Pennsylvania Finance Building

Bills Could Benefit PA’s College Savings Plans

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After receiving unanimous votes in the House Appropriations Committee the pair of bills awaits action on the Senate floor.  One would ensure that state tax benefits are only applied to state-sponsored college savings plans.  “Pennsylvania is one of just a few states that allows for tax credits for investments out of state,” says Senator Jake Corman (R-Centre), the prime sponsor. 

State Treasurer Rob McCord (D-PA) applauds the bipartisan effort.  “It will help current account holders by lowering fees.  It will help future account holders by making it crystal clear that they’ve got a best of breed program, top-ranked, Vanguard-provided, right here in Pennsylvania,” McCord explained in a telephone interview.    

Corman’s second bill would put the full faith and credit of the Commonwealth behind the state’s Guaranteed Savings Plan.  “I don’t think anyone here believes that if this program came under financial distress that we wouldn’t step in,” he said at this week’s Appropriations Committee meeting. 

Treasurer McCord supports this bill too, telling us the explicit guarantee would assure even the most cautious consumers and advisors.  But he adds that the GSP is extremely healthy.  “We’ve had record-breaking investment return rates under the McCord Treasury, I’m singularly proud of that.” 

Both bills (SB 1135 & SB 1090) could soon be called up for final Senate votes.  The timing seems right, as May 29th is “529 College Savings Day.”

AAA Study Finds Risk for Teen Drivers Rises with Number of Underage Passengers

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The risk of a teen being killed in a traffic crash rises with the number of young passengers according to a study by the AAA Foundation for Traffic Safety.   

The study says if a 16 or 17 year old driver adds one passenger under the age of 21,  the risk  increases by 44%. With two young passengers, the risk doubles and with three or more, it quadruples.

But Jenny Robinson of AAA Mid-Atlantic says carrying an adult passenger has the opposite effect. A teen driving with an adult age 35 and up has their risk factor reduced by 62%.

Pennsylvania’s new teen driver law limits the number of non-family young passengers for the first six months of driving.  Robinson says parents can impose their own limits for a longer period.

Robinson says parents should set the rules before they hand over the keys.  She says AAA has parent and teen driver contracts on their website.

Robinson says they’ve known for some time that having young passengers is a distraction for a teen driver, and this study really makes the risk clear.

Bill Could Pave the Way for Higher Turnpike Speed Limits

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Turnpike speed limits max out at 65-miles per hour.  The limit is set by state law, but the House Transportation Committee has advanced a change that would give the Turnpike Commission the authority to raise speed limits up to 70. 

“It doesn’t mean that it has to,” says Rep. Joe Preston (D-Allegheny), the bill’s prime sponsor.  “But to be able to give the latitude, if it so chooses in the different areas that have changed or improved, they can raise it from 65 to 70.”

The Pennsylvania Turnpike Commission doesn’t have an official position on the bill, but spokesman Carl DeFebo says roadway improvements – like wider medians and shoulders – do tend to be more conducive to higher speed limits. 

Driving 70-miles-an-hour on the Turnpike wouldn’t be unprecedented either.  When the Turnpike opened in 1940 there was no speed limit.  The first speed limit imposed in 1941 was 70-miles-per-hour for passenger cars, but it was soon lowered.  DeFebo says the majority of the toll road has been under a 65-miles-per-hour speed limit since 2005. 

Preston’s bill received an 18 – 4 vote in committee this week.  All four negative votes were cast by Democrats.

Senate Votes to Fund Mortgage Assistance Program

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State budget pressures have taken their toll on the Homeowners’ Emergency Mortgage Assistance Program (HEMAP).  The program, which provides small loans to financially distressed homeowners on the brink of foreclosure, has not accepted any new applications since last September. 

State lawmakers now believe they’ve found a solution, and the Senate has voted unanimously to tap the recent national mortgage abuse settlement for HEMAP funding.  Pennsylvania will be receiving about $65-million dollars specifically for consumer protection purposes.  Senator John Gordner’s bill (SB 1433) would direct 90% of that money into the HEMAP program.  The remaining 10% would be split evenly between the attorney general’s office and legal services for consumers.

“Since 1983, we have saved 46,000 homes through our HEMAP program,” Gordner explained from the Senate floor prior to Wednesday’s vote. 

United Way of Pennsylvania President Tony Ross tells Radio PA that HEMAP is one of the wisest investments the state can make, “Because we know that homelessness is a major cost driver in terms of social services.”  Ross points to a recent study that found hundreds of millions of dollars in savings. 

If it becomes law, the bill is expected fund HEMAP for the next five years.  It’s now headed across the capitol where it will await consideration by the state House.

Budget Bill Clears Committee, Awaits Senate Vote

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The $27.65-billion dollar state spending plan cleared the Appropriations Committee with a unanimous vote late Tuesday morning.  It would spend about a half-billion dollars more next year that what Governor Tom Corbett proposed in February.

Senate Appropriations Chairman Jake Corman (R-Center) cites a recent Independent Fiscal Office report in telling the committee that the budget bill reflects the revenues of today. 

“This has restorations to basic education, particularly in the area of early childhood education, with Pre-K Counts and Head Start restorations,” Corman explained.  “This also sees significant restorations to higher education, back to level funding from last year.” 

He says that the state-owned and state-related universities have agreed to hold tuition hikes at or below the rate of inflation if their funding is restored. 

Senate Democrats want to see even more of the proposed cuts restored, but backed the bill to move the process forward.  “Now that the dollars have come in we have a document in front of us that better represents the dollars that are available,” says minority Appropriations Chair Vincent Hughes (D-Philadelphia). 

The Corbett administration is encouraged by the recent trend in state revenue reports, but isn’t ready to commit to spending more money until they see exactly how much revenue will be available.  “We think it will be a little better than what our original projections were,” Corbett spokesman Kevin Harley told us by telephone.  “We’re hopeful that will continue to be the case in May and June.” 

The Senate budget bill is likely to be the document from which high-level budget negotiations can begin in earnest.

Police Officers Memorial Held in Harrisburg

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Four police officers killed in the line of duty last year in Pennsylvania were remembered at a Fraternal Order of Police Memorial Service Monday at the Forum in Harrisburg.   

Governor Corbett spoke at the Memorial, saying when a law enforcement officer lays down his or her life; it is a sacrifice upon the altar of our liberty.  He says we can only pledge to honor that loss by ensuring that the laws are respected.

Corbett says we must never forget the names of the fallen and carry on the ideals of a humane, just and civilized nation for which those officers fell.

The officers killed in 2011 were Deputy Sheriff Kyle D. Pagerly of Berks County, Officer Robert A. Lasso of Freemansburg Borough, Patrolman Derek Kotecki of Lower Burrell,  and Officer John David Dryer of East Washington Borough.

After the memorial, the state house unanimously passed a bill designating the interchange of Route 136 and Interstate 70 in Washington County in memory of Officer Dryer.  He was shot to death during a traffic stop last December

RadioPA Roundtable

Radio PA Roundtable 05.04.12

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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/Roundtable05-04-12.mp3]

Dairy Farmers Ask to Keep Current Milk Premium in Place

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Dairy farmers are still operating on tight margins and they want the Pennsylvania Milk Marketing Board to keep the current over-order premium price in place for another six months.   

The Pennsylvania Farm Bureau has again urged the board to retain the current Class I (fluid milk) over-order premium price of $2.15 per hundredweight.  The board reviews pricing twice a year and will be making decisions for the six month period that starts July 1st.

 Mark O’Neill, spokesman for the Farm Bureau, says dairy farmers are facing many challenges.  He says they’ve seen milk prices decline, as production costs remain high. Last year’s weather conditions resulted in feed shortages and poor quality feed, which can affect costs and milk yield. Many Pennsylvania dairy farmers grow their own feed.

Keeping the current over order premium price would not change what consumers are paying for milk at the grocery store.

O’Neill adds that income over feed costs dropped by nearly 30% over the past year as the overall milk check fell and the cost of feeding the cows rose. This means profit margins are still tight on dairy farms across the state.

The bureau also asked the board to continue the current fuel adjuster premium. Dairy farmers whose milk is produced, processed and sold in Pennsylvania for Class I use receive an additional premium based on the cost of fuel.

Corbett Signs Budget Ahead of Deadline

Governor Willing to Discuss Restoring Some Funding Next Year

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Governor Corbett is reacting with caution to word that the state’s revenue figures are starting to show improvement.  He says the numbers are encouraging.

However, the Governor adds that just as predictions were made in February anticipating a higher year end deficit based on the facts then, these new projections are based on the facts today, which could change quickly.

Earlier in the week, the Independent Fiscal Office projected a year end deficit of about 300 million. In February, the Governor’s office had projected a gap of more than 700 million.  April’s revenue collections came in 99 million dollars over projects.  At the end of last month, the state was running 288 million dollars  behind projections.

Some lawmakers are calling for funding to be restored to the proposed budget for the next fiscal year, based on the improved numbers. Governor Corbett says he’s open to discussion with the legislature about restoring some cuts, but wants to be cautious.

With less than two months to go in the fiscal year, the Governor was asked about the prospects of a second on-time budget.  He says he believes it will be done on time, and hopefully it won’t be ten minutes before midnight (see photo above of last year’s budget signing).  He says talks with legislators have been cordial and very productive.

Casinos, Cards

Taking Bets on the Future of the Foxwoods Casino License…

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Even after this week’s House vote the fate of Pennsylvania’s only revoked casino license is still up in the air.  HB 65 would remove the restrictions that tie the license to Philadelphia and open it up to a statewide auction.  “By doing this the state stands to increase its revenue,” says State Rep. Curt Schroder (R-Chester), the bill’s prime sponsor and chairman of the Gaming Oversight Committee.  His bill passed with a bipartisan vote of 140 – 48. 

But it’s no sure bet in the Senate.  A spokesman says the Republican leader is among those wondering if the gaming market is already saturated and whether the license should be eliminated altogether. 

The state Treasurer released a study last year, which indicated market maturation and even saturation on the opposite ends of the state.  He suggested that central PA may be the place to maximize revenues. 

Governor Tom Corbett notes that plans have always called for the license to be awarded.  “I always think that we need to look at property tax relief,” Corbett says.  He acknowledges there have been discussions about the license within the administration, but did not offer many details while speaking with the media this week.  

Pennsylvania is home to 11-operating casinos, where slot machines raked in more than $214-million in gross revenue last month.  That translates into $116-million worth of tax revenue, according to the Gaming Control Board.  The lion’s share of slot machine tax revenue is used for property tax relief.  Table games tax revenue currently ends up in the General Fund. 

The Gaming Board rolled the dice on the Foxwoods casino project in 2006.  After four years of delays and financing woes, the license was revoked in late 2010.  It’s been in limbo ever since.