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REGION’S BUSINESS
PHILADELPHIA EDITION
A JOURNAL OF BUSINESS AND POLITICS
CITY COUNCIL’S
BIG MONEY GAME
City Council campaigns used to be small money affairs, with the incumbent relying mostly on ward and community support. No more. Find out how big money has come to the council.
DOES MINIMUM WAGE HIKE MAKE SENSE FOR PENNSYLVANIA? DARING DESIGN IN KENSINGTON IS IN THE WORKS CITY COUNCIL APPROVES OF ADS ON SCHOOL BUILDINGS
12 DECEMBER 2013
12 DECEMBER 2013
REGIONSBUSINESS.COM
CONTENTS
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“A man who has never gone to school may steal a freight car; but if he has a university education, he may steal the whole railroad.” — Theodore Roosevelt
15 City Council’s Big Money Game
1900 Arch Street Up to 16,000 SF Retail Space Outdoor Seating Spring 2014 Delivery
21 What Gun Control Laws Have
To Do With Healthcare
4 8 18 20
Weekly Briefing Political Commentary
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Townhouses Rising Next To Falling Ortlieb’s Brewery
Real Estate News Q&A: Bob Guillocheau, Ascensus CEO
PRESIDENT AND PUBLISHER James D. McDonald PHILADELPHIA EDITOR Rich Coleman BUSINESS EDITOR Michelle Boyles CONTRIBUTORS Eric Boehm, Charlie Gerow, Don Lee, Scott Staruch, Tim Holwick, Sandy Smith, Patrick Kerkstra, Daniel Shurley PROOFREADER Denise Gerstenfield ADVERTISING DIRECTOR Larry Smallacombe
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12 DECEMBER 2013
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DEALBOOK
REAL ESTATE
Partnership Invests In Dow Building As part of larger plans to revitalize the Market Street East corridor, Keystone Property Group, Mack-Cali Realty Corp. and Parkway Corp. will invest more than $20 million in the Dow building in Center City through a partnership. The group purchased the nine-story, 350,000-square-foot building, which is almost fully occupied by Dow Chemical and the General Services Administration, in October for $40.5 million, but only just announced plans to transform it into a new Independence Mall destination Development plans include converting 55,000-square-feet of basement space into parking, and a 3,000-square-foot restaurant at the corner of 6th and Market Streets with outdoor seating.
SOLABS Signs MultiYear Contract With Iron Mountain Underground SOLABS, a provider of life-sciences software, announced it will co-locate components of its data center operations at Iron Mountain’s underground complex in Western Pennsylvania as part of a multi-year agreement. The move to a secure and compliant data center will allow SOLABS to offer its QM software via a SaaS/cloud in response to customer demand for an alternative to a licensed and installed version. The software assists lifesciences companies in automation and compliance with Federal Drug Administration standards. Iron Mountain’s underground data center is located in a former limestone mine 220-feet below ground and offers customers geothermal cooling and natural protection from environmental conditions.
Iron Mountain
NEIGHBORHOODS
Woodland Ave. Improvement Gets Citizens’ Grant Local businesses along Southwest Philadelphia’s Woodland Ave. corridor will get a boost thanks a $40,000 grant from Citizens Bank Foundation. The funds will enable storefront improvements for a handful of local businesses and a welcome center for new Pennsylvanians, which will provide business owners with workshops and one-on-one technical assistance. The Woodland Avenue Improvement Project is part of the City of Philadelphia’s Storefront Improvement Program that encourages property owners and managers in eligible commercial corridors to make improvements as part of a greater effort to revitalize the local economy in struggling Philly neighborhoods.
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WEEKLY BRIEFING
BUSINESS
Evolve IP Extends Midwestern Reach Evolve IP, The Wayne, Pa.-based cloud services company, has completed acquisition of Paragrid as part of national expansion plans. With headquarters in Cleveland, Paragrid provides cloud computing services like virtual servers and desktops, disaster recovery and consulting services to corporate, healthcare, education and government organizations. Evolve IP’s OneCloud provides a growing number of organizations with a unified option for cloud services. The acquisition of Paragrid will enhance its presence in the Midwest market.
Peri Elected To Delco Bar Assoc. The Delaware County Bar Association has elected Jonathan Peri its next President of its Board of Directors. Peri currently serves as Vice President and General Counsel at Neumann University. He will take over leadership of the 1,100+ member organization in January 2014. A member of the PA State Board of Education, he sits on the Council of Higher Education, is current Chairmen of the Board of Trustees at the Walden School in Media, PA, and previously served as Chairman of the Upper Darby Community Outreach Corporation.
Talent Greater Philly Honorees Talent Greater Philly’s Regional Challenge initiative is designed to honor local companies, organizations and institutions of higher education that have improved college access and degree completion for area students. Independence Blue Cross’s program in partnership with Graduate! Philadelphia, The Philadelphia Education Fund, and The University of Delaware’s Associate in Arts Program (AAP), were each among those honored with this year’s awards. Talent Greater Philly also announced the receipt of a $200,000 grant from the Lumina Foundation that will support the development of a collaborative regional strategy to increase access to degree attainment in Greater Philadelphia.
In Kensington, Daring Post-Apocalyptic Design Under The El In Development BY DANIEL SHURLEY
Realtor, to testify to the difficulty of finding suitable renters willing to live near the El. While sound isoIn the shadow of the Market-Frankford line, a lation measures will make the units more desirable strikingly original mixed-use building will rise from for renters, the lack of pedestrian and auto traffic, a vacant lot on Front Street between Thompson and Crawford’s attorney explained, posed a challenge to Master streets in Old Kensington. The lot has been securing commercial tenants. Absent the level of trafvacant for half a century. A warehouse fire wiped out fic required to sustain retail operations, the developer most of the west side of the block in 2009. aims to lease the first two floors as office space. As for the physical limitations of the site, the architect on the project, Brian Phillips of Interface Studio Architects (ISA), spoke to his firm’s appetite for a good challenge. In ISA’s parlance, “creativity and innovation are triggered by limitations,” a restating of the old adage, “necessity is the mother of invention.” Indeed, the building’s corrugated metal facade and steeply sloped profile will set it apart from its boxy brick neighbors, but it does have a precedent in the Kensington Creative and Performing Arts High School’s austere beauty, which is situated a little farther north on the El’s raucous path. The ISA-designed building will not be set back as far as the high school; instead its terraced top floors slope away from the El, with its fourth floor peeking above the elevated tracks. Crawford accurately described this stretch of Front Street as “desolate” and “blighted,” with minimal trafInterface Studio Architects fic, and the ZBA agreed that these factors, along with the noise pollution, constituted hardship, approving When Peter Crawford bought the parcel at 1312 variances for number of units, front and rear yard N. Front Street in late 2012, his plan for a four-story depth. building with six residential units on the upper two So, given these hurdles, how will the project sucfloors and commercial space on the bottom two floors ceed? would have been allowed by right. That changed when While demand may be attenuated by the El, we’re City Council changed the lot’s zoning to CMX2.5 in willing to venture that Crawford’s bet on original April of this year, limiting the number of units as a building design (check), the perception of safety (it ratio of floor area, in Crawford’s case, to four. looks like a fortress), and proximity to Kensington’s At the Zoning Board of Adjustment (ZBA) hear- cachet of industrial chic— Kung Fu Necktie, Johnny ing on Wednesday, the developer’s team successfully Brenda’s and Frankford Hall are blocks away, and argued that six units were necessary to offset the warehouses with artist spaces abound—will pay off, higher costs associated with building under the El. attracting adventurous renters and commercial tenDouble-stud wall construction and irregular window ants. And lest we forget, this location is exceptionally placement are two of several measures designed to well-served by mass transit. mitigate the noise from trains speeding by every four This article was originally published in Philaminutes during peak hours. delphia Real Estate Blog at blog.philadelphiarealCrawford’s attorney called on Chris Somers, a local estate.com.
Army-Navy Game Returns To Philly, Brings Scores Of Visitors Saturday, December 14, marks the 85th time that the annual Army-Navy football game will be played in the city of Philadelphia. The Philadelphia Convention & Visitors Bureau’s (PHLCVB) Philadelphia Sports Congress (PHL Sports) division estimates the events associated with the inter-service rivalry tradition will bring 50,000 visitors, filling 17,000 hotel room nights and generating an economic impact of nearly $40,0000 over the course of the weekend. The Army-Navy game will return to Philadelphia for the 2015 and 2017 games and is produced by PHL Sports for the City of Philadelphia on conjunction with service academies and Philadelphia Eagles.
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12 DECEMBER 2013
REGIONSBUSINESS.COM
WEEKLY BRIEFING EXECUTIVE BOOKSHELF
WHO TO FOLLOW
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RESTAURANT ROUNDUP
Popular Pub On Germantown Pike Re-Opens After Rennovations Brittingham’s in Lafayette Hill, Pa., recently reopened after extensive renovations. The dark, outdated décor has been transformed into a bright and open space that allows for a flowing layout from bar to dining room. Patio dining and indoor-outdoor bar seating on elevated decks have been added, as well as the area’s only rooftop bar. Chef Joseph Frost created a menu of classic American pub fare, including a beverage menu featuring 24 beers on tap, cocktails and wines selected by sommelier, Melissa Monosoff. Brittingham’s: 640 East Germantown Pike, 610828-7351, www.brittinghams. com.
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12 DECEMBER 2013
POLITICAL COMMENTARY
REGIONSBUSINESS.COM
Corbett Right To Oppose Minimum Wage Increase
Eric Boehm is a reporter for Watchdog.org and can be reached at EBoehm@ Watchdog.org. Follow @PAIndependent on Twitter for more.
CONTRIBUTE Send comments, letters and essays to feedback@ regionsbusiness.com. Opinions expressed by guest writers do not necessarily reflect those of Region’s Business.
Pennsylvania’s minimum wage is sure to become a major issue next year, as Democratic candidates for governor and other offices latch on to the populist economic message during campaign season. But while it sounds nice to put a little more cash in the pockets of Pennsylvania’s lowest paid workers, there is more to increasing the minimum wage than meets the eye. It would be a mistake for Pennsylvania to follow New Jersey’s lead on the issue. Across the Delaware River, voters in the Garden State approved a ballot question last month to increase the state’s minimum wage on Jan. 1. Next year, workers in New Jersey will be guaranteed $8.50 per hour, up from $7.50 per hour. Again, it sounds nice. But those higher wages likely will be passed on to consumers in the form of higher prices, or passed onto the very people they were intended to help in the form of pink slips and longer lines at the unemployment office. Gov. Tom Corbett told the editorial board of the Wilkes-Barre Times Leader last week that he would not support an effort to raise Pennsylvania’s minimum wage.
Because raising the minimum wage creates a higher barrier for entry to the workforce, it can exacerbate one of the biggest problems in the economy today: the Catch-22 that exists when inexperienced workers cannot find a job without experience, which they cannot get without a job. “You’re hurting the exact workers you want to help the most,” says Anthony Davies, a professor of economics at Duquesne University in Pittsburgh. “Those people need job skills, not a higher minimum wage.” If someone’s labor is not worth $7.50 per hour, Davies said, why would the employer be willing to hire them for $8.50 per hour? Since there are practically no ballot questions allowed under Pennsylvania election law, any change would have to be made through the legislative process. With Republicans in control of both chambers of the General Assembly, there is little reason to think a minimum-wage bill would reach Corbett’s desk anytime soon. But the issue is not going away. With the gubernatorial and legislative elections coming up next November, Democrats plan to use the minimum-wage issue to batter Republicans as business-friendly
and unwilling to help the poor, regardless of the economic realities of increasing the minimum wage. It’s starting already. Leading Democratic candidates for governor, including U.S. Rep. Allyson Schwartz and former DEP secretaries Katie McGinty and John Hanger have endorsed an increase to the minimum wage. Whoever survives the Democratic primary to face Corbett next fall surely will use the minimum-wage issue as a cudgel. Expect it to be a part of the Democratic effort to retake the U.S. House of Representatives and the two chambers of the Pennsylvania General Assembly, too. Already, labor unions are pushing the minimum-wage issue in protests at Walmart stores, fast food chains and restaurants around the country. They are trying to build momentum for the issue, so Democratic candidates can climb aboard and surf the wave of support to victory in 2014. While Democrats try to ride economic populism into office in 2014, Republicans would be wise to stay to course and be clear about the unintended consequences of raising mandatory wages.
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12 DECEMBER 2013
REGIONSBUSINESS.COM
CITY COUNCIL
9
City Council Committee Approves Ads on Schools
Timothy Holwick is a freelance writer covering Philadelphia government.
CONTRIBUTE Send comments, letters and essays to feedback@ regionsbusiness.com. Opinions expressed by guest writers do not necessarily reflect those of Region’s Business.
At Philadelphia City Council’s weekly meeting on Thursday, December 5, 2013, a bill to allow commercial advertising on Philadelphia public school buildings was reported from the Philadelphia City Council Committee on Rules with a favorable recommendation. The bill will undergo readings before all of City Council before a final vote is called. The bill puts forth a few specifics, but ultimately relies on the Planning Commission to promulgate regulations that add more details to the process. The bill makes it clear that alcohol and tobacco signs are prohibited, ads shall not be erected on historic properties, and signs that rotate or sport extreme lighting will have to seek special approval. Otherwise, the legislation acts to simply clarify that advertising signs are now permitted on Philadelphia School District property. The initial reason for the legislation is obvious to anyone in tune with the School District’s recent history. The District needs money, to put it simply. The main councilperson behind the bill, Councilwoman Blondell Reynolds-Brown, pointed to success in other
large school districts within Pennsylvania, which have allowed their schools to take money from advertisers. Opponents of the bill mostly point to concerns about blitzing their students with commercial messages all day, even while at
THE SRC WILL FACE A LARGER ONSLAUGHT OF DISGRUNTLED PARENTS AND INTEREST GROUPS THAT MAY NOT HAVE ENOUGH TIME TO MOBILIZE.” school. Councilman Bill Greenlee also supports the bill. He has made it clear that he thinks Council should get the legislation done and not get mired in weighing the pros and cons in Council. As is the case with almost any matter involving the Philadelphia School District, Council does not have the final say on these changes. The School Reform Commission (SRC) will have to vote on the bill, which will be in the form of a proposal at that point.
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If the SRC agrees that allowing advertisements on school buildings is a good idea, then the changes would move forward. Other notable places in the country have introduced similar plans and found success. New York City has raised millions of dollars by allowing advertising on their schools. Texas made headlines when it allowed advertising on the rooftops of several schools in view of planes landing at the Dallas-Fort Worth Airport. City Council passed a bill earlier this year that allowed advertising on city property, but an implementation plan has been slow to materialize. As with that bill, delays will be more likely to come from the SRC and Mayor Michael Nutter’s Administration if he ends up disagreeing with the bill. The SRC will face a larger onslaught of disgruntled parents and interest groups that may not have enough time to mobilize and appear before City Council. For Philadelphia’s lawmakers in council, the need to funnel dollars into the School District will likely trump any objections.
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12 DECEMBER 2013
POLITICAL COMMENTARY
REGIONSBUSINESS.COM
Politicians Put Down Their Guard, If Only For Weekend
Charlie Gerow is CEO of Quantum Communications, a Harrisburg-based public relations and issue advocacy firm.
CONTRIBUTE Send comments, letters and essays to feedback@ regionsbusiness.com. Opinions expressed by guest writers do not necessarily reflect those of Region’s Business.
It’s that time of year again. This week the commonwealth’s movers and shakers and political chattering class will make their way to the Big Apple for a weekend of merriment. It’s the Pennsylvania Society weekend, the annual pilgrimage of the state’s business and political leaders to Gotham for a swirl of receptions, luncheons and dinners culminating in the Society’s annual gala at the Waldorf Astoria on Saturday night. The Society traces its roots to the closing days of the 19th Century when James Barr Feree held a dinner for some notable Pennsylvanians who had moved to New York. Over their steak and oysters they decided to form The Pennsylvania Society of New York, later shortened to “The Pennsylvania Society.” The purpose of the Society was “...uniting all Pennsylvanians...in the bonds of friendship...” For more than a century the Society has sponsored scores of social, charitable and historical events. But it’s the black-tie gala dinner on the second Saturday of each December at the fabled Waldorf Astoria that is its signature event. It’s a command performance to “see and be seen” for the states powerful. The Carnegies, Mellons, Heinzes, Schwabs and those who built our state have been central figures in the Society’s dinners. A young Sir Winston Churchill was the first dinner speaker. Several presidents of the United States have spoken. The
list of honorees and winners of the Society’s Gold Medal is a veritable Who’s Who of Pennsylvania business, politics, education, athletics, arts, science and culture. This year the Society will honor Scranton native Joe Biden, the vice president of the United States. Despite the sparkle of the gala, the events leading up to Saturday night provide the most fodder for scuttlebutt and conversation. Years ago there were a few high-level receptions and luncheons wrapped around the dinner. They now stretch into mid-week and number in the dozens. Hosted by law firms, lobbyists, banks, engineers, colleges and politicos, they begin with the coveted inviteonly event hosted by Christine Torretti at Club Macanudo on Thursday evening. The conga line of Society attendees snakes through the city to an array of hors d’ouvres and spirits that would make an imperial palace blush. Lest the impression be given that food and drink are the only things to be had, it should be noted that there are seminars, lectures and speeches in abundance, as well. Legal powerhouse, Bank Rome, hosts a pair of exceptional seminars on Friday afternoon in its offices at the iconic Chrysler Building. On Saturday morning Fred Anton, a former Society president and the CEO of the Pennsylvania Manufacturers Association, holds his annual seminar and luncheon at the historic
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Metropolitan Club. With most of the state’s political luminaries in attendance and many speaking, it’s considered the crown jewel of the star-studded weekend. All of this wining and dining has not gone without criticism. There’s always some killjoy who wants to gripe about the “elite” living high on the hog or some politician trying to score points by saying we should be spending all of that money in Pennsylvania. You’re likely to hear “Bah humbug” somewhere in the midst of these critiques. The truth is that the Pennsylvania Society weekend is a wonderful event for those who attend and for the state they love. The stated purpose of the Society to unite all Pennsylvanians in the bonds of friendship is seen everywhere. The weekend is truly bi-partisan. Those who break lances during the rest of the year will break bread and enjoy the common bond that is theirs as Pennsylvanians. Raised voices are replaced by raised glasses toasting the commonwealth and all that unites us. At a time when civility is too often lacking in our public discourse, it is refreshing to see in full display the camaraderie envisioned by those Pennsylvanians at the first Society dinner. It gives a renewed sense of hope that the feelings of the weekend will flow from the corridors of New York’s hotels and clubs to the halls of Harrisburg and Washington.
12 DECEMBER 2013
LEGISLATIVE UPDATE
REGIONSBUSINESS.COM
11
CareerBound Program Considered By Labor Committee BY SCOTT STARUCH
during medical procedures. And last Friday, the Pennsylvania Chamber of Business Both the state House of Representatives and Senate and Industry applauded the Corbett administration for were in voting session this week in Harrisburg. Several initiating a formal process to obtain approval from the bills were scheduled to be taken up in committees and be federal government to make necessary changes to Pennconsidered by the House and Senate. sylvania’s Medicaid program. In a press release, the chamber explained, “By starting the formal process through a posting in today’s PennsylLABOR On Tuesday, the House Labor and Industry Commit- vania Bulletin, the state Department of Public Welfare tee considered Rep. Ryan Mackenzie’s (R-Northampton has already begun its engagement in a statewide public County) House Bill 1725 that establishes the CareerBound comment period and will host public hearings and webiprogram. nars on the proposal. The feedback from this engagement CareerBound encourages collaboration between schools, will then be incorporated into the plan and submitted for businesses and the workforce system. In Rep. Mackenzie’s approval to the U.S. Department of Health and Human co-sponsor memo, he explains that CareerBound would Services.” function similarly to the Educational Improvement Tax Credit (EITC), but with a focus on workforce development TELECOM programs for high school students. The House Consumer Affairs Committee is holding a public hearing on HB 1608, sponsored by Rep. Warren Kampf (R-Chester/Montgomery). HEALTHCARE As described by the Pennsylvania Telephone AssociaFollowing the passage of House Bill 1603 in the House, the bill was received in the Senate last Thursday and tion in a recent editorial, HB 1608 “takes the next step in referred to the Senate Public Health and Welfare Com- modernizing the regulatory structure to give consumers mittee. As reported previously, HB 1603, sponsored by even more options when choosing phone, broadband and Rep. Christiana (R-Beaver County), requires a physician video services, at more competitive pricing.” to supervise other personnel administering anesthesia
ECONOMIC DEVELOPMENT
Governor Tom Corbett announced last week that Church & Dwight Co., Inc., a global manufacturer of household and personal care products, including its trademark brand Arm & Hammer, will expand operations in York County, creating approximately 180 new jobs. Also last Thursday, the governor announced that Pennsylvanians will benefit from new recreational opportunities, expanded protection of natural resources and locally driven community projects as a result of more than $38 million in new grants to be distributed across the state as part of the Community Conservation Partnership Program. In the southeast, Quakertown will receive $250,000 to further develop Krupp Site Park, a former brownfield, including an amphitheater and trail connections to adjacent sports fields, the library and a neighboring park. And, the City of Philadelphia will work with the Schuylkill River Development Corp. on a $300,000 project to use an abandoned railroad swing bridge as an extension of the Schuylkill River Trail across the Schuylkill near Gray’s Ferry Ave. and close a major trail gap.
LOOKING AHEAD
This week ends the state Senate’s voting days for 2013. The state House of Representatives returns to Harrisburg next week for voting days on the 16th and 17th.
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12 DECEMBER 2013
EMPLOYMENT LAW
REGIONSBUSINESS.COM
Corporate Vs. Private Rights: The Debate Continues
Rick Grimaldi and Lori Armstrong Halber are partners in the law firm of Fisher & Phillips LLP. Follow them on twitter @LoriRickHRLaw.
Send comments, letters and essays to feedback@ regionsbusiness.com. Opinions expressed by guest writers do not necessarily reflect those of Region’s Business.
You have worked hard to build your closely-held family company into a successful business. You provide generous compensation and health benefits to your employees. In fact, your employee health plans cover 16 types of birth control. The Patient Protection Affordable Care Act (“ACA”) requires, however, that you pay for abortifacients like the “morning after pill.” This offends your strongly-held religious objection to abortion and you believe the government cannot legally enforce this mandate, one of the most controversial provisions of the ACA. And so we see the conflict facing the U.S. Supreme Court in Hobby Lobby v. Sebelius. At issue is the constitutionality of the mandate, as applied to for-profit, wholly secular corporations whose owners object to providing contraceptive coverage on religious grounds. On one side, can the government strip individuals of their religious liberties simply for being a business owner? And on the other, should the personal beliefs of a woman’s boss dictate her health care choices?
Courts throughout the country are split on the issue of whether closely-held corporations, either in their own right or through their owners, may exercise religion, as contemplated by the First Amendment’s free exercise clause. At least one Court has said that a corporation likely is a “person” entitled to assert free exercise rights under the First Amendment and the Religious Freedom Restoration Act (“RFRA”), signed into law by President Clinton in 1993. (RFRA says the government may not place a “substantial burden” on a person’s exercise of religion absent a compelling government interest and a showing that the action is the least restrictive means available for promoting that interest.) Here in our backyard, the Third Circuit Court of Appeals has held the opposite, deciding that a business owned by a Mennonite family is likely not protected by RFRA because “for profit, secular corporations cannot engage in religious exercise.” It is not surprising that advocates on both sides of the issue have donned their usual “jerseys.” The Obama administration declined to comment on the specifics of the case, but said the mandate is designed
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to ensure that a woman’s healthcare decisions are made between her and her doctor. “The President believes that no one, including the government or for-profit corporations, should be able to dictate those decisions to women,” the statement said. Meanwhile, House Speaker John Boehner (R-Ohio) said in a statement that “Faith-based employers, including Catholic charities, schools, universities, and hospitals, should not be forced to provide services that contradict their faith.” The ACA provides a “Religious Employer Exemption” which would likely apply to the organizations referenced by Boehner. That said, and in light of the Court’s willingness to uphold the ACA against all challenges thus far, like it or not, we expect the Court to do the same here. Rick Grimaldi and Lori Armstrong Halber are partners in the law firm of Fisher & Phillips LLP, exclusively representing management in all aspects of workplace law and government relations.
12 DECEMBER 2013
REGIONSBUSINESS.COM
NEWS
3D Gun Ban ‘Noble’ But ‘Useless’ Last month, Philadelphia became the first city to ban 3D-printed guns, according to a legal advisor for the Police Department. To Chris Thompson, 3D printing supervisor at NextFab Studio, it’s a “noble effort… but it’s kind of useless.” Noble, Thompson says, because Councilman Kenyatta Johnson wanted to impact gun control but useless because the federal government already has a similar prohibition. And it’s not easy to enforce. The definition is odd, too: Three-dimensional printer; A computer-driven machine capable of producing a three-dimensional object from a digital model. “That [definition] includes the three CNC milling machines at NextFab and the laser cutters. They used the word “3D printing” to jump on some buzz words instead of ‘digital manufacturing’ or something. So you can’t carve a gun out of metal or plastic either. It’s a short bill, and it doesn’t include anything designed to stop violence. It’s a slight waste of time in my opinion,” Thompson said.
Comp. Science Education Week Comes To Philly Students are taking part in an international initiative this week called Computer Science Education Week to expose students to coding. Nearly five million students from 168 countries have signed up to do one hour of code this week, including nearly 200 schools in Pennsylvania. — TECHNICALLY PHILLY
INNOVATION
13
DreamIt Ventures Raising $30M For Companies BY JULIANA REYES DreamIt Ventures is raising a $30 million fund to further support its portfolio companies. The five-year-old early-stage startup accelerator has raised $10 million so far, said managing partner Karen Griffith Gryga, who is raising the fund. The raise will go toward follow-on funding for the nearly 130 companies that have graduated from DreamIt’s programs in Philadelphia, New York City and Austin. (DreamIt’s latest program, DreamIt Health Baltimore, will launch in January 2014.) The fund is, in part, an effort to keep DreamIt companies in Philadelphia, DreamIt Ventures cofounder David Bookspan told Technically Philly in the fall. Nearly two-thirds of the 66 companies that have graduated from DreamIt Ventures Philadelphia left the city, according to a Technically Philly analysis. That number does not count DreamIt Health Philadelphia, with a retention rate that has been much higher. DreamIt Ventures wants to make it easier for startups to decide to stay by giving them access to early-stage capital, Bookspan said. “We demonstrated that [these startups] will come to Philadelphia to launch their companies,” Bookspan said in the fall. “What we need to do now is to make Philadelphia a place they want to stay.” While the fund is for all DreamIt companies, not just those from DreamIt’s Philadelphia headquarters, Philadelphia is the city that sees the most DreamIt action: it’s currently the only DreamIt Demo Days TECHNICAL.LY/PHILLY city that hosts the traditional accelerator, as well as the health program. DreamIt is planning three programs for Philadelphia in 2014 and 2015, including its flagship accelerator program This article was originally published in Technically and another cycle of DreamIt Health, Gryga said. Philly at Technical.ly/Philly.
Impart Sets Example For Millenial Entreprenuers City-based Banks Law and crafting an ecommerce platform for Knot Clothing. Between the small, cost-efficient team — they’ve eschewed venture-capital funding to bootstrap — and the collaborative work environment, it’s practically the picture-perfect example BY BRANDON BAKER of Millennial entrepreneurship. Taking a by-the-numbers glance at Millennial entrepreneurTwo years ago, 25-year-old Impart Creative founder and Web developer Dan Kruse, of North Jersey, and his creative direc- ship, the at-large stats match the narrative: Twenty-seven pertor, Erika Gallagher, turned to their entrepreneurial instincts cent of Millennials are self-employed entrepreneurs, according for a new beginning — with the help of Eighth and Callowhill to the U.S. Chamber of Commerce Foundation, and as many as streets-based coworking space, Venturef0rth. two-thirds of them hope to be. “Projects we started with we got almost because of proxim“Every day we hone in our skills and make better work. We ity — people coming in and out asking what we do. They’d pop like being a team of three — we don’t eliminate the fact that we their head in and say, ‘Hey, we need this — could you help us could grow into something larger, but ideally what we want is out?’ And we’d say, ‘Yeah, sure! Why not?’” said 25-year-old to have an office dug,” Mr. Lauter said. “We want to have our own little ping-pong court, and maybe Web producer Tim Lauter, who joined the Impart team at Vena storefront somewhere, which would be awesome. We like to turef0rth’s space six months ago. “Now, we have projects where we have a minimum [price] joke and say our end-goal is having an office puppy — having and it’s really great. … At first, you can’t come into this business our own space, stuff like that.” with these crazy price tags, but we’ve always made great work Is your company involved with innovation? Email us at feedno matter the price.” Mr. Lauter said the company has grown “ten-fold” since the back@regionsbusiness.com to pitch your story. company’s inception, recently developing a website for Center Business: Impart Creative Founders: Dan Kruse, Erika Gallagher Contact: tim@impartcreative.com
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INNOVATION
ColdLight Solutions Brings Intuition To Analytics BY BRANDON BAKER What is perhaps most innovative about ColdLight Solutions’ automated big-data analytics platform, is that it needs no explanation — a burden-relief that has sent companies like Comcast, MEDDecision and AstraZeneca right into the Wayne, Pa.-based company’s arms. “We really wanted to bring conversational intelligence to the [analytics] business,” said Ryan Caplan, founder and CEO of ColdLight, remarking on the easy application of its Neuron software. “So, a business person could ask questions about their data and get not just answers back, but more importantly, good strategy on what to do to change the course of outcome.” The idea, Mr. Caplan said, was for companies to understand not just what’s happening in their business practices, but why, and what to do about them in a timely manner. “No one wants to wait three months to get a statistical report,” he said. It’s a simple idea that’s proven lucrative for the company, which leapt from 12 employees last year to a current team-total of 35 analysts and data scientists, as well as a spot on the Philadelphia Fast 100 for four years in a row. To boot, its revenue growth has never dipped
below 100 percent since its heart-of-the-recession inception in 2008. “In hindsight, we found that starting our business in the recession was why we got the adoption we did — people didn’t have the money to spend on teams of data scientists,” Mr. Caplan said. “We were able to offer something that’s actually a cost-saver, as opposed to a new cost. When you look at whether or not you’re going to add 30 or 40 statisticians to your team, or integrate tech that adds power to your [existing] team, I think it’s a no-brainer.” The company was founded with a $500,000 friends and family round of funding, supported through the years by angel investors and a contribution from Ben Franklin Technology Partners of Southeastern Pennsylvania. In the year ahead, Mr. Caplan hopes to build out ColdLight’s Neuron technology as a tool other analytics platforms can use to stack upon their own efforts. “We’re taking the burden off software- and productdevelopment companies, and taking the burden out of them having to develop analytic infrastructure,” Mr. Caplan said. “And what lies ahead for us, is powering the next generation of software products with this intelligence engine. That’s where our focus is right now.”
Ryan Caplan
12 DECEMBER 2013
REGIONSBUSINESS.COM
CITY COUNCIL’S BIG MONEY GAME City Council campaigns used to be small money affairs, with the incumbent relying mostly on ward and community support. No more. AxisPhilly.org found council members spending millions in campaign cash, even though most of them face only token opposition. How has big money come to council? STORY BY PATRICK KERKSTRA ILLUSTRATION BY DON LEE
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16 Winning a City Council seat in Philadelphia is often an expensive proposition. It turns out that keeping that seat warm between elections can be expensive, too. Not long ago, most Council elections tended to be small money affairs, with incumbents relying mostly on their network of ward and community supporters. No more. Between 2008 and 2012, members of this City Council spent a total of $7.5 million in campaign contributions on more than 12,000 expenses, ranging from typical media buys and direct mail purchases in campaign years to lavish dinners at expensive restaurants, bike helmets, bouquets, subscriptions to Food & Wine magazine and a wide array of mysterious expenses with opaque or missing descriptions. An AxisPhilly review of campaign expenditures found that, on average, council campaigns spent nearly $107,000 a year between 2008 and 2012. In non-election years, the average annual expenditures totaled nearly $48,000. Campaign financing – the writing of checks to favored candidates by private individuals and political action committees – tends to get plenty of attention; from the media, from watchdog groups, and, from enforcement agencies, such as Philadelphia’s Board of Ethics. Indeed, candidates and incumbents
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are frequently rapped on the knuckles – and worse – by the Ethics Board for fundraising violations both big and small. But how those funds are later spent is rarely examined. “It’s something that deserves more attention and questioning,” said Shane Creamer, executive director of the Board of Ethics. “We have a disclosure law not just to see who’s making the contributions, but to see who the candidates are paying and rewarding.” State law on campaign spending is broad and permissive. It limits expenditures to any “payment, distribution, loan or advancement of money or any valuable thing by a candidate, political committee or other person for the purpose of influencing the outcome of an election.” A large majority of council’s campaign spending appears to fall clearly within those broad guidelines, an AxisPhilly analysis finds. Between 2008 and 2012, current members of City Council spent over $1 million producing and distributing campaign literature, nearly $1 million more on election day expenses (such as street money), more than $900,000 on advertising and so on. But there are also thousands of other expenses that would seem to apply an even more expansive interpretation of the phrase “influencing the outcome of an election.” For instance, council member cam-
paigns contributed a combined $266,000 to charitable organizations, community groups and schools between 2008 and THE WAY IT WORKS IS YOU SEND 2012. Most are PhiladelA $100 CHECK... YOU GO TO THE phia organizations, from BANQUET, SIT AT THE HEAD string bands and youth sports teams, churches TABLE, THEY ANNOUNCE YOU, and neighborhood assoMAYBE YOU EVEN GET TO SPEAK ciations. Some council A LITTLE BIT... IT’S A WAY TO members contributed to GET 300 PEOPLE IN A ROOM AT charitable causes well outside the city’s boundaries, ONCE, AND SHOW THEM YOU’RE such as Councilman KenA REGULAR GUY WHO CARES ney’s two $300 gifts in ABOUT THEM AND THEIR KIDS.” 2010 to the North Wildwood Recreation Center —COUNCILMAN JAMES F. KENNEY on the Jersey Shore, and Councilwoman Marian Tasco’s payments totaling $340 to North Carolina’s Bennett College Alumni Association is for,” said Barry Kauffman, executive (Tasco attended Bennett), among others. director of Common Cause Pennsylvania. Blackwell did not return a call seeking Councilwoman Jannie Blackwell’s campaign got more personal with its comment, but other council members charity, paying the water bills and park- did. They contended that charitable ing tickets of cash-strapped constituents, contributions and expensive dinners are and writing $500 and $1,000 checks to entirely valid campaign expenses. “The way it works is you send a $100 the parents of prospective Olympic athcheck or whatever, you go to the banquet, letes. “That’s not what campaign accounts sit at the head table, they announce you, are for. Is it a nice thing to do? Sure it maybe you even get to speak a little bit,” is. Helping our neighbors is a good thing said Kenney. “It’s a way to get 300 people to do. But that’s what personal charity in a room at once, and show them you’re a regular guy who cares about them and their kids.” What about those checks to the North Wildwood rec center? “Who goes to Wildwood?” Kenney replies. “Everybody from South Philadelphia, Port Richmond. Every kid on the team I sponsor is from Philadelphia. That’s golden for me.” First District Councilman Mark Squilla, who racked up nearly $13,000 in wining and dining expenses in 2012 (more by far than any other council member that year), said that tab was so high because he is scrupulous about picking up the check whenever he’s in a business meeting, in large part to avoid the need to report on his financial disclosure statements who bought him dinner. “When we have meetings, whether it’s with a ward leader or people who are doing business with the district, I like to pick up the tab because of all these lobbying laws,” Squilla said. Those bills’ tabs can be significant: $1,213 at Del Frisco’s in June, 2012. $903 a few weeks later at Chiarella’s AXISPHILLY.ORG
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Even outside of election season, Philadelphia City Council members know how to burn through large sums of cash. This analysis of reported spending from 2008 to 2012 by incumbent council campaign committees examines where the money is going. Source: City of Philadelphia campaign finance records. Categories determined through AxisPhilly review of records. Only sitting council members campaign spending is included in this analysis. Visit http://axisphilly.org/article/city-councils-big-money-game/ for more interactive features.
Ristorante. $1,207 at Ristorante Pesto in October, 2011. And so on. Squilla said none of the spending was for the personal entertainment of himself, his friends or his family. Council members follow their own playbooks when spending campaign cash, particularly in non-election years. There is wide range in the amount of spending, from Councilman Wilson Goode Jr. – whose campaign committee spends virtually nothing, even in election years – to new Sixth District Councilman Bobby Henon, who has spent more in two years than any of his council colleagues have since 2008. There is just as much variation in the type of spending. Councilwoman Blackwell and Tasco have all but cornered the spending on floral arrangements. Green, who styles himself a forward-thinking council member, led the crowd on spending on technical services. Council President Darrell L. Clarke, meanwhile, built his clout in 2012 by writing large checks to the campaign committees of other pols: $5,000 to fellow council member Kenyatta Johnson, $5,000 to newly elected state representative Gary Williams, and $2,500 apiece to State Rep. Vanessa Brown, State Senator Shirley Kitchen, and former State Rep. Babette Josephs. “Committee spending is like a Rorschach test, in a way,” Creamer said. “They have very different personalities in terms of their expenditure makeup.” During election years, Philadelphia council campaign committees are traditionalists, sinking large sums into campaign literature and Election Day expenses, mostly street money. Few choose to purchase television time in an expensive market that broadcasts well outside of Philadelphia, and few sink real money into sophisticated voter analysis, a trend that cutting edge political operatives elsewhere are embracing. Henon, council’s biggest spender, did not buck tradition much while running for an open council seat in 2011. But he has used his healthy campaign fund – inflated by large contributions from labor PACs, including John Dougherty’s electricians’ Local 98 – for some innovative purposes since securing his office. His campaign committee has hired researchers, programmers and web developers to, in effect, extend the resources of Henon’s city council office. For instance, Henon said campaign funds were used to develop his 311 app, and his “bad neighbor” map.
“If I can supplement city services, that’s going to help make sure I’m in position to win re-election with unprecedented numbers,” Henon said. “That’s my goal.” Many council members, including Henon, use campaign funds to run offices outside of City Hall. For district council members – who tend to see constituent service as their top and sometimes only priority – having an office in the neighborhoods is a big political plus. Several council members confirmed that there is talk of using city funds in the future to pay for district council offices, a move that could generate controversy given the city’s ongoing budget constraints and the advantage that a city-funded district council office would likely give incumbent council members. The last council election in 2011 was an unusual one, with four incumbents retiring, and fifth – DROP poster boy Frank Rizzo – primed for defeat. But in more typical elections, district council members tend to face only token opposition, or even run unopposed. Even in the unusually competitive 2011, incumbents cruised in many districts. Third district council member Curtis Jones Jr., who has spent over $500,000 in campaign funds since 2008, ran entirely unopposed in both the primary and general elections in 2011. Council members Blackwell, Clarke and Tasco trounced their noname opponents in 2011, yet spent nearly $750,000 among the three of them that year alone. Such results suggest that most council members, in most years, need not spend anywhere near the amounts they do. But don’t look for changes anytime soon. The broad language defining a valid campaign expenditure – anything “influencing the outcome of an election” – makes it challenging for regulators to identify illegal expenditures. “The law is written in a very vague and nebulous manner,” Kauffman said. If anything, the U.S. Supreme Court appears primed to loosen campaign finance regulations still further, giving all politicians the chance not just to raise more money, but to spend it more or less however they want. This article was originally published in Axis Philly at AxisPhilly.org.
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FINE ESTATES
$1.4M Traditional, Restored Rittenhouse Home Make this beautiful traditional Rittenhouse Home with contemporary finishes your Center City mansion today! This spectacular four bed, four bath home is an incredible restoration of a 19th century townhouse on a wonderful tree lined street in the center of the Rittenhouse Square Historic District. It is wide open with high ceilings allowing for tons of natural light and it maintains gorgeous architectural features, including arched doorways, columns, molded ceilings, marble fireplaces, original pine hardwood floors, traditional leaded glass windows and so much more. With an extra large living space and separate dining, this home allows plenty of room for entertaining. There are two gourmet kitchens, including one on the lower level with a breakfast nook that overlooks the serene rear garden. The fourth floor has access to a roof-top deck with breathtaking views of the city. You must see it to believe it! For more information, please contact Danielle Py-Salas at (215) 627-3500 ext. 1057
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REAL ESTATE
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Townhouses Rising Next To Falling Ortlieb’s Brewery BY SANDY SMITH
while the remainder will have twocar garages. One noteworthy aspect of this When last we strolled up the 800 block of North American Street in project: the architect, HBD AssoNorthern Liberties, the abandoned ciates of Glassboro, N.J., specialOrtlieb’s brewery was still largely izes in designing casino resorts, intact and the lot to its south was just hotels, restaurants and retail stores. a couple of holes in the ground with Whether this is the firm’s first purea basement foundation filling one of ly residential project, we can’t tell, them. but Hal Banker’s firm is new to the When we took a walk up the block Northern Liberties market. last week, a good chunk of the brewery NLC Construction is the project’s had fallen – we’ll have more on how it’s general contractor. falling in a future post – and the lot, at Given how the townhouses are 824-36 N. American Street, sported situated on the lot, they will most framing for several new townhouses likely be sold as condominiums, along with a second foundation. as they cannot all have individual According to permits on file with street addresses on American Licenses and Inspections, the proj- Street, a city requirement for giving ect, when complete, will consist of each unit its own lot. This article was originally pubnine townhouses with “non-habitable” – in other words, unfinished lished on the Philadelphia Real – basements. Three of the units will Estate blog at Blog.PhiladelphiaRhave garage parking for one car, ealEstate.com.
20 Q&A
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REGIONSBUSINESS.COM
BOB GUILLOCHEAU:
LEADING A TOP PHILLY WORKPLACE Ascensus is a leading provider of retirement services and has been named as a top workplace in the Greater Philadelphia area. With the acquisition of UPromise being finalized, Ascensus CEO Bob Guillocheau anticipates an even greater dedication to servicing its clients and attracting the best talent in the region.
What’s the elevator pitch for Ascensus? At Ascensus we have a team of 1,400 associates who are focused on helping 44,000 U.S. companies and their 1.7 million employees save for an adequate retirement. We also help the 1.4 million IRA account holders save for retirement. In the first week of December this year, we’re actually closing on an acquisition we announced back in September. It’s a company called Upromise, which is the largest third-party servicer for state-sponsored 529 college savings accounts. So, Upromise today works with 17 different states across the country, including Pennsylvania, and supports 2.7 million college savings account holders. When you add up all the numbers, Ascensus is helping 5.9 million Americans save for really important things in life: retirement, putting their kids through college, as well as healthcare. So, that’s what we do. We’re a pure service company. Ascensus is based out of Dresher, Pa. Was it always located in the Greater Philadelphia area? Yeah, the business started back in 1980 and I was not there at the time, but the business has been around the Ambler, Fort Washington area since its inception. We do have locations around the country but our headquarters are here and the largest concentration of employees.
What are the advantages to being in the Greater Philadelphia area for Ascensus? From our standpoint we think there’s a very good labor pool here in the Greater Philadelphia area. We like the fact that there’s obviously folks that go to college here and choose to remain here in the area post-college. We certainly very much like to hire folks coming out of school to start their careers here at Ascensus. We really work very hard so when people join this firm they see it as starting their career, not just simply having a job. Fundamentally we’re a service business so it’s really all about our people and it’s a knowledge-based business. We love to get bright, young folks to come into the organization. How will the Upromise acquisition affect operations at Ascensus? That acquisition will bring about 240 people into our organization and will make us the leading third-party servicer for the 529 college savings industry and will give us a large presence in the Boston area. Our business is growing and we continue to be recognized as really the top service provider in the industry and the financial advisors that work with us rate us as the top service providers, as well. We’re going to focus on our associates and client satisfaction because it’s been a good formula.
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REGIONSBUSINESS.COM
OPINION
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What Gun Control Laws Have To Do With Healthcare
G. Terry Madonna is director of the Center for Politics and Public Affairs at Franklin and Marshall College
Michael Young is managing partner of Michael Young Strategic Research
CONTRIBUTE Send comments, letters and essays to feedback@ regionsbusiness.com. Opinions expressed by guest writers do not necessarily reflect those of Region’s Business.
It wasn’t a “big “story. In fact, the article published by the Pittsburgh Post-Gazette last June received little follow-up and even less attention. That’s unfortunate — because it’s a story that explains the anxiety so many Americans express about both Obama’s Affordable Care Act and even “reasonable” gun controls. More about that in a minute. The not-so-big story was about a Butler Pennsylvania resident, one Jeffrey L. Burtner, suing the Pennsylvania State Police in federal district court. Mr. Burtner sued to force the state police to correct their records erroneously showing he was involuntarily committed to a state mental institution. Under state law anyone adjudicated as a “mental defective” or involuntarily committed cannot possess a gun. On this basis, the state police relied on their “instant check system” to deny Mr. Burtner the right to buy a new hunting rifle. Their system showed that he had been committed in 1992. Now this is where it gets interesting. Mr. Burtner asserted he has never been committed to a mental institution and he immediately challenged the “mental defective” designation. He approached both the hospital and the provider cited as the sources of the state police report. They both indicated they had no such records that he had been committed. Mr. Burtner’s attorney forwarded this exculpatory evidence to the state police, expecting perhaps they would do something sensible with it. So far so good. Mistakes happen, no one is perfect, and all’s well that ends well. Not quite! This is where it gets positively Orwellian. The state police through their legal office acknowledged they possessed no evidence of Mr. Burtner’s involuntary commitment, stating: “the PSP has been unable to find any involuntary commitment documentation on Mr. Burtner …” Understand what is happening because what comes next is stunning. Here, apparently, is a law-abiding Pennsylvanian, attempting to exercise his second amendment rights to buy a new hunting rifle. He reportedly had bought other guns before. Lawfully and willingly, he submits to the required background check, alleges damaging misinformation in the government’s data bases, hires an attorney to help him gather corrective information, and submits that information to the state police. Upon receipt of that information the
state police acknowledge they have no information to the contrary. In other words, they acknowledge they have no basis to deny the purchase or rely on the disputed information about Mr. Burtner. So the state police corrected their records, apologized to Mr. Burtner for the embarrassment and inconvenience (to say nothing of the costs he had incurred) and approved his original application to purchase a hunting rifle. That’s certainly what should have happened! But what actually happened provokes outrage. Upon acknowledging they had no evidence that he had ever been committed, the state police told Mr. Burtner that to get the incorrect information removed from the government data base, he “… would have to take legal action for the PSP to remove it from PICS (the instant background check).” He was compelled to go to federal court and ask for a declaration so that he can exercise a constitutional right, while requiring the state police to expunge its records — records the state police have already acknowledged are unsupported by any facts. Happily for Mr. Burtner the whole farce finally ended in November when the state finally agreed to settle the lawsuit, pay him $400, and allow him to purchase a gun. What is wrong with this picture? For starters, it’s preposterous that a citizen must go into federal court to force a state agency to correct their own records when those records are preventing him from exercising a constitutional right. But the injustice imposed on Mr. Burtner, however unpleasant his experience, pales
against the corrosive erosion to confidence in government that even such small incidents provoke. Mr. Burtner’s ordeal also explains what is so inexplicable to gun control advocates — why millions of Americans still resist or are indifferent to reasonable gun control measures. And it helps to explain why almost two-thirds of Americans now oppose the Affordable Health Care Act. Opposition to these programs do not arise because most Americans’ oppose either sensible gun control or workable health insurance. Opposition arises because we don’t trust our governments to administer these programs with competence and common sense. It’s not the laws most oppose; it’s the government that incompetently administers them. That is the elephant in the room amid the gun debate and health insurance – and indeed many of the controversies of our time. We increasingly don’t trust government to get it right. Americans fear that Mr. Burtner’s story will become their story - that if gun laws are strengthened or health insurance expanded, government will screw it up. We have lost trust in government and Mr. Burtner’s story and others like it exacerbate those feelings. Somehow, Americans must come to believe again that government will do the right thing and the smart thing most of the time. We must come again to believe that government can do its job. Until that happens we will make little progress with guns or health insurance or any of the pressing challenges confronting us today.
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BY THE NUMBERS
31.1%
FLICKR/COOLFONZIES
U.S. marriage rate in 2013 according to the study “Marriage: More than a Century of Change” from the National Center for Family and Marriage Research (NCFMR) at Bowling Green State University
92.3%
U.S. Marriage rate in 1920
60%
Decline in the country’s marriage rate since 1970
27
1 in 4
Average age of a woman’s first marriage (highest in over a century)
Renters were considered “costburdened” (housing cost more than 30% of their income) in 1960, according to America’s Rental Housing, a study released by the Joint Center for Housing Studies of Harvard University
15%
Women separated or divorced on average in 2013
>1%
1 in 2
Women were separated or divorced on average in 1920
Renters are considered “cost-burdened” today
28%
Renters who were “severely costburdened” in 2011, meaning more than half of their income goes towards housing
72%
Average vacancy rate in 2009 (a record high)
8.4%
FLICKR/HENDERSON IMAGES
Number of participants who said they would trust results of a self-administered test as much as if it were performed by a doctor
Number of people who believe traditional hospitals will be obsolete in the future, according to a global healthcare survey conducted by Intel Corporation
10.6%
Average vacancy rate in first three quarters of 2013
53%
57%
84%
Number of people who would be willing to share personal health information to advance and lower health care costs FLICKR.COM/ELENTIRG
Number of people who would be open to virtual medical consultations non-urgent appointments
66%
Number of respondents who said they would prefer a medical care regimen designed based on their individual genetic profile or biological factors
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