During a hearing on the Department of Aging's proposed budget, committee
members questioned Secretary Brian Duke on a number of funding-related issues,
including waiting lists for various programs, the financial condition of senior
centers, and the growing cost of providing care to Pennsylvania's who are
suffering from Alzheimers and depression.
Senators also expressed their support for protecting local pharmacies and a
new caregiver support program aimed at keeping senior citizens in their homes.
They stressed the importance of providing adequate funding for the full
continuum of care for seniors – from community-based care to nursing homes.
Members of the committee examined the governor's proposed cuts in
agricultural line items during a budget hearing with Secretary of Agriculture
George Greig. Topics included future funding options for farmland preservation;
the proposed elimination of funding for the Agricultural Excellence program; the
effect of proposed cuts to the equine support; and the potential public health
impacts of funding cuts for the Animal Health and Diagnostic Commission.
Other topics included:
- The transfer of funding from the Race Horse Development Fund.
- Costs associated with PA Preferred.
- Potential improvements to the crop insurance program.
- The importance of the School of Veterinary Medicine at the University of
Pennsylvania.
- Impediments to the Nutrient Trading program.
- The effectiveness of the ACRE Initiative.
Attorney General Linda Kelly answered questions from committee members on a
wide range of issues, including efforts to stop drug trafficking and fight
organized crime – particularly as technology moves forward and criminals use new
tools to commit crimes. Senators praised the Department's Bureau of Consumer
Protection for its work on behalf of state residents, specifically in the area
of consumer fraud, outreach and home improvement contracting.
Committee members also:
- Questioned how the office will spend money Pennsylvania will
receive as part of a federal mortgage foreclosure settlement.
- Suggested that part of the money from that settlement go to the Homeowners Mortgage Assistance Program to keep people in their homes but faces
funding elimination.
- Raised concerns about raiding the Tobacco Settlement Fund for
purposes that it was not intended.
During a budget hearing with Auditor General Jack Wagner, members of the
Appropriations Committee examined the need for reform of the Delaware River Port
Authority; flaws in the State Tax Equalization Board's property market values;
and potential cost savings in the Department of Public Welfare.
Other topics included:
- Potential savings for charter schools.
- Error rates for Medicaid funding.
- Municipal pension reforms.
- Audit of high-hazard dams.
The committee held a hearing on the Department of Banking with Secretary
Glenn E. Moyer. Topics discussed included the proposed merger of the Department
of Banking and the Pennsylvanian Securities Commission; and distribution of the
state's share of the receipts of the federal settlement regarding "robo-signing"
and other abuses involving foreclosure and mortgage servicing.
Other topics included:
- The potential resurrection of HEMAP (Homeowners Mortgage Assistance
Program).
- The role of community banks.
- Trends in the mortgage marketplace.
- Increases in the chartering of banks in Pennsylvania.
Community & Economic Development and PA
Housing Finance Agency
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During a budget hearing with DCED Secretary C. Alan Walker and PHFA Executive
Director Brian Hudson, members of the Senate Appropriations Committee discussed
the continuation of the Homeowners' Emergency Mortgage Assistance Loan Program;
the consolidation of the State Tax Equalization Board and the Profile
Re-Employment Program into DCED; the use of the state's share of the national
mortgage fraud settlement; and how the Jobs First PA program can help prevent
skilled workers from leaving Pennsylvania.
Other topics included:
- Flood recovery efforts in the aftermath of Hurricane Irene and
Tropical Storm Lee.
- The importance of the bio-tech industry.
- Legislation to create state historic tax credits.
- The effect of the Marcellus Shale industry on the state's
unemployment rate.
- The local economic impact of SSHE and state-related university
branch campuses.
- Jobs created and supported by the coal industry.
- The future of the Main Street Program.
- Credits available to solar energy producers.
- Funding levels for ports.
Conservation & Natural Resources
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Department of Conservation and Natural Resources Secretary Richard Allen
addressed state parks, state forests and the array of department
responsibilities. Topics included the moratorium on forest lands drilling; the
number of permitted wells on state land; and the status of the Oil and Gas Fund.
Other topics included:
- Effects of the proposed Key '93 Fund transfer and the need to honor
existing project commitments.
- State parks staffing and the overall DCNR Complement of 1,300
employees.
- Economic impact of state parks.
- Flood damage to state parks and federal reimbursement.
- Impact of the gas pipeline network on state forests.
- Slight reduction in forest firefighting funds.
- Snow mobile safety training program for adults.
Corrections and Probation & Parole|
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Members of the Senate Appropriations Committee lauded
Corrections Secretary John Wetzel for his innovative efforts to cut costs in the
state's prison system, reduce recidivism and find new efficiencies to save
costs in one of the state's largest spending areas. Questioning centered on
Senate Bill 100, sponsored by Senate Judiciary Committee Chairman Stewart
Greenleaf, which would make major changes in the way the state manages its
prison populations. The goal of the legislation, now in the House, is to help
the state and department be smart on crime, make better decisions based on data,
reduce recidivism and cut costs. Other areas of discussion included:
- Giving crime
victims a greater voice in pending parole actions.
- Efforts to
return prisoners that were transferred out of state back to Pennsylvania.
- The need for
more detailed sentencing reports, which provide risk assessment, to provide
better information to judges who must hand down sentences.
- Better efforts
to reintegrate prisoners back into society when they are released.
- Addressing a
disparity in the pay rate system which allowed corrections workers to earn more
than the supervisors managing them.
- Exploring the
use of privatization to further reduce costs.
- The
effectiveness of drug courts, veterans courts and mental health courts in
addressing issues locally and reducing prison populations.
The Senate Appropriations Committee discussed funding issues with Secretary
Ron Tomalis, covering K-12 and higher education. The panel also discussed the
need to rein in the rising cost of providing education services.
The hearing also featured discussion of:
- Chester-Upland School District lawsuit seeking more state funding.
- The future of Keystone Exams.
- Community College funding.
- Real-time data collection on student enrollment.
- PlanCon funding for school construction.
- The need for data linking cuts in higher education funding with
tuition hikes.
- Adult family literacy programs, rebidding contracts for providers.
- Teacher pay freezes in 2011.
- Special Education funding reform, and Approved Private Schools.
Environmental Protection
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The committee questioned DEP Secretary Michael Krancer about the effects of
the proposed reduction in the department budget and how that would impact its
ability to regulate the growing gas industry. Krancer noted that, even with
limited funds, DEP has maintained level staffing for two budgets.
Other topics included:
- Treatment of Marcellus Shale wastewater.
- Cuts in sewage treatment grant funding.
- Anthracite coal mine reclamation.
- Hazardous Sites Cleanup Act funding.
- Flood problems along the Delaware River.
- DEP permitting process, length of time and consistency.
- Air Emissions Inventory and air modeling.
- Legislation to fund flood control projects.
- Riparian buffers and waterways.
- Safety of private drinking wells.
Gaming Control Board
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During a budget hearing with Gaming Control Board Chairman William Ryan,
members of the Senate Appropriations Committee discussed the State Police
presence in casinos; the effect of table games on slot machine revenue; and
proper implementation of the Clean Indoor Air Act.
Other topics included:
- Repayment of debts from start-up costs.
- Criminal activity by casino patrons.
- Proposed cuts in purses for horseracing.
- Actions in other states to allow intrastate Internet gaming.
DGS Secretary Sheri Phillips was asked about the condition of state-owned
buildings in the capital region needing significant repairs, and the
availability of capital improvement funds. She expressed support for legislation
authorizing DGS to sell mineral rights under property owned by the state and the
State System of Higher Education, and discussed legislation allowing SSHE
schools to manage certain construction projects.
The panel also discussed:
- Initiatives to reduce the cost of the state vehicle fleet with
stricter rules and a new cost-tracking system to save an estimated $19 million
annually.
- The Forum Place contract and costs, energy saving initiatives, and
the feasibility of privatizing work in the DGS construction division.
- Efforts to sell Scotland School property and what to do with
Harrisburg State Hospital property.
- Programs to boost contracts with businesses owned by minorities,
women, veterans and those with disabilities.
Governor's Budget Office/Executive Offices/Office of the
Governor
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The Senate Appropriations Committee opened its series of
hearings on Governor Corbett's proposed 2012-13 Budget with a discussion of the
Governor's Budget Office/Executive Offices/Office of the Governor with Budget
Secretary Charles Zogby.
Issues discussed during the hearing included: the lack of
parity between pay increases for management and union employees; the accuracy of
revenue projections for the end of the fiscal year and the Administration's
revenue growth projections for the upcoming fiscal year; implementation of the
proposed student achievement block grant program; and the financial situation in
the Chester-Upland School District.
The panel also discussed:
- Efforts to make Pennsylvania more attractive for
economic development and job creation.
- Distribution of the money received by the Commonwealth
from the mortgage foreclosure settlement agreement.
- The use of money from "dedicated funds" to supplement
the General Fund.
- Potential revenue generated from internet sales taxes
and closure of the "Delaware loophole."
- Investigation and prosecution of welfare fraud.
- Problems with the statewide radio system and potential
consolidations of state departments and services.
Committee members questioned Health Department deputies on several issues,
including the independence of the Health Care Cost Containment Council and the
Patient Safety Authority under the proposed budget, and the need to upgrade
hospital licensing and inspections.
The panel also discussed:
- Effects of the Clean Indoor Air Act of 2008.
- Status of the State Health Improvement Plan.
- Statistics for Health Care Associated Infections following passage
of Act 52.
- Decreased time for processing birth and death certificates.
- Success of tobacco cessation programs.
- Zeroing out of funds for Poison Control Centers.
Independent Fiscal Office
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The Senate Appropriations Committee held a hearing on the
"Economic Outlook and Revenue Overview" in Pennsylvania with Independent Fiscal
Office Director Matthew Knittel. Issues discussed during the hearing included:
state revenue projections for the upcoming years, negative factors that could
impact revenue projections and trends in Pennsylvania's economy; improvements in
the labor market and consumer confidence; and changes in gross receipt tax
revenues.
Topics also included:
- Sources of the IFO's data.
- Revenues received from internet sales taxes and lottery sales.
- Sales tax exemptions.
- Demographic changes that could impact Pennsylvania's economy.
The Senate Appropriations Committee held a hearing on the Department of
Insurance with state Insurance Commissioner Michael F. Consedine and staff
members. Issues discussed during the hearing included: federal usurping of state
regulation of insurance matters; Pennsylvania's compliance with the federal
Patient Protection and Affordable Care Act (PPACA); development of the health
exchange in compliance with PPACA; as well as maternity care and other items
that may be considered essential coverage under PPACA.
Other topics included:
- Status of the MCARE fund.
- The dispute between Highmark and UPMC and Highmark's acquisition of
Allegheny General Hospital.
- Insurance reimbursements to fire departments for responding to
automobile accidents.
- Departmental cost cutting measures.
- Increasing auto insurance minimum coverage requirements.
State Supreme Court Chief Justice Ronald Castille, Justice
Michael Eakin, Justice Thomas Saylor and officials of the Unified Judicial
System took questions regarding funding needs and efforts to reduce costs within
the Judicial branch.
Topics included:
-
Savings achieved by not filling judicial vacancies
until elections.
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The cost of courts in relation to money brought in
through fines, fees and charges.
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Courts working with agencies to move children from
foster care to adoptive families.
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Problem-solving courts.
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Electronic filing of traffic citations and extending
the ACT 49 fee to moving violations.
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Judicial Conduct Board funding needs.
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Sentences for drug crimes.
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Workloads of existing Common Pleas judges.
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Implementing the recommendations of the Pennsylvania
Interbranch Commission
Members of the Senate Appropriations Committee questioned Labor and Industry
Secretary Julia Hearthway regarding Unemployment Compensation Trust Fund debt;
the effect of federal Unemployment Compensation legislation that was signed into
law earlier this month; and funding for the new Keystone Works job training
program.
Other topics included:
- The elimination of the PENNSAFE program.
- Proposed regulations to prevent mandatory overtime for health care
providers.
- The Strategic Early Warning Network.
- Job training in the manufacturing sector.
- The Pennsylvania Initiative on Assistive Technology.
- Ways to help match potential employers with job-seekers.
- The State Workers' Insurance Fund.
- Funding for the Uninsured Employers Guaranty Fund.
- Fees for administrative costs for Centers for Assisted Living.
Liquor Control Board
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Pennsylvania Liquor Control Board Chief Executive Officer Joe Conti took
questions from members of the Senate Appropriations Committee during a public
hearing on Pennsylvania's state store system. Their questions focused on issues
including pricing, how to better promote Pennsylvania's wines, and incentivizing
employees to improve sales.
Senators also talked about:
- Privatization of state stores.
- Enforcement and drug and alcohol education.
- The amount of money spent on branding and imaging.
- How citations are issued.
- Whether there are enough investigative officers and the need for
stronger enforcement, particularly in college towns.
Military and Veterans Affairs
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The Senate Appropriations Committee held a budget hearing on the Department
of Military and Veterans Affairs with state Adjutant General (Major General)
Wesley E. Craig. Issues discussed included the department's plans for its
long-term care centers for veterans; potential demands on the educational
assistance fund created by potential reductions in state support for higher
education; operations and security at Fort Indiantown Gap; and outreach efforts
to provide in-home services for veterans.
Other topics included:
- Pensions for blind and paralyzed veterans.
- Assistance for unemployed and homeless veterans.
- Cost-saving efforts by the department and the impact of federal
budget reductions on the National Guard, and the shortage of Guard physicians.
- Updates to the Uniform Code of Military Justice.
- Reuse of the former Willow Grove Naval Air Station, and
improvements at local armories.
- Status of the former Scotland School for Veterans Children site.
- Potential homeland security response in the event of a war with
Iran.
PEMA
Public Utility Commission
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Members of the Senate Appropriations Committee questioned Public Utility
Commission Chairman Robert Powelson regarding the reliability of electricity
service following natural disasters; the cost of electricity following passage
of the new Marcellus Shale law; the timeline for utility improvements under the
distribution system improvement charge process (DSIC); and implementation of new
pipeline safety regulations.
Other topics included:
- Investments in infrastructure as a result of electricity choice.
- Repair of distressed water systems.
- Incentives for solar energy companies.
- Federal control of rates for rural telephone and broadband
companies.
- Declining revenue sources for PUC.
- The proposed split of the 814 area code.
The committee reviewed several proposed funding and procedural changes with
Secretary Gary Alexander, including new block grant funding and the effects of
enforcing Medical Assistance eligibility.
Also discussed was:
- The Inspector General's fraud abuse probe.
- Problems county assistance offices are having with the state
computer network.
- Electronic benefit cards and out-of-state withdraws.
- County Medical Assistance Transportation Program funding.
- Pharmaceutical reimbursement for Medicaid.
- Assisted living waiting list.
- The need to provide aid to the truly needy and legally eligible.
- LIFE program and less costly alternatives to nursing homes.
- Costly duplication of services.
- Drug use among welfare recipients.
- Food Stamps assets test.
The Senate Appropriations Committee held a hearing on the Pennsylvania
Department of Revenue with State Revenue Secretary Dan Meuser and staff. Topics
discussed during the hearing included: projected economic growth in the
commonwealth; initiatives to enhance revenue collections without raising taxes;
sales tax collections on transactions via the internet; computer upgrades in the
department; changes in the vendor fee for sales tax collection; trends in gross
receipts tax collections; and efforts to increase efficiency in the department.
The committee also discussed:
- The Property Tax/Rent Rebate program.
- Revenues associated with Marcellus Shale operations.
- The proposed transfer of cigarette tax receipts.
- Restructuring of business taxes.
- Trends in lottery collections, usage of those funds and
consideration of online lottery sales.
The committee questioned two panels of testifiers representing the State
Employees' Retirement System and the Public School Employees' Retirement
System. Most questions covered the management and investment decisions
involving the plans, which hold more than $64 billion in combined assets.
Topics covered include:
- SERS and PSERS unfunded obligations compared to other states, and
the historic performance of the plans.
- Modifying investment schemes and updating mortality tables in light
of annuitants outnumbering active workers.
- The Premium Assistance Benefit for retirees in need.
- The cost of public sector plans vs. private sector plans, as well
as Defined Contribution plans compared to Defined Benefit plans.
- Programs for veteran-owned investment firms.
- Investment mangers inside and outside of Pennsylvania, and the
ratio of in-house and outside consultants.
- Increased diversification since 2008 market crash.
Senators questioned Department of State Secretary Carol Aichele about several
voting issues, including the effectiveness of the Statewide Uniform Registry of
Electors (SURE), a centralized voter registration and election management system
designed to assure the accuracy and integrity of the commonwealth's voter
registration records. They also talked about the department's oversight of the
Lobbyist Disclosure database and new efforts to encourage citizens to vote. Committee members also discussed:
- Online voter registration and other initiatives intended to provide
easier access to the voting process and encourage greater participation.
- Voter fraud and new voter registration requirements.
- The significant amount of ballot challenges, the cost of those
challenges to counties, and their impact on absentee balloting.
- Guidelines for filing provisional ballots.
State Police/Homeland Security
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The Senate Appropriations Committee held a hearing on the Pennsylvania State
Police (PSP) and Homeland Security with State Police Commissioner Frank Noonan
and staff. Topics discussed during the hearing included: actual complement
versus authorized complement of state troopers; potential consolidation of PSP
barracks; the impact of the growth of Marcellus Shale drilling operations;
liquor control enforcement; and efforts to fill anticipated vacancies created by
retirements.
Also discussed were:
- Increased incidents of assaults on police officers and troopers.
- Lawsuits involving troopers' malfeasance.
- PSP service as a primary police force for municipalities.
- Update on the statewide 800-megahertz radio system.
- Law enforcement operations in casinos.
- Operations at dispatching centers and backlogs in DNA and other
forensic testing.
- Integration of Homeland Security into the PSP.
- Amber Alerts and other child welfare and safety initiatives, and
trends in gangs and drugs.
State System of Higher Education
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The Senate Appropriations Committee held a hearing on the State System of
High Education (SSHE) with Chancellor John Cavanaugh and officials from Indiana
University of Pennsylvania, Millersville University and West Chester University.
Topics discussed during the hearing included:
- The impact of the governor's proposed funding cut on tuition rates
and the role of the Advisory Commission on Postsecondary Education.
- An update on contract negotiations with the faculty union, the
recent early retirement program and health care plans offered to staff and
employees.
- The importance of mandate relief bills currently pending in the
Legislature.
- Impact of the proposed cut to PHEAA funding; and reductions in
capital and maintenance funding.
- Fundraising efforts by the universities.
- Services provided to students with disabilities.
- The relationship between SSHE and community colleges.
- Economic impact of SSHE institutions in their communities.
- Comparison of SSHE graduation and tuition rates to
national/regional rates.
State-Related Universities
University of Pittsburgh
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The Senate Appropriations Committee took testimony from University of
Pittsburgh Chancellor Mark Nordenberg on the governor's proposed cuts to
university funding, and the prospect that state-related universities could in
the future be shifted to the private sector.
Other topics included:
- The role of regional branch campuses and the new precedent of
treating state-related universities individually and not as a whole.
- Effect of university cuts on the business community, student morale
and university training programs.
- The role of research-based institutions.
- The importance of the university to the image and economy of the
Pittsburgh region.
- Job-placement data and uses of the university's endowment.
- Data that shows the university increased tuition even when state
funding increased.
- The 54 percent increase in the size of university administration.
- Steps the university has taken to control costs.
The committee held a budget hearing on Lincoln University with President
Robert Jennings. Topics discussed during the hearing included impact of the
Governor's proposed budget on the university, and the potential for
privatization of the institution.
Also discussed were:
- The funding reduction approved as part of the current budget and
the subsequent freeze imposed by the governor.
- Status of Lincoln's capital and maintenance projects.
- Cost-cutting measures undertaken by the university.
- Economic impact of Lincoln University in Chester County.
- Efforts to attract students from across the commonwealth.
- Outreach efforts to attract Hispanic students.
- Collective bargaining agreements with union employees.
Penn State University
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Members of the Senate Appropriations Committee discussed the effect of
proposed budget cuts during a budget hearing with Penn State President Rodney
Erickson. Topics of discussion included in-state tuition rates; ongoing research
regarding energy issues and Marcellus Shale; and the impact of cuts on branch
campuses.
Other topics included:
- The possibility of transitioning from a state-related university to
a private college.
- Success of the THON fundraiser.
- Funding for the Agricultural College Land Scrip Fund.
- Potential furloughs and salary freezes due to budget cuts.
- The transfer of money from the Pennsylvania Race Horse Development
Fund to agriculture research programs.
- Funding for Hershey Medical Center.
Members of the Senate Appropriations Committee questioned Anthony Wager,
Executive Vice President of Temple University, about the impact of future
privatization on state-related universities and how that would impact Temple’s
mission. They noted that Temple serves a very diverse population, including
many first-generation college students. Other questioning focused on:
- The percent of the actual education budget affected by proposed
cutbacks in the budget.
- Successful efforts to cut costs by reducing administrative staffing.
- How the loss of tobacco settlement funds would impact research and
other areas of the university mission.
- What faculty members are doing to help ease funding shortages.
Senators questioned Transportation Secretary Barry Schoch
about several statewide issues and the status of local highway projects,
stressing the need to provide adequate and long-term funding for road
maintenance and improvements. It was noted that while state funding has
remained relatively level, vehicles have become more fuel-efficient which has
resulted in less gas tax revenue. As a result, the state has a backlog of
maintenance projects, particularly in the area of bridge replacement and
construction.
They also expressed concern that more money was being spent
on mass transit than on other infrastructure needs throughout the state. Members of the committee also emphasized the link between good roads and
economic development, noting that supporting the transportation system will help
create jobs and improve public safety.
Treasury Department
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During a budget hearing with state Treasurer Rob McCord, members of the
Senate Appropriations Committee examined staffing levels in the department;
guarantees and yields in the TAP 529 college savings program; and Unclaimed
Property. Also:
- Problems with the tax appeals process.
- Total debt service in the budget and debt service on Growing Greener.
- The Retirement Security Initiative.
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