PRLA Spring 2019

20  • PENNSYLVANIA RESTAURANT & LODGING matters • Spring 2019 STATE LOCAL FEDERAL LEGISLATIVE CORNER State Items BUDGET ADDRESS Governor Wolf made his budget address in February, announcing a $34.1 billion proposal, which is an increase of $1.9 billion over last year, and contains the following key provisions: • $200 million increase to school and $50 million more for special education. • No increase in states sales or income tax. • Includes a major initiative to bolster the state’s workforce. • Increase the minimum wage to $15/hour and eliminate the tipped wage entirely. TOURISM LINE ITEM Due to the passage of Act 109 of 2018, funds received from Act 109 will be placed in a restricted account to be used by the tourism office for tourism promotion. Because of that, the “Marketing to Attract Tourists” line item in the Governor’s budget was zeroed out. Historically, that line item has been used to fund individual grants and projects of various entities around the state. PRLA continues to maintain that the legislature has the prerogative to fund those measures but that funding should continue to come from the general fund and not be pulled from the restricted account. We have finally been able to fund tourism in Pennsylvania, and it is PRLA’s top priority to protect it. GOVERNOR’S MINIMUM WAGE PROPOSAL The Governor has announced the most aggressive minimum wage proposal yet, and he specifically attacked the restaurant industry in his remarks. • Increase the minimum wage to $12 beginning July 1, 2019. • Increase the minimum wage 50 cents every year until it reaches $15/hour in 2025, then increase it annually based on cost of living. • Eliminate the tipped wage completely because: » » “People will continue to tip.” » » “Tips are a tax on the general public.” » » “Servers are subject to harassment in the workplace because of their reliance on tips.” • Claims this will “save” Commonwealth $36 million. • This proposal will increase the wage for “1 million people.” • Rep. Patty Kim (D, Dauphin) and Sen. Christine Tartaglione (D, Philadelphia) will champion these bills in the House and Senate, respectively. Three-Year Plan On January 29, the Pennsylvania Restaurant & Lodging Association (PRLA) alcohol service, government affairs and lodging and tourism committees met to amend the association’s three-year legislative strategy. This year’s priorities are: JANUARY–JUNE 2019 Top priorities: • Tipped wage preservation/extreme minimum wage • Alcohol service licensing plan Priorities to monitor, in case we need to engage: • Sales tax shift on alcohol • Governor’s proposed salary threshold/exempt employees’ regulation Non-legislative items: • Ensure proper implementation of Act 109 of 2018 • Establish a Tourism Partnership JULY–DECEMBER 2019 Top priorities: • “Keep our Summers Sacred” (post- Labor Day school start) legislation to be filed • Respond to anticipated revised salary threshold/exempt employees’ proposal Non-legislative items: • Association Health Plan solution PRLA