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House of Representatives COMMONWEALTH OF PENNSYLVANIA HOUSE OF REPRESENTATIVES APPROPRIATIONS COMMITTEE HEARING STATE CAPITOL MAIN BUILDING ROOM 140 HARRISBURG, PENNSYLVANIA THURSDAY, MARCH 7, 2013 10:00 A.M. PRESENTATION FROM GOVERNOR'S BUDGET OFFICE BEFORE: HONORABLE WILLIAM F. ADOLPH, JR., MAJORITY CHAIRMAN HONORABLE KAREN BOBACK HONORABLE JIM CHRISTIANA HONORABLE GARY DAY HONORABLE GORDON DENLINGER HONORABLE BRIAN ELLIS HONORABLE MAUREE GINGRICH HONORABLE GLEN GRELL HONORABLE SETH GROVE HONORABLE TOM KILLION HONORABLE DAVID R. MILLARD HONORABLE MARK T. MUSTIO HONORABLE DONNA OBERLANDER HONORABLE BERNIE T. O'NEILL HONORABLE MICHAEL PEIFER HONORABLE SCOTT A. PETRI HONORABLE CURTIS G. SONNEY ————————— JEAN DAVIS REPORTING 285 EAST MANSION ROAD • HERSHEY, PA 17033 Phone (717)503-6568 1 BEFORE (cont.'d): 2 HONORABLE JOSEPH F. MARKOSEK, MINORITY CHAIRMAN HONORABLE MATTHEW D. BRADFORD 3 HONORABLE MICHELLE F. BROWNLEE HONORABLE MIKE CARROLL 4 HONORABLE H. SCOTT CONKLIN HONORABLE MADELEINE DEAN 5 HONORABLE DEBERAH KULA HONORABLE MICHAEL H. O'BRIEN 6 HONORABLE JOHN P. SABATINA HONORABLE STEVEN SANTARSIERO 7 HONORABLE JAKE WHEATLEY 8 ALSO IN ATTENDANCE: 9 DAVID DONLEY, REPUBLICAN EXECUTIVE DIRECTOR 10 DAN CLARK, REPUBLICAN CHIEF COUNSEL MIRIAM FOX, DEMOCRATIC EXECUTIVE DIRECTOR 11 HONORABLE PAMELA DeLISSIO HONORABLE DAN FRANKEL 12 HONORABLE KEITH GILLESPIE HONORABLE JOE HACKETT 13 HONORABLE NICK KOTIK HONORABLE PHILLIS MUNDY 14 HONORABLE MARIO SCAVELLO 15 16 JEAN M. DAVIS, REPORTER NOTARY PUBLIC 17 18 19 20 21 22 23 24 25 2 1 I N D E X 2 TESTIFIER 3 NAME PAGE 4 5 CHARLES ZOGBY 9 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 3 1 P R O C E E D I N G S 2 * * * 3 MAJORITY CHAIRMAN ADOLPH: Good morning, 4 everyone. I'd like to call to order the House 5 Appropriations Budget Hearing with the Secretary of the 6 Budget, Charles Zogby. 7 Before we start the hearing, we normally go 8 through some brief introductions of the members and the 9 areas that they represent throughout the Commonwealth. I 10 also remind everyone, including the members, to please turn 11 their iPhones and iPads and cell phones and what other 12 electronic gadgets that you may have with you off or on 13 silent, please. 14 My name is Bill Adolph. I'm the Republican Chair 15 of the Appropriations Committee. My District is 165 in 16 Delaware County. 17 MR. DONLEY: Dave Donley, Republican Staff 18 Executive Director. 19 MR. CLARK: Dan Clark, Chief Counsel, Republican 20 Appropriations Committee. 21 REP. PETRI: Scott Petri, 178th, Bucks County. 22 REP. GRELL: Good morning. Glen Grell, 23 Cumberland County, 87th District. 24 REP. GROVE: Seth Grove, York County, 196th 25 District. 4 1 REP. MUSTIO: Good morning. Mark Mustio, 2 Allegheny County, 44th District. 3 REP. GINGRICH: Good morning. Rep. Mauree 4 Gingrich, Lebanon County. Good to see you. 5 SECRETARY ZOGBY: Nice to see you. 6 REP. OBERLANDER: Donna Oberlander, Clarion and 7 Armstrong Counties. 8 REP. CHRISTIANA: Good morning, Mr. Secretary. 9 Jim Christiana, Beaver County. 10 SECRETARY ZOGBY: Nice to see you. 11 REP. ELLIS: Brian Ellis, Butler County. 12 REP. KILLION: Tom Killion, Chester and Delaware 13 Counties. Good morning. 14 REP. O'NEILL: Good morning. Rep. Bernie 15 O'Neill, Bucks County. 16 REP. PEIFER: Good morning. Mike Peifer, 139th 17 District, Pike, Wayne, and Monroe Counties. 18 REP. MILLARD: Good morning. David Millard, 19 109th District, Columbia County. 20 REP. DENLINGER: Good morning. Gordon Denlinger, 21 99th District, Lancaster County. 22 REP. BOBACK: Good morning. Karen Boback, House 23 District 117, Luzerne, Wyoming, and Columbia Counties. 24 REP. BRADFORD: Matt Bradford, Montgomery County. 25 REP. SANTARSIERO: Good morning, Secretary. 5 1 Steve Santarsiero, Bucks County. 2 MINORITY CHAIRMAN MARKOSEK: Good morning, 3 Secretary. Rep. Joe Markosek, Allegheny and Westmoreland 4 Counties. 5 Also in attendance we have Rep. Dan Frankel, Rep. 6 Pam DeLissio, and Rep. Nick Kotik as guests of the 7 Committee. Thank you. 8 MS. FOX: Hi. Miriam Fox, Executive Director, 9 House Appropriations, and staff, Democrats. 10 REP. SABATINA: Good morning. Rep. John Sabatina 11 from Philadelphia County. 12 REP. BROWNLEE: Good morning. Michelle Brownlee, 13 Philadelphia County, 195th Legislative District. 14 REP. CARROLL: Good morning, Mr. Secretary. Mike 15 Carroll from Luzerne and Monroe Counties. 16 REP. O'BRIEN: Good morning. Mike O'Brien, 17 Philadelphia, 175th District. 18 REP. KULA: Good morning. Deberah Kula, Fayette 19 and Westmoreland Counties, 52nd District. 20 REP. DEAN: Good morning, Mr. Secretary. 21 Madeleine Dean, Montgomery County. 22 REP. CONKLIN: Scott Conklin, Centre County. 23 REP. WHEATLEY: Jake Wheatley, Allegheny County, 24 city of Pittsburgh. 25 MAJORITY CHAIRMAN ADOLPH: Thank you. 6 1 Now that Senator Rand Paul has ended his 13-hour 2 filibuster, I think that makes our budget hearings the most 3 exciting affairs programming on public television today. 4 Before we get started, I wanted to remind the 5 viewers that video of all the House budget hearings and all 6 submitted written testimony and hearing transcripts will be 7 archived at www.pabudget.com. You can also follow along 8 with the budget process by visiting the website for regular 9 updates. And for even more current information, you can 10 monitor the Appropriations Committee's activity on Twitter 11 by following our handle at House GOP. That's a little 12 plug. 13 We have a high-tech communications director now 14 and he wants me to get all that stuff in. I'll put him 15 back in his cubbyhole. 16 Today marks the final day of House budget 17 hearings. And I want to thank all the members of this 18 Committee for your participation. The role of this 19 Committee and the Legislature in the budget process cannot 20 be discounted. When we look back on the past two years, 21 the Legislature played a key role in working with the 22 Administration to overcome tremendous challenges. 23 As we worked to put the last two budgets 24 together, we had to deal with the loss of billions of 25 dollars in Federal stimulus and a $4 billion budget deficit 7 1 in our State budget. We worked with the Administration to 2 implement pro-growth policies that helped improve our 3 economy, reduce unemployment numbers, and rein in on 4 sustainable spending. We passed two on-time budgets with 5 no tax increases and set Pennsylvania on a course for 6 economic growth and a brighter future. 7 I intend to make sure we continue on that same 8 track this year and make sure we again deliver an on-time 9 sustainable budget. The budget proposal presented by the 10 Governor represents a good starting point for negotiations. 11 There are some very positive aspects that will make a 12 significant impact for Pennsylvania residents: 13 $90 million increase for basic education funding; 14 overall pre-K education increases of 338 million, providing 15 for the most State tax dollars for basic education ever; 16 level funding for all higher education institutions; 17 funding for an additional 290 State troopers; $20 million 18 to provide for services for an additional 380 individuals 19 with intellectual disabilities, a waiting list of 700 20 Special Education graduates and 100 individuals currently 21 residing in State centers. I can't forget the 10 percent 22 increase in funding for domestic violence and the rape 23 crisis centers. 24 These are all good proposals. They will be a 25 good foundation for the final budget that we will negotiate 8 1 over the coming months. 2 To answer some of the outstanding questions 3 relative to the Governor's budget proposal, our final 4 hearing will begin with the Governor's Budget Secretary, 5 Charles Zogby. Welcome, Charles. 6 SECRETARY ZOGBY: Thank you, Mr. Chairman. 7 MAJORITY CHAIRMAN ADOLPH: You can start with 8 some opening remarks or we can get right into answers, 9 whatever you would like to do. 10 SECRETARY ZOGBY: Well, Mr. Chairman, the one 11 thing I did want to do is -- and I know this is the close 12 of the process for the Committee. I did try to catch many 13 of the hearings on PCN and know that the members have put 14 in a tremendous amount of time. 15 But I did want to -- and I think I can on behalf 16 of my Cabinet colleagues as well -- extend a thanks to you. 17 And if I might take liberty, since he's not here and I 18 started over in the Senate, Senator Corman, I think both of 19 you have sort of steered the helm here, as it were, with a 20 gentle but tough fist in keeping the trains running on 21 time. 22 I just want to extend a personal thanks to you 23 for your leadership in conducting these hearings. I think 24 they've been a good airing of the issues in the budget. 25 Again, just on behalf of the Administration, I wanted to 9 1 thank you. 2 MAJORITY CHAIRMAN ADOLPH: I appreciate the 3 compliment. But I'm also going to do a little shout out 4 for my Democratic Chair, Joe Markosek. 5 SECRETARY ZOGBY: Absolutely. 6 MAJORITY CHAIRMAN ADOLPH: My fellow Republicans 7 tend to listen to me. And I know the Democrats certainly 8 listen to Joe's wisdom. These are very important budget 9 hearings. You learn a lot. It's a necessary process. And 10 I think the people of Pennsylvania are better off as a 11 result of these budget hearings.
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