Inflation, Workforce Issues Dominate Pennsylvania House Budget Hearing

Officials with the Pennsylvania Department of Community and Economic Development discussed inflation and staffing challenges, as well as the Wolf administration’s decisions to close businesses amid the COVID-19 pandemic, during a third day of budget hearings in the House Appropriations Committee.

State Rep. Lynda Culver, R-Northumberland, highlighted record inflation numbers from the U.S. Bureau of Labor Statistics that showed a 7.5% annual increase in the Consumer Price Index for January, the fastest rise since 1982.

Culver also noted federal stimulus spending and questioned acting Secretary of the Department of Community and Economic Development Neil Weaver on outreach from the department to understand the effect of inflation on small businesses.

Weaver said department officials meet with businesses and communities of all sizes around the commonwealth, and “we continue to hear there’s issues around workforce, which is the number one issue we hear over and over again.

“Child care, transportation, as well as training” are other issues, he said. “We have a number of programs in place to help that.”

Rep. Keith Greiner, R-Lancaster, cited a recent survey from the National Federation of Independent Business (NFIB) that found the net percent of small businesses raising prices hit 61% in January, up 4% from December, and the highest percentage since 1974. The NFIB measure of optimism from business owners also is at an 11-year low, he said, driven by inflation, worker shortages and uncertain economic conditions… (Excerpts from the Pennsylvania Daily Star)