Two Pennsylvania Counties Say No to Boscov's Bailout

Boscov's total bailout of $35 million seemed inevitable a few weeks ago. This past week two Pennsylvania counties have said no to their part of the funds.

Schuylkill, Blair, Cambria, Lackawanna, and Lebanon counties have all already agreed to throw $5.83 million each to the retailer. Thankfully, Butler and Snyder counties have now stood up and said no.

Our state has a huge deficit, and Governor Ed Rendell is saying he doesn't want to hear any whining about layoffs. Businesses are closing weekly with the most recent closure being Transcontinental Direct in Frackville, the former Jetson Direct Mail.

So why does Boscov's deserve bailout funds? Some political leaders in my county say they are trying to help in an effort to save 155 local jobs. While employees of the store have been noted to say that the store is visibly empty and finding someone to checkout is like pulling teeth.

While the fate of the employees is hanging in the balance, the state is doing nothing to save jobs elsewhere. If the $35 million deal is to go through, the remaining counties will have to ante up $7 million each as opposed to the previous approved amounts of $5.83 million.

The state has recently received government funds in an effort to be able to pay the massive amount of unemployment claims that are coming in daily. A letter I received personally from the Department of Labor and Industry stated that the unemployment rate is now so high in Pennsylvania that Tier 2 extended unemployment compensation is now available.

So why does Boscov's, who's owner is said to be worth over $100 million, get the favoritism and $35 million?

I do not know, but it is disheartening. The county in which I live, Schuylkill, is trying to save the retailer. I say let them go. Many of our county residents cannot afford Boscov's prices, which is probably part of the reason the retailer is failing.

The retailer, after asking for government funds, went as far as to sponsor a local game show called BrainBusters. If they can afford to spend funds on sponsorship, they do not need a bailout, or a loan.

The other reason the business is failing is plain and simple poor management and marketing skills. Just like the carmakers, the government is rewarding them for making bad decisions.

If the state is going to throw $35 million at someone it should be the people of the state, and the roads. Put the money where it will save other jobs, or create new ones, rather than throwing it a retailer who has obviously proved that they cannot survive on their own.

The amount of money it would take for the state to pay any Boscov's potentially displaced workers unemployment funds is far below the cost of a bailout. Add on an offer of tuition assistance or job search assistance and the total cost is still not even close. The state already offers job search assistance to anyone seeking it through its Career Link Centers.

This action would allow the employees of the retailer to make a better life for themselves and their families. They would be armed with the tools to find a better job due to the education, and they would acquire the knowledge and skills needed to find better jobs. There would still be enough funds left over from the $35 million they are trying to give Boscov's to put a huge dent in the enormous potholes throughout the state. (No pun intended)

It is sickening that the state is willing to give millions to a man who is reportedly worth three times what he is asking for when we are now almost $3 billion in debt and our state roads and highways are like playing a game of dodge ball with a car.

The money could create jobs that will fix our roads. If they have to give almost $6 million to the retailer per county it should be given to the people in gift cards that they could use to spend at the store. Personally, I would burn any Boscov's gift card I would receive after hearing of this disgusting mess, but people could then get their part of the bailout by getting the clothing and other household items that they need, and right now cannot afford.

Pennsylvania, I beg you, say not to Boscov's. Let the owner take $35 million of his $100 million in assets and bail himself out. It is a joke to spend that much money to save so few jobs that pay little over minimum wage. Stick the money in government backed tuition assistance for the displaced workers over the last two years. Then you will see some real accomplishments.

sources:

http://www.republicanherald.com/articles/2009/01/24/news/local_news/pr_republican.20090124.a.pg1.pr24boscovs_s1.2254461_top3.txt