Economy & Business

Economy & Business news from 90.5 WESA.

Pittsburgh City Council voted Wednesday for a one-week hold on a bill that would set community investment standards for banks that do business with the city government.

Sponsoring Councilman Daniel Lavelle said the delay will allow him time to write in language for a Reinvestment Review Committee. That body of council members, administrative employees and community members would decide which banks to use as city depositories, based on a set of criteria. The city controller would oversee the process.

Corbett’s Privatization Initiative Hits Lottery

Apr 2, 2012

The Corbett Administration is taking steps to privatize the management of the Pennsylvania Lottery.

Pennsylvania Revenue Secretary Dan Meuser said the move is part of an effort to increase profits, which benefit programs for the elderly.

Meuser said, over the last five years, lottery net profits have grown an average of 0.3 percent per year and revenues are projected to grow an average of 1 percent annually through 2014-15. He said that's not enough to cover cost increases.

New Website Aims To Expand Workforce Diversity

Mar 28, 2012

Employers from around the region announced today they will join to create a more diverse workforce within the Pittsburgh region. was formed in February by Robert L. Johnson, founder of Black Entertainment Television (BET), whose purpose is to increase the awareness of qualified minority job candidates, and to improve access for vendor services and supplier contracts for minority businesses.

Johnson says is all about one thing: opportunity.

Pittsburgh Housing Prices Still On the Rise

Mar 27, 2012

The price of housing in Pittsburgh increased modestly over the course of 2011, bucking a national trend of declining home prices.

The nonprofit PittsburghTODAY studied existing home sales and refinancing activity completed in 2011 to determine that local home prices in southwestern Pennsylvania rose 0.8% over the past year.

That's especially good news when compared with 14 other urban areas across the country, said PittsburghTODAY program director Doug Heuck.

Feds, State Go After Unemployment Fraud

Mar 26, 2012

Over $50 million was wrongfully paid out to 9,400 individuals claiming unemployment compensation, and the state's Department of Labor and Industry and federal Department of Treasury are intercepting.

The Treasury Offset Program (TOP) allows the departments to seize the federal income tax refunds of those who claimed unemployment compensation (UC), but did not qualify.

Julia Hearthway, Secretary of Pennsylvania's Department of Labor and Industry, says they sent letters to the individuals wrongfully claiming UC in November.

Pittsburgh Tourism Remains Strong, Continues to Grow

Mar 21, 2012

2011 was a strong year for the tourism industry in Pittsburgh, according to VisitPittsburgh, which hosted its annual meeting Wednesday. Industry leaders said the area continues to be a big draw for visitors from around the country and the world.

"We ended last year with 68.2% occupancy, and that compares against a national average of 60%, we did better than Washington, D.C., Chicago, Illinois and even Orlando, Florida," said Craig Davis, the newly-named president and CEO of VisitPittsburgh.

Lt. Governor Touts Marcellus Jobs Potential

Mar 19, 2012

Pennsylvania Lieutenant Governor Jim Cawley toured the U.S. Steel Irvin Plant in West Mifflin on Monday to talk about the jobs created by the Marcellus Shale industry.

The lieutenant governor spoke to a crowd of roughly 60 steelworkers, flanked by officials of U.S. Steel and other companies who've grown as the state's natural gas sector expands.

"If you're going to drill for gas, you're going to need steel," said Cawley. "Steel for drilling rigs; steel for platforms; steel for pipelines. Clearly, this is a great opportunity for Pennsylvania."

Mr. Corbett Goes to Dusseldorf

Mar 19, 2012

Governor Tom Corbett is in Europe this week to promote Pennsylvania business and tourism.

The governor is scheduled to visit Paris and Lyon in France, as well as Stuttgart and Dusseldorf in Germany. Corbett will meet with Pennsylvania businesses that have overseas branches, and speak with hundreds of potential foreign investors. He'll also tour various facilities in both countries.

Political science professor Terry Madonna of Franklin & Marshall College said a trip like this is business as usual for governors across the country.

Cracking Down On Food Stamp Traffickers

Mar 19, 2012

Pennsylvania Inspector General Kenya Mann Faulkner testified before a congressional panel that the state is trying to end fraud in the welfare system and protect the integrity of the food stamp program.

The House Committee on Oversight and Government Reform is examining fraud within the Supplemental Nutritional Assistance Program (SNAP), more commonly known as food stamps.

Beaver County Residents Respond to Ethane Cracker News

Mar 16, 2012

Several residents of Beaver County heard yesterday for the first time about Shell's decision to locate a new ethane cracker in Monaca where Horsehead has been manufacturing zinc.

Mary Ann Musloe, a Monaca resident, said there haven't been enough jobs since the steel mills closed, and Horsehead had given notice that they were going to move south for better economic incentives. The county and state, she said, need to do more to keep companies here.

Beaver County Site Chosen for Shell Cracker Plant

Mar 15, 2012

Southwestern Pennsylvania is set to gain a major economic boost from the construction of a new petrochemical refinery. Shell Oil Co. will announce today that a site near Monaca has been chosen for the multi-million-dollar ethane cracker. Dan Carlson, Shell's General Manager of New Business Development, said today that the company has signed a land option agreement with Horsehead Corp. to evaluate the site.

Charlie Sheen is not the only one "winning." The Pittsburgh Regional Alliance (PRA) announced Wednesday that the 10 counties in the region reported almost 300 economic development deals, or "wins" last year. That is up 14 from 2010.

David Malone, President and CEO of Gateway Financial and Chairman of the PRA says the "wins" were landed in large part due to the region's diverse economy.

Study Shows School Bus Privatization Too Costly

Mar 13, 2012

The key argument for privatization of any government-controlled operation is that it saves money. However, that argument may not hold much actual merit, at least when it comes to public school busing.

According to a new study released Tuesday by the Keystone Research Center, Pennsylvania school districts end up spending more tax dollars on transportation than districts that manage their own bus fleets.

The new federal panel to investigate unfair international trade practices should have teeth, according to the AFL-CIO.

The nation's largest group of labor unions said the Interagency Trade Enforcement Center (ITEC) should be adequately funded and wield subpoena powers.

AFL-CIO Trade Policy Specialist Celeste Drake said the creation of the agency is a step in the right direction. She said it would investigate international incidents of price-fixing, illegal subsidies, and unlawful favors to attract specific businesses.

The federal government says that consumer prices rose moderately last year, but if you think the cost of everyday purchases increased more than that, then you're probably right according to the American Institute for Economic Research (AIER).

Best of the World Pittsburgh Partnership

Mar 9, 2012

Among cities such as Belfast and London, a National Geographic Traveler article named Pittsburgh one of the 20 must-see places to visit in 2012, making it the only city in the United States to have the title.

Craig Davis, Vice President at VisitPittsburgh, explains why National Geographic picked Pittsburgh for the award.

"Our economy is so strong right now, we are a birthplace of a number of successful renaissance initiatives, also because our employment is high," Davis said.

Pittsburgh Downtown Partnership Outlines Five Goals

Mar 6, 2012

Leaders of the Pittsburgh Downtown Partnership gathered its members Tuesday morning for its annual meeting where President Jeremy Waldrup tried to rally support for its 2012 goals. Among them is an effort to lobby lawmakers to increase funding for mass transit.

Local Economy Receiving Big Boost From National Parks

Mar 5, 2012

One of the most effective boosts to the economy may come as a surprise, national parks.

In Pennsylvania, visitor spending totaled more than $357 million in 2010 and supported more than 5,500 jobs in 18 national parks.

A report issued by the National Park Service showed that 643,000 visitors in 2010 spent over $28 million in the five national parks in Western Pennsylvania.

The IRS Gives Back

Mar 5, 2012

The Internal Revenue Service says refunds totaling more than $1 billion are sitting unclaimed by individuals who did not file a federal income tax return for 2008. But to collect the money, there is a catch: they must file a 2008 income tax return no later than April 17, 2012.

In Pennsylvania there are 38,700 people who haven't filed, according to IRS spokeswoman Jennifer Jenkins. She said state residents are entitled to more than $35.5 million in unclaimed returns, with a median of $695 per person.

Jenkins said these unclaimed refunds represent relatively easy money.

Chief Justice of Pennsylvania Ronald Castille is reminding attorneys in the state of their ethical duty to provide public service. Justice Castille also thanked lawyers who provided direct pro bono service to the poor in 2011.

Last year, lawyers statewide provided free service equal to the work of more than 60 full-time attorneys. Castille said lawyers are doing some good work during tough economic times.

Congressional, military and community leaders are building their case to convince the Air Force to halt its planned closure of the 9-11th Air Lift Wing and sharp reductions at the 171st Air National Guard in Pittsburgh.

Members of the Congressional delegation from southwestern Pennsylvania met today with representatives of Military Affairs Coalition of Pittsburgh and the Chamber of Commerce to update efforts to preserve the air bases.

Proposed Budget Cuts General Assistance Benefits

Feb 28, 2012

State legislators are taking their first cracks at the Department of Public Welfare's proposed budget that eliminates cash benefits and makes cuts to mental health assistance. Governor Corbett wants to eliminate a $319 million General Assistance program that provides cash assistance benefits to about 60,000 Pennsylvanians.

Democratic Senator John Blake of Luzerne County says that oft-stated mission could be obscuring cuts that cannot rightly be called savings.

A new analysis of census data indicates a shortage of homes for those living on a $20,000 income. The study, released by the National Low Income Housing Coalition, found there are only 36 affordable and available units for every 100 low income people living in Pennsylvania.

Liz Hersh, Executive Director of the Housing Alliance of Pennsylvania, says these numbers are troubling.

"There's only about a third the supply of the apartments that are needed in the market. So the market is in very short supply of apartments that are both available and affordable," Hersh said.

Table Games Revenue Up At Commonwealth Casinos

Feb 20, 2012

Gross revenue from table games in January was nearly $9.7 million higher than last year, according to the Pennsylvania Gaming Control Board.

962 tables at 10 casinos generated $52,980,494 last month compared to $43,310,753 in January 2011.

Spokesman Doug Harbach said the casinos are still in a stage of growth.

A free-market think tank in Pennsylvania fears that public welfare spending is exceeding what the state can afford.

Elizabeth Stelle is a policy analyst for the Commonwealth Foundation, which compiled a report examining cases of fraud — like using welfare money for luxuries like landscaping or a six-person hot tub — rather than necessities like food. Stelle said she would prefer to see more reform in order to better correlate welfare spending with a drop in the poverty rate.

Electric Deregulation, Fewer Landlines Cause Drop In Tax Revenue

Feb 17, 2012

A little known state tax is seeing a shortfall for the second year in a row. The drop off is due in part to electric deregulation that went into full effect in Pennsylvania a little more than a decade ago.

Deregulation introduced a number of companies to the state's tax rolls, but with their historically narrow profit margins, the amount of taxes they had to pay was low last year and will be low again this year.

Liquor Control Board Looking For Large Reforms

Feb 17, 2012

The Liquor Control Board is asking state lawmakers for help on a slew of reforms.

Among them, bills to allow liquor stores to sell lottery tickets, allow more to pen on Sundays, and change pricing rules to make them more competitive with neighboring states and online retailers.

Senator John Pippy (R-Allegheny) says efforts to modernize the LCB will not interfere with efforts to sell off the state's liquor stores.

Small business leaders from the Pittsburgh region traveled to the nation's capital this week to meet with President Obama and members of his administration. Among the Pittsburgh contingent was the director of the Center for Women's Entrepreneurship at Chatham University. Rebecca Harris said one of the main takeaways from the day was that there are actually jobs out there, even as the unemployed continue to struggle.

Sixty Jobs To Be Cut At State Homes For Disabled Veterans

Feb 16, 2012

The head of the Pennsylvania Department of Military and Veterans' Affairs says budget cuts will mean about 60 layoffs, but a decision at the national level could lead to more.

Major General Wesley Craig says his agency can deal with the roughly $6 million funding cut proposed by Governor Tom Corbett. But, he says the U.S. Air Force is looking to downsize a National Guard air refueling wing in Pittsburgh by 25 percent and close another air wing entirely.

Top state administrators say it's a bit too early to tell whether the commonwealth's cut of a nationwide mortgage services settlement could breathe life into a program meant to help Pennsylvanians avoid foreclosure.

This is not the first attempt to resurrect the Homeowners Emergency Mortgage Assistance Program (HEMAP). The program closed last July after its state funding was nearly eliminated.