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NANTICOKE — Aimed at targeting economic development and jobs in the Northeastern Pennsylvania region, a House Democratic panel hosted by State Rep. Gerald Mullery, D- Newport Township, was held Thursday at Luzerne County Community College.

Along with State Reps. Eddie Day Pashinski, D- Wilkes-Barre; Marc Gergely, D- White Oak; Dom Costa, D-Pittsburgh; and Mark Longietti, D-Hermitage, Mullery listened to six business heads talk about their job offerings and economic development.

The testimonies heard will be used by the legislators in policy development.

Included in the speakers were LCCC President Tom Leary, who talked about the work the college does in helping students gain a skill set, especially in manufacturing, welding and other blue-collar jobs. Nearly 85 percent of those students stay in the region after graduating from the community college, Leary said.

He spoke to the panel about funding for the college while staying “cognizant” of keeping tuition low.

“For many people, that is their only access to higher education and eventually good paying sustainable jobs,” the college president said.

At one point, when community colleges were instituted, the funding for LCCC was one-third each state sponsored, local sponsors and student paid. Leary asked the panel to continue increasing funding for the two-year colleges because currently, the state provides 28 percent revenue, local sponsors contribute 15.5. percent with the remainder coming from student tuition or state grants.

“We need a restoration to where we were previously,” Leary pleaded.

According to Kenneth Okrepkie, regional manager of Ben Franklin Technology Partners, due to a lack of funding, the business incubation company could only offer businesses time and talent but crucial capital investments have been cut.

“As the reduction (of state money) took place, we reduced the funding,” Okrepkie said.

Pashinski noted scrutiny is given to businesses that invest when line items are cut.

“Nobody wants taxes to go up but your investment is a wise one,” Pashinski said. “It’s a win-win for everybody.”

NEPA workers

Each of the six speakers agreed there is a hard working class in Pennsylvania.

“Is there talent in Northeastern Pennsylvania? Absolutely,” said Joseph Boylan, vice president of economic development for the Greater Wilkes-Barre Chamber of Commerce.

He talked about building and strengthening academia with businesses in local communities because there are 17 higher education institutions within an hour’s drive of NEPA and more than 83,000 students enrolled in schools throughout the Wyoming Valley. It’s where the Wilkes-Barre Connect Initiative comes into play. The initiative “ensures all start-ups and existing businesses have access to the providers, services and facilities they need to grow.”

Boylan highlighted three NEPA examples of the initiative’s success: Pepperjam, which is expanding from 75 employees to 200; McCarthy Tire, which is launching its $4 million re-tread manufacturing line in Wilkes-Barre; and American Paper Bag, a European company which has Hanover Township on the “fast track to landing” the company.

He urged the five lawmakers to continue to “be nimble and be creative” when it comes to the local economy.

Mary Malone, president of the Greater Hazleton Chamber of Commerce, mirrored Boylan’s comments but went one step further, asking for a “younger age (grades 4 though 6)” career exploration.

“Understanding high growth clusters in any given area will make an impact,” she said.

Drawbacks of businesses in Pennsylvania

Kevin O’Donnell, president of CAN DO Inc. in Hazleton, cautioned the lawmakers that Pennsylvania “is losing its competitive edge” because surrounding states have ramped up their business and recruitment efforts.

A drawback in locating to Pennsylvania is the state has one of the highest Corporate Net Income Taxes in the nation.

According to the Department of Revenue, the tax is levied at the rate of 9.99 percent on federal taxable income and modified by certain additions and subtractions.

O’Donnell also alerted the legislators that Pennsylvania needs a streamlined permit system because “the inability to be able to deliver permits quickly hinders industry attraction.”

“To be competitive, we must compete on the same level as other states,” O’Donnell said.

Malone also worries about the pension reform in the state. Increased pensions, she said, are slowing growth in local businesses.

“It has hit Main Street,” she said.

State Reps. Eddie Day Pashinski, right, and Gerald Mullery take part in Thursday’s House Democratic Policy Committee hearing at Luzerne County Community College in Nanticoke to discuss jobs and how to create them in Pennsylvania.
https://www.timesleader.com/wp-content/uploads/2016/09/web1_dems01.jpg.optimal.jpgState Reps. Eddie Day Pashinski, right, and Gerald Mullery take part in Thursday’s House Democratic Policy Committee hearing at Luzerne County Community College in Nanticoke to discuss jobs and how to create them in Pennsylvania. Pete G. Wilcox | Times Leader

Scott Dunkelberger, Deputy Secretary For Business Financing Pennsylvania Department of Community & Economic Development, center, Luzerne County Community College President Tom Leary, left, and Kenneth Okrepkie, Regional Manager Pocono Northeast, participate in the House Democratic Policy Committee hearing Thursday at Luzerne County Community College in Nanticoke to discuss jobs and how to create them in Pennsylvania.
https://www.timesleader.com/wp-content/uploads/2016/09/web1_dems02.jpg.optimal.jpgScott Dunkelberger, Deputy Secretary For Business Financing Pennsylvania Department of Community & Economic Development, center, Luzerne County Community College President Tom Leary, left, and Kenneth Okrepkie, Regional Manager Pocono Northeast, participate in the House Democratic Policy Committee hearing Thursday at Luzerne County Community College in Nanticoke to discuss jobs and how to create them in Pennsylvania. Pete G. Wilcox | Times Leader

By Melanie Mizenko

[email protected]

Speakers at the House Democratic Policy Committee Hearing:

• Scott Dunkleberger, deputy secretary for business financing, Pennsylvania Department of Community & Economic Development

• Thomas Leary, president, Luzerne County Community College

• Kenneth Okrepkie, regional manager, Ben Franklin Technology Partners

• Joe Boylan, vice chairman of economic development, Greater Wilkes-Barre Chamber of Commerce

• Mary Malone, president, Greater Hazleton Chamber of Commerce

• W. Kevin O’Donnell, president, Greater Hazleton CAN DO Inc.

Reach Melanie Mizenko at 570-991-6116 or on Twitter @TL_MMizenko