SECTION 1: Business Climate

1. In general, do you think business conditions in Pennsylvania are better, the same, or worse than they were SIX MONTHS AGO?
   
   9% BETTER
   36% SAME
   55% WORSE
   1% NO OPINION



2. LOOKING AHEAD SIX MONTHS, do you think business conditions will be better, the same, or worse than they are now?
   
   44% BETTER
   41% SAME
   12% WORSE
   3% NO OPINION



3. Are employment levels at your company higher, the same, or lower than they were SIX MONTHS AGO?
   
   14% HIGHER
   49% SAME
   35% LOWER
   2% NO OPINION



4. LOOKING AHEAD SIX MONTHS, do you anticipate that employment levels at your company will be higher, stay the same, or be lower?
   
   22% HIGHER
   59% SAME
   17% LOWER
   2% NO OPINION



5. Have your company's sales increased, stayed relatively the same, or decreased during the PAST SIX MONTHS?
   
   26% INCREASED
   31% SAME
   41% DECREASED
   2% NO OPINION



6. Do you expect your company's sales to increase, stay relatively the same, or decrease during the COMING SIX MONTHS?
   
   47% INCREASE
   37% SAME
   14% DECREASE
   2% NO OPINION



7. At any point in the PAST SIX MONTHS has your company considered moving all or part of its Pennsylvania operations to another state?
   
   3% DID MOVE SOME OPERATIONS
   8% CONSIDERED MOVING SOME OPERATIONS
   5% CONSIDERED MOVING ALL OPERATIONS
   84% DID NOT CONSIDER ANY MOVES



8. Do you foresee at any point in the COMING SIX MONTHS your company considering moving all or part of its Pennsylvania operations to another state?
   
   2% MAY MOVE ALL OPERATIONS
   10% MAY MOVE SOME OPERATIONS
   87% NOT CONSIDERING ANY MOVES
   1% MAY MOVE OPERATIONS INTO PENNSYLVANIA



9. In general, do you have a POSITIVE, NEGATIVE or NO OPINION of the job performance of the following individuals (POS - NEG - NO OPINION):
   
   President George W. Bush (83% - 16% - 2%)
   Fed Chair Alan Greenspan (76% - 10% - 14%)
   U.S. Senator Arlen Specter (31% - 38% - 31%)
   U.S. Senator Rick Santorum (63% - 16% - 20%)
   Governor Ed Rendell (38% - 32% - 30%
)


10. In general, do you have a POSITIVE, NEGATIVE or NO OPINION of the job performance of the following institutions (POS - NEG - NO OPINION):
    
    United States Senate (39% - 42% - 20%)
    U.S. House of Representatives (53% - 28% - 18%)
    Pennsylvania Senate (40% - 29% - 32%)
    PA House of Representatives (41% - 26% - 33%)

Section II: Policy Questions:

1. Generally speaking, do you AGREE or DISAGREE with Governor Ed Rendell's budget proposals for the 2003-2004 fiscal year?
   
   5% STRONGLY AGREE
   39% SOMEWHAT AGREE
   24% SOMEWHAT DISAGREE
   23% STRONGLY DISAGREE
   9% NO OPINION/REFUSED



2. Do you AGREE or DISAGREE with Governor Ed Rendell's proposal to raise the Personal Income Tax from 2.8% to 3.75%?
   
   9% STRONGLY AGREE
   20% SOMEWHAT AGREE
   21% SOMEWHAT DISAGREE
   49% STRONGLY DISAGREE
   1% NO OPINION/REFUSED



3. Do you AGREE or DISAGREE with Governor Ed Rendell's proposal to shift funding for local school districts by cutting property taxes and replacing the revenue with $1.5 billion in additional state subsidies?
   
   20% STRONGLY AGREE
   29% SOMEWHAT AGREE
   21% SOMEWHAT DISAGREE
   24% STRONGLY DISAGREE
   6% NO OPINION/REFUSED



4. Do you AGREE or DISAGREE with Governor Ed Rendell's plan to use $700 million from the proposed increase in the Personal Income Tax, along with money from the state's "Rainy Day Fund" to plug the deficit in the 2003-2004 budget?
   
   7% STRONGLY AGREE
   30% SOMEWHAT AGREE
   24% SOMEWHAT DISAGREE
   33% STRONGLY DISAGREE
   6% NO OPINION/REFUSED



5. Do you AGREE or DISAGREE with Governor Ed Rendell's plan to spend an additional $687 million on pre-school and full-day kindergarten programs?
   
   14% STRONGLY AGREE
   23% SOMEWHAT AGREE
   25% SOMEWHAT DISAGREE
   31% STRONGLY DISAGREE
   6% NO OPINION/REFUSED



6. Do you AGREE or DISAGREE with Governor Ed Rendell's plan to allow slot machines to be placed at race tracks in Pennsylvania?
   
   36% STRONGLY AGREE
   28% SOMEWHAT AGREE
   8% SOMEWHAT DISAGREE
   21% STRONGLY DISAGREE
   7% NO OPINION/REFUSED



7. Do you AGREE or DISAGREE with Governor Ed Rendell's plan to borrow through bonding $1.5 billion to spend on an economic development stimulus program?
   
   21% STRONGLY AGREE
   37% SOMEWHAT AGREE
   16% SOMEWHAT DISAGREE
   18% STRONGLY DISAGREE
   8% NO OPINION/REFUSED



8. Which do you think is a better approach: Borrowing $1.5 billion through a bond issue and spending it on economic development projects OR lowering taxes and cutting government regulations?
   
   21% BORROWING/SPENDING ON ECONOMIC DEVELOPMENT PROJECTS
   69% LOWER TAXES/FEWER REGULATIONS
   10% DON'T KNOW/REFUSED



9. Do you think Governor Ed Rendell's total budget package will result in a permanent "fix" for Pennsylvania's fiscal problems, or do you see it as a one year "band aid" that will find the state with financial problems again next year?
   
   6% PERMANENT FIX
   74% TEMPORARY BAND AID
   20% DON'T KNOW/REFUSED



10. Generally speaking, do you view the quality of public education in Pennsylvania as EXCELLENT, GOOD, FAIR or POOR?
    
    3% EXCELLENT
    46% GOOD
    39% FAIR
    9% POOR
    3% DON'T KNOW/REFUSED



11. As a taxpayer, would you like to have the right to vote to approve any property tax increase proposed by school districts at the local level?
    
    83% YES
    13% NO
    4% DON'T KNOW/REFUSED



12. Do you think Pennsylvania spends too much, about the right amount, or not enough money on public education?
    
    25% TOO MUCH
    38% ABOUT THE RIGHT AMOUNT
    26% NOT ENOUGH
    11% DON'T KNOW/REFUSED

METHODOLOGY

The Lincoln Institute's Keystone Business Climate Survey was conducted between April 4, 2003 and April 15, 2003.
The survey was sent electronically to 1,400 corporate executives throughout the commonwealth. As of the April 16, 2003 deadline, 179 had responded.