The House Majority Policy Committee convened July 31 to discuss economic development focusing on regulatory issues, workforce development and tax reform.

The group of Pennsylvania representatives and local panelists met in the conference room of the Kasych Family Pavilion at Lehigh Valley Hospital, Salisbury Township.

"Unemployment in Pennsylvania is still at a rate that is too high, and that doesn't even address the problem of underemployment; people who are working part time who would like to be full time," State Rep. Ryan Mackenzie, R-134th, said.

Susan Roberts, owner of Wally's Deli, in Emmaus and Allentown, and Arland Schantz, owner of Evergreen Farm, Lower Milford Township, spoke about the impact of government regulation on small business owners.

Roberts said unemployment benefits can be a burden on small businesses due to paperwork and potential lawsuits involved with the process.

She explained how small businesses do not have the personnel to handle the extra work saying it can be a detriment to a business' bottom line.

"We have to prove over and over again we have the right to get rid of [employees]," Roberts said. "We have to fight unemployment because it is so easy to get."

Schantz said regulations can prevent him from doing common sense renovations on his farm.

He specifically cited how the Department of Environmental Protection was involved with a stream on his property and how he had to get permission before removing sediment from the stream bed.

Schantz said the extra steps could have led to the destruction of valuable farmland through flooding.

He also cited the varied zoning requirements of municipalities as a confusing and slow process when farmers want to expand.

State Rep. Scott Hutchinson, R-64th, discussed family-owned businesses.

"Larger businesses have the ability to deal with some of these problems, but really the lifeblood [of our economy] to me is the small, family-owned business," Hutchinson said.

State Rep. Justin Simmons, R-131st, said Pennsylvania's 9.99 percent corporate net income tax is one of the highest in the U.S. and can sometimes be a deterrent to businesses considering a move to Pennsylvania.

Simmons said he has witnessed a transition to a health- and service-based economy in the Lehigh Valley following the closure of factories such as Bethlehem Steel.

Nancy Dischinat, executive director of the Lehigh Valley Workforce Investment Board Inc., said manufacturers are still growing in the Lehigh Valley but there is a disconnect between employers and highly-skilled, technically-trained, employees.

"When you discuss employment with job creators, they have no allegiance to employees born in the United States," Dischinat said. "They have allegiance to highly-skilled employees."

Dischinat told the panel of 10 representatives public schools need to do a better job of connecting with employers so counselors and teachers can give students an accurate interpretation of the local job market.

She said this communication and preparation would help streamline the hiring process both for prospective employees and employers.

Dischinat said the focus should be, both for adults and students, on filling the "skills gap" between what local employers want and what prospective employees have to offer.

Patricia Hartwell, director of corporate human resources at B. Braun Medical, offered praise to technical schools such as Lehigh Career and Technical Institute, Schnecksville.

She said her company's partnership with LCTI has provided access to many skilled employees.

"We want to continue to keep our workforce well trained in our evolving workforce needs," Hartwell said.

Hartwell said increases in taxes can be a deterrent to hiring because many companies attempt to manage the funds for taxes internally without passing the cost on to their customers.

Peter Rittenhouse, director of supply chain at Nestlé Waters North America Inc., Brein-igsville, said his company also hires LCTI students and supports continued funding for programs such as Pennsylvania CareerLink.

Gary Bender, chief financial officer of ABEC Inc., said his company uses and supports CareerLink but suggested the site become more streamlined to make it easier for companies to find the employees they are looking for without searching hundreds of meaningless resumes.

Bender said he would like to hire 35 new employees this year and would especially like to interview veterans.

"I receive 200 applications a week," Bender said. "Less than 1 percent of applicants are qualified."

Bender said it takes his company 200 to 400 hours of training to prepare even a senior level employee from another industry because of the unique nature of his biopharmaceutical manufacturing business.

The three-person panel emphasized the importance of tailored workforce development in today's economic climate.

State Rep. Gary Day, R-187th, said people need to know where the jobs are going to be in the future if they are going to put time into learning the skills.

"We need to know the jobs are going to be there, if we invest more in technical education," Day said.

"Our taxes are debilitating; we have the highest business taxes in the country and possibly the world," Mark Hoffman, president of Hoffman Insurance Consultants LLP, said. "The state is sucking the very lifeblood of our business community through excess taxes."

Jeff Berdahl, with RLB Certified Public Accountants, said the state's method of taxation can be a burden to small and large businesses alike.

He said it can be a costly process with so much paperwork they need to hire professionals.

Berdahl said lower taxes, incentives for hiring or research and development grants would all be a good ways to help, especially small businesses, cope with the process and thrive.

"In recent months, the general assembly has taken a number of steps to stimulate job growth in Pennsylvania, including business tax reform and changes to the unemployment compensation system. But more still needs to be done," Simmons, who co-hosted the hearing with Mackenzie, said. "We came to listen and learn today as we work as a team with the local business community on moving the Lehigh Valley and the entire commonwealth forward. The ideas generated during this hearing will be considered as we draft legislation that continues to improve Pennsylvania's business climate."