Pennsylvania Gov. Tom Wolf and Democratic legislative leaders are calling on Republican lawmakers to move ahead and tap $145 million in state funds to help aid small businesses.
Last month, Wolf called for directing $145 million for grants to help small businesses that have been hit hard by the coronavirus pandemic. Wolf transferred what he called a surplus from the Pennsylvania Workers’ Compensation Security Fund into the state government’s general fund.
Three weeks after outlining his plan, the Democratic governor said Thursday there’s been no action from Republican leaders to utilize that money. Republicans control both chambers of the General Assembly. Wolf said the money can help small businesses, particularly restaurants and bars that have been hammered by the pandemic.
“Republican leaders in the General Assembly have not made any move to get that money out of the general fund and in the hands of the businesses that desperately need it,” Wolf said in a news conference Thursday.
“We have this money right now,” Wolf said. He added, “Please, to the Republican leaders, let’s get moving on this.”
The state is awaiting money in the latest relief package from the federal government and Wolf acknowledged $145 million is “a drop in the bucket” in comparison. But Wolf and Democratic lawmakers said it could still offer significant help. Grants of $10,000 and $20,000 could mean a great deal to small businesses, Wolf said.
It’s unclear how many businesses could be helped. Wolf said lawmakers can decide how to dole out the grants. Theoretically, the money could offer grants of $10,000 to 14,500 small businesses.
Wolf reiterated he doesn’t have the authority to give out the money. The legislature must appropriate the money and use it for grants for businesses.
When Wolf introduced the plan last month, it drew mixed reviews from some business groups and some Republican lawmakers. Critics argued relaxing some restrictions on businesses would offer more help. Some lawmakers expressed concerns about drawing the money from the workers compensation fund, though Wolf said the $145 million is surplus that can be better used to aid businesses.
Aiming for long-term solutions
Jason Gottesman, a spokesman for the state House Republican caucus, said GOP leaders are working on long-term solutions to help businesses. He said Republican lawmakers are aiming to repair the damage the governor has inflicted on businesses with some of his restrictions and orders to limit the spread of COVID-19.
“House Republicans said when the governor first announced his desire to create a small business grant program from excess Worker’s Compensation Insurance Fund dollars three weeks ago that we would work with him on relief that accompanies long-term solutions that, among other things, ends the threat of these ridiculous shutdowns,” Gottesman said in a statement. He added that the governor isn’t reaching out to GOP lawmakers.
“Our doors are open, our phone lines are working, and we await engagement from (the) governor on what ideas he can bring to the table,” Gottesman said.
Earlier this week, state House Republicans said they had formed a task force to develop ways to help Pennsylvania’s economy recover from the fallout of the pandemic.
Democratic legislative leaders support the governor’s plans to use the $145 million to aid small businesses. Senate Minority Leader Jay Costa, D-Allegheny, and House Minority Leader Joanna McClinton, D-Philadelphia, joined Wolf for the press conference.
“It can definitely do so much good for business owners across the commonwealth of Pennsylvania,” McClinton said.
She noted many small businesses, including restaurants, bars, barber shops and salons, are on the brink of closing. She urged lawmakers to move quickly, noting there are only a handful of days on the legislative calendar before the General Assembly will focus on next year’s budget.
“There’s so much more we need to do and should be doing,” she said.
Wolf and the Democratic leaders said the General Assembly can follow up on a similar $225 million grant program last year to aid businesses.
“It was done very well, very quickly and very appropriately,” Costa said. “And we can do the same thing right now.”
McClinton said she understood the desire to work on long-term solutions to revive Pennsylvania’s economy. But she said that doesn’t preclude lawmakers from taking a step that could help businesses relatively quickly.
“What we’re talking about right now can help in the short term,” McClinton said. “It’s more immediate and it’s what’s needed.”
‘The crisis continues’
Gordon Denlinger, director of the National Federation of Independent Business in Pennsylvania, said he hopes lawmakers will get behind Wolf’s plan to offer grants to small businesses. The group represents small business owners.
“We still are hearing from the small business community that 1 in 4 will not survive another six months without relief,” Denlinger said. “The crisis continues and is just as acute as ever. We applaud the governor’s effort and hope that bipartisan movement on it can be achieved.”
Denlinger, a former Republican state lawmaker, called on Wolf to work more collaboratively with the business community in helping to revive Pennsylvania’s economy. He said business groups have reached out to work with the governor.
“Consistently there’s been no response to those offers and that’s disappointing,” Denlinger said. “The Wolf administration has been amazingly isolated through this pandemic crisis.”
The governor has faced sharp criticism from Republican leaders and business groups for some of his restrictions on businesses. Last month, he imposed temporary restrictions, including a three-week suspension of indoor dining at restaurants and a shutdown of entertainment venues, including casinos and theaters. Those measures, which included other restrictions on businesses, expired Jan. 4.
The Pennsylvania Licensed Beverage and Tavern Association said it would welcome grants to aid bars.
“We’re very supportive of grants for the industry, particularly the small business taverns and licensed restaurants,” said Chuck Moran, the association’s president. “They’re in survival mode at this point and the lost income, particularly coming off the holiday mitigation orders, did not help matters.”
But Moran said he’d welcome the easing of other restrictions, including a rule barring restaurants and taverns from serving customers at the bar. Some smaller bars have only limited space for tables, Moran said.
The governor has said his business restrictions have been necessary to fight the spread of COVID-19 after a spike in cases, hospitalizations and deaths beginning in November. The number of new cases has dropped in recent weeks, but more than 5,000 people are being treated in hospitals for COVID-19.
The Pennsylvania Department of Health reported 7,175 new COVID-19 infections Thursday, a drop from a day earlier, when new infections numbered nearly 8,000. But the health department also reported 313 new deaths, among the highest tolls of the pandemic, raising its total to 18,742.
Typically in politics, elected officials wrestle with finding the money to pay for desired programs, Wolf said. But he said that’s not the problem in this case.
“The money is available,” he said.
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