I’ve been writing this brief column every other week for more than two years now and I have tried during this time to simply and quickly provide you with a summary of happenings or a look at future initiatives contemplated by the Economic Progress Alliance. In very large part, my reports to you have, and will continue, to stress the positive nature of our work and the community in which we operate. However, a slight deviation from that general policy follows.
We in the economic development business are very much aware of the cyclic interest we receive from those running for various offices come this time of year. Frankly, on some level, the commitment of public officials to the economic development of their respective jurisdictions is obviously justified. It has been my experience over the years that few running for office for the first time have a clear understanding of the economic development environment in which we operate or the realities associated with challenges local economic development organizations face in carrying out their respective missions. This is understandable given that much of what we do (business development) often must remain confidential during formative stages. Most of the time, only those efforts that require formal action such as leases, land sales, loans, etc. are made public. It really is of no surprise to me that the general public, and therefore those running for elected office, have little of the background and knowledge required to make informed decisions regarding economic development matters.
While all of what we do in economic development is often open to criticism, recent statements by a couple of candidates running for county commissioner have me concerned.
At a candidate’s forum sponsored by the Meadville Area Chamber on October 23rd, two candidates indicated that “people serving on the boards… (of economic development organizations) don’t want large businesses moving into the county so they don’t have to compete for labor." I know I should probably just relegate comments like that to low-level political rhetoric and generally I do. I am entirely use to the notion that economic development organizations are political low hanging fruit this time of year, but in my view, questioning the motives of those volunteering to serve on the various economic development boards in the community without a single bit of substantiation is irresponsible and detrimental to our collective efforts, and highly offensive to those serving in challenging positions without compensation.
I’ve had the pleasure of working in this field for 28 years, all under the direction and supervision of volunteer Boards fully committed to the economic well-being of their community. My experience while in Crawford County has been that those serving not only on the Economic Progress Alliance board but all other economic development organizations in the community serve without the influence of self interest and for the greater good of the community. Any assertion that their service is related to some ridiculous conspiracy to keep companies from locating in Crawford County is way beyond acceptable political rhetoric. It serves only to divide at a time the community must act as one to effectively manage change and compete with the rest of world.
To move in the positive direction we all want for our community, it is imperative that we work together, public and private. We need local government as an effective partner. To that end, we are fully committed to working with whomever is elected and sincerely hope we can count on them to be that partner.
In the mean time, if you see or know anyone serving on an economic development organization Board, please thank them for a job well done, if not universally appreciated.
Until next time..
Mark Turner
With fluctuating and increasing in the blink of an eye gas prices, the "pain at the pump" is felt deeply by all motorists, more so for those whose business is transportation. Without going into the oil and gas producing end of things, a recently released report addressed the gas taxes imposed on the commodity.
Gas taxes were created as a "user tax," a system of road funding imposed on motorists who benefit from improved roadways. Large-scale production of automobiles in the early 1900s began America's love of the automobile and the need for new and improved roadways. Revenue sources to meet these needs were looked at, and as early as 1901 a registration fee was initiated in New York. By 1914, all states had instituted motor vehicle licensing with about 90% of this revenue spent on road construction or maintenance. As the popularity of the automobile increased, so did the public demand for roads.
The federal government responded with the Federal Aid Act in 1916 which provided matching funds to the states for highway construction. The states needed more revenue funding. In 1919, Oregon became the first state to impose a tax on gasoline purchases with other states soon following. By 1929, all of the lower 48 states had enacted a gasoline tax, ranging from 1-3˘ per gallon, all to be used for highway systems.
With the great depression, the federal revenues suffered and government officials looked for ways to replace diminishing income tax revenues, thus the institution of a "temporary" one cent per gallon tax on gasoline purchased. This met resistance because the revenue was used to balance the general budget rather that build and maintain roads but a 1˘ fee was enacted, eventually made permanent and raised to 1.5˘, remaining at that level until the Korean War when it was raised to 2˘ per gallon. Then the promotion of a federal interstate highway system took hold and a new temporary trust fund to pay for this system was enacted, which again was made permanent as highway construction ran nearly 40% over estimates. In the ensuing years, other legislation was enacted that allocated part of the funds to other areas such as underground storage tanks, and raised the rates to18.4˘ per gallon on gas and 24.4˘ per gallon on diesel where they stand today. However, later legislation allowed for diversion of funds to non-highway projects. and today gasoline tax revenue is also spent on other things such as public education, landscaping, museums, graffiti removal and parking garages.
Most of the states have continued to use their tax for highway maintenance and construction, however, 21 states are free to divert their gas tax revenue on tangentially or unrelated programs. In 2006, the average state gas tax was 20.8˘ per gallon. Combined state, federal and local gas taxes cost Americans an average of 45.9˘ per gallon. States level significantly different levels on gas, with the highest being California at 62.8˘ per gallon and the lowest (not surprisingly) being Alaska at 26.4˘ per gallon. Pennsylvania's gasoline tax in 2006 was 32.3˘ per gallon with motor fuel taxes making up 7.2% of total state taxes.
The nation's first baby-boomer recently filed for her Social Security retirement benefits. Kathleen Casey-Kirschling, who was born one second after midnight on January 1, 1946, will be eligible for benefits beginning January, 2008. Over the next two decades, nearly 80 million Americans will become eligible for Social Security benefits. With that in mind, here are a few Social Security basic facts that may prove interesting:
- 9 out of 10 individuals age 65 and older receive Social Security benefits
- Social Security represents 41% of the income of the elderly
- retired workers and their dependents account for 69% of total benefits paid
- disabled workers and their dependents account for 17% of total benefits paid
- survivors of deceased workers account for 14% of total benefits paid
- an estimated 163 million, 96% of all workers, are covered under Social Security
- by 2032 there will be almost twice as many older Americans as today, from 38 million to 72 million
- by 2032 there will be 2.1 workers for each beneficiary; currently there are 3.3 workers for each beneficiary
Industry specific market reports for the year 2006-2007 are available at no charge through the Northwest Commission. Industry sectors on file include: IT/Telecom, Environmental, Nanotechnology, Heath Care/Medical Devices, Oil/Gas, Food Products, Mining and Heavy Equipment, Infrastructure, Defense/Safety and Security, Electronics, Industrial Machinery and Equipment, Automotive, Biotechnology and Life Sciences, Hardwoods, and Power/Energy.
The Center for Trade Development in Harrisburg requires the Commonwealth's authorized trade representatives to accumulate specific industry market reports on sectors that prove promising. If you are interested in a specific report in a foreign market, contact Dorte Heffernan at the Northwest Commission, 814-677-4800 x110.
The Northwest Commission will present an informative training workshop on doing business with the European Union (EU). Learn about product regulatory aspects for goods entering the European Union, and understand the importance of exhibitions in the Union and how trade shows with into the overall concept of doing business in the EU
The workshop will be held on Thursday, November 15, 2007 at the Penn-Northwest Development Corporation, 749 Greenville Road, Suite 100, Mercer, PA 16137. Registration fee is $35.00, and a continental breakfast and lunch will be provided.
The workshop will start with a session from 8:00 a.m. - 12:00 noon on doing business with the European Union presented by Bob Imbriansi, VP International Operations, Associated Global Systems, New York. The session will entail a market overview, challenges and opportunities while doing business with the EU, how to sell your product through agents/distributors, distribution and sales channels, trade promotion and advertising. From 1:00 p.m. - 3:00 p.m., Dr. David Hanson, Associate Professor of International Business at the School of Business, Duquesne University / Center for International Regulatory Assistance will address EU trade shows and product regulatory requirements. Understand the importance of trade shows in entering the European market, and learn about the European market environment and the economic polity in the EU. Realize the importance of regulatory requirements before exhibiting in EU trade shows.
To register, contact Lori Moore at 814-677-4800 ext. 104. For additional information, contact Katarina Ishman, 814-677-4800 ext. 117.
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Economic Progress Alliance of Crawford County
764 Bessemer Street, Suite 101
Meadville PA 16335
814-333-2299
12/21/2007