Dear Friend,
I and my colleagues on the
Senate Appropriations Committeecompleted our third and final
week of public hearings on the proposed 2015-16 state budget.
Below are summaries and videos of each hearing, as well as video clips of
my discussions with the department heads who testified. Within the summaries,
the bold bullet points indicate topics I brought up during questioning.
(Previous hearing summaries:
Week 1,
Week 2.)
If you find this e-newsletter useful, I invite you to visit my website
www.senatormensch.com for more
information about your state government. If you do not wish to receive these
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Sincerely,
Bob Mensch
Monday, March 30
Department of Education
Committee members told Acting Education Secretary Pedro Rivera about the
need to change the public school retiree pension system to reduce
skyrocketing costs that are diverting funds away from the classroom. Other
topics included:
- Career and technical education funding
- Early warning system for identifying students at risk of dropping out.
- The constitutionality of the Governor’s proposed property tax reduction
plan.
- The negative effects of the “hold harmless” clause which prevents state
aid from being diverted to districts with rising enrollment.
- The growing responsibilities of school nurses.
- The need to address wages and benefits driving increased education
costs.
- The savings to be realized by eliminating prevailing wage mandates on
school construction projects.
- Spending on pre-kindergarten education programs.
- Schools being required to teach to the state-mandated tests.
- Concerns that the Governor’s proposed property tax reductions are not
permanent.
- The need to increase accountability with any new state education
funding.
- The formula for proposed cyber education funding.
- The lack of additional money for PlanCon school construction funding.
- Disparities in state funding from district to district, and disparities
in proposed property tax reductions.
- The burden of requiring school districts to prepare a report by May 15
on budgeting proposed new state funding.
- The need to reform the state basic education funding formula.
- Removing pension spending from the education general fund budget gives a
misleading view of actual education funding.
- Funding and effectiveness of adult literacy programs.
Watch the Hearing here.
 |
Senator Mensch notes the proposed budget does nothing to address causes
of skyrocketing education costs, pensions, and questions the constitutionality
of the Governor’s proposed property tax reduction plan. Watch
here. |
Department of Labor & Industry
Kathy Manderino, Acting Secretary of the Department of Labor and Industry,
answered questions on a number of issues related to jobs and workers, including:
- Staff complement and pension-related costs for the department.
- The need to increase vocational rehabilitation funding to get more
people into the workforce.
- The rationale for using an out-of-state company for labor negotiations.
- Wage pressure if the minimum wage is increased.
- A crisis in finding skilled labor, particularly for manufacturing jobs.
- Workers’ compensation fraud.
- The time frame for transferring information for PA residents who work
out of state.
- Increased funding for assisted technology, which helps those with
disabilities.
- Providing funds and assistance for the Centers for Independent Living.
- How the proposed increase in the minimum wage would affect small
businesses.
- Sole proprietors who pay into unemployment compensation but cannot
receive benefits.
- Encouraging young people to obtain training in trades.
- Cost-savings realized by a program that prevents prisoners from
receiving unemployment benefits.
- The importance of New Choices/New Options in helping workers who have
been out of the workforce for a long time to find employment.
- Vocational training for inmates before their re-entry.
- The status of the State Workers Insurance Fund and its importance to
state businesses.
- How effective the U.C. Amnesty Program has been in recovering costs.
Watch the Hearing
here.
Senator Mensch discusses the need to expand the Strategic Early
Warning Network (SEWN), promotes the concept of training workers “in place”
to avert unemployment, and asked the department to see what can be done for
sole proprietor businesses that pay into unemployment compensation but never
collect. Watch
here.
Department of Banking & Securities
Acting Secretary of Banking & Securities Robin Wiessmann fielded
questions from members of the Appropriations Committee on a number of topics
related to the banking industry in Pennsylvania including:
- Issues facing community banks.
- Mortgage servicing.
- Bank shares tax.
- The influence of global banking trends on Pennsylvania’s banks.
- Financial scams.
- Electronic transactions and cybersecurity.
- The impact of the Governor’s proposed sales tax expansion on the
securities industry and investment services.
- Payday lending operations.
- Regulations on loan origination.
- Passive versus active investment strategies for pension funds.
Watch the Hearing
here.
Senator Mensch discusses the impact of federal Dodd-Frank banking
regulations, bank stress tests in a slowing global economy, and the department’s
efforts to inform citizens about financial scams. Watch
here.
Tuesday, March 31
Department of Revenue
Acting Secretary Eileen McNulty was questioned about the Administration’s
unprecedented tax hikes and the impact on the Pennsylvania economy. Topics
included:
- Confusion over a possible sales tax on lobbying.
- Services covered by the proposed sales tax on financial planners.
- Re-release of the bulletin on bank shares tax.
- Ability to nullify existing contracts to prevent drillers from passing a
severance tax onto property owners.
- Disparities in property tax reductions under the Governor’s plan.
- The failure of the Governor’s school property tax plan to prevent
property taxes from going back up.
- Unrealistic projections for severance tax revenue.
- The Governor’s plan to cap natural gas impact fee funding and the effect
on communities.
- Strategy for meeting projections for lottery revenue increases.
- The possible need to review criteria for Property Tax/Rent Rebate
regarding surviving spouses over 50 and non-citizens.
- The likelihood that retailers will round up the proposed 6.6 percent
sales tax to 7 percent.
- The complexity and legal challenges with implementing combined-reporting
requirements on businesses.
- The proposed sales tax on amusement park admissions and impact on local
amusement taxes.
- The Administration’s plan to implement a whole new regime of taxation
and the ability to administer with current staffing.
- The burden of adding $9 billion in new costs on the Pennsylvania economy
under the Governor’s plan and the effect on economic growth.
Watch the Hearing
here.
Pennsylvania Historical
and Museum Commission
Senators asked James Vaughn, Executive Director of the PA Historical and
Museum Commission about his agency’s budget and mission, including:
- The use of public-private partnerships and volunteers in operating
historical sites.
- Increased fees and how it affects the number of visits.
- The trend in attendance at historical sites and museums.
- How important cultural and historical sites are to tourism.
- Concerns about expanding the sales tax to cover admissions to facilities
and the impact it would have on the number of visitors.
Watch the Hearing
here.
Department of Transportation
Acting Transportation Secretary Leslie Richards fielded questions about the
state’s transportation system including:
- Act 89, the state’s transportation funding plan, and the positive impact
it has had on infrastructure.
- Addressing the serious pothole problem caused by the harsh winter.
- Federal legislation and funding needed to continue improvements.
- Public-private partnerships for bridge replacement and other projects.
- Exemptions for emissions testing for new vehicles.
- The state’s Dirt and Gravel Road Program and its success in protecting
streams.
- Ensuring that seasonal workers are treated fairly with unemployment
compensation and other benefits.
- How to move transportation and development projects forward while
protecting the environment.
- Notifying communities when bridges are going to be closed or
weight-restricted.
- Solving serious traffic issues on Route 422.
- A status report on the state’s structurally deficient bridges.
- Encouraging the use of compressed natural gas and increasing the number
of stations.
- Updating the Pennsylvania Transit Revitalization Investment District (TRID)
Act.
Watch the Hearing
here.
Senator Mensch discusses the need to improve
communication with municipalities on bridge closings, new traffic patterns,
emergencies and other areas, and urges steps be taken to relieve congestion on
Route 422. Watch here.
Department of Agriculture
Acting Secretary of Agriculture Russell Redding fielded questions from
members of the Appropriations Committee on a number of topics related to
agriculture in Pennsylvania including:
- Inequity in tax breaks for farmland, particularly in light of the array
of tax increases proposed by Governor Wolf.
- Support for the horse racing industry in Pennsylvania.
- A proposed “Green Agriculture” initiative.
- Funding for Penn State’s agriculture programs and the University of
Pennsylvania’s veterinary school.
- The impact of regulations on church fundraising activities.
- State support for fairs and the potential for those events to be taxed
under the Governor’s proposed sales tax expansion.
- Dog licensing and dog law enforcement.
- Objections by the Pennsylvania Farm Bureau to the Governor’s temporary
and limited property tax reduction proposal.
- Elimination by the Governor of funding for a number of programs in the
Agriculture budget.
- Resource Enhancement and Protection (REAP) tax credits to assist
farmers.
- High school agriculture science programs.
- The PA Preferred program and promotion of Pennsylvania-grown products.
- Farmland preservation efforts.
Watch the hearing
here.
Wednesday, April 1
Pennsylvania Emergency Management
Agency
PEMA Director Richard Flinn and State Fire Marshal Timothy Solobay briefed
members of the Senate Appropriations Committee on emergency operations and
services, including:
- Legislation to implement the updated statewide 911 system, and how fees
will be assessed.
- Concerns about the statewide radio system.
- The dwindling number of volunteer firefighters and emergency services
workers.
- A status report on the new PEMA building, including costs involved in
its construction.
- Recruitment and retention of volunteer fire fighters and the savings
they provide to communities.
- Efforts to attract new volunteers, including tuition credits, loans and
training.
- PEMA's working relationship with the PA State Police.
- Training for responding to incidents involving Marcellus Shale.
- Responding to motorists who are stranded on highways for long amounts of
time due to road condition.
- Concerns about trains carrying large amounts of crude oil through
communities and whether there is notification.
- Merging fire companies to save costs and prevent duplication.
- Funding issues faced by county 911 centers and the need to resolve
challenges they are facing.
- The value of the Local Emergency Relief line item.
- Hazard mitigation efforts to prevent reoccurrence of flooding.
- State assistance for volunteer recruitment and retention efforts.
- Increased workers comp insurance rates for firefighters.
- Pipeline emergency response training.
- Legislation updating Title 35.
- The authority of the 911 advisory board.
- Why the Administration’s PEMA request is higher than what PEMA
requested.
Watch the hearing
here.
Senator Mensch discusses the urgent need to update the funding mechanism
for Pennsylvania’s county 911 centers. Watch
here.
Department of Conservation and
Natural Resources
Acting DCNR Secretary Cindy Adams Dunn answered questions about the benefits
and impacts of natural gas drilling on public lands. Other topics of discussion
included:
- The legality and impact of the governor’s moratorium on new natural gas
leases in state forests and parks.
- Increasing numbers of visitors to state parks.
- A reduction in revenue generated by timber sales.
- Modernizing the PNDI Environmental Review Tool.
- Proposed funding cuts for Heritage Parks.
- Funding for high-hazard dams.
- The impact of additional funding dedicated to dirt and gravel roads.
- A proposed increase in the Realty Transfer Tax.
- Avoiding using state parks and forests as political pawns in the event
of a prolonged budget debate.
- Uses of Oil and Gas Lease Fund revenues.
- Capital projects on public land.
- Areas available for the use of alternative energy.
- The total value of energy resources on state land.
- Difficulties in projecting severance tax revenue.
Watch the hearing
here.
Department of Military and
Veterans Affairs
Acting Adjutant General James Joseph discussed a number of issues pertaining
to the Pennsylvania National Guard, the Pennsylvania Air National Guard and
services provided to veterans by the Commonwealth. Specific issues discussed
during the hearing included:
- The number of National Guard members deployed.
- Trends in recruitment and retention.
- Information technology matters.
- Funding for the education of veterans’ children.
- Waiting lists for state veterans’ homes.
- Veterans service outreach efforts.
- Veterans Trust Fund donations and expenditures.
- Health care coverage for veterans under Medicaid expansion.
- A court ruling changing the definition of a paralyzed veteran.
- Matching veterans with job openings.
- Partnerships with the private sector to serve veterans.
- Terrorist threats against service members.
- Federal funding for veterans’ services.
- The success of county veterans’ courts.
- Dementia and Alzheimer’s disease issues among veterans.
- Delays in processing Disabled Veterans Real Estate Tax Exemption program
applications.
- Increases in personnel costs caused by pensions.
- Privatization of some services.
- Creation of a separate Department of Veterans’ Services.
- Military advocacy of early childhood education.
- Options for long-term care.
Watch the hearing
here.
Department of Insurance
Acting Insurance Commissioner Teresa Miller answered questions regarding the
effect of the federal health care law, as well as other topics including:
- The cost of healthcare exchanges under Obamacare.
- Consolidation of healthcare insurers and the effect on consumers.
- Federal concerns regarding minimum essential coverage under CHIP.
- The consent decree between Highmark and UPMC.
- Projected cost savings for employers in terms of Worker’s Compensation.
- Unfunded liability for MCARE and the number of malpractice claims in
Pennsylvania.
- Companies declining to sell long-term care insurance.
Watch the hearing
here.
Twitter and Facebook: I post regular
updates on legislative action, committee developments, useful state-related
information, happenings in the 24th Senatorial District and more on Twitter
@SenatorMensch and on my
Facebook page.
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Phone (215) 541-2388
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Phone
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