Study Details Arts Contribution to Economy and Job Creation, Costa Says

HARRISBURG – October 16, 2012 – Calling the arts “an essential part of the fabric of Pennsylvania,” state Sen. Jay Costa said today that investing in arts is prudent because there is a discernible job creation and economic return.

“The arts represent a significant economic boost and a job creation tool,” Costa said at a news conference held in the state Capitol by Citizens for the Arts. “I have supported the arts for many years as a member of the Council on the Arts and on the boards of the Pittsburgh Ballet Theatre and Civic Light Orchestra so I know how important the arts are to the quality of life and marketability of a region.”

The media event was called to detail the economic impact of the arts. The Arts and Economic Prosperity study by the Americans for the Arts drew a direct correlation between investment in the arts and job creation and economic growth.

According to the study, the arts generate $2.55 billion in total economic activity and $1.8 billion in household income to local residents and support more than 81,000 full-time equivalent jobs. The arts deliver $360 million in local and state government revenue.

The Democratic leader also announced that he is going to form a bipartisan, bicameral arts and culture caucus in the General Assembly that will support the arts through the budget process among other things.

“The arts community is an essential part of the fabric of Pennsylvania – both economically and culturally – and we will continue to find ways to support it in the General Assembly,” Costa said.

The Forest Hills lawmaker also said that involvement in the arts also has a measurable education component.

Costa cited statistics indicating that students who take four years of music and art score 102 points better on their college entrance exams. Students with four years of art and music averaged 40 points higher on the written portion of their SATs than students with half a year or less.

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Senate Democrats Roll Out Jobs Plan

HARRSIBURG – State Senate Democrats today unveiled their revised job creation plan, called “PA Works Now,” which they claim would create 80,000 new jobs and leverage billions in private investment to generate jobs and economic activity.

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State Senate Democratic Leader Jay Costa (D-Allegheny) said job creation is the number one priority for this fall’s session of the General Assembly.   He added that the PA Works Now package does not require new broad based taxes, is fully paid for and does not put additional strain on the state General Fund.
“PA Works Now features a new investment vehicle called the Pennsylvania Investment Bank that will quickly pump $1.2 billion into the economy and create jobs,” Costa said.  “Our goal is to jump start the economy and create new jobs in the shortest possible time.

“Job creation is the most important issue lawmakers must tackle this fall.”

The Democrats’ plan includes renewed investment in job-producing programs and public works such as water and sewer projects as well as money for new business investments.  The plan also provides a new round of capital infusion for the state Machinery and Equipment Loan Fund and would establish Pennsylvania’s version of the successful “Georgia Works” on-the-job training program.

The Pennsylvania Investment Bank would target more than $1.2 billion for water and sewer system reconstruction, new business investment and other public works.  The bank would capture funds generated from existing borrowing capacity.  The bank would use $500 million in Commonwealth Finance Authority dollars plus a half-billion from PENNVEST (Pennsylvania Infrastructure Investment Authority).

The investment bank would also utilize $80 million in funds from a proposed Marcellus Shale tax or fee along with surplus state revenues.  Democrats estimate that these sources would generate $180 million.

“There are so many workers who are looking for jobs and even more who are worried about what is next for them in this very difficult economic recovery,” Costa said.  “Our comprehensive PA Works Now plan addresses job creation and presents an opportunity to move our economy forward.”

graphDemocrats said action is needed now on their job creation plan because of the recent increase in unemployment.  Pennsylvania’s unemployment rate spiked by nearly a half percent from July to August – rising to 8.2 percent.  Since May, the number of unemployed Pennsylvanians grew by 45,000.

Senate Democratic Appropriations Chair Vincent J. Hughes (D-Philadelphia/Montgomery) decried the alarming increase in unemployment and the inaction of both the Corbett Administration and Republican lawmakers who control floor action in both the state House and Senate.

“The Corbett Administration has failed to respond to the hardship in the labor market in any discernable way,” Hughes said.  “The administration is either tone-deaf to the plight of the unemployed or focusing on political wedge issues that do not create jobs.  They’ve produced no new jobs plan.

“The priorities of the administration are skewed,” Hughes said.

Hughes criticized Corbett and Republicans for focusing on changing the apportionment of electoral votes, English-only legislation and voter ID legislation.  These issues interest only “politicos on the extreme political fringe of the Republican Party. These proposals do nothing to help our economy grow,” Hughes said.

graph 2“We are stuck debating issues that appeal to the political extreme at the expense of working families,” Hughes said.  “Working men and women need jobs.  They don’t need political talk.  That is a sham and it’s a shame.”

Sen. Judy Schwank (D-Berks) said the state has lost an opportunity to reverse negative economic trends.  She noted that the recent business downturn has had a disproportionate impact on educators, women, minorities and Pennsylvania’s youth.

According to Schwank, the Corbett budget cuts have put several thousand educators or school staff out of work.  The Berks county lawmaker said Senate Democrats will soon flesh-out a package of bills that would specifically help women, minorities and young people find jobs.

“Failing to take action now condemns those who have a difficulty getting jobs in a robust economy – women, minorities and our youth – to even deeper despair when the labor market contracts,” Schwank said.  “Doing nothing on job creation is not an answer and it’s not fair.  That’s why we need to work on a jobs plan like PA Works Now.”

Sen. John Blake (D-Lackawanna/Luzerne/Monroe), who previously served as secretary of the state Department of Community and Economic Development, said PA Works Now would inject much-needed capital into business investment and job creation programs.  He said doing so is essential toward generating economic activity and employment opportunities now.

“There is no question that our recovery from the recession is soft,” Blake said.  “The state has a responsibility to incent private sector investment for job growth.”

Costa, Hughes, Schwank and Blake were joined by a host of Senate Democratic colleagues at the Capitol news conference.

Senate Democrats unveiled a previous version of PA Works earlier this year.

Senators who attended today’s news conference included Democratic Whip Anthony H. Williams (D-Philadelphia), Caucus Chairman Richard Kasunic (D-Fayette/Somerset), Caucus Secretary Christine M. Tartaglione (D-Philadelphia), Caucus Administrator Wayne Fontana (D-Allegheny) and state Sens. Andy Dinniman (D-Chester), Daylin Leach (D-Delaware/Montgomery), John Yudichak (D-Luzerne/Monroe/Carbon) and Tim Solobay (D-Washington/Greene).

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Republican Budget Hurts Students, Cuts Teachers, and Slows Job Creation

HARRISBURG — Senate Democratic Leader Jay Costa (D-Allegheny) issued the following statement after passage of the $27.15 billion state budget which all Democrats voted against:

“We have been calling for a state budget that reflects shared sacrifice and fairness to all Pennsylvanians since March. It is now clear that our consistent calls fell on deaf ears. This budget disproportionately affects our middle class while jeopardizing the quality and affordability of our education system at all levels, pre-K through college.

The state budget, the product of a closed-door deal crafted by Republicans in the House, Senate, and Governor’s office, contains a cut of more than $900 million to basic education, while also drastically reducing state support to community colleges (10 percent cut), state system (18 percent cut) and state related (19 percent cut) colleges and universities. It eliminates the funding for charter school reimbursements which were funded at $224 million last year.  This hurts our most economically-challenged districts at the worst possible time. 

Not only will this budget force thousands of teachers to lose their jobs, but it also puts our economic recovery at risk. Cuts to successful job creation initiatives with a proven track record will stall. This budget makes significant funding cuts to business incubators and small business development centers. It will also force these entities, along with Industrial Resource Centers and Industrial Development Agencies to compete for the limited funds. Furthermore, state funding to our academic medical centers will be slashed in half. These research and teaching hospitals are economic engines that not only drive medical and research jobs into our communities, but attract millions in federal grants and private investment. This budget is a blow to medical institutions and the communities, like Pittsburgh, which have thrived and benefitted because of them.

In addition to education cuts, the Republican budget also fails to dedicate enough funding to the hospital assessment to draw down much-needed federal funds. Hospitals will also be forced to pay for more costs as a result of this budget.  While there is modest restoration for uncompensated care — $16.5 million — it is not nearly what is needed, further crippling hospitals. 

We understand there is a need to be fiscally responsible in the current economic climate, but this budget falls far short of being responsible by cutting from those that need it the most. It is not responsible to make a commitment to big business at the expense of education. It is unfathomable that we are going to pass a budget that will lay off thousands of teachers and leave students in packed classrooms while stashing away hundreds of millions of dollars in revenue.

It is not responsible to allow natural gas companies to make millions in profits while local communities are left to deal with the consequences and the costs of gas drilling.

It is a new day in Pennsylvania. In this Pennsylvania, we ask the poor to sacrifice and suffer, the middle class to make concessions and do all we can to make sure that the rich get richer. This is a Pennsylvania characterized by closed door deals and beholden to big business. This is not a path that I want to see our state go down, and this is not a state budget I can support.”

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