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Dwan Walker: Credit card bill bad for Pennsylvanians

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Dwan Walker: Credit card bill bad for Pennsylvanians


Here in Aliquippa and communities across Western Pennsylvania, we’re seeing how the hard work and determination of ordinary citizens contributes to the strength and resolve of our commonwealth. Bouncing back in the aftermath of a global pandemic has not been easy, but our neighbors are getting back to work, taking chances on opening or reopening small businesses and doing what they can to provide for their families.

But a new bill in Congress that takes aim at the credit card market threatens to make all this more difficult for average Pennsylvanians, and particularly our neighbors in Black and brown communities.

The African American community is often disproportionately impacted by the barriers that everyday Americans see to credit and capital access. Being able to obtain and grow credit makes recoveries like the ones we have seen possible, but if consumers cannot access credit, they are left behind.

That’s why I oppose the Credit Card Competition Act of 2023 (CCCA), a bill in the U.S. Senate that would have deep ripple effects in Black and brown communities at a critical time when we are trying to foster business growth and give average citizens a leg up.

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Having access to credit is tremendously important in today’s economy, and particularly in diverse communities that have long faced barriers to equal access for banking and credit services. Credit cards allow us to build a credit history so we can compete for the best interest rates for mortgages or auto loans. While we might not often think about it, responsibly using credit cards can create opportunities that lift our communities. However, those backing the CCCA — huge corporate retailers like Walmart and Amazon — will make credit more expensive and less accessible to many Pennsylvanians.

This bill gives superstores a huge break on interchange fees, which are the fees they pay to process electronic payments. They stand to make an extra $40 billion to $50 billion a year from this bill , shifting the financial burden to companies who offer credit cards to consumers, and we will end up paying the price.

Interchange fees help ensure credit cards are the safest way to purchase goods and services. Interchange fees fund fraud protection services and provide incentives for banks and credit card companies to take a risk lending to new borrowers. If banks respond to these changes like they did when similar legislation was passed affecting the debit card market, we can expect increased interest rates, additional fees and added difficulty when applying for credit.

Community banks and credit unions — often the most easily accessible banking institutions for communities of color — stand to lose billions. The bill will generate an industry-wide impact, and the banks will have to make up the lost revenue somewhere.

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Our communities have worked so hard to lead an economic recovery in recent years, but many hard-working people have yet to realize those gains, so it is my hope that our legislators won’t inadvertently add one more hurdle for us to overcome when there is still so much work left to do to strengthen our economy and lift up Black and brown communities in the process.

I’m calling on Congress to reject the Credit Card Competition Act. I trust that our excellent senators in Pennsylvania will look out for the best interests of our communities, and I hope that their colleagues will do the same.



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Pennsylvania

Suspect in killing of woman in Pa. motel in custody in N.J., cops say

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Suspect in killing of woman in Pa. motel in custody in N.J., cops say


A suspect in the homicide of a woman in Bensalem, Pennsylvania is in custody at the Trenton Police Department, police said Wednesday afternoon.

The suspect and victim’s identities have not been made public.

The Bensalem, Pennsylvania police and the Buck County District Attorney’s Office said in a statement that officers found a woman dead at the Sleep Inn & Suites, on Street Road, early Wednesday. They did not detail the circumstances of her death.



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Shapiro threatens to pull Pennsylvania out of PJM over electricity prices

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Shapiro threatens to pull Pennsylvania out of PJM over electricity prices


Pennsylvania Gov. Josh Shapiro (D) is warning regional electricity grid operator PJM that the state will consider leaving the organization if it doesn’t do more to protect consumers against soaring power prices.

Shapiro’s letter marks a sharp escalation of his dispute with PJM, the largest U.S. wholesale power market and transmission coordinator, serving 65 million people from the Atlantic Seaboard to Chicago.

The risk of more power price escalation “threatens to undermine public confidence in PJM as an institution,” Shapiro said in his letter to Mark Takahashi, chair of PJM’s board of managers.

In a statement Tuesday, PJM said, “We appreciate the governor’s letter and have reached out to his office to discuss next steps.”

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Group weighs potential and peril of performance funding for Pa. universities • Pennsylvania Capital-Star

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Group weighs potential and peril of performance funding for Pa. universities • Pennsylvania Capital-Star


A group of lawmakers, university administrators and the head of the Department of Education heard Tuesday about the possibilities — and perils — of tying public funding of state-related universities at least in part to their performance and students’ academic outcomes.

The Performance-Based Funding Council was created by the General Assembly last summer and tasked with making recommendations on a performance-based funding formula by the end of April. Members include four lawmakers, Interim Acting Secretary of Education Angela Fitterer and three non-voting members from the state-related schools that would be affected: Penn State, Temple University and the University of Pittsburgh. Lincoln University, an HBCU and a fourth state-related university, would not be affected.

Currently, the three state-related schools collectively receive more than $550 million in state funding annually. The move to a performance-based funding formula has been supported by lawmakers from both parties, as well as Gov. Josh Shapiro.

“These legislative hearings offer a unique opportunity to fundamentally reassess how we align public resources and educational outcomes,” said Rep. Jesse Topper (R-Bedford), the council chairperson. “I believe we need to show the public how those resources are used and why — why we invest in higher education.”

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More than 30 states already use a performance-based funding model. According to testimony heard by the council, the most common academic targets in states with performance-based funding models include graduation rates, student retention and degree or credential completion. But a potential formula could also take into account factors like research output, administrative efficiency, and employment rates of graduated students.

While policies vary greatly around the country, about 10% of money sent to four-year schools in states with performance-based funding formulas is based on the targeted metrics, according to testimony by Andrew Smalley, a policy specialist who focuses on higher education at the National Conference of State Legislatures.

But experts warned that coming up with a comprehensive formula can be “daunting.”

“Everyone knows that colleges and universities subject to these formulas find themselves in a bit of a Catch-22,” said Charles Ansell, vice president of research, policy and advocacy at Complete College America, a nonprofit focused on best practices in higher education. “They need funds for their performance and improved graduation rates, but they cannot access funds without demonstrating improvement first.”

One potential solution, another expert testified, could be awarding funds based on improvements at an individual school over time instead of an arbitrary benchmark, like graduation rate, that applies to all schools.

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Experts also warned that some performance-based funding models can exacerbate disparities in educational outcomes between high- and low-income students, and between white and minority students.

“Performance funding is typically tied to advantages for the advantaged students and disadvantages for the disadvantaged,” said Justin Ortagus, an associate professor of higher education administration and policy at the University of Florida. Though he noted that a funding formula can take these pitfalls into account by incentivizing enrollment and degree or certification attainment for students in impacted groups.

Speakers also highlighted the benefits of performance-based funding models. Ortagus noted that they can promote institutional accountability.

It could also provide predictability when it comes to school budgets.

As it stands, Pennsylvania’s method for funding these universities requires a two-thirds vote of the legislature, which has led to months-long delays in the past. Creating a predictable funding formula that would be distributed through the Department of Education would mean future appropriations would only require a simple majority.

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Moreover, lawmakers could use performance metrics to encourage specific educational outcomes. Part of the funding formula, for example, could rely on students enrolling or graduating in programs of study that would lead to them entering high-demand fields in the job market.  

The state could also target specific outcomes based on goals like increasing low-income, veteran or minority student graduation rates, encouraging adult education and incentivizing students to enter high-demand jobs by focusing on particular majors. And the formula can be adapted when new needs or issues arise.

“It’s very common for states to revise these frequently,” Smalley said.

The council expects to hold three more hearings, some at the campuses of affected state-related universities.  Its recommendations are due to the legislature and governor April 30.

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