MBA members recently had the opportunity to participate in the Fall 2013 Keystone Business Climate Survey conducted by the Lincoln Institute of Public Opinion Research, Inc. Lowman Henry, chairman of the Lincoln Institute, summarized the findings, stating, “The Great Recession has given way to a not-so-great recovery as chief executive officers and business owners from across Pennsylvania say that over the past six months economic conditions have at best remained sluggish; and in many cases worsened. Among the contributing factors is the uncertainty and cost surrounding implementation of the Affordable Care Act, better known as ObamaCare, and a state government that appears unable to arrive at consensus on many of the most pressing problems facing the Commonwealth.”
Here we examine those problems as well as the survey’s other key findings.
Elected Official Job Approval
The survey revealed a profound disapproval of the job performance of elected officials at the state and national levels. President Obama received the highest disapproval rating with only 9 percent of the CEOs polled giving the president a positive job rating. Federal Reserve Chairman Ben Bernanke received a 23-percent approval rating, U.S. Senator Bob Casey had a 14-percent approval rate and U.S. Senator Pat Toomey had a 45-percent approval rate. The U.S. Senate as a whole received a 90-percent negative opinion and the U.S. House of Representatives had a 76-percent disapproval rating.
At the state level, 43 percent approve of the job being done by Governor Tom Corbett. Only 17 percent approve of the job performance by the state Senate and 20 percent approve of the job being done by the State House. A review of the statewide row office shows that 45 percent of respondents disapprove of the Attorney General Kathleen Kane. Approximately 80 percent of those polled had no opinion of the job performance of Treasurer Rob McCord and Auditor General Eugene Depasquale.
State Policy Issues
In regards to state policy issues, those surveyed placed more blame on the Legislature than the governor for the failed legislative agenda from last session. Most CEOs expect to see some sort of action on transportation funding, pension reform and liquor store privatization.
Earlier this year, the Pennsylvania Department of Transportation placed weight limits on a number of bridges with structural deficiencies. Eighty percent of those surveyed reported no disruption to their business as a result of the weight limits; however, 11 percent were forced to adjust delivery routes. CEOs are mixed on their opinion of the best way to fund repairs to state roads and bridges. Fifty-nine percent would like to see a shift of money from other parts of the state budget; 57 percent support transferring funds from low priority projects; 26 percent support raising the license and/or registration fee; and, 12 percent believe taxes should be increased. Another 20 percent would like to see transportation spending remain at current levels.
Currently governmental entities such as the state, county, school districts and municipalities are able to deduct labor
union dues and political action committee contributions from employee paychecks and give the proceeds to unions. An overwhelming 89 percent of those surveyed disapprove of this practice and believe unions should be responsible for collecting their own dues. Eighty-four percent of the business leaders surveyed also disapprove of the carve out in current state law that permits labor unions and businesses to stalk, harass or threaten to use a weapon of mass destruction during a labor dispute.
Pension reform continues to be a top priority in Pennsylvania. The Pennsylvania public employee pension system is not sustainable. Eighty-five percent of CEOs believe that our state government should transition to a defined contribution system.
The Lincoln Institute’s Fall 2013 Keystone Business Climate Survey was conducted electronically and includes a representative sample from all geographic regions of Pennsylvania. Complete numeric results of the poll are available at www.lincolninstitute.org.
Read more in the December 2013 Business Magazine
