finance Archives - Page 6 of 17 - Central Penn Business Journal

State increases security for payments made by Treasury Department

New state legislation will make payments by the Treasury Department more secure, according to Treasurer Stacy Garrity.

Stacy Garrity

Act 54 of 2022 authorizes Treasury to require the implementation of new electronic payment security protocols known as AVS (“Account Verification System”) which will be a significant step forward in detecting and preventing the fraudulent expenditure of public funds.

The legislation was part of the Fiscal Year 2022-23 state budget.

“This is a powerful new tool in the never-ending fight against identity thieves and other criminals,” Garrity said. “States have been targeted by fraudsters throughout the pandemic. The Pennsylvania Treasury Department works around the clock to ensure that taxpayer money is spent appropriately and doesn’t fall into the hands of criminals. I want to thank the General Assembly and the Governor for including this language in the Fiscal Code to improve payment security statewide.

“Criminals trying to steal money from hardworking taxpayers never stop – and neither will we,” she said. “This is a great step forward to increase our already robust security measures.”

“Taxpayers deserve the peace of mind to know that every possible step is being taken to ensure the money they send to Harrisburg is protected against fraud and abuse,” said Senate President Pro Tempore Jake Corman, R-Belfonte.

“This new tool will provide a critical layer of protection to support our shared goal of safeguarding taxpayer dollars,” he said.”I appreciate Treasurer Garrity’s leadership in advocating for this new system to prevent financial crimes against our Commonwealth.”

House Appropriations Chairman Stan Saylor, R-York County, added, “Unfortunately, the number of criminals seeking to defraud taxpayers has been on the rise throughout the country. As leaders, our job is to protect taxpayer dollars and ensure that they are used for appropriate purposes.”

Treasury will develop a list of approved electronic payment security vendors which are qualified, experienced, and capable of providing such services. Within 18 months of the law taking effect, every agency, board or commission for which Treasury makes payments will choose one of the vendors to use for its payments, Garrity said. Treasury will update the list of approved vendors every two years.

AVS, which is almost instantaneous, uses the bank account information and other unique identity data fields to confirm a payee’s relationship with the bank account into which a payment is to be made.

In most cases, the payment request is immediately processed once the AVS review is complete. However, if an issue is identified – such as the payee having no connection to the bank account, or the unique data not matching – the AVS service responds with coded indicators to stop the payment or to confirm more information from the payee, she said.

Upon further review, the agency originating the payment may determine the payment is likely fraudulent or simply requires a corrected bank account number. In either case, the Commonwealth has safeguarded funds from being released.

Four state agencies have already implemented, or will soon implement, AVS: the Department of Revenue, the Office of Administration, the Liquor Control Board, and the Pennsylvania Housing Finance Agency. It is also used by the U.S. Department of the Treasury for accounts payable.

Armstrong Flooring sells North American assets for $107 million; Lancaster location to stay open

Armstrong Flooring, Inc. announced Sunday it has sold its North American assets for $107 million in cash.

Michael Vermette

The company said a binding Asset Purchase Agreement has been signed with a consortium of buyers consisting of AHF, LLC and Gordon Brothers to acquire substantially all Armstrong Flooring Inc.’s North American assets for $107 million in cash and assumption of specified assumed liabilities.

Armstrong Flooring said AHF plans to keep the Lancaster location open.

This binding Asset Purchase Agreement was the culmination of the Company’s Chapter 11 auction process for its North American assets.

“The auctions for the sale of the company’s Chinese and Australian businesses have not yet formally concluded, but we expect to conclude them in the near term,” a company spokesperson said in a press release.

The company has received binding bids to acquire each of the Chinese business and the Australian business and will sign the definitive purchase agreements for these transactions as soon as the auctions close.

The Chinese and Australian businesses will continue to operate as usual and the operations remain unaffected by the Chapter 11 cases, the spokesperson said.

The AHF and Gordon Brothers consortium would acquire substantially all of the assets of North America. AHF plans to continue operating the Lancaster, Kankakee and Beech Creek locations, and the company would pursue an orderly winddown of its Jackson and Stillwater locations on July 15.

“Pending consummation of the sale of its North American assets, which is scheduled for July 22, Armstrong Flooring will continue to operate as usual in all North American geographies and remains committed to its customers and other stakeholders,” the spokesperson said.

The proposed transactions are the outcome of a Court-supervised auction that commenced on June 27 during which the bid from the AHF and Gordon Brothers consortium was the sole binding bid received. The proposed transactions are subject to Bankruptcy Court approval, as well as regulatory approvals and customary closing conditions.

“We have been working hard to execute an efficient and value-maximizing sale of the business while keeping the best interests of our valued stakeholders at the forefront of all that we do,” said Michel Vermette, president and CEO.

“In light of the agreement we have reached with AHF and Gordon Brothers, and the agreements we are close to signing with the buyers of the Chinese and Australian businesses following consummation of the auction, Armstrong Flooring is now one step closer to achieving that goal,” he said.

He said the company had hoped to find a buyer for the entire business and avoid any closures, however, “based on the options available to us, we believe this is the best possible path forward for our business.”

“This reflects the support of our ABL lenders, creditors and other key stakeholders, and has been approved by our Board of Directors,” Vermette said. “While we cannot speak on behalf of the proposed buyers, we are encouraged that they see the potential of the company in the markets we serve and understand the role our people play in driving the business forward.”

The proposed North American sale transaction will be heard at a U.S. Bankruptcy Court hearing currently scheduled for tomorrow and the sale transactions for the Chinese and Australian businesses also will be heard at the time provided the auction is closed in time.

The company is working alongside its DIP lenders to enable Armstrong Flooring to continue operating its business while the buyers finalize all details and close the sale.

Bloom Business Empowerment Center offers grants to small businesses in York County

The BLOOM Business Empowerment Center, through the York County Economic Alliance, is offering grants up to $1,500 to small businesses in the county.

The grant applications are open through July 29 for small businesses who intend to improve productivity, expand services or want to grow to the next level.

Priority consideration will be given to:

Businesses that have not received funding from previous BLOOM grant programs.
Businesses owned by women, or Black, indigenous, and people of color.
Businesses owned by veterans.

Since its launch in 2018, BLOOM Grants have been distributed to 116 small businesses/organizations in York County, Downtown York, York County Trail Towns communities, to women-owned businesses, start-up entrepreneurs, and graduates of the BLOOM Small Business Development courses, with 53% of grants going to businesses owned by persons of color and 65% going to women-owned businesses, the organization said.

This micro-grant program is part of ongoing efforts by Downtown Inc to support businesses in Downtown York and by the BLOOM Business Empowerment Center to assist small businesses and entrepreneurs by providing access to capital, resources, and education to accelerate small business startup, growth, and success.

The deadline to apply is 8 p.m. on Friday, July 29. Applicant finalists will be required to participate in a virtual pitch competition on Wednesday, August 17.

A virtual information session will be held Wednesday, July 13 at 5:30 p.m. at no cost, but pre-registration is required.

General Appropriations Budget passes senate

The state senate approved the $45.2 billion General Appropriations Budget on Friday.

Scott Martin

Scott Martin, R-13, who voted for the measure, said the budget allows the state to meet the needs of Pennsylvanians without creating multi-billion-dollar budget deficits in the future.

“This budget holds the line on tax increases and invests responsibly in our children, families and our economic future,” Martin said. “A reduction in corporate net income taxes will spur economic growth and competitiveness and bring more job investments into Pennsylvania over the next decade, helping to reverse a migratory trend that’s undermined our state’s prosperity for many years.”

Senate Bill 1100 now goes to the governor’s desk for enactment into law.

The $45.2 billion budget, which also includes federal American Rescue Plan Act (ARPA) funds, represents a 2.9% increase over the previous year’s spending – and $500 million less than Gov. Tom Wolf’s original budget request, according to a press release from Martin’s office.

It also does not include any broad-based tax increases and is structured in a way to minimize the risk of tax increases in the years ahead.

In fact, the budget actually cuts the Corporate Net Income (CNI) tax rate from 9.99% to 8.99% and creates a phased reduction to 4.99% by 2031, moves designed to attract employers and residents to Pennsylvania, Martin’s office said.

As important as the economic boost provided by this plan, which will have a projected ending balance of $3.6 billion, the 2022-23 budget includes a $2.1 billion transfer to the Rainy Day Fund, bringing the total balance to nearly $5 billion.

These fiscally responsible steps are critical because many economic indicators are showing a risk of a recession on the horizon, Martin said. Most recently, Pennsylvania’s Independent Fiscal Office estimated a 60% chance of economic stagnation or a “growth recession” happening, and a 30% chance of a recession.

“This budget aligns with my commitment to steward taxpayer money sensibly and discourage reckless spending,” Martin said. “It places Pennsylvania in a strategic budget position in preparation for the economic uncertainty that lies ahead, and competitively positions the Commonwealth for economic and demographic growth in the years to come.”

PNC helps Hershey international workers with financial resources

PNC’s mobile banking unit helps student workers with banking needs – PHOTO PROVIDED

Hershey Entertainment and Resorts (HE&R) and PNC Bank joined forces to help about 400 international students set up bank accounts while working at Hershey this summer.

The students, who came to Hershey for work and to explore American culture, help the company keep Hersheypark, Hershey Lodge and Hotel Hershey open for guests when labor shortages are the norm, said Kathleen McGraw, HE&R managing director of corporate communications and community relations.

The students, mostly from Europe and the Caribbean, need special documentation to establish bank accounts because they don’t have social security numbers, she said.

PNC stepped in to help.

Jim Hoehn, PNC regional president of Central Pennsylvania, said the bank’s Office of Financial Wellness set up a mobile unit at its University branch in Hershey to help the students set up accounts so they can receive their paychecks and wire money back home.

The mobile unit allowed PNC to help the students while not overwhelming the branch office, he said.

“Hershey Entertainment & Resorts has long been a corporate/commercial client of ours in PNC’s Central Pennsylvania market,” he said. “We are a ‘National Main Street Bank’ which means we serve local customers but operate nationally.”

HE&R reached out to PNC because the bank has a Bank at Work program and can set up accounts for foreign students using documentation they have, he said.

“We work with a lot of the larger colleges in Pennsylvania so when international students come here, we are set up to help,” he said.

Part of that is the bank’s Virtual Wallet mobile banking app that allows customers to initiate some international wire transfers through the app. “This is critical because most of these students don’t have access to a car and their summer lodging isn’t necessarily within walking distance to our branch,” he said. “It takes the financial stress away.”

McGraw agreed saying the students stay at Elizabethtown College and are provided transportation to and from work so access to bank branches can be difficult.

At the end of the summer when it’s time to take the money they earned back to their home bank account, it’s convenient for them to be able to take advantage of the mobile app to simply transfer the money they earned, Hoehn added.

“PNC financial wellness consultants worked with each student for a long while,” McGraw said. “They were here from about mid-May through this week during our onboarding process and worked with our payroll folks so the students can get direct deposit.”

PNC offered financial education along with opening accounts, Hoehn said. That education includes how to bank in the U.S., how to work the mobile app, how to withdraw money and work with customer service.

In the past, McGraw said the company worked with a third party that issued checking cards. “This year, the Bank at Work unit came on site, and it was wonderful for us.”

In fact, she said, Hershey is looking to expand the program for its interns and employees that are new to the area.

Voith Group to acquire Czech Republic IGW Rail

York-based Voith Group is planning to take over IGW Rail, headquartered in Brno, Czech Republic.

IGW specializes in gear units for rail vehicles and is part of the BMT Group, headquartered in Belgium.

Through the acquisition Voith would become one of the world’s largest independent manufacturers of rail vehicle gear units and transmissions, Voith said. A purchase agreement was signed July 6.

IGW Rail is a globally operating high-tech company that has specialized in customized gear unit and coupling solutions for the rail vehicle industry. Its product range covers all types of rail vehicles, from heavy locomotives to light rail, and from trams and subways to high-speed trains.

“As Voith also supplies a wide range of components for these rail vehicle markets, IGW perfectly complements the Voith portfolio.” said

, member of the Voith Corporate Board of Management and president and CEO of Voith Turbo.

“Sustainable drive solutions have been part of the DNA of both companies for decades. Together, we aim to push the worldwide development of innovative gear unit system solutions for all rail vehicle manufacturers,” Weizmann said.

IGW Rail has four production facilities in Brno, Czech Republic, Pune, India, Zanesville, Ohio, and Suzhou, China, and employs around 500 people in total. Both IGW Rail and Voith expect the acquisition to offer them even greater customer proximity.

In the last 25 years alone, IGW Rail has delivered more than 100,000 gear units and couplings worldwide.

“These components, that are well established on the market, need to be regularly overhauled and supplied with spare parts,” said Rudy Thoma, CEO of IGW Rail. He is looking forward to the fact that “in future, we will be able to provide even better customer service thanks to Voith’s 24/7 service solutions.”

The deal is expected to be completed by the beginning of the fourth quarter 2022, subject to the receipt of all regulatory approvals and compliance with other customary closing conditions. The purchase price was not disclosed.

Strawberry Square’s Chocablock Clock ball machine to be replaced

Harrisburg’s Strawberry Square is getting an atrium makeover that will add conference rooms and a new stage area.

Brad Jones – Amy Spangler

The Strawberry Square Development Corp. said it will be replacing the atrium Chocablock Clock ball machine which has been part of the downtown mall since 1988 with a more versatile first floor stage and performance area and a cantilevered 2nd floor conference and meeting room overlooking Strawberry Square.

Brad Jones, president of Harristown Enterprises, Inc., owner of Strawberry Square, said, “We will miss the ball machine Clock as a long-time feature of Strawberry Square, but our ability to repair and maintain it has become more challenging over the years.”

As tenants have changed over time, the company expects the enhanced stage area will be much more welcoming to performers and special events of all types, he said.

“In addition, we will be creating a unique open-air conference and meeting room on the second floor which will enhance our ability to attract professionals and allow our existing tenants – and others needing conference space – to use a very special and exciting new place which will showcase this wonderful downtown hub of education and innovation.”

Pyramid Construction has been hired as the contractor for this project along with architect, Chris Dawson from CDA Architects.

The project is expected to begin this fall and be completed by the end of the year.

The Chocablock Clock audio-kinetic ball machine, designed by the late George Rhoads, was installed in the Strawberry Square atrium in 1988 by Rock Stream Studios from Ithaca, New York.

State offers $303,000 in matching funds to promote agricultural products

Giant Food Stores night manager Steve Dell restocks a display that makes PA Preferred products more visible at the Lititz Pike store in Lancaster County. photo/Amy Spangler

Pennsylvania is looking to expand sales of agricultural products in the state and beyond.

Agriculture Secretary Russell Redding today said $303,000 in matching funds are available to non-profits to reimburse up to 50% of costs for promotional and educational projects intended to increase consumer awareness and sales or grow export markets, he said.

“Pennsylvania food, fiber, and hardwood products are the finest in the world and nonprofit associations are key partners in telling that story,” Redding said. “We’re looking for innovative marketers and educators who can help tell Pennsylvania Agriculture’s story to consumers here and abroad. These grants are ultimately a win-win-win for our agriculture businesses, the more than 593,000 Pennsylvanians whose jobs depend on them, and for our economy.”

Grants will be awarded to nonprofit agricultural promotion and marketing organizations. In 2021, the department awarded $300,000 to 16 non-profits for projects ranging from festivals and tourism events to regional buy-local campaigns and statewide promotions of Pennsylvania products.

Eligible projects in 2022 can promote anything from wine to wool, hardwoods to honey, fruit, vegetables, herbs, meat, poultry or dairy ─ any agricultural product produced in the state, he said.

Grant applications must be submitted online through the PA Department of Community and Economic Development Electronic Single Application. Applications can be submitted beginning today and are due by 5 p.m. Friday, Aug. 5.

Raymour & Flanigan opens in Harrisburg

Raymour & Flanigan enters the Central Pennsylvania market with its first store in Harrisburg Wednesday.

The Syracuse, New York-based company’s expansion into the region will be followed by stores in York and Harrisburg, according to a company spokesperson. The three new stores will join more than 25 locations in Pennsylvania.

The grand opening will take place at the showroom at 4661 Lindle Road at 3 p.m.

The expansion comes at a time of growth for the brand which just acquired Taft Furniture in the Capital Region, its recent nomination as 2021 Business of the Year from CenterState CEO, and its recent partnership with Greenskies Clean Focus to offset 90% of its New Jersey locations energy uses, the company said.

General Fund collections mark end of fiscal year with $48.1 billion

While Pennsylvania lawmakers are still working to hammer out a new budget, state Revenue Secretary Dan Hassell said the 2021-22 fiscal year ended with $48.1 billion in General Fund collections.

Daniel Hassell, Department of Revenue secretary. (Photo: Submitted)

The fiscal year ended June 30 with no state spending plan in place.

The General Fund collections total is 5.6 billion, or 13.2%, above the state’s estimate, Hassell said in a statement.

Below is an overview of June revenue collections and final collections for the fiscal year:

Sales tax receipts totaled $1.2 billion for June, $95.6 million above estimate. Fiscal year-to-date sales tax collections total $13.9 billion, which is $1.1 billion, or 8.7%, more than anticipated.

Personal income tax (PIT) revenue in June was $1.6 billion, $179.8 million above estimate. This brings fiscal-year total PIT collections to $18.1 billion, which is $2.4 billion, or 14.9%, above estimate.

June corporation tax revenue of $972.0 million was $406.0 million above estimate. Fiscal year-to-date corporation tax collections total $7.3 billion, which is $1.7 billion, or 29.2%, above estimate.

Inheritance tax revenue for the month was $121.6 million, $13.2 million above estimate, bringing the fiscal-year total to $1.6 billion, which is $173.0 million, or 12.6%, above estimate.

Realty transfer tax revenue was $76.0 million for June, $10.3 million above estimate, bringing the fiscal-year total to $847.1 million, which is $164.2 million, or 24%, more than anticipated.

Other General Fund tax revenue, including cigarette, malt beverage, liquor and gaming taxes, totaled $178.4 million for the month, $4.6 million above estimate and bringing the fiscal-year total to $1.7 billion, which is $21.1 million, or 1.2%, above estimate.

Non-tax revenue totaled $38.0 million for the month, $4.3 million above estimate, bringing the year-to-date total to $4.6 billion, which is $117.2 million, or 2.6%, above estimate.

In addition to the General Fund collections, the Motor License Fund received $253.2 million for the month, $7.1 million above estimate. Fiscal year-to-date collections for the fund – which include the commonly known gas and diesel taxes, as well as other license, fine and fee revenues – total $2.9 billion, which is $37.4 million, or 1.3%, above estimate.

The Wolf administration and top Republican lawmakers worked through Thursday’s deadline to work out a roughly $42 billion spending plan, according to WWHY.org.

Without new budget legislation, the state will lose the authority to make some payments, although a stalemate must last several weeks before any effect on services is felt, the organization said.

Stonewall Bridge now open to traffic

Completed Stonewall Bridge – Curtesy of Cumberland County

Stonewall Bridge in Southampton Township, Cumberland County, now a two-lane bridge, is open to traffic.

The bridge, originally built in 1925, crosses Middle Spring Creek and carries more than 760 vehicles per day.

The $693,935 project which began in March made the 38 ft one-lane concrete t-bridge into two-lanes.

This bridge is part of a three-bridge bundle that the county is preparing for replacement including, Roush Bridge which carries Dickinson School Road over the Yellow Breeches in Dickinson Township, and Burgner Bridge that carries Burgner Road over the Conodoguinet Creek in Lower Frankford Township.

The total cost for all three bridges at $2.7 million. Construction on all three bridges began in the spring of 2021.

Potential federal bill includes retirement provisions for young workers

As saving for retirement becomes more challenging or less of a priority for many workers across the country, a provision in the SECURE Act 2.0 will help make effective retirement contributions a reality for many younger workers.

Aside from the SECURE Act 2.0’s broadest implications with a shift in the age of Required Minimum Distribution, the piece of legislation will make saving for retirement even easier — especially for workers beginning their careers, according to Lancaster-based financial advising firm Conrad Siegal.

“If you look at many of the statistics, it says that savings toward retirement are incredibly low,” Brooke Petersen, investment consultant at Conrad Siegel, said.

Many of Conrad Siegel’s clients are working toward that savings, but Petersen said the national trend is that many Americans are behind on retirement contributions.

“Many people think that they can make up for it later, but from an investment standpoint, the earlier people begin to save, the more that investment will compound,” Petersen said. “We tell our clients that anything they can do to save earlier in their career, the better, and the SECURE Act 2.0 will certainly help with that.”

The piece of legislation, which stands for Securing a Strong Retirement, is broad and has many components, but there are two provisions that will work together to benefit these younger workers in a direct way.

For many fresh out of college workers, student loans are the largest financial obligation and priority. “These people are actively repaying their loans, but they may not have enough income to make a meaningful retirement contribution,” Petersen said.

In both the House and the Senate versions of the SECURE Act 2.0, workers who are making those loan payments responsibly, but who aren’t contributing to a 401k, will be eligible to receive a matching contribution from their employer based on the continuation of on-time payments. “There is certainly a savings mismatch for young workers,” Petersen said. “And this will help fill that gap tremendously.”

The second provision that works in unison with the 401k match to student loans is an automatic enrollment in a 401k plan.

Although employees are given the option to opt out of the plans they are enrolled in, Petersen said the ease of being automatically contributing may be just enough incentive for those young workers to keep saving.

“Yes, you can opt out, but we would predict they are very unlikely to opt out of plans they are automatically placed into,” Petersen said. “This will get a whole lot more people to start contributing early.”

The demand of initial paychecks for those new to the workforce can be overwhelming, but one thing Conrad Siegel stresses is saving early. “Even if it’s a small amount when you’re young, it’s all about compounding growth over time,” Petersen said. “And these two aspects of the new SECURE Act will work in favor of that.”

The first SECURE Act was passed at the end of the legislative year in December of 2019.

Although many of the provisions in the first iteration of the bill were on the financial community’s radar for a long time, Petersen said it was a surprise that it passed with such ease and so quickly.

“A lot of us in the financial industry were scrambling to find out what specifically was in the bill and to find out what the implications were,” Petersen said.

Being a follow-up to the first bill, the SECURE Act 2.0 has been expected and anticipated, as a bill that fills in the gaps that the first left opened.

The House passed their version of the bill in March of 2022 with little resistance and the Senate is expected to do the same. Although their respective bills look slightly different, their provisions appear equally impactful on savings accounts.

“This bill has bipartisan support,” Petersen said. “It is pretty likely to get over the finish line and all seem to be impacted favorably by this legislation.”

Petersen said the sequel to the SECURE Act should follow the same time frame as its predecessor as a late-season bill attached to a larger spending bill.

Select Region or Brand

Upcoming Event

Tag: finance

Potential federal bill includes retirement provisions for young workers