SENATE-APPROVED FINAL 2008-09 BUDGET BILL CONTROLS SPENDING

The Senate approved a state budget for Fiscal Year 2008-09 that holds the line on state spending while ensuring the continuation of essential services and programs.

Act 38A of 2008 calls for $28.2 billion in general fund spending, which is nearly $150 million less than the $28.35 billion in spending proposed by the Rendell administration. Overall, the 3.98 percent increase in spending from FY 2007-08 is below the 4.4 percent rate of inflation and represents a significant reduction from the 4.2 percent increase proposed by the administration.

While spending is reduced across the board in this budget, including a 1.3 percent reduction for the Legislature and the Judiciary, Senate Republicans successfully fought to restore state support for essential services and programs such as neonatal hospitals, burn centers and critical care access hospitals.

Senate Republicans also stood firm in ensuring that the commonwealth honored its commitment to Pennsylvania's employers and job creators by maintaining the scheduled reduction of the onerous Capital Stock and Franchise Tax. The administration had proposed slowing the reduction, which would have cost employers an estimated $40 million in FY 2008-09. (For more on the budget, please see In the Spotlight and Fast Facts, below.) 

 Sen. Joe Scarnati
 Sen. Dominic Pileggi
 Sen. Jane Orie
 Sen. Lisa Baker
 Sen. Bob Robbins
 Sen. Gib Armstrong 

SENATE APPROVES TAX CREDIT FOR VOLUNTEER RESPONDERS

The Senate approved legislation July 4 providing a $100 tax credit for active volunteer firefighters and EMS workers. 

Senate Finance Committee Chairman Pat Browne (R-Lehigh) authored of the amendment providing for the tax credit. The provision was included as part of House Bill 377, the tax code bill passed as part of the Fiscal Year 2008-09 budget. 

The measure also directs the Joint State Government Commission to conduct a comprehensive study to determine whether alternative forms of personal income tax forgiveness would be more beneficial to low-income Pennsylvanians.

 Sen. Browne
 Sen. Jane Orie
 Sen. John Rafferty
 Sen. Lisa Baker
 Sen. Mike Waugh 

SEN. TOMLINSON'S ALTERNATIVE FUELS BILL SIGNED INTO LAW

Legislation sponsored by Sen. Tommy Tomlinson (R-Bucks) to encourage the use of energy-efficient alternative fuels was signed into law July 10.

Special Session Act 2 of 2008 will improve and expand the state Alternative Fuels Incentive Fund, which is aimed at reducing air pollution and providing the commonwealth with the independence to manufacture its own fuel sources.

The law authorizes an additional 75 cents per gallon subsidy for biodiesel producers who produce more than 25,000 gallons per month, up to a total of $5.3 million annually. Individual producers could receive no more than $1.9 million.  The law will also increase the reimbursement to producers of alternative fuels from 5 cents to 10 cents per gallon up to 12.5 million gallons annually.

Alternative fuels emit no particulate matter, less carbon monoxide, and fewer pollutants that contribute to smog than conventional gasoline and diesel fuel.

SENATE BILL EXPANDING KEYSTONE OPPORTUNITY ZONES BECOMES LAW

Legislation sponsored by Senate Urban Affairs and Housing Committee Chairman John Pippy (R-Allegheny) to expand programs that use tax abatements to attract employers to Pennsylvania communities has been approved by the General Assembly and signed into law.

Act 79 of 2008 amends the Keystone Opportunity Zone, Keystone Opportunity Expansion Zone and Keystone Opportunity Improvement Zone Act to create 15 more KOEZ sites. It also extends the duration of the designation for seven to 10 years, depending on the project.

The law also addresses zones where an endangered species or other environmental concern is discovered that would prohibit development. It allows the state Department of Community and Economic Development to replace such sites with nearby parcels to allow development to go forward.  The measure also prohibits a person receiving tax exemptions from knowingly allowing illegal aliens to work in the zone. 

SENATE PASSES SEN. ORIE'S "PINSTRIPE PATRONAGE" BAN

The Senate approved legislation introduced by Sen. Jane Orie (R-Allegheny) July 2 to eliminate conflicts of interest when state government enters into contracts with outside consultants.

Senate Bill 903 would prohibit any state agency from contracting with outside individuals or firms to do consulting work, unless the contract is reviewed by the Attorney General for legality and conflict of interest, or is opened up to public competitive bidding. The bill applies to management consulting contracts designed to improve the effectiveness of management strategies, and certain legal consulting services.

Additionally, the bill requires all those seeking to do consulting work to report their campaign contributions, and prohibits any consultant from having a financial stake in the issue on which they are rendering an opinion.  Under the measure, all information as to contracts awarded and campaign contributions by consultants must be made available for public inspection on the Internet. Senate Bill 903 was sent to the House of Representatives. 

SEN. CORMAN'S CPA CERTIFICATION BILL SIGNED INTO LAW

Legislation sponsored by Sen. Jake Corman (R-Centre) that changes the certification process for certified public accountants (CPAs) passed the House and Senate and was signed into law.

Act 73 of 2008 brings Pennsylvania's CPA law into compliance with most other states as well as the federal Uniform Accountancy Act. The measure allows CPAs to practice in other states while also allowing CPAs from outside Pennsylvania to practice here without obtaining a new certification.

To match other state laws, the bill increases the minimum amount of training required to sit for the CPA exam, from 120 to 150 hours. CPAs currently licensed in Pennsylvania will be grandfathered into the new policy and will not need additional training to practice in other states.

SENATE ACTS TO EXPAND NEWBORN SCREENING PROGRAM

The Senate approved legislation July 3 that will expand Pennsylvania’s Newborn Screening and Follow-up Program to include 29 "core" genetic conditions that are serious but treatable if caught early.

Sen. Jane Orie (R-Allegheny) sponsored a Senate version of House Bill 883 (Act 36 of 2008). The measure is crucial to saving lives and helping children who are born with life-threatening genetic conditions and their families.

The senator joined former Buffalo Bills quarterback Jim Kelly at a June press conference to urge members of the legislature to approve this important legislation.
 

NEW LAW PROHIBITS GOVERNMENT INTRUSION INTO VOIP PHONE SERVICES

The Senate approved legislation July 2 preventing any state government agency from regulating Voice over Internet Protocol, or VoIP.

VoIP allows telephone calls to be made via a broadband Internet connection instead of a regular phone line.  Use of VoIP services grew by more than 500 percent in the last two years. In 2007, roughly 25 percent of the country will be VoIP-enabled with the VoIP market exceeding 10 million subscribers.

Act 52 of 2008, sponsored by Senate Communications and Technology Committee Chairman Rob Wonderling (R-Montgomery), will prohibit only the regulation of VoIP services, not landline services, but would enable compensation of E-911 fees, Telecommunications Relay Service (TRS) fees, and Universal Service Fund fees as well as payment of any switched network access rates or other intercarrier compensation rates.

SENATE CONFIRMS PUC COMMISSIONERS, JUDGES

The Senate confirmed nominations to the Public Utility Commission and several judicial posts.

Confirmed as members of the PUC were Wayne E. Gardner and Robert F. Powelson. The Senate also confirmed the following judicial nominations: Jane Cutler Greenspan (Supreme Court), Robert A. Freedberg (Superior Court), John M. Cleland (Superior Court), and Johnny J. Butler (Commonwealth Court).