2012 Fall Business Climate Survey

Member Group : Lincoln Institute

Total Started Survey: 182
Total Finished Survey: 170 (93.4%)

Section I: Business Climate

1. In general, do you think business conditions in Pennsylvania are better, the same, or worse than they were SIX MONTHS AGO?

Response
Percent
Response
Count
Better 20.4% 37
Same 44.2% 80
Worse 34.8% 63
No Opinion 0.6% 1
Answered Question 181
Skipped Question 1

2. LOOKING AHEAD SIX MONTHS, do you think business conditions will be better, the same, or worse than they are now?

Response
Percent
Response
Count
Better 24.6% 44
Same 43.6% 78
Worse 27.4% 49
No Opinion 4.5% 8
Answered Question 179
Skipped Question 3

3. Are employment levels at your company higher, the same, or lower, than they were SIX MONTHS AGO?

Response
Percent
Response
Count
Higher 23.8% 43
Same 48.1% 87
Lower 26.5% 48
No Opinion 1.7% 3
Answered Question 181
Skipped Question 1

4. LOOKING AHEAD SIX MONTHS, do you anticipate that employment levels atyour company will be higher, stay the same, or be lower?

Response
Percent
Response
Count
Higher 27.6% 50
Same 52.5% 95
Lower 14.4% 26
No Opinion 5.5% 10
Answered Question 181
Skipped Question 1

5. Have your company’s sales increased, stayed relatively the same, or decreased during the PAST SIX MONTHS?

Response
Percent
Response
Count
Increased 30.7% 55
Same 36.9% 66
Decreased 31.8% 57
No Opinion 0.6% 1
Answered Question 179
Skipped Question 3

6. Do you expect your company’s sales to increase, stay relatively the same, or decrease during the COMING SIX MONTHS?

Response
Percent
Response
Count
Increase 36.5% 65
Same 43.8% 78
Decrease 16.3% 29
No Opinion 3.4% 6
Answered Question 178
Skipped Question 4

7. At any point in the PAST SIX MONTHS has your company considered movingall or part of its Pennsylvania operations to another state?

Response
Percent
Response
Count
Did move some operations 3.9% 7
Considered moving some operations 10.7% 19
Considered moving all operations 9.6% 17
Moved operations into Pennsylvania 0.6% 1
Didn’t consider any moves 75.3% 134
Answered Question 178
Skipped Question 4

8. Do you foresee at any point in the COMING SIX MONTHS your companyconsidering moving all or part of its Pennsylvania operations to anothe state?

Response
Percent
Response
Count
May move all operations 4.5% 8
May move some operations 19.8% 35
Not considering any moves 73.4% 130
May move operations INTO Pennsylvania 2.3% 4
Answered Question 177
Skipped Question 5

9. In general, do you have a POSITIVE, NEGATIVE or NO OPINION of the job performance of the following individuals?

[td c4]Answered Question[td c4]Skipped Question
Positive Negative No Opinion Response
Count
President Barack Obama 28.3% (51) 71.7% (129) 0.0% (0) 180
Fed Chairman Ben Bernanke 36.1% (65) 42.8% (77) 21.1% (38) 180
U.S. Senator Pat Toomey 44.7% (80) 27.9% (50) 27.4% (49) 179
U.S. Senator Robert P. Casey, Jr. 23.2% (41) 60.5% (107) 16.4% (29) 177
U.S. Treasury Secretary Timothy Geithner 17.7% (31) 58.9% (103) 23.4% (41) 175
Governor Tom Corbett 40.0% (72) 39.4% (71) 20.6% (37) 180
Auditor General Jack Wagner 18.6% (33) 15.8% (28) 65.5% (116) 177
State Treasurer Rob McCord 20.3% (36) 9.6% (17) 70.1% (124) 177
181
1

10. In general, do you have a POSITIVE, NEGATIVE, or NO OPINION of the job performance of the following institutions?

[td c4]Answered Question[td c4]Skipped Question
Positive Negative No Opinion Response
Count
United States Senate 7.8% (14) 87.2% (157) 5.0% (9) 180
United States House of Representatives 22.8% (41) 71.7% (129) 5.6% (10) 180
Pennsylvania Senate 22.3% (40) 58.7% (105) 19.0% (34) 179
Pennsylvania House of Representatives 20.7% (37) 58.1% (104) 21.2% (38) 179
180
2

Page: Section II: Issues

1. The Pennsylvania House of Representatives is planning to have apost-election or "lame duck" session to pass legislation. Do you AGREEor DISAGREE with the House holding voting sessions after the GeneralElection, but before the new legislature takes office in January?

Response
Percent
Response
Count
STRONGLY AGREE 11.3% 19
SOMEWHAT AGREE 29.8% 50
SOMEWHAT OPPOSE 23.2% 39
STRONGLY OPPOSE 29.2% 49
REFUSED/NO OPINION 6.5% 11
Answered Question 168
Skipped Question 14

2. Currently, Commonwealth of Pennsylvania employees participate in adefined benefits pension system. Do you think future employees shouldcontinue to be enrolled in a defined benefits program, or should theyinstead be moved into a defined contribution system such as a 401k?

Response
Percent
Response
Count
REMAIN IN DEFINED BENEFITS SYSTEM 4.7% 8
MOVE INTO A DEFINED CONTRIBUTION SYSTEM 79.9% 135
GIVEN THE OPTION TO CHOSE EITHER 8.9% 15
REFUSED/NO OPINION 6.5% 11
Answered Question 169
Skipped Question 13

3. A number of public employee retirement systems, ranging from thosecovering state employees to school districts to municipalities, areprojected to experience a significant shortfall in funding in the nearfuture. To deal with that shortfall should governments (check all that apply):

Response
Percent
Response
Count
RAISE TAXES TO COVER THE SHORTFALL 10.4% 17
DIVERT SPENDING FROM OTHER AREAS TO COVER THE SHORTFALL 26.2% 43
CUT BENEFITS TO RETIREES 45.1% 74
REQUIRE HIGHER EMPLOYEE CONTRIBUTIONS 79.3% 130
ALL OF THE ABOVE 13.4% 22
REFUSED/NO OPINION 1.8% 3
Other:

* 401Ks are too vulnerable to the market but defined benefit plans are costly and need to be revised, but if retirees just wind up using more public services as a result the savings could be illusory. Still, some combination of pension reform and raising taxes is necessary.

* Cut retirement benefits for those who will start retiring in 10+ years. In other words, plan ahead a little bit for a change.

* Unions are gangs extorting this money

* Stop runaway wasteful spending and bailing out of the crooks

* Increased contribution from State and Feds

* phase out

* Make the business climate pro-business to encourage greater income, hiring so that those working can support the retirement systems.

* Tax Sodas

* cut retirement benefits to people before they retire

* define contribution system for not yet retired, cover existing retirees and those over 60.

* Government benifits should be in line with small-med bisiness

* Eliminate Senate. Reduce size of House of Reps, cut staff to Reps by half.

* Increase tax on gas drilling

* bleed billionaires & redeem international debts

* The answers don’t adequately address the problem as I understand it.

* Reduce the benefit formula for all new entrants into the public pension system, and establish a maximum benefit amount based on average/medium compensation, or SS wage base – something that defines a limitation at a rational level.

* need a blend

17
Answered Question 164
Skipped Question 18

4. If Pennsylvania were to raise the minimum wage, would you:

Response
Percent
Response
Count
BE WILLING TO HIRE MORE EMPLOYEES 17.4% 29
REDUCE YOUR NUMBER OF EMPLOYEES 16.2% 27
CUT EMPLOYEE HOURS 10.8% 18
EXPAND YOUR BUSINESS 4.2% 7
GO OUT OF BUSINESS 3.0% 5
REFUSED/NO OPINION 57.5% 96
Answered Question 167
Skipped Question 15

5. The Pennsylvania Department of Transportation, the Pennsylvania Turnpike Commission, and various mass transit agencies all say they are experiencing a lack of adequate funding to maintain and to improve Pennsylvania’s transportation infrastructure. Which of the following reflects your opinion of how state government should handle funding transportation improvements: (Check all that apply.)

Response
Percent
Response
Count
RAISE GENERAL FUND TAXES 6.8% 11
RAISE THE GASOLINE TAX 34.6% 56
RAISE VEHICLE REGISTRATION FEES 38.9% 63
RAISE DRIVER LICENSE RENEWAL FEES 35.2% 57
CUT ADMINISTRATIVE OVERHEAD 84.0% 136
CUT SPENDING IN OTHER AREAS AND DIVERT TO TRANSPORTATION 31.5% 51
THE FUNDING CRISIS IS OVERBLOWN AND NO ADDITIONAL FUNDS ARE NEEDED 13.6% 22
REFUSED/NO OPINION 3.1% 5
Other:

* PennDot is the second most corrupt institution in the state and you and i both know it.

* Create incentives for using mass transit and carshares to keep cars off the road.

* Raise tolls and eliminate prevailing wage on projects

* smaller more efficient vehiles

* more user fees

* The PTC used to be one of the richest in STate Govt. What did you do with your money?

* unions make construction ridiculously expensive

* Outsource to private organizations; government cannot run businesses properly

* go to private contracting

* toll other roads

* In general, the people using the transportation should pay for it.

* create tolling opportunities

* Impose mileage tax on electric and propane vehicles

* REDUCE THE SIZE OF THE LEGISLATURE

* cut number of employees and administration

* Privatize road projects

* Unfund mandate for I80 toll road

* REPLACE TURNPIKE COMMISSION

* Raise Marcellus Shale Fees & Taxes

* Raise Mass Transit user fees

* better manage their money like most citizens do

* more toll roads & raise tolls – make users pay for roads/bridges

* Raise Cap on the Oil Company Franchise Tax

* get mfg jobs back from the Chinese

* The answers don’t adequately address the problem as I understand it.

* There is a big difference between real need, and public works jobs programs coming out of a recession – which tends to be political spending of the worst kind. Spend less! Also, with electric vehicles and public transportation in urban areas – fees for licensing, registration, and fuel could be heading lower. People who use public raodways need to contribute, whether or not they own or drive a vehicle.

* Reduce size of Turnpike Commission

* again, needs a blend

* Allow for the projects to be bid as non-union projects

* user fees

30
Answered Question 162
Skipped Question 20

6. The General Assembly is considering a plan to end the state’s liquor store monopoly and place distribution and retail sales of wine and spirits in private hands. Do you APPROVE or DISAPPROVE of privatizing the state’s liquor stores?

Response
Percent
Response
Count
STRONGLY APPROVE 70.7% 118
SOMEWHAT APPROVE 12.6% 21
SOMEWHAT DISAPPROVE 6.6% 11
STRONGLY DISAPPROVE 6.0% 10
REFUSED/NO OPINION 4.2% 7
Answered Question 167
Skipped Question 15

7. For two years in a row, Governor Tom Corbett has proposed and the General Assembly has approved state general fund budgets that held spending at a rate where no additional taxes were required. Generally speaking, do you think:

Response
Percent
Response
Count
STATE SPENDING SHOULD BE CUT FURTHER 44.6% 75
THE CURRENT TAX/SPENDING LEVELS ARE APPROPRIATE 38.7% 65
STATE GOVERNMENT SHOULD INCREASE TAXES AND SPENDING 10.1% 17
REFUSED/NO OPINION 6.5% 11
Answered Question 168
Skipped Question 14

8. The Federal Reserve has embarked on what is known as Quantatative Easing III, or expanding the money supply in an effort to spur the U.S. Economy. Do you AGREE or DISAGREE with this strategy?

Response
Percent
Response
Count
STRONGLY AGREE 15.0% 25
SOMEWHAT AGREE 22.8% 38
SOMEWHAT DISAGREE 16.8% 28
STRONGLY DISAGREE 37.7% 63
REFUSED/NO OPINION 7.8% 13
Answered Question 167
Skipped Question 15

9. Generally speaking, has your business’s ability to borrow funds / access capital gotten EASIER or MORE DIFFICULT over the past year?

Response
Percent
Response
Count
MUCH EASIER 2.4% 4
SOMEWHAT EASIER 11.2% 19
ABOUT THE SAME 26.0% 44
SOMEWHAT MORE DIFFICULT 19.5% 33
MUCH MORE DIFFICULT 21.3% 36
NO NEED TO BORROW 14.8% 25
REFUSED/NO OPINION 4.7% 8
Answered Question 169
Skipped Question 13

10. Generally speaking, do you think BARACK OBAMA or MITT ROMNEY would more effecively lead the nation out of the current economic downturn?

Response
Percent
Response
Count
BARACK OBAMA 28.7% 48
MITT ROMNEY 67.1% 112
REFUSED/NO OPINION 4.2% 7
Answered Question 167
Skipped Question 15

11. In what part of Pennsylvania is your business located?

Response
Percent
Response
Count
Northwest PA 6.5% 11
Southwest PA 20.1% 34
Northcentral PA 3.0% 5
Altoona/Johnstown 3.0% 5
Southcentral/Harrisburg 18.3% 31
Southeastern PA 38.5% 65
Lehigh Valley 4.1% 7
Northeastern PA 6.5% 11
Answered Question 169
Skipped Question 13

12. Which category best describes your position at the business in which your work:

Response
Percent
Response
Count
OWNER 70.0% 119
CEO/COO/CFO 25.3% 43
STATE MANAGER 0.6% 1
LOCAL MANAGER 1.2% 2
NO ANSWER/REFUSED 1.2% 2
Other:

* partner

* Govt Rel Mgr

* VP

1.8% 3
Answered Question 170
Skipped Question 12

13. Please feel free to make any additional comments or observations about Pennsylvania’s business climate.

Response Count
Responses:

* Defunding public education as Corbett has done is a stupid economic move. Our people are our best asset and we need to invest in them. It’s also unbelievably irresponsible not to be taxing shale gas and setting up clean-up funds from drillers. We also need to be watching the environmental impact of shale gas drilling closely and planning for the inevitable clean-ups so state funds aren’t used and natural resources aren’t harmed.

* The most effective way for State to retain control and improve performance is to wrest control from the Federal Government. State government should perform more functions closer to home. SO the increase in State tax and spending should come at the reduction of Federal tax and spending.

* Most issues of concern are on a national level concerning the stagnant economy. Survivors are hanging on and at the ready to eliminate workers and do more with less. By now, most of us have decreased costs where we can. A min wage increase, tax increases or increased regulation will tip even more businesses into the abyss. We need to get manufacturers & energy producers producing again! Social issues need to be de-prioritized and government should become smaller.

* Unemployment tax rates are very high businesses and the system is frustrating to use. It recently calculated my UC tax incorrectly and now I have to spend several hours completing forms to get a refund. Customer service is also lacking. The customer service rep told me that the State knows there is a problem with the way it calculates it, but in order to get a refund I have to do all the work…for a KNOWN issue!

* Reform of the tort system and the judicial selection system would go along way to helping business. In addition, elected officials and candidates should quit wasting time on irrelevant "social issues" and focus exclusively on the economy and business environmnet.

* Union pensions have caused taxes to be too high

* I’m adamantly against the government running things that are better off in the hands of those better trained/prepared (i.e. private businesses). The liquor stores is a high profile example, but there are many others. In addition, the taxes to do business in the City of Philadelphia are stifling and will eventually drive more businesses away.

* The whole system needs redone. Government is out of touch with reality.

* Too much bureaucratic overhead for small businesses — it is interesting that the state has so many nonprofits (and I am willing to support many) that do not pay taxes but a business with the same revenue number pays taxes and does not get the benefits that many of the small nonprofits do — for example for a business to be successful they need technology — so does a nonprofit — technology is expense and is taxable. A nonprofit not only gets the technology at a reduced rate but does not pay tax. PA is behind in their thought process — they need to make it easier for smaller businesses. Also there are too many special interest groups that help businesses but they also hurt businesses — a special interest group that gets funding from the state so that they can provide services at a lower rate is hurting the person that has been out of work that can’t provide the service at the "reduced" rate. Level the playing field — again PA is behind the eight ball.

* This look like a push poll for Tom Corbett….yes?

* Harrisburg is bankrupt what does that tell us about the rest of the state? Taxes are too high but as long as we are going to overpay school teachers and gov workers it can’t be fixed.

* We have held on through a terrible recession. If things don’t markedly improve in 2013 we will lose our business.

* Reduce state spending and privatize the liquor stores.

* Spending in all levels of government are too high; increased regulations are also an extreme burden (federal worse, state is getting a bit better)

* The climate is anti- black business. The support and contracts to Black owned businesses has went down under Mr. Corbet, the MWDBE program is of no help. The bundling of contracts has been very harmful to Black owned service business. Letters to Mr. Corbet results in unproductive calls and meetings. There is no follow up from the administration. The online system has not resulted in work for our company. The COSTAR system was to help small business. One year we paid $500 to register and setup meeting thru out the area with no results. We set up many meetings with organizations in the system that did not see the need to comply. The money and hours spent traveling all over the region was a waste. Presently we are being sent request to sub from prime’s that have no attention of doing business but are meeting a requirement to make an attempt. The system does not work because the prime contractor knows that the minority participation clause has no teeth. This administration has no concern for black owned business even though the black community has an unemployment rate for above all other groups. The need is not for new government laws or new programs but for a concentrated effort and enforcement to make sure that Black owned businesses receive contracts directly from the State and that they are paid in a timely manner. The buck stops at the top and at this point what I have seen is that the top does not care. Our business started in 1985 and has not received a measurable amount of work since Bob Casey was in office. His administration was involved in the process with good oversight, responded to our letters and did not pass the buck. There are no incentives positive or negative to really do business with Black owned service businesses. those incentives come from the heart and mind of the person at the top. Laws and programs are just words on paper or on the internet. It is the day to day actions that count.

* Governor Corbett is significantly hurting this state

* 30/10/2012 2:08 PMView Responses

* Smaller government is always better government.

* 30/10/2012 1:55 PMView Responses

* Question 7 does not allow for my option, raise taxes and continue to cut goverment.

* 30/10/2012 1:39 PMView Responses

* Obama is more of a hindrance to business growth than Pennsylvania is. My opinion is if Romey gets elected, you will see an almost immediate bounce in the economy.

* The federal, state, and local government needs to reduce the guaranteed benefits to its employees, demand greater performance of its workers, and eliminate early retirement based on years of service.

* Think about your audience and the various types of businesses. Some of these questions don’t apply to a professional service business.

* the size of gov’t and interference by gov’t needs to be reduced drastically. There is a good chance that i will close down next yr due to all the taxes (corrupt gov’t). If i were younger i would move my business out of Pa. Now i just might retire. I fdeel some obligation to my employees but not at my expense any longer.

* Get the intitlements out of my pockets, and Polititians, Goverment employees, need to have there benifits reduced more in line with the public sector.

* civil employees have no idea that there is a recession. They have not felt its effects at all for 4 full years. Particularly in washington

* CONTINUING TO TOLERATE THE GROSS INCOMPETENCE OF THE LIQUOR CONTROL BOARD AND THE PA TURNPIKE COMMISSION IS GUTLESS DERELICTION OF DUTY.

* Decrease as many regulations and regulatory agencies as we can. They create uncertainty and unexpected costs which make it next to impossible to budget accordingly. We must also lower taxes. I just had people from Ireland offer to move my whole company there, re-train workers and offer me a 10 year tax abaitment. That is attractive and pro-business. I have already moved 2 divisions overseas and will not put more burden on myself to build here unless more pro-business moves are taken. Don’t assume your current companies will stay here. Why does our government offer incentives to outside our state companies but not companies with 20 plus years here? Actually, I don’t want any incentive or any other handout just stop creating an unlevel playing field. Good luck with making the necessary changes to bring more opportunity to this region…too many takers; not enough givers anymore. Good bye, An Exhausted entrepreneur

* Two thoughts: 1) I just came back from a business trip to Ohio. It was good to see folks manufacturing useable goods vs pushing paper around, which is more of what I see in PA. 2) Wealthy investors need to keep investment capital here in the PA Region, not sending it to Silicon Valley. 3) I am being advised that as my company grows, move it out of the U.S.

* Cities are especially pushed to the limit of what services they support and the businesses which employ people in suburbs and other communities without having the ability to get income from those people, thus creating ghettos surrounded by upperclass neighborhoods. Many young talented folks like vibrant city lifestyles but PA offers only homogenous suburbs, ghetto-ized cities and retirement communities. Finding qualified people (who have talent and good attitudes) is almost impossible. One employee relocated back to NY City after 8 months in Harrisburg. Out of 500 resumes to replace an entry level designer, ONLY TWO were even worth interviewing.

* High corporate taxes discourage profits

* the inability to deduct losses from prior periods is ridiculous. Even NJ allows loss carryforwards. For new businesses, this is a killer. We had real losses and now are taxed on profits that only exist in a fiscal year.

* I hear people complain about the number of taxes and regulations that businesses face. I don’t find that to be the case with my business. I think the criticism is overblown.

* spending on education need to be increased

* Generally I think there is too mucha favoritism and politicing. PA could be a top 10 state in jobs, education, quality of life and we just get in our own way. I think that there is disregard fort hte environment, education and the state is not innovative when it comes to healthcare, energy or education.

* The General Assembly can be reduced in size. Grants to companies to sdave energy cost are a give away and a waste of tax payer money. If energy taxes increase paybacks on energy saving improvements will make sense on their own and not need subsidized. Also, natural gas production should be taxed at rates other energy producing states charge–this is OUR oil and gas and we are giving it away. Fianlly, public sector employees should not be allowed to unionize and unfairly benefit at the expense of their neighbors.

* We need to become a right to work state ifwe hope to attract business to pa from overseas. We need to cut regulation to make it easier to build.

* I am more concerned over the real truth coming out regarding Penn State and the Sandusky affair.

* its kind of like the climate on mars. There’s business here?

* I believe in SMALLER GOVT. Less intrusive govt.

* Too many receiving benefits; too few paying for the cost of those benefits.

* Raise taxes on energy companies, fix our bad roads and bridges and increase funding on K-12 education.

* Reduce government interference in our business. Increase Medicaid healthcare reimbursement to cover the cost of providing the services so that we don’t have to force private payors to pay more.

* The State legislature needs to be reduced in size. Benefits to state legislatures needs to be reduced.

42
Answered Question 42
Skipped Question 140