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Lawmakers Make Case for Gun Safety Measures

February 6, 2013/in News /by PAMatters

Three Democratic state representatives say there’s more willingness to discuss gun safety measures after the Connecticut elementary school shooting.

Citing gun violence statistics, Representative Ron Waters (D-Philadelphia/Delaware) is again calling for a number of new laws designed to improve gun safety. Emphasizing that point, Waters says they want to dispel the idea they’re calling for gun control.

The bills include a military style assault weapons ban, a firearms liability insurance requirement for those licensed to carry and a child safety lock requirement. Other bills in the package would roll back the expansion of the Castle Doctrine, call for mandatory sentences for those carrying firearms without a license and require neighborhood watch groups to register with the Attorney General’s office.

Representative Madeleine Dean (D-Montgomery) believes they can do something to reduce gun violence while honoring constitutional rights.

Representative Dan Frankel (D-Allegheny) believes there has been a mood change in Harrisburg after Sandy Hook. He says he senses a difference among his colleagues with respect to a willingness to have a conversation about the issue.

No Medicaid Expansion, Corbett Seeks Reform

February 6, 2013/1 Comment/in News /by PAMatters

Pennsylvania will not pursue an expanded Medicaid program until the federal government reforms the system. Governor Tom Corbett made his intentions known during Tuesday’s budget address before the General Assembly. “We cannot afford to expand a broken system,” Corbett announced. “Right now, without expansion, the cost to maintain our current Department of Public Welfare programs will increase by $400-million dollars. The main driver in that cost increase is Medicaid and long-term care.”

The Affordable Care Act expanded Medicaid to cover people up to 138% of the federal poverty line, but a Supreme Court ruling made it an option for the states.

Until reforms are made, Corbett is opting out. “The federal government must authorize real flexibility and innovative reforms that empower us to make the program work for Pennsylvania,” he says. The governor has written the federal government to express his concerns.

But the move has irked Senate Democrats, as Medicaid expansion supporters say it would cover at least a half-million more Pennsylvanians, save on uncompensated care costs and inject billions of federal dollars into the state’s economy.

State Sen. Vincent Hughes

“The governor is walking away not just from the number one health care issue that is confronting us, but the number one job creation issue that exists in front of us,” Senator Vincent Hughes lamented in the wake of Corbett’s budget speech.

The federal government has promised to pay 100% of the cost of the Medicaid expansion for the first three years, but the Corbett administration says the state’s administrative costs would approach $1-billion dollars over that time, and they are not interested in raising taxes or cutting programs to make up the difference.

Last December, Corbett also passed on a state-run health insurance exchange, under the new federal health care law.

Pension Reform Could Drive Budget Debate

February 6, 2013/in News /by PAMatters

Perhaps the most controversial piece of Governor Tom Corbett’s $28.4-billion dollar state budget is the call for public pension reform. The administration has penciled in $175-million dollars worth of savings next year, pending legislative action on the issue. They say reforms would also free up nearly $140-million for the state’s 500 school districts.

Charles Zogby briefed reporters on the budget just prior to the Governor’s speech on Tuesday.

“The reality is that our pension costs are taking most of our available revenue growth,” says Budget Secretary Charles Zogby. The state’s pension obligations are expected to triple – to $4.3-billion – within the next four years. Without reform, Zogby says deep cuts would be unavoidable.

But legislative Democrats call it a false choice. “We’ll work with him on [pensions], but everything he proposed today is not right, and we won’t support,” says House Democratic Leader Frank Dermody (D-Allegheny).

The Corbett plan calls for new hires to be enrolled in a 401(k)-style defined-contribution plan and for adjustments to be made to the yet-to-be earned benefits of current state employees. No changes would be made to retirees’ benefits or the benefits existing workers have already earned.

The plan’s already raising legal concerns. “He’s talking about changing future compensation for current employees, which has already been decided in the courts that is something that’s illegal, back in 1983-84,” says AFSCME Council 13 executive director David Fillman.

The state’s two biggest public sector unions – AFSCME and the Pennsylvania State Education Association (PSEA) – are vowing a legal fight, and that has lawmakers on both sides of the aisle concerned about balancing a budget on savings that would ultimately be in the hands of the courts.

“The question is really, I think, what does a set of reforms look like that can secure 26-votes in the Senate and 102-votes in the House,” says Senate Republican Leader Dominic Pileggi (R-Delaware). Pileggi has been serving in the Senate for more than a decade now, and knows that pension reform can be a profoundly difficult issue.

Governor Tom Corbett Proposes 2.4% Spending Increase for 2013-2014

February 5, 2013/in News /by Brad Christman

Governor Tom Corbett has presented his general fund budget proposal for the 2013-2014 fiscal year that begins on July 1st. He calls it a balanced budget with no tax increases. Corbett’s plan calls for the state to spend $678.76 million more than it has in the current budget, an increase of 2.4%. In his budget address, the governor also laid out his plans for pension reform and transportation infrastructure.

Highlights of the budget include the first increase in basic education funding in two years. The 1.7% increase amounts to about $90 million. Additionally, the governor is proposing a block grant program to be funded by the state’s divestiture in the liquor business. That funding, which would total $1 billion over four years, could be earmarked for school safety, K-3 readiness and enhancing access to STEM programs (science, technology, engineering and mathematics), among other programs. The governor says there would be an initial $200 million available for the grants by the 2014-2015 school year.

Governor Corbett’s proposal also eliminates the Capital Stock & Franchise Tax on January 1, 2014, and calls for a reduction of the Corporate Net Income tax to 6.99% over ten years from 2015-2025. That CNI tax is currently 9.99%.

The budget plan also includes $14.7 million for three new State Police cadet classes.

On pension reform, the governor is proposing big changes for the two public pension funds that have been declared in a state of crisis. The State Employees Retirement System (SERS) and the Public School Employees Retirement System (PSERS) are both drastically underfunded and threaten to gobble up massive pieces of future state budgets. Among the changes proposed by Governor Corbett, new employees would be automatically enrolled in a 401(a) retirement plan where they will be required to contribute at least 6.25% of their salary (7.5% for PSERS). The governor says current employees would not see any changes to benefits already accrued and current retirees would see no changes at all in the benefits they are collecting. SERS is currently only 65.3% funded while PSERS is 69.1% funded.

On transportation funding, the governor is proposing removing a cap on the Oil Company Franchise Tax. Currently, distributors pay that tax based on the artificial cap of $1.25 per gallon, wholesale. Gas prices, of course, are well beyond that threshold, and the governor wants to “uncap” that price over a 5-year phase-in. Distributors would pay more in taxes under the plan, but to offset any potential attempts to pass along that increase to consumers, the governor also wants to lower the state tax on gasoline by a penny per gallon in 2013-14 and another cent in 2014-15. The current state gasoline tax is 12 cents per gallon.

Next up, the overall spending plan will be the subject of dozens of legislative budget hearings in the coming weeks. Then legislative leaders will carve out a final budget that will be sent to the floors of the House and Senate, probably in late June.

Pennsylvania Revenues Come in Below Estimate for January

February 1, 2013/in News /by PAMatters

State revenue collections fell short of estimates last month, according to the Pennsylvania Departmetn of Revenue.

January revenue collections were off slightly as the state collected almost 19 million dollars less than anticipated, a difference of eight-tenths of a percent.

Still, boosted by December’s better than expected performance, the fiscal year to date General Fund collections are 1.1 percent ahead of estimates.

Sales tax receipts fell short by 59 million dollars in January. Inheritance tax, and other general fund revenue such as cigarette, malt beverage, liquor and table games taxes were below estimate for the month.

Personal income, Realty Transfer and Corporation taxes performed above estimate.

Gov. to Seek Level Funding for Higher Education

February 1, 2013/in News /by PAMatters

With Governor Tom Corbett’s commitment to level-fund higher education in the new fiscal year, state-owned and state-related university officials are pledging to keep any tuition hikes as low as possible. “This agreement, this working together, will allow our schools to better plan their budgets for the coming year and make the best use of their resources,” Corbett said at a capitol news conference. “Their commitment should allow students, and particularly their families, to plan their own budgets accordingly.” Corbett was flanked by the state’s higher education leaders as he made Friday’s announcement.

This agreement – level-funding in exchange for minimal tuition hikes – is similar to a deal that was ultimately struck last year. Corbett says it resulted in the lowest tuition increases in more than a decade. “For example, Temple University did not raise tuition last year; Penn State had their lowest tuition increase in nearly 40-years.”

The state appropriated nearly $1.6-billion to higher education in the current fiscal year, and Corbett is proposing the same amount for FY2013-14.

State Senator Jake Corman (R-Centre) says level-funding is significant in what continue to be difficult budget times. “As Appropriations Chairman I can tell you that this coming fiscal year… our cost-carry-forward items – such as Medicaid, debt service, corrections, things of that nature – will grow at a higher rate than what our revenues will grow next year,” he explains.

This sort of early collaboration between Governor Corbett and the higher education community is a change of pace from previous budget cycles. Two years ago, higher education received a near 20% cut, after even steeper cuts were initially proposed. Last year, a level-funding deal wasn’t struck until long after Corbett proposed another round of stiff cuts.

With that track record in mind, Democrats don’t seem too impressed with Friday’s announcement. “By flat funding higher education, Tom Corbett is keeping in place harsh cuts from past budgets and ignoring cost of living increases,” says Pennsylvania Democratic Party Chairman Jim Burn, “Tom Corbett has the wrong priorities.”

Corbett will discuss all of his priorities on Tuesday when he delivers his annual budget address to a joint session of the General Assembly.

Radio PA Roundtable 02.01.13

February 1, 2013/in Audio, Media, News, Radio PA Roundtable /by PAMatters

On this week’s Radio PA Roundtable, Brad Christman & Matt Paul bring you the governor’s plan to privatize liquor sales in Pennsylvania and the reaction from opponents of the plan. Also, a fight over cyber charter school funding…

Radio PA Roundtable is a 30-minute program featuring in-depth reporting on the top news stories of the week.

Click the audio player below to hear the full broadcast:

[audio:https://s3.amazonaws.com/witfaudio/radiopa/Roundtable02-01-13.mp3]

Battle Lines Being Drawn Over Liquor Privatization

January 31, 2013/in News /by PAMatters

The details of the plan may be new, but the arguments for and against liquor privatization are perennially similar. “This is an agency that makes money, that continues to make more money every year,” UFCW Local 1776 President Wendell Young IV said while questioning the logic behind dismantling the state store system.

The UFCW, which represents 3,500 employees at Pennsylvania’s wine & spirits shops, has been on the front lines of the privatization battle for years. This time around, Young says the governor’s plan would not only jeopardize thousands of family-sustaining jobs, but it would drastically increase the number of alcohol outlets. “If you think about what he proposed… you could wind up with 20 – 30,000 or more outlets in Pennsylvania selling wine or spirits.”

As Senator Jim Ferlo (D-Allegheny) did on the Senate floor, Wednesday, Young likens the Corbett plan to the “Wild West” of alcohol sales.

The expansion of alcohol outlets has some worried about the effects of increased consumption. “There is a large body of research that shows a relationship between increases in consumption and a whole host of alcohol-related problems,” says Deb Beck, President of the Drug & Alcohol Service Providers Organization of Pennsylvania. “I don’t think one needs a lot of research to get that.”

Beck says a little inconvenience is a small price to pay, noting that Pennsylvania already has unmet needs when it comes to drug & alcohol treatment programs.

While it may not be enough to assuage the concerns of privatization critics, Governor Tom Corbett’s plan would address both issues: employees and increased outlets.

The plan calls for tax credits for business that employ displaced Liquor Control Board employees, education and civil service credits, as well as a new committee to help affected workers find re-employment.

As for the increased number of alcohol retailers, the governor’s plan tries to balance it with increased enforcement measures. They include stiffer penalties for selling booze to underage or visibly drunk persons, a requirement that new alcohol retailers must use ID scanners and a 75% increase in funding for treatment programs.

If Corbett succeeds it would leave Utah as the only state to maintain complete control over its liquor system – from distribution to retail.

Governor Corbett Lays Out Liquor Privatization Plan

January 30, 2013/in News /by PAMatters

Governor Tom Corbett wants to transition Pennsylvania out of the liquor business over a four year period and use the proceeds for education. The privatization plan would change the distribution of liquor from the wholesale to retail levels.

During the phase in, the governor expects the plan to generate one billion dollars, which would be used to create the Passport to Learning Block Grant Program for public education.

Governor Corbett says he does not simply want to trim the system a little here or there. He says if we are to gain the advantages of greater consumer choice and greater consumer convenience, we should not do it half way.

The Governor added that the plan includes tax credits for businesses that employ separated LCB workers, educational credits, civil service credits and other efforts to help displaced employees.

The Governor’s plan would double the current number of wine and spirits stores to 1200. It would require new alcohol retailers, such as wine and spirits stores, grocery stores, pharmacies and convenience stores to use an ID scanner device before they can sell alcohol. Fines would be increased for selling to minors and visibly intoxicated persons. The additional money from license surcharges and increased fines would be designated for enforcement efforts.

The Governor also proposes increasing alcohol treatment and prevention efforts.

Governor Corbett released details of the plan surrounded by by a number of state house Republicans. House majority leader Mike Turzai , whose own privatization effort fell short, said there’s a lot of energy in the house. He said the Governor is doing something historical in taking the lead on the issue.

Environmental Groups Unveil Guidelines for Lawmakers

January 30, 2013/in News /by PAMatters

A coalition of five, statewide environmental groups has created a series of guidelines they want lawmakers to follow this session. “We’ve outlined five issues we think are likely to appear before the legislature in some fashion during the year, and wanted to give them an early opportunity to understand what it means to be in favor of the environment,” says Conservation Voters of PA Executive Director Josh McNeil. “Almost every public official will claim to be in support of protecting our environment. Now they know what that actually means when it comes to voting.”

The document is called the 2013 Environmental Guidelines for Pennsylvania Legislators.

For instance, with action likely on the state’s transportation funding crisis, McNeil stresses the need to include mass transit. “Public transportation provides incredible economic benefits and reduces significantly the pollution we put out as we move back-and-forth in life,” he says. “A single busload of passengers saves on carbon and global warming pollution from dozens of cars.”

Other issues addressed in the guidelines include: funding restorations for state environmental agencies and “green” standards for the state’s capital construction projects, among other things.

The other four groups to help craft the guidelines are Clean Water Action, PennEnvironment, PennFuture and the Sierra Club Pennsylvania Chapter.

They’ll all be watching this session’s legislative activity, and keeping constituents apprised of their lawmakers’ environmental voting record.

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