair we should enact a “success tax” – in addition to Corporate Net and Capital Stock & Franchise taxes – on any business in Pennsylvania that expands rapidly and reaps higher profits?

The current political debate focused on adding another layer of tax on Marcellus Shale drillers implies, and in some cases outright states, that the gas companies are taking a natural resources and we are left with no benefit.  But the Allegheny Institute’s analysis of where dollars from the impact tax have gone shows that a wide range of state agencies, county and local governments have received revenue from the tax.  These funds have gone to repair and replace local bridges, improve water and sewer projects, clean up acid mine drainage, pay for green space initiatives and watershed projects. Money has been set aside in the Environmental Stewardship Fund to pay for any future problems which may arise, and into community and economic development.  Counties – all 67 of them – have shared in over $21 million in revenue.

As in most political campaigns truth is the first casualty.  Candidates can certainly propose higher taxes, but they should at least not mislead voters. Instead they should tell the whole story and not just those parts of it that fit their campaign narrative.

(Lowman S. Henry is Chairman & CEO of the Lincoln Institute and host of the weekly Lincoln Radio Journal. His e-mail address is lhenry@lincolninstitute.org.)

Permission to reprint is granted provided author and affiliation are cited.

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This Week on Lincoln Radio Journal: Senator John Eichelberger talks reform


Radio Program Schedule for the week of April 20, 2013 – April 26, 2013

This week on American Radio Journal:

  • Lowman Henry talks with Dr. Jason Sorens of the Mercatus Center about his new report Freedom in the Fifty States: An Index of Personal and Economic Freedom
  • Andy Roth of the Club for Growth has the Real Story about a looming loss for the GOP in a special Congressional election in South Carolina
  • Colin Hanna of Let Freedom Ring, USA has an American Radio Journal commentary on immigration reform

This week on Lincoln Radio Journal:

  • Eric Boehm and Melissa Daniels have news headlines from www.paindependent.com
  • Lowman Henry talks with State Senator John Eichelberger about efforts to reform state government to curb corruption
  • Joe Geiger of the Pennsylvania Association of Nonprofit Organizations has Janice Thomas from the Mix at Arbor Place in the Community Benefit Spotlight
  • Jennifer Stefano has a Stefano Speaks! commentary on the late “Iron Lady,” Margaret Thatcher

Visit the program web sites for more information about air times. There, you can also stream live or listen to past programs!

http://www.lincolnradiojournal.com

http://www.americanradiojournal.com

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