Chamber criticizes governor’s plan to use workers’ comp funds for proposed small business grant program

PA Chamber of Business and Industry Gene Barr released a statement last week criticizing Gov. Tom Wolf’s plan to use money from the Workers’ Compensation Security Fund to support his proposed small business grant program for businesses affected by the COVID-19 pandemic.

“We appreciate any good faith proposal to help struggling employers and understand there are no easy answers for finding money,” Barr said. “At the same time, it’s important to recognize the essential purpose of the Workers’ Compensation Security Fund – which is financed by the business community – is to support injured workers and note it has already been drawn upon to help balance the current state budget.”

Wolf announced Dec. 23 that he had initiated the transfer of $145 million in funds from the Pennsylvania Insurance Department’s Workers’ Compensation Security Fund to be quickly appropriated by the state legislature. However, the General Assembly has not provided the necessary legislative authorization for the allocation of funds, leading Wolf to appeal to the General Assembly again on Jan. 14.

Since the start of the pandemic, the Wolf administration said it has provided $525 million in relief for businesses and non-profits, through such funding as the COVID-19 Working Capital Access Program in March, the Small Business Assistance Grant Program in June, and the Cultural and Museum Preservation Grant Program in July. The administration also granted loan forbearance for eligible borrowers, hazard pay, childcare provider funding, and the waiving of liquor license fees.

“As we work to move the economy forward and help businesses that are struggling to survive, additional support is needed,” Barr said. “Policies that don’t come with a monetary cost – such as much needed targeted liability protections – would go a long way towards Pennsylvania’s economic recovery. Unfortunately, these much needed protections were opposed by legislative Democrats and vetoed by Governor Wolf.  We also caution lawmakers from pursuing proposals – such as government mandated wage increases – that will increase the costs of doing business.”

Barr noted that a collaborative approach between the public and private sector is needed to ensure short-term recovery and long-term fiscal responsibility for Pennsylvania.

“Should lawmakers decide to proceed with this particular funding shift, we are committed to helping develop the proposal and avoid potential unintended consequences,” Barr said.