Berks economy is stagnant because of poor leadership, crony journalism

by Steve Reinbrecht

To the tax-haters in Berks County, the front page of the Reading Eagle on Friday warned that your payments to support county government are going to rise if more people and businesses don’t move here.

The reporter wrote:

“If the county's property tax base continues to stagnate, budget chief Robert Patrizio warned, commissioners are going to face some tough choices about spending and taxes in the future.

“ ‘This has to be our No. 1 initiative,’ he said of efforts to grow the county's property tax base. ‘We have to find a way to get development in this county.’ "

Off Buttonwood Street in Reading

Why won’t Wegman’s build here? Berks’ economic activity is stagnant for many reasons. And the lack of good reporting on Berks’ serious issues has contributed to our local lack of progress. You can’t fix problems until you identify and understand them.

The county’s economic-development leaders have held their jobs for years with very little to justify their often taxpayer-subsidized salaries. If they identify practical goals and report on their progress, you won’t read them in the Reading Eagle. 

Jon Scott at the Greater Berks Economic Partnership, Ed Swoyer at the absolutely opaque Greater Berks Development Fund, Adam Mukerji at the Reading Redevelopment Authority, Lenin Agudo, the community development director in Reading City Hall, Ellen Horan at the business Chamber, Crystal Seitz at the visitor’s bureau – none is held accountable for demonstrating effective outcomes.

Investors shun Berks because it’s hard to get here. What other city is so isolated? We have no passenger rail or air service. To get to central Berks from Allentown and the north, you drive for miles of one-lane congestion on Route 222. Coming from Philadelphia and the east, you drive through endless traffic lights on Route 422 in Douglassville and Exeter Township. Or take the turnpike for a fee and lots of extra miles. From the west, you’ll get a close look at dozens of intersections on Route 422 from Lebanon through West Reading. 

In the south, we did get a beautiful expressway, Route 222, which my daughters drive to Park City Mall, outside Lancaster, because Berks has no shops they like. The state provided $140 million for highway work in Berks – to improve Interstate 78 so people can drive THROUGH Berks County faster.

The lack of adequate road access is due to the county’s lack of political clout, demonstrated by the obvious gerrymandering that has made Reading irrelevant on the state and national levels.

Here is another example of local leadership failing to lead. The Democratic political machine here can’t handle its responsibilities. The city of Reading will get nowhere without reasonable diplomacy with county and state officials. But the Dems can line up no one better than Vaughn Spencer or Wally Scott to tell the city’s story and grovel for help. 

Entrepreneurs have told me they won’t invest in Reading because they perceived it was corrupt. That perception has become a well-publicized reality.

I suspect Berks County suffers from a xenophobic business climate that favors established businesses over newcomers, discouraging the kind of innovation that is fueling development in the Lehigh Valley and other places. Do banks operating locally loan to minority entrepreneurs? They are not publicly embracing new credit-risk assessments designed to make it easier for deserving poor people and young people to borrow. The Chamber of Commerce promotes right-wing policy that channels growth to the wealthy and leaves the middle class struggling, and not spending, and thus not creating demand for jobs.

From the Chamber of Commerce's tax form

Reading has missed out on economic- development aid from the state. Bethlehem and Lancaster won tax advantages over Reading because of Reading’s shoddy application. 

Berks has received a paucity of development grants from the Ben Franklin Technology Partners compared to Bethlehem, York, and Scranton. On Oct. 15, Ben Franklin Technology Partners of Northeastern Pennsylvania announced $651,600 in loans to help young companies in the 21-county region. Berks got $25,000 for one company, about 4 percent of the total.

What’s the progress on the Ride to Prosperity? Berks didn’t regain its pre-recession peak employment [175,800 in July 2007] until December 2014, although it rose through 2015 to 177,000 in October. Economic development officials say we need “shovel ready” sites. So where are they creating them?

Our schools are mediocre. In a ranking of 681 state highschools, Wilson was 105th, Boyertown was 137th, and Wyomissing was 233rd. I’m sure our talented children can’t wait to leave. But that’s OK. Berks has also led the charge to defund public schools even further.

Do we really want visitors? If so, we need to get better people to run the visitor’s bureau. “Take a ride” is the motto; it sounds like “take a hike.” The agency, which got $50,000 in tax money in 2014, paid its president, Crystal Seitz, $135,000 that year. Is she worth it? How do we know?

Drivel from the visitor's bureau website

Once I called the bureau for information about an attraction. A staffer told me she shouldn’t tell me because the business I was interested in was not a member. So it’s clear the bureau, like so many Berks agencies, is more interested in internal politics and survival than serving its mission.

One whopping reason Berks can’t escape its lackluster growth is that Berks’ media – the Reading Eagle, WFMZ, bctv.org – don’t adequately cover the news in Berks. They hold no one accountable. They create no record to hold elected officials to. They ask no tough questions on practical issues. They don’t cover deep problems with health-care access, education, politics, or the environment because advertisers want to project the image that everything is wonderful here, so buy the new car. 

The media are happy to reinforce the world view that everything is OK in Berks County, from the environment to the economy; that people with brown skin cause our problems; and that what we celebrate is celebrated for Christian people who believe themselves white. That sells the media's products, but does nothing to solve the problems limiting our economic growth.