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[audio:https://s3.amazonaws.com/witfaudio/radiopa/Roundtable06-15-12.mp3]
On the chopping block this budget season is the cash portion of the state’s General Assistance program in the Department of Public Welfare. The $150-millon dollar effort provides more than 60,000 recipients with monthly checks of around $200-dollars.
Those recipients most often include the disabled, sick and those fleeing domestic violence. “General Assistance is the last knot of the safety net… many of those are persons who have no other means of support,” says Stephen Drachler, executive director of United Methodist Advocacy in Pennsylvania.
Numerous faith-based groups recently joined a diverse, statewide coalition to write the General Assembly in hopes of saving the welfare program.
Housing advocates are even adding their voices to the chorus. Housing Alliance of Pennsylvania executive director Liz Hersh says General Assistance is typically used for basic living expenses and homeless shelters are already stressed. She fears more people would wind up on the streets.
“As taxpayers, while it may be unpalatable to have a program like General Assistance, it actually saves us money,” says Hersh, noting that the aid actually keeps people out of more costly public programs.
The governor’s 1,000+ page executive budget (released in February) notes that eliminating the cash portion of General Assistance will allow the DPW to maintain health care for individuals who do not qualify for Temporary Assistance to Needy Families or Medicaid.
Governor Tom Corbett’s spokesman Kevin Harley tells Radio PA that federal programs will be there to assist the truly needy. “The state program was always above and beyond what the federal government provided, and many states have eliminated or drastically cut back similar programs because of difficult budget situations.”
Like the governor’s budget plan, the Senate budget bill does not include funding for the cash portion of General Assistance. “There is competition for limited resources,” noted Senate Majority Leader Dominic Pileggi whilie meeting with capitol reporters late last month.
But advocates say there is room for compromise, as they seek to preserve General Assistance for those most in need.
Governor Tom Corbett and top Republican lawmakers continue to negotiate next year’s state spending plan. The final budget is expected to spend more than the $27.1-billion proposed by Corbett in February, but less than the $27.7-billion passed by the Senate in May.
Senate Republicans announced a pension reform proposal late last month, now there’s a House package. The two house bills would require future state and school district employees to enroll in a defined contribution plan, similar to a 401K.
The state or school district would contribute 4% and the employee would have to contribute at least 4% of their salaries. The plan also includes an incentive for current employees to switch. If they agree to freeze their benefits and join the new plan, the employer would contribute 7%, instead of 4%. The employee contribution would be at least 4%.
Representative Warren Kampf (R- Montgomery/Chester) says the current defined benefit system is unsustainable. He says under his plan, the contributions would go into an account controlled by the employee. House bill 2453 applies to state employees and House Bill 2454 applies to school employees.
The two pension systems are currently under funded by about 40 billion dollars. Representative Kampf says the taxpayers he has talked to are angry and want some change. He says this plan provides change. He adds that it says to the taxpayers “We’re smart enough now to realize we cannot continue to add more people to this system, because it only makes the problem worse.”
Representative Stephen Bloom (R-Cumberland) says it fits into the context of getting Pennsylvania back on the right track fiscally and making us a solvent state without an excessive burden on the taxpayers.
Representative Kate Harper (R-Montgomery) says something has to be done. She says the pension “deficit” is bigger than the state’s entire budget.
Debate began Monday evening on the latest version of a plan to get state government out of the booze business. Majority Leader Mike Turzai asked, “Why is Pennsylvania so anachronistic? Why is Pennsylvania not willing to focus on its citizens and consumers?” Turzai has been the leading voice on liquor store privatization.
His latest plan would replace the 620 state-run liquor stores with 1,600 private sector wine & spirits licenses. Pennsylvania’s beer distributors would be given the right of first refusal at a fair market value. The remaining licenses would be auctioned off to the highest bidder.
But Monday’s House debate was cut off after nearly three hours, and has not resumed since. Democratic Leader Frank Dermody doesn’t think supporters have the votes. “I don’t believe they’re there, and we’re working hard to make sure it stays that way,” Dermody explained to Radio PA by phone. “Even if you’re for privatization, this is a terrible bill.”
While beer distributors would be given first crack at the new licenses under Turzai’s plan, the Malt Beverage Distributors Association of Pennsylvania opposes the language. “Ultimately when you look at this bill, it’s just forcing your local beer distributor out of business to sell-out to a major corporation,” explains Mark Tanczos, president of the MBDA of PA. Tanczos outlined his position in a letter to the General Assembly.
Governor Tom Corbett can be counted among the high-profile proponents of liquor store privatization. Corbett recognizes this won’t be the final legislative product, but wants to get the ball rolling nonetheless. “Let’s get this first step done,” Corbett emphasized to reporters this week.
House debate could resume as early as Monday.
The Legislative Reapportionment Commission has approved a new final plan for redrawing state house and senate lines; more than four months after the state’s highest court rejected the first plan. But Senate Democrats are still not happy with the plan.
Senate Democratic Leader Jay Costa voted against it, saying it still had too many unnecessary county splits. He says multiple splits were added for pure partisan advantage. He called the map a total disappointment and says it’s another gerrymandered map.
Senate Republican Leader Dominic Pileggi said they eliminated many splits from the earlier plan. He adds his caucus did agree on a number of changes requested by Democrats.
The new plan moves the Pittsburgh-area seat of recently resigned Republican Senator Jane Orie to a growing area in northeastern Pennsylvania.
The plan also moves five house seats, but both caucus leaders voted in favor of it. Democrat Frank Dermody said it meets the constitutional requirements. Seats will move from Philadelphia to York, from Lackawanna/Luzerne to Monroe, from Pittsburgh to Allentown, from Clearfield County to Chester County and from Crawford/Erie to Berks.
The new maps would not take effect until the 2014 election cycle.
Radio PA Roundtable is a 30-minute program featuring in-depth reporting on the top news stories of the week. Professionally produced and delivered every Friday, Roundtable includes commercial breaks for local sale and quarterly reports for affiliate files.
Click the audio player below to hear the full broadcast:
[audio:https://s3.amazonaws.com/witfaudio/radiopa/Roundtable06-08-12.mp3]