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“Ask the Governor” Comments Spark Firestorm

While discussing the state’s 7.9% unemployment rate on Radio PA’s “Ask the Governor” program, Governor Tom Corbett expressed concern that many employers can’t find qualified employees who can pass a drug test.  The comments went viral in a matter of hours, with the Pennsylvania Democratic Party asserting that it’s just the latest example of Corbett blaming Pennsylvanians for the state of the economy. 

Out-of-touch and insulting were just two of the words Pennsylvania Treasurer Rob McCord used to describe the comments in a statement released on Tuesday.  “I talk with hundreds of business owners and business leaders every year and this has not been brought up to me,” McCord later told Radio PA of the drug test issue.  “So I’m not sure that that’s a real issue, and it sounds like it’s a blame-the-victim distraction game.” 

But Labor & Industry Secretary Julia Hearthway says employers across the state are sharing drug test concerns with her too.  “It’s very difficult to quantify, but it’s certainly an issue that identifies one employment barrier that exists out there,” she explains. 

For safety and insurance reasons zero-tolerance drug policies are often imposed in various industries, including manufacturing.  “This issue is very real.  The governor is absolutely right, and if anything I hope that this is a teachable moment for the public,” says Pennsylvania Manufacturers’ Association executive director David N. Taylor, “because I don’t think a lot of people – especially younger people – realize that by being recreational drug users they, in many instances, are rendering themselves unemployable.”

Taylor says there are 6,000 – 7,000 good manufacturing jobs for which employers can’t find qualified employees.  While there are numerous factors driving that figure, he contends that failure to pass a drug test is absolutely one of them.

Cash

Gov. to Seek Level Funding for Higher Education

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.

RadioPA Roundtable

Radio PA Roundtable 12.07.12

On this week’s Radio PA Roundtable, Brad Christman and Matt Paul bring you the Corbett Administration’s mid-year budget analysis as the 2012-13 fiscal year reaches the midway point; Democrats tell you their priorities for the new year; and we bring you information on a new way to make a difference to Pennsylvania’s children’s hospitals.

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/Roundtable12-07-12.mp3]

Two Weeks ‘Till Governor’s Budget Address

Just past the half-way mark of the current fiscal year, Governor Tom Corbett says he’s dealing with the state’s difficult budget reality.  “People elected me to bring fiscal discipline to Harrisburg,” Corbett said on Radio PA’s Ask the Governor program.  “That isn’t always the easiest thing, I can tell you it’s not the most popular thing.  But it’s necessary if we’re going to get through this period of time.”

In two weeks, Governor Corbett will address a joint session of the General Assembly to present is spending play for fiscal year 2012-2013.  Year-to-date revenues, for the current fiscal year, are already running a half-billion dollars below expectations.  Earlier this month, Corbett ordered a budget freeze of nearly $160-million in state spending. 

While the governor isn’t revealing any budget details ahead of time, he doesn’t want to cut basic education subsidies.  “At this point in time, it would be nice if we could increase that some, I certainly don’t want to cut it at all, but it might be that we end up at that same level as last year.” 

Many Democrats call Governor Corbett’s first budget a disaster, however, and are wary of what may be coming in his February 7th proposal.  “Governor Corbett’s first budget defunded welfare and other support programs, to the point of completely undercutting our social safety net at a time when people need it the most,” says Pennsylvania Democratic Party Chairman Jim Burn.

Corbett Administration Projects Half-Billion Dollar Budget Shortfall

The economic forecast took a turn for the worse after the state budget was passed, and it’s showing up in tax collections that are already running $345-million dollars below expectation.  Budget Secretary Charles Zogby estimated a shortfall of $500-million dollars by the end of the fiscal year.  “I tend to think that this is an optimistic scenario,” Zogby said at the mid-year budget briefing.  “I think we’re expecting and planning for a much bigger shortfall.” 

Budget Secretary Charles Zogby addressed the media on Tuesday.

Budget Secretary Charles Zogby addressed the media on Tuesday.

Zogby’s office is currently working on options for a budgetary freeze, which Governor Tom Corbett could act upon by the end of the month.  “That will help alleviate – to an extent – the FY2012-2013 challenges that we’re facing.” 

Taking into account the revised revenue outlook and projected growth in mandatory spending, Zogby estimated that the administration will have a $750-million dollar budget hole to fill in order to balance next year’s budget.   “Right now I’m looking at the expenditure side, no tax increases,” Zogby added. 

State Rep. Joe Markosek

State Rep. Joe Markosek

While Governor Tom Corbett will deliver his budget address in early February, Democrats say it’s premature to be projecting such dire budget circumstances next year.  “The governor is using scare tactics to make his case for cutting another three-quarters of a billion dollars in needlessly painful cuts next year,” House Democratic Appropriations Chair Joe Markosek (D-Allegheny) said at a capitol news conference.  Markosek contends that year-to-date revenue collections are actually up when compared to the same five-month period last year.

Poll: Pennsylvanians Prefer Current Electoral College System

A new Quinnipiac University poll finds that 52% of Pennsylvania voters want to stick with the winner-take-all model, which awards all of Pennsylvania’s Electoral College votes to the presidential candidate who wins the state’s popular vote.  40% of respondents favored a newly proposed plan to award Electoral College votes based on the results in each of the state’s congressional district. 

“The overall state view on this – by a margin of 57 – 32 – is that it is politically motivated.  That Republicans are doing this to get a candidate a better foothold in the state,” says Quinnipiac pollster Tim Malloy.  There is a political divide on that particular question as 57% of Republicans say the motivation is fairness in reflecting the views of PA voters.  Only 14% of Democrats agreed. 

However, Malloy was struck by the fact that support for the proposed change is merely a toss-up among GOP voters.  “It came down pretty much 50-50 on whether it’s a good idea to change it or not,” Malloy explained while breaking down Republicans’ responses for reporters. 

Asked whether they think the proposed change would affect Pennsylvania’s importance as a key swing state in presidential elections, 51% said it “will hurt” and 38% said it “won’t affect” the state’s clout. 

Republican Leader Dominic Pileggi (R-Delaware) is sponsoring the proposed change, which has the support of Governor Tom Corbett.  Public hearings are expected next month.  Either way, Pennsylvania will award 20-Electoral Votes in next year’s presidential race.

Capitol View from East Wing

Bills Drafted in Response to Massive Floods

 

Bloomsburg Flood - Tropical Storm Lee

Bloomsburg, Columbia County was among the hardest hit areas.

As recent flooding reached historic proportions in many communities, lawmakers are preparing bills to augment federal disaster aid and speed the recovery process.  “State government will never be the ultimate insurer,” says State Senator Lisa Baker (R-Luzerne).  “But when disaster strikes, it is a core function of government to protect lives & property, to restore public safety & infrastructure, and to provide victims the necessities of life when the emergency robs them of everything they need and value,”

Officials say the seven-bill, bipartisan package should be ready soon, and they expect quick action once it’s been formally introduced. 

One bill would create a special account to provide additional state grant money to eligible flood victims who’ve maxed out their federal aid. 

State Senator John Gordner (R-Columbia)

State Sen. John Gordner (R-Columbia)

Another bill would authorize $250-million dollars in bonds to pay to repair flood damaged roads and bridges.  “We will be getting, hopefully, a tremendous amount of federal assistance for the hundreds – maybe thousands – of roads and bridges that have been damaged, but normally the federal government provides about 75% of the funding,” says State Senator John Gordner (R-Columbia), who’s spearheading the effort. 

Three bills in the package would authorize county-by-county lists of flood damaged roads, bridges and flood control systems, adding them to the state’s capital budget. 

Local taxing bodies would have the ability to abate the property taxes on condemned structures, under another bill.  The final bill of the package would allow for educational waivers for things like the 180-instructional day mandate.  “I can tell you that I have at least one school district in my senatorial district that as of today still is not back in school,” Gordner explains.  “That is the Benton Area School District in Columbia County.” 

In addition to Senators Gordner and Baker, John Yudichak (D-Luzerne), Gene Yaw (R-Lycoming) and John Blake (D-Lackawanna) are sponsoring parts of the package of bills.  The sponsors have not yet put a price tag on the legislation, but the special account for flood victims would come out of the budget surplus from fiscal year 2010/2011.

PA Abuzz Over Possible Electoral Changes

The Constitution allows each state the ability to determine how its electors are assigned in presidential elections.  In 2012, Pennsylvania will have 20-electoral votes.  How they are awarded… is now the subject of debate.  Under the current system, all 20 would be awarded to the winner of PA’s popular vote, but some believe there is a better way to do it. 

Dominic Pileggi

State Senator Dominic Pileggi (R-Del.)

State Senate Republican Leader Dominic Pileggi (R-Delaware) is backing a plan that would divvy up the votes based on election results in each of the state’s 18 congressional districts, plus two votes being awarded to the winner of PA’s popular vote.  “This proposal is designed to more closely align Pennsylvania’s Electoral College vote with the popular vote in the state,” says Pileggi spokesman Erik Arneson. 

Governor Tom Corbett indicated his support for the plan on Radio PA’s monthly Ask the Governor program.  “I think it more closely reflects the vote across the state of Pennsylvania,” Corbett says, “Many people complain about the electoral process and that people are disenfranchised.  This makes the state much more competitive across the entire state.” 

This is the first time such a plan has been offered in Pennsylvania, and Franklin & Marshall College political science professor Terry Madonna believes there would be consequences.  For instance, he believes Pennsylvania’s relevance – in practical terms – would be reduced to 5 – 7 electoral votes.  “That that means that other states, with larger electoral votes, that are competitive, will get far more attention,” Madonna says, adding that this system would not have changed the outcome of any election in modern history, had Pennsylvania been using it. 

Pennsylvania and 47 other states currently follow the winner-take-all model; only Nebraska and Maine follow the model being put forth by the Senate Republican Leader. 

As Democrats have won Pennsylvania in each of the past five presidential elections, many Democrats are calling it a political power grab.  “This is exactly the behavior that is turning the public against politicians,” Pennsylvania Democratic Party chairman Jim Burn said in a statement. 

But Erik Arneson points out that the new system would actually benefit President Barack Obama, if a Republican takes Pennsylvania in 2012, as some pundits predict.  While telling us that it’s about fairness, not politics, Arneson also points out that the plan has been criticized from both sides of the aisle. 

Senator Pileggi is currently circulating a co-sponsorship memo.  The bill should be officially introduced in a few weeks, and they’ve already requested a committee hearing.  After the hearing, Arneson says, they will decide the next course of action.

Capitol Hearing Kicks-Off Privatization Debate

Pennsylvania Liquor Store

The Number of Retail Liquor Outlets Would Roughly Double Under Rep. Turzai's Privatization Plan

House Majority Leader Mike Turzai (R-Allegheny) was the only testifier on the Liquor Control Committee’s agenda Thursday, but Chairman John Taylor (R-Philadelphia) stressed that this hearing was the first of many.  “The goal of Chairman Santoni and I is to get the information on the table, and have everybody have the opportunity to have their say,” Taylor said. 

The committee is expected to receive additional testimony during a series of statewide hearings.  Taylor said each additional hearing will likely focus on one particular area of the privatization debate, such as fiscal impact, consumer impact and/or social impact. 

Dante Santoni

State Rep. Dante Santoni (D-Berks)

Minority Chairman Dante Santoni (D-Berks) welcomed the public vetting process.  “I expect that what we will learn is that our current system, with some changes under the umbrella of the PLCB, can address the concerns of most Pennsylvanians,” Santoni said, suggesting that the numbers behind privatization wouldn’t add up in the end. 

Rep. Turzai says the auctioning off of 1,250 retail liquor licenses would generate significant upfront revenue, but emphasized that it’s time to move into the 21st century. “Should the entity promoting wine & spirits be the same entity that polices those sales?  Doesn’t that inherently constitute a conflict of interest?”

Turzai went into great detail on his bill, which is reportedly 100-pages long, though it wasn’t publicly posted as of Wednesday afternoon.  Union members – who oppose privatization – were well represented in the capitol hearing room, just as they were at Rep. Turzai’s news conference earlier this month

Back in June, the Quinnipiac University Polling Institute asked Pennsylvania voters about the liquor store privatization issue, in the context of balancing the state budget.  69% of Pennsylvanians supported the idea.