Volume 166, April 2011 Pennsylvania Volume 57, September 2006 Legisla tive Upd ate From the Buchanan Ingersoll & Rooney State Government Relations Group Inside This Issue The House will be back in session beginning April 4. The Senate will be back in session beginning April 5. Schwank Wins Senate Seat 1 Budget Updates 1 Schwank Wins Senate Seat Introducing… 4 Former Berks County Schwank won the seat by 15 points. Commissioner Judy The seat became vacant when Democrat Harrisburg Happenings 6 Schwank , a Democrat, Senator Mike O’Pake passed away won the state Senate unexpectedly in December. Schwank Legislative Actions 8 special election for the will be sworn in when session resumes 11th Senatorial District next week. Committee Actions 9 over Republican opponent Judy Schwank Larry Medaglia . Executive Nominations 9 and Appointments Political Grapevine 10 Budget Updates H2O PA and Liberty Secretary Walker stated there are 720 applications for H2O program Loan Fund funding and that turnaround time on applications should be relatively quick. At a recent budget hearing, The secretary also noted that there are Department of Community and projects that have been awaiting action Economic Development Acting for the last five months because the Secretary Alan Walker indicated that Commonwealth Financing Authority Pennsylvania’s H2O PA program is meetings have lacked a quorum. funded at roughly $182 million. The program will become part of the new When asked about the LLF and the Liberty Loan Fund (LLF), a consolidation planned structure of its governing of the Commonwealth Financing authority, Secretary Walker indicated Authority, the Pennsylvania Industrial the department proposes a 15-member Development Authority, the Machinery board comprised of one member and Equipment Loan Fund, the appointed by each legislative caucus, Pennsylvania Minority Business two or three cabinet secretaries and Development Fund, the Small Business citizens, with the legislature and the First Fund, and remaining Tobacco administration splitting the citizen Settlement fund investments. appointments. The secretary stated the goal is to have a system with one loan H2O PA, which is currently administered application that offers the flexibility to by the Commonwealth Financing shift a pool of approximately $1.9 billion Authority, provides for single-year between accounts/programs as needed. or multi-year grants for flood control The department is working on draft projects, high-hazard, unsafe dam legislation to include creation of an projects and water supply, sanitary authority and criteria for the LLF. sewage and storm water projects. Budget Updates , continued on page 2 Page 2 Budget Updates continued Local Impact Fee for address the need for new wastewater treatment facilitates. Marcellus Shale? Secretary Krancer stated that staff Governor Corbett has indicated that levels are constantly being reviewed he would consider supporting a local to ensure the department can meet the impact fee on natural gas drilling. demand for inspections. He noted that He continues to oppose a state tax personnel are paid out of permit fees, on the emerging industry, but stated so as drilling activity increases, there will that he might be able to support a be additional support for personnel, fee that would be paid directly to if needed. To date, the commonwealth drilling communities to offset road has collected $10 million in permitting repairs, additional law enforcement fees. and other expenses related to the booming industry. Alternative Energy The governor has asked his Marcellus At the Senate budget hearing for Shale Commission to include a the Department of Environmental calculation of identifiable costs in Protection, Acting Secretary Mike its report, which is to be presented Krancer said the administration will in July. The Commission held its first take an interagency approach toward meeting on March 25. alternative energy. The efforts will be In the meantime, Senate President coordinated by Patrick Henderson, the Pro Tempore Joseph Scarnati indicated governor’s energy executive, and the he wants to pass a comprehensive acting secretary's main focus will be Marcellus Shale legislative package on permitting. this spring as part of the budget. When asked if the state’s Alternative The omnibus package is expected to Energy Portfolio Standards (AEPS) should be introduced in the next several weeks. be addressed, Secretary Krancer said the governor is satisfied with the current Marcellus Shale by the Numbers Marcellus Shale standards. There are questions regarding Water Quality the state’s solar credits as they apply $10 million to the AEPS and whether or not supply Natural gas drilling has a much smaller has outpaced demand. Senator Mary Jo Revenue of permitting fees footprint than the legacy of coal and White (R-Venango) noted that the state’s could be part of Pennsylvania’s path AEPS credits are using a lot of out of 84 toward energy independence according state generation, but she was unsure Number of DEP personnel conducting to Department of Environmental how to limit this without violating the Protection (DEP) Acting Secretary Mike Commerce Clause of the United States inspections Krancer. At a recent Senate budget Constitution. hearing, the acting secretary emphasized 7,000 the promise of the industry while also Hospitals Make Their Case Number of inspections scheduled addressing questions regarding water for this year quality, water treatment and the Emergency room waits will be longer, department’s ability to oversee the small hospitals in rural communities industry’s development. may close and the ability to serve the uninsured population will become The budget has enough funding to more difficult as a result of the budget hold drillers accountable and provide proposal to cut $150 million in state greater oversight according to Secretary funds, according to the Hospital and Krancer. The majority of wastewater Healthsystem Association of is being recycled on drilling sites, Pennsylvania (HAP). Secretary Krancer said. In addition, the department's new total dissolved The impact of the state cuts on solids (TDS) regulations are designed hospitals more than doubles because to treat the high level of salts in the proposed cuts will result in an wastewater. According to the secretary, additional loss of $183 million in the TDS regulations will also help federal matching funds. Budget Updates , continued on page 3 Page 3 Budget Updates continued Feeling the Impact “It’s a $333 million hit that will be felt He said the move draws to the heart in every hospital in every community,” of the mission of the department and Elimination of Hospital Supplemental said Brian Kelly, a Buchanan government that he sees improving care management, Payments $10 million relations professional who specializes using federal matching funds and in health care matters. “The medical providing technological assistance Obstetric/neonatal services services Pennsylvanians stands to lose as areas that the department will Burn centers and the jobs that are at risk because concentrate on. Secretary Duke said of these cuts are needed in every he would meet with stakeholders Trauma centers hospital’s community.” during upcoming regional visits by State-related academic medical centers the department. Health care clinics According to the governor’s budget office, hospitals will still receive Mcare Physician practice plans $1.2 billion in combined state and federal funds. Approximately $500 Elimination of Supplemental When asked about the future of million of that figure is federal matching Mcare, Acting Insurance Department Payment Restorations funds, according to HAP. Because of Commissioner Michael Consedine said In-patient/out-patient disproportionate the $4 billion budget shortfall, the that the department and Governor state can’t afford the $150 million share Tom Corbett agree that over the long to secure the additional draw. term the state should not be in the Critical Access Fund medical malpractice insurance business. Last year, hospitals negotiated with He noted that it is the policy of the Medical education former Governor Ed Rendell’s administration to continue to "run off" administration to institute a 2.95 Reductions to Act 49 Hospital the program and that the administration percent state tax on their revenues is putting a process in place that makes Payments (Act 49 of 2010). Money raised by the sense for the provider community and tax was to help obtain federal matching Rehabilitation payment insurance companies. The commissioner funds and provide a reliable revenue indicated that in the late Spring or early Dependency payment stream of state and federal Medicaid Summer the department will conduct a Small and Sole Community payment funds to hospitals. Hospital officials capacity study and work with stakeholders noted that discussions with Governor Stability payment to determine the next step. In-patient/out-patient disproportionate Corbett during the campaign led them to believe he would continue to draw share down the full amount of federal funds. PHIX Over the last three years, the state’s Medical education adjustments As part of national health care reform, hospital community has contributed Pennsylvania is required to establish a approximately $246 million in revenue statewide health insurance exchange. while negotiating a new Medical Last fall, the Department of Insurance Assistance payment system that submitted an application to the U.S. does not rely on new state funding. Department of Health and Human Home-based care has saved “Hospitals are doing their part to help Services (HHS) for a $1 million grant 2 million bed days over the in these difficult times to assure that to plan for and establish an exchange, patients have access to quality care,” which is required by law to be in last five years. said HAP President and CEO Carolyn place by 2013. With the change of Source: Testimony by Acting F. Scanlan. “With the elimination of administrations, the state is in the planning process to determine how Department of Aging Secretary adultBasic and the recession increasing Medicaid enrollment, this is not the best to move forward to meet the Brian Duke.