Lawmakers in Harrisburg are inching closer toward repealing the controversial pay raise they passed at 2 a.m. on July 7. This week, even those lawmakers who initially defended the pay-raise vote said they had made a mistake and that current repeal efforts are the result of responding to voter anger.

A repeal of the pay raise is a good start, but only a start. There is much work awaiting lawmakers, once the pay raise is repealed.

For starters, they need to look beyond the pay raise itself — to the way the legislature does business. Most state lawmakers now say they understand voter anger over the use of unvouchered expenses as a way to take a pay raise early — despite a specific prohibition of such action in the state constitution. It's worth asking how these same men and women could have thought unvouchered expenses were acceptable back in July.

Further reforms that lawmakers should address include strict adherence to the constitutional requirement that any bill passed must be considered for three separate days in both the House and the Senate — and a day should mean what most people believe it to mean, not the twisted games lawmakers routinely play to circumvent the 3-day rule.

And, for many reform-minded citizens, lawmakers also should reduce the size of the legislature, impose term limits, take politics out of the redrawing of legislative districts, and trim lawmakers pay and fringe-benefit package. But trimming their own perks and ending their jobs for life is probably too much to expect from incumbent lawmakers. A significant number of incumbents must be removed for these kinds of reform to succeed.

Still, there is reason to be hopeful that change is coming to Harrisburg.

Lawmakers are clearly feeling the heat over the pay-raise vote and other related matters. Many lawmakers and Gov. Ed Rendell are saying they want the pay-raise controversy behind them so they can move on to other issues.

And there is no shortage of issues deserving action in Harrisburg. For many Pennsylvanians, the longstanding promise of property tax reform tops the list.

But if lawmakers need another issue to tackle, they should respond to the findings of a business-climate survey conducted by the Pittsburgh-based accounting firm of Alpern Rosenthal, Inc.

The company's survey of 66 regional manufacturers, and that survey contained some encouraging findings — as well as some troubling findings.

On the plus side, the survey found that most area manufacturers were more positive about the future, and 95 percent of them predicted they would add to their payroll. Over the next three years, 61 percent of the manufacturers expected growth rates exceeding 10 percent.

Such an expected level of sales expansion and the associated job creation is good news.

More troubling, however, was the survey finding that nearly 80 percent of manufacturers rated Pennsylvania's business climate as fair or poor.

Though the survey did not probe further for details, the head of Alpern Rosenthal suggested that usually comes down to taxes.

This is where the state legislature can do something, other than backpedal on the pay-raise vote. Taking action to make Pennsylvania more business-friendly is critical to moving the state forward. Examining the Alpern manufacturers' survey, talking with the state Chamber of Commerce, manufacturers' associations and other groups will give them plenty of issues to tackle.

There is intense competition from other states offering financial incentives to lure Keystone State businesses away. Harrisburg should lessen the reasons for a business to move out of state, while doing more to bring new businesses into this state — and helping those already here to grow and prosper.

Taxes, regulations, red tape and bureaucracy are all areas where state lawmakers should consider more business-friendly changes, and consider adopting measures found in more economically dynamic states. Job creation is, after all, the foundation for a healthy state economy, which is necessary for enhancing the quality of life of all Pennsylvanians.