By Christen Smith | The Center Square
Credit: PA Internet News Service
Millions of dollars in financial aid for businesses impacted by pandemic restrictions will sit untouched in state coffers as the political impasse between Gov. Tom Wolf and legislative Republicans shows no signs of narrowing.
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Wolf announced Wednesday his administration will transfer $145 million from the Insurance Department’s Workers’ Compensation Security Fund for appropriation by the Legislature as business grants and loans. The 83-year-old program covers benefits for injured workers’ when their original insurance provider becomes insolvent or shuts down.
As of June 30, 2019, the fund balance exceeded $964.4 million and the program paid out just $23.3 million in benefits. Just under 1,000 pending claims tied up an additional $257.4 million in that year. And in November, lawmakers transferred $185 million from the fund to balance the state budget’s $3 billion deficit.
The governor said Wednesday he hopes lawmakers will drive the additional relief to the businesses hit hardest, such as restaurants, bars and gyms, among others.
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“Business owners and employees have worked hard to protect their customers and their communities during this pandemic, and I thank all of those who have prioritized health and safety despite the hardship of the past several months,” he said. “Our business owners and workers have been forced to make sacrifices because of COVID-19 and they need and deserve our support.”
Three in 10 businesses shut down, at least temporarily, at the height of the pandemic in March and April, according to federal data, after the Wolf administration enacted some of the strictest mitigation efforts nationwide. As many as 25 percent of restaurants will never reopen and many more warn that going in and out of lockdown will force them out of business come next month. The latest round of restrictions on indoor dining and alcohol sales expires Jan. 4, 2021.
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Republicans in the House and Senate have sent a handful of bills designed to thwart’s Wolf’s economic shutdown that were all met with the governor’s veto pen. Party leaders say the administration’s unwillingness to collaborate with them on more targeted restrictions means the state’s measures have been drastic, draconian and devastating for their constituents.
Wolf said the bills threatened public safety, ignored scientific data and shunned guidance from public health experts that supported his administration’s orders. With COVID-19 hospitalizations exceeding 6,000 and community spread prevalent in all 67 counties, the governor said the sanctions in place will prevent health care systems from becoming overwhelmed and save lives.
“There is only one reason why restaurants and small businesses are shut down, suffering and facing permanent closure, and that reason is the governor,” said House Majority Leader Kerry Benninghoff, R-Centre. “The backbone of our state and local economy, restaurants and small businesses, have been unfairly targeted by his administration, and have been pleading for months for relief from his mandates.”
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“Going alone is not what is best for Pennsylvanians,” he continued. “We need to work together, and I encourage Gov. Wolf to work with us on relief plans and join us in focusing on long-term solutions that keep Pennsylvanians working and businesses and restaurants operating safely.”
Wolf said he hopes the General Assembly will “act quickly” when they return to session in January to distribute the money.
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“If they want to, they can move on this very quickly,” he said. “This is something I don’t think should be a controversial issue.”
Jason Gottesman, a spokesperson for Benninghoff, said the administration’s announcement has generated a lot of confusion.
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“First, we are unsure of what ‘initiated a transfer’ means since no money has actually been transferred,” he said. “We hope the governor would not be trying to give Pennsylvanians hurt by his restrictions and shutdowns false hope.”
When asked about whether Benninghoff will support an effort to distribute the funds, Gottesman said the majority party hopes for a compromise.
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“We are open to working with the Governor on relief, but he must also work with us to provide long-term economic solutions that keep businesses open and get Pennsylvanians back to work safely,” he said. “We cannot live under the continuous threat of another shutdown patched over by one-time cash infusions from a state with depleted revenues caused by the Governor’s economic restrictions.”
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