COMMONWEALTH OF PENNSYLVANIA HOUSE OF REPRESENTATIVES APPROPRIATIONS COMMITTEE HEARING BUDGET HEARING
STATE CAPITOL MAJORITY CAUCUS ROOM HARRISBURG, PENNSYLVANIA
WEDNESDAY, FEBRUARY 15, 2006, 9:00 A.M.
BEFORE: HONORABLE BRETT FEESE, CHAIRMAN HONORABLE DWIGHT EVANS, CHAIRMAN HONORABLE MATTHEW BAKER HONORABLE STEVEN CAPPELLI HONORABLE GENE DiGIROLAMO HONORABLE PATRICK FLEAGLE HONORABLE DAN FRANKEL HONORABLE KATHY MANDERINO HONORABLE ANTHONY MELIO HONORABLE PHYLLIS MUNDY HONORABLE SCOTT PETRI HONORABLE DOUGLAS REICHLEY HONORABLE SAMUEL ROHRER HONORABLE JOSH SHAPIRO HONORABLE JERRY STERN HONORABLE MICHAEL STURLA HONORABLE THOMAS TANGRETTI HONORABLE DON WALKO HONORABLE JAKE WHEATLEY HONORABLE PETER ZUG
ALSO PRESENT: EDWARD NOLAN MIRIAM FOX
JEAN M. DAVIS, REPORTER NOTARY PUBLIC
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1 I N D E X
2 WITNESS PAGE
3 HONORABLE THOMAS TIGUE 4
4 HONORABLE KAREN BEYER 9
5 HONORABLE PETER DALEY 14
6 HONORABLE KATHY RAPP 18
7 HONORABLE JENNIFER MANN 22
8 HONORABLE DARYL METCALFE 28
9 HONORABLE JOSH SHAPIRO 32
10 HONORABLE PAUL CLYMER 38
11 HONORABLE GENE DiGIROLAMO 42
12 HONORABLE MICHAEL TURZAI 47
13 HONORABLE MICHAEL STURLA 52
14 HONORABLE DAVID MILLARD 56
15 HONORABLE PAUL COSTA 58
16 HONORABLE DOUGLAS REICHLEY 63
17 HONORABLE ROBERT GODSHALL 68
18 HONORABLE TIMOTHY SOLOBAY 72
19 HONORABLE BERNIE O'NEILL 77
20 HONORABLE RICHARD GRUCELA 83
21 HONORABLE JOSEPH MARKOSEK 85
22 HONORABLE CHERELLE PARKER 89
23 HONORABLE JOHN PAYNE 93
24 HONORABLE JOHN SIPTROTH 96
25 HONORABLE SCOTT BOYD 101
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1 WITNESSES (cont'd.) PAGE
2 HONORABLE JOHN BLACKWELL 105
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10 ATTACHMENTS
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12 HONORABLE MICHAEL HANNA
13 HONORABLE FRANK OLIVER
14 HONORABLE JAMES ROEBUCK
15 HONORABLE LARRY SATHER
16 HONORABLE CURT SONNEY
17 HONORABLE W. CURTIS THOMAS
18 HONORABLE JOHN YUDICHAK
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1 CHAIRMAN FEESE: I would like to call this
2 hearing of the House Appropriations Committee to
3 order. Today is the time for members of the
4 Pennsylvania House of Representatives to present their
5 testimony concerning the Governor's proposed 2006-2007
6 budget.
7 Our first presenter today is Representative
8 Thomas Tigue. Representative Tigue, thank you for
9 appearing today and presenting your testimony.
10 REPRESENTATIVE TIGUE: Thank you,
11 Mr. Chairman. I'm sorry about my voice. If you have
12 problems hearing me, I have a little problem with my
13 throat. But anyway, I'll try to be short.
14 Good morning, Mr. Chairman and Chairman Evans
15 and members of the committee. Thank you for allowing
16 me to make this presentation. I just want to mention
17 three items which I am concerned with in the budget.
18 The first item is, because of the expected
19 enrollment and utilization of the new Medicare Part D
20 prescription drug usage by those who are currently
21 enrolled in PACE and PACENET, the proposed budget, the
22 Governor's proposed budget, estimates that there will
23 be a savings of more than $200 million for PACE and
24 PACENET. I believe that we should use these savings
25 to expand the eligibility for PACE and PACENET to
5
1 include individuals who are disabled or to those who
2 are 62 years old. Currently, you know, it's 65.
3 In addition, I think some of the savings
4 should be used to pay any of the premiums or increased
5 co-pays required by Medicare Part D. We must insure
6 that no one currently enrolled in PACE or PACENET will
7 be forced to spend more for prescriptions than they do
8 under PACE or PACENET.
9 As an example, if you're paying PACENET right
10 now, of course, you have to pay $40 a month. Whatever
11 the premium might be in Medicare Part D would be added
12 to that, depending on how we change it. So what I'm
13 saying is, make sure that those folks under PACENET
14 don't pay $40, a premium, plus a co-pay that's higher
15 than what they're doing now. In fact, we should be
16 able to lower or eliminate the amounts they currently
17 spend. I think some of the savings should be used to
18 do that.
19 Secondly, in his proposed budget, the
20 Governor has proposed a new program, "Science: It's
21 Elementary." I think that's a giant step in the
22 right direction. The President mentioned in his State
23 of the Union address that we're having, again, this
24 math and science efficiency which must be addressed.
25 The purpose of this program is to improve science
6
1 programs in elementary schools. I request that we
2 consider similar targeted funds for math and science
3 programs in middle and secondary schools. To complete
4 the sequence, I strongly suggest that we provide
5 $2 million to fund equipment for our engineering
6 programs in our colleges and universities. We have
7 not provided this funding for the past three years.
8 Studies are showing that we are falling behind in the
9 number of engineers that we are graduating from
10 colleges. There's a dire need for engineers in this
11 country. I think in the future there's going to be a
12 push towards math and science efficiency.
13 On that same theme, to complete the sequence,
14 I also think that we should restore a line item that
15 had been in the budget for a number of years but has
16 not been in for the last three or four budgets. And
17 that's a small line item of $2 million for engineering
18 equipment for the colleges and universities that
19 provide programs in that particular area.
20 And last, it's a small item in the budget. I
21 get tired of doing this each year. All the proposed
22 budgets take out a $250,000 line item so we come back
23 and we put it back in and everybody says, yes, yes,
24 yes. It's a very small piece of the budget which is a
25 very important program because it has benefited 50,000
7
1 disabled veterans. It's the Disabled American
2 Veterans Transportation line item. I'm sure we can
3 put the $250,000 in, but I think that it's time that
4 we go beyond the $250,000 and add perhaps a small
5 amount, maybe $100,000.
6 This program is great. A number of
7 volunteers provide necessary transportation to those
8 veterans who are disabled and who need medical care.
9 Actually, Ford Motor Company has been very helpful in
10 providing vans at cost, in fact, less than cost. So
11 this is a very good program. I think we should put
12 some more money in that.
13 Thank you, Mr. Chairman. And if anyone has
14 any questions, I'd be happy to answer them.
15 CHAIRMAN FEESE: Thank you, Representative
16 Tigue.
17 Are there any questions from the committee?
18 Representative Baker.
19 REPRESENTATIVE BAKER: I am intrigued by your
20 comment about Ford Motor Company. Do they donate
21 those to the organizations?
22 REPRESENTATIVE TIGUE: Yes. They provide the
23 vans. And the money is used, you know, obviously for
24 the cost of the operation of the vans as far as the
25 program and providing some of the cost to the people
8
1 who have to be reimbursed for different things. Ford
2 has been great on this. I think they've been doing
3 this for five years. It's been a very successful
4 program. Not many people know about it. It's a very
5 small item. It's $250,000 in this budget. It should
6 be more.
7 REPRESENTATIVE BAKER: Are you aware if Ford
8 ever donates or provides vans for the disabled
9 individually?
10 REPRESENTATIVE TIGUE: I'm not aware of that.
11 They may, but I'm not aware of that.
12 REPRESENTATIVE BAKER: Thank you.
13 REPRESENTATIVE TIGUE: Thank you.
14 CHAIRMAN FEESE: Representative Tigue, I just
15 wanted to mention -- I understand you will not be
16 seeking re-election. I just wanted to mention that
17 working with you -- you have been an outstanding
18 member of the Pennsylvania House of Representatives.
19 I think you've served the Commonwealth exceptionally
20 well. I think you will be missed by your constituents
21 as well as the members of this House.
22 REPRESENTATIVE TIGUE: Well, I appreciate
23 those kind words, Mr. Chairman. And I noticed that
24 you made the same decision. There's going to be life
25 after the Legislature and we're going to enjoy it.
9
1 Thank you for all you've done.
2 CHAIRMAN EVANS: Mr. Chairman, I would like
3 to say that Tommy and I got elected in the same class.
4 REPRESENTATIVE TIGUE: Yes, we've been here a
5 long time.
6 CHAIRMAN EVANS: You have always been
7 forthright, Tommy. Maybe you'll come back as a
8 citizen and do the same thing.
9 REPRESENTATIVE TIGUE: Next year Brett and I
10 could come back and start something different.
11 Thank you.
12 CHAIRMAN EVANS: Thank you, Tommy.
13 CHAIRMAN FEESE: Thank you.
14 Our next presenter will be Representative
15 Karen Beyer.
16 REPRESENTATIVE BEYER: Good morning,
17 Mr. Chairman.
18 CHAIRMAN FEESE: Good morning.
19 REPRESENTATIVE BEYER: Good morning, Chairman
20 Evans.
21 CHAIRMAN EVANS: Good morning.
22 REPRESENTATIVE BEYER: Thank you for giving
23 me the opportunity to testify before your committee
24 this morning.
25 I am here today to discuss an issue of vital
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1 importance to my district. And as we embark upon
2 establishing budgetary priorities this session, I am
3 here before you today to sound an alarm and to make a
4 plea before this committee to make the Allentown
5 School District a budgetary priority.
6 A consortium of key community, civic,
7 business, and education leaders in the Lehigh Valley
8 have come together in what is called Education 2010 to
9 address a dire situation, which is the lack of
10 adequate funding and economic challenges facing the
11 Allentown School District.
12 What I have distributed to the members of
13 this committee is a recently released report,
14 preliminary findings of a viability study of the
15 Allentown School District prepared by APA Consulting
16 out of Denver, Colorado. APA has more than 20 years'
17 experience in education policy and school finance.
18 The struggle of large, urban school districts
19 has been well-documented. To summarize what you have
20 before you is a breakdown of the data studied. The
21 premise of the data was, comparative to other
22 districts within the Lehigh Valley and outside of the
23 Valley to districts of comparable size, like Erie,
24 Lancaster, Reading, and Scranton, the significant
25 challenges now facing the Allentown School District.
11
1 Allentown School District has almost three times as
2 many poor students and more than five times as many
3 English-language learners. As a result, the increase
4 of student challenges which Allentown currently faces
5 directly impact the ability to educate all its
6 students to meet state and federal standards.
7 The data also indicates that Allentown has a
8 lack of fair access to state and local revenues. As
9 we know, our state funds school districts from two
10 primary revenue streams, local property tax
11 collections and Act 511 taxes. Currently, Allentown
12 has less than half the property value per student of
13 most other districts in Lehigh County. Allentown
14 falls into the category of a low property value, high
15 tax district.
16 In fact, it's current tax levy is
17 significantly above the statewide average for school
18 districts in PA. To make matters worse, even when
19 compared to districts like Scranton, Lancaster, and
20 Erie, Allentown is the lowest wealth district.
21 The objective here for me today is to discuss
22 the state revenue sources for the Allentown School
23 District. Fiscal inequity exists when there is a
24 significant disparity in the per-student spending that
25 is unrelated to the needs of students. The worst kind
12
1 of fiscal inequity occurs when districts with high
2 needs have relatively low spending and high tax rates.
3 What the study has found is that for total
4 revenues, Allentown School District is now more than
5 $2,000 per student behind both the county and
6 statewide averages. And the gap is increasing. What
7 one would hope is that the state funding system would
8 help to close the per-student funding gap. This is
9 especially important to Allentown since the data
10 indicates that this school district enrolls far higher
11 numbers of special-needs students who require
12 significant additional resources to achieve academic
13 proficiency.
14 Simply closing the $2,000 per-student revenue
15 gap that now exists between Allentown and the
16 statewide average will require an infusion of at least
17 thirty to thirty-five million dollars per year. And
18 the numbers get worse. If current trends continue,
19 taking into account all that I have previously
20 described to you meeting federal standards will climb
21 to $47 million in additional funds needed in the year
22 2012.
23 It is my belief that the city of Allentown
24 and all the valiant efforts to economically revitalize
25 and to bring new revenues into the third largest city
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1 will all be for nothing if the school district is not
2 brought up to parity with other school districts.
3 There is no greater purpose for me today than
4 to advocate in the strongest of terms that Allentown
5 School District needs the attention of the state. We
6 need additional state monies. And I will do whatever
7 it takes to secure that funding. I owe it to the
8 children and I owe it to the residents that I
9 represent.
10 I should note that in that report, you will
11 find that the efficiency of the Allentown School
12 District with revenues is extraordinarily high. And
13 it shouldn't go without saying that the teachers and
14 the employees and superintendent and the school board
15 are heroes. I've been in the classrooms. I've been
16 in first grade classrooms with 42 students. It's
17 amazing.
18 Neighboring school districts that are far
19 wealthier are giving them books. Books aren't taken
20 home because most of them are copied. It is a very
21 desperate situation.
22 And I know that you're going to have Penn
23 State come in and Pitt come in. Those are all very
24 worthy institutions. And they're going to talk to you
25 about their funding needs. But I ask you,
14
1 Mr. Chairman, if it's at all possible, that I could
2 have representatives from the Allentown School
3 District and representatives from Education 2010 come
4 and talk to you about the desperate situation in the
5 Allentown School District. They could be far more
6 eloquent than I am in discussing their financial
7 needs.
8 I thank you very much.
9 CHAIRMAN FEESE: Thank you, Representative
10 Beyer.
11 Are there any questions from the members of
12 the committee?
13 REPRESENTATIVE BEYER: No questions for the
14 freshman. Okay.
15 CHAIRMAN FEESE: Thank you for your
16 testimony.
17 REPRESENTATIVE BEYER: Thank you very much.
18 CHAIRMAN FEESE: Our next presenter will be
19 Representative Peter Daley.
20 REPRESENTATIVE DALEY: Chairman Feese and
21 Chairman Evans and members of the Appropriations
22 Committee and staff, it's a pleasure to be able to
23 testify before you this morning.
24 I represent the 49th Legislative District in
25 Washington and Fayette Counties in southwestern
15
1 Pennsylvania and I want to talk on three subjects, two
2 of which directly affect my legislative district and
3 all of Pennsylvania.
4 The first is higher education. As a member
5 of the Council of Trustees of California University as
6 well as the board of overseers of Widner Law School
7 and the board of overseers of the University of
8 Pennsylvania Veterinary School, I have been an ardent
9 supporter of higher education.
10 I applaud the Governor's support for
11 additional funding for higher education, in particular
12 community colleges, which is up 5 percent. However,
13 many of the state's communities in all my years of my
14 exposure to higher education and education are not
15 served by community colleges. There are many students
16 that really simply do not want to go on to a community
17 college and do not want to go on for a degree at the
18 State System of Higher Education.
19 We want to talk today about the Community
20 Education Councils. However, the creation of the
21 community colleges imposes costs on local and county
22 governments greater than many poorer areas, as we have
23 in Southwestern Pennsylvania and Northeastern
24 Pennsylvania, can actually manage. The creation of a
25 new community college can often take years, even
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1 decades. The newest, being in Cambria County,
2 actually began work in the 1960's. With an intense
3 final push in the 1990's, it still required over three
4 years of development and planning.
5 The Community Education Councils that I was
6 talking to you about were created over a decade ago by
7 Representative Fred McIlhattan and Senator Rhodes.
8 That provided an economical, effective way to deliver
9 post-secondary services to people in the poorer and
10 more rural counties. These are the individuals that
11 sometimes do not want to go for higher education or
12 they don't want to go to a community college. These
13 are the kids that want to get a technical skill to go
14 out and work and do technical things.
15 A survey of ten existing councils last year
16 indicated that reasonably full funding of their varied
17 programs would require about a $2.5 million investment
18 by the Commonwealth. The final budget agreement cut
19 us back to $1.9 million, where they've collectively
20 been stuck for the last several years. This year, as
21 in many other years, the Governor's budget proposal
22 cuts the line item back to $1.3 million, mistakenly
23 perceiving them solely as legislative grants. They
24 are absolutely not that.
25 We will be collaborating this spring with
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1 Representative McIlhattan on Education Council
2 legislation to stabilize that funding. As we pursue
3 that, we hope that your budget figures will agree on
4 the value of the program and revise the budget figures
5 up to an adequate figure of $2.5 million.
6 Secondly, as a former chairman of the
7 Legislative Coal Caucus, one of the issues we're going
8 to be dealing with this spring is deep mine safety.
9 You're all aware of what happened at Quecreek as well
10 as the mines in West Virginia.
11 We have been talking to Secretary McGinty
12 about legislation in Pennsylvania. Senator Kasunic
13 has the bill in the Senate. We're going to be working
14 on a bill in the House. We're going to be talking to
15 you at some point about really going out and
16 developing a full-blown safety program that will
17 protect the miners in Pennsylvania, both deep mine and
18 anthracite service mines.
19 Third is agriculture policy. I want to thank
20 you for your efforts. All of you worked with me on
21 developing the Acre Program. The Acre Program is one
22 of the most provocative of its kind in the nation.
23 Pennsylvania is being held as one of the most
24 progressive agriculture programs.
25 In the 1990s, two years of drought cost us
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1 well over $100 million to rescue our farmers from
2 financial disaster.
3 The AgLite Crop Insurance Program was
4 invented by our Department of Agriculture and approved
5 by us in the Legislature to insure not only us but our
6 farmers against this kind of catastrophic expense.
7 I'm asking that you keep an open mind to full
8 funding for this program, which will require about
9 $2 million a year to ensure broad participation.
10 Please increase the budget proposal from the proposed
11 $1 million to $2 million.
12 I thank you for the opportunity to
13 participate this morning. I'd be glad to answer any
14 questions you may have.
15 CHAIRMAN FEESE: Thank you, Representative
16 Daley.
17 Are there any questions from the committee?
18 Hearing no questions, thank you again.
19 REPRESENTATIVE DALEY: Thank you,
20 Mr. Chairman.
21 CHAIRMAN FEESE: Our next presenter will be
22 Representative Kathy Rapp.
23 REPRESENTATIVE RAPP: Good morning, Chairman
24 Feese, Chairman Evans, and members of the committee.
25 I appreciate the opportunity to voice the concerns
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1 that I continue to receive from the people of Warren,
2 Forest, and McKean Counties regarding this year's
3 proposed budget.
4 Today I would like to begin my brief remarks
5 by commending the Governor for making a point to
6 recognize both the brave men and women who have and
7 continue to serve in our nation's armed forces in his
8 annual budget address.
9 In fact, rather than just thanking the
10 Governor, I would like to take this opportunity to
11 read a few of my favorite passages from the remarks he
12 made over one week ago regarding his commitment to
13 Pennsylvania's military.
14 "Let us begin today by paying homage to those
15 who have so courageously responded to the national
16 call to service. The job of governing in a free
17 society pales in comparison to the life and death
18 decisions that confront our fellow Pennsylvanians who
19 are serving our country overseas, particularly those
20 servicemen and -women stationed in Iraq and
21 Afghanistan. At home or abroad, let us remember these
22 brave Pennsylvanians in the difficult days that lie
23 ahead for them and pray that they all return home safe
24 and sound."
25 Mr. Chairman, I think almost anyone within
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1 this room and those watching these proceedings on PCN
2 would wholeheartedly agree with these well-written and
3 well-spoken words.
4 However, I must warn the Governor that based
5 on his decision to completely eliminate the funding
6 for the Disabled American Veterans Hospital
7 Transportation Network, many active military personnel
8 throughout the 65th district are beginning to ask
9 questions, such as, how committed is Governor Rendell
10 to supporting our troops and their families? Is the
11 Governor using the plight of disabled veterans as yet
12 another bargaining chip to force the Republican
13 majority and the General Assembly to agree to even
14 more excessive spending?
15 Of course, only time and the final actions of
16 the Governor himself can provide answers to these
17 questions. For the benefit of Pennsylvania taxpayers
18 who may know little or nothing about the Disabled
19 American Veterans Hospital Transportation Network, let
20 me provide you with a little background information on
21 exactly what is at stake if we fail to restore funding
22 for this critical program.
23 The General Assembly has supported the DAV
24 Hospital Transportation Network for the past five
25 years with a $250,000 budget line item. The primary
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1 use of this funding has been to purchase vans and
2 assist with budgetary shortfalls at both the state and
3 national level. These vans transport over 50,000
4 veterans each year to and from appointments at the
5 eight VA medical centers located across the
6 Commonwealth. More than 270 volunteer drivers are
7 needed to accomplish this outstanding task, logging
8 more than 1.5 million miles and accumulating 100,000
9 volunteer hours.
10 This funding is even more critical in rural
11 areas like mine that are located even further away
12 from major VA hospitals. For example, during 2005, in
13 Warren County, DAV-funded transportation provided
14 approximately 915 rides for our veterans and traveled
15 a total of 79,000 miles to the newly opened Warren
16 Veterans Clinic and VA hospitals located in Erie,
17 Pittsburgh, Buffalo, and Cleveland. In addition,
18 there are currently 119 veterans on the waiting list
19 for services at the Warren Clinic.
20 Of course, if the ongoing attempts to secure
21 another provider to serve these deserving men and
22 women are successful, these veterans are going to
23 require transportation. On the other hand, if another
24 provider is not found, they will need to be
25 transported to veterans hospitals in Erie or
22
1 Pittsburgh.
2 In short, the resources for our local
3 Disabled American Veterans Hospital Transportation
4 Networks are going to be stretched to the limit even
5 more in 2006 and could very well reach their breaking
6 point if this funding is not restored or expanded.
7 Today's soldiers are tomorrow's veterans. Regardless
8 of when or where they served our great nation, they
9 deserve real support and not just political lip
10 service.
11 I look forward to working with members of
12 this committee and the rest of state government to
13 find creative and cost-efficient solutions to restore
14 funding to this outstanding and much-needed veterans
15 support program.
16 Thank you.
17 CHAIRMAN FEESE: Thank you, Representative
18 Rapp.
19 Are there any questions from the members of
20 the committee?
21 Hearing none, thank you, Representative Rapp.
22 REPRESENTATIVE RAPP: Thank you.
23 CHAIRMAN FEESE: Our next presenter will be
24 Representative Jennifer Mann.
25 REPRESENTATIVE MANN: Good morning. It is my
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1 distinct pleasure to address you today on behalf of
2 the people of the 132nd Legislative District.
3 Overall, this budget proposal is strong and
4 very good for the people of my district. It includes
5 a significant investment in public education, provides
6 more money for healthcare, adequately funds
7 environmental policies, and expands the number of
8 Pennsylvania state troopers. These are all worthy and
9 necessary priorities.
10 More specifically, this budget is a
11 resounding success for the students of the Allentown
12 School District. The proposed increase in funding for
13 the district will amount to an additional 19 percent
14 over the current budget. These resources are not only
15 necessary but are vital for the academic success of
16 our children. A recent study conducted by a group of
17 prominent Lehigh Valley businesspeople and community
18 leaders has concluded that the district is
19 significantly underfunded.
20 This is a significant step towards our goal
21 of adequacy and equity. I applaud the Governor for
22 his assistance to the Allentown School District.
23 Furthermore, I praise Governor Rendell for
24 accomplishing this goal while holding the line on
25 taxes and even accelerating the phase-out of the
24
1 capital stock and franchise tax. However, I would be
2 remiss if I failed to outline the items that were not
3 properly compensated in this budget that are also
4 important to the people I represent.
5 First and foremost, I would like to address
6 funding for our nursing homes. Since the Federal
7 Government has continued to slash funding for our
8 long-term care programs, we are forced to make up the
9 difference. The Governor's budget includes a
10 4 percent increase for our long-term care facilities.
11 I am quite happy that the Governor recognizes the high
12 cost of healthcare for our senior population.
13 However, that 4 percent will not cover the
14 overall costs of long-term care. The Department of
15 Public Welfare estimates that the cost of long-term
16 care will increase by 8 percent this year, which is
17 the same as last year. And taking into consideration
18 that last year, long-term care facilities received a
19 0.5 percent cut in actual appropriations, this
20 difficult situation is simply exacerbated.
21 I ask the Appropriations Committee to
22 continue to review ways that we can assist our
23 long-term care community so that we can better care
24 for our seniors.
25 Our Commonwealth also cannot overlook the
25
1 good work specifically that two of our non-profit
2 organizations are doing for our community, the
3 Arthritis Foundation and Big Brothers/Big Sisters. As
4 co-chair of the Arthritis and Osteoporosis Caucus, I
5 would like to see the full restoration of the funds
6 for the Arthritis Foundation's line item. This budget
7 proposal cuts their state appropriation from $417,000
8 to $325,000.
9 Please know that I intend to introduce an
10 amendment during the budget amendment process to
11 restore this funding. The Arthritis Foundation helps
12 Pennsylvanians of all ages who suffer from the daily
13 pain of arthritis. We know that this disease affects
14 one in three people in our Commonwealth. I would also
15 like to see us create a new line item for Big
16 Brothers/Big Sisters.
17 You are no doubt familiar with this
18 organization's role in our community, as they provide
19 one-on-one mentoring programs for kids without a
20 strong male or female presence in their life.
21 Furthermore, their record of success is quite
22 impressive. Two-thirds of the children who are in
23 this program show improvement in self-confidence, 62
24 percent participate more in class, and half have
25 improved their relationships with their peers.
26
1 Big Brothers/Big Sisters desperately needs to
2 recruit more volunteers, and any additional revenues
3 would allow them to reach out to find more big
4 brothers and big sisters. This program is very
5 helpful in the lives of our at-risk kids, and we
6 should do more to support them. Their long-term goal
7 is a $5 million line item; however, an initial
8 $500,000 will be a significant step.
9 Continuing on the theme of helping our most
10 at-risk youth, this budget completely eliminated the
11 $26.3 million line item for alternative education
12 demonstrations grants. Whereas I understand that
13 there are a number of programs the receive funding
14 from that line item who are not performing, there are
15 many more that are filling in the gaps between where
16 our schools stop and home life begins. One such group
17 is Communities in Schools.
18 CIS has a long-term and proven track record
19 of success in helping those children who are close to
20 dropping out or who need that little bit more help so
21 they can move on to the next grade or graduate. They
22 provide all types of mentoring and tutoring programs
23 that help children throughout the Commonwealth. Their
24 track record for success is quite impressive. We must
25 restore a portion of funding for this line item so
27
1 that the programs that have a proven track record of
2 helping our kids do not go unfunded.
3 Lastly, we need to address the cuts in
4 smoking cessation programs. The Governor shifted
5 one-fourth of our tobacco prevention and cessation
6 funding to help our medical assistance budget,
7 including long-term care. This amounts to a cut in
8 funding for tobacco prevention and cessation programs
9 in the amount of $11.4 million for 2006-2007.
10 These programs work and save the state
11 millions of dollars a year in other healthcare costs.
12 I strongly believe that we, as a Commonwealth, need to
13 do more, not less, to prevent tobacco use. We must
14 restore this funding.
15 As I said during my opening remarks, this is
16 a solid budget proposal across the board, and I am
17 particularly excited over the funding for the
18 Allentown School District. With that being said, I
19 believe that it is our duty, as members of the General
20 Assembly, to ensure that nothing falls in between the
21 cracks, that every program is addressed in an
22 appropriate fashion. That is why we are here today.
23 Thank you for allowing me to voice my
24 opinion.
25 CHAIRMAN FEESE: Thank you, Representative
28
1 Mann.
2 Are there any questions for Representative
3 Mann?
4 Hearing none, thank you for your testimony.
5 REPRESENTATIVE MANN: Thank you.
6 CHAIRMAN FEESE: Our next presenter will be
7 Representative Daryl Metcalfe.
8 REPRESENTATIVE METCALFE: Good morning.
9 Thank you, Chairman Feese, Chairman Evans, and members
10 of the committee.
11 I appreciate the opportunity to provide
12 testimony regarding this year's proposed budget. On
13 November 10th, 2005, the Governor sent a letter
14 challenging me about remarks I made during our House
15 debate on state spending caps with regard to
16 Pennsylvania's economic health.
17 In my first reply to the Governor, I informed
18 him that his budgets have continued the faulty policy
19 of government spending above the rate of economic
20 growth, thereby keeping a greater financial burden
21 upon the backs of working men and women of
22 Pennsylvania.
23 The Governor's latest proposed budget of
24 $25.43 billion, an increase in spending of $923.8
25 million, is a continuation of the same flawed tax,
29
1 spend, and borrow policies that he has made for the
2 last three years.
3 In the Governor's presentation last week, he
4 stated that, quote, we can achieve the goals set forth
5 in this budget without any increase in taxes, unquote.
6 The Governor proposes to increase spending 3.8 percent
7 over the current year while the projected revenue
8 increase is only 3.4 percent. The Governor is using
9 fuzzy math that does not add up. He's trying to
10 convince us that the state can spend more than it
11 brings in but the taxes will not have to be increased.
12 He's setting us up for another tax increase next year,
13 just as he did in December of 2003.
14 The Governor then sent a second letter and
15 wrote, quote, in addition to all this, the important
16 lesson here is that holding down spending and cutting
17 business taxes do not necessarily result in job
18 growth. While these two goals have other merits,
19 these actions have little impact on increasing jobs or
20 prosperity, unquote.
21 This year's proposed budget and the
22 Governor's recent veto of House Bill 515, the tax
23 reduction legislation that we recently sent to his
24 desk, clearly illustrates this tax-and-spend
25 philosophy. This year's budget would increase welfare
30
1 spending by an additional $305.6 million and increase
2 the debt service by 19.7 percent, or $140.3 million.
3 I believe it's important to recognize the
4 state of our economy in Pennsylvania as we debate
5 budget priorities this year. The growth rate of
6 Pennsylvanians' personal income has been significantly
7 behind most of the nation. According to a January
8 25th, 2006, research brief in the Pennsylvania State
9 Data Center at Penn State, Harrisburg, quote, the
10 average annual growth rate of personal income in
11 Pennsylvania between 1994 and 2004 is better than just
12 five other states, unquote. Our population growth
13 continues at a stagnant pace, lagging behind the rest
14 of nation.
15 A December 22nd, 2005, research brief from
16 the Penn State Data Center at Penn State, Harrisburg,
17 announced, quote, Pennsylvania's population is growing
18 more slowly than the nation as a whole, unquote.
19 The state economy is experiencing a loss of
20 high-paying jobs, as government and low-paying jobs
21 are being created. The U.S. Department of Labor
22 Bureau of Labor statistics data from October 2004 to
23 October of 2005 indicates that the total number of
24 employees increased by 65,400. Of that number, 7,700
25 were identified as government jobs.
31
1 Among the sectors that gained employees, the
2 top two, leisure and hospitality and education and
3 health services, were among the lowest-paying sectors.
4 In comparison, the three sectors that lost jobs were
5 also among the highest paying: natural resources and
6 mining manufacturing and information.
7 Pennsylvania taxpayers' overhead costs of
8 government are out of control. According to the
9 Pennsylvania Department of Labor and Industry Center
10 for Work Force Information Analysis, Pennsylvania's
11 top 50 employers in order are the federal government,
12 our state government, Wal-Mart, the city of
13 Philadelphia, and the School District of Philadelphia.
14 That means that out of the top five employers in
15 Pennsylvania, only one, Wal-Mart, actually generates
16 tax revenue for the state rather than consumes it.
17 The policies of the current Administration
18 have increased government spending, increased taxes,
19 and increased debt. These policies have placed a
20 burden on our economy that has clearly hampered
21 growth. The confiscation and transfer of wealth from
22 the hands of working citizens into the hands of
23 government has proven time and time again to have a
24 negative, long-term impact on private-sector endeavors
25 that ultimately spur job creation.
32
1 This year's budget should reduce spending and
2 reduce the tax burden on Pennsylvanians. It's time
3 for a responsible budget. It's time to exercise
4 fiscal restraint. It's time to relieve Pennsylvania's
5 working men and women of the ever-increasing burden
6 placed on them by their state government. It is time
7 to cap state government spending.
8 Thank you.
9 CHAIRMAN FEESE: Thank you, Representative
10 Metcalfe.
11 Are there any questions from members of the
12 committee?
13 Hearing none, thank you.
14 REPRESENTATIVE METCALFE: Thank you, Chairman
15 Feese. Thank you, members of the committee. Thank
16 you, Chairman Evans.
17 CHAIRMAN FEESE: Our next presenter will be
18 Representative Josh Shapiro.
19 REPRESENTATIVE SHAPIRO: Thank you.
20 Copies of my testimony are being distributed
21 right now. I'm testifying a bit early so I hope the
22 committee will beg my forgiveness on this.
23 CHAIRMAN FEESE: Certainly.
24 REPRESENTATIVE SHAPIRO: Good morning, fellow
25 committee members. As I begin my second year in the
33
1 House and my second budget as a member of this
2 prestigious committee, I would like to thank each of
3 you for the important role you play in this budget
4 process, particularly the two gentlemen sitting in the
5 middle up there.
6 I look forward to working with you in a
7 bipartisan fashion in the coming months to pass a
8 budget that is fiscally sound, meets the needs of our
9 citizens, and invests in our communities. Last week,
10 the Governor laid out a fiscally responsible budget
11 with no tax increases, an important priority of mine.
12 Even more impressive is that he did so within the
13 confines of constrictive cuts at the federal level.
14 He also laid out a bold plan to continue our
15 historic investments in early childhood education and
16 other proven programs to ensure our students have a
17 solid educational foundation. From my perspective, as
18 a father of two young children and a legislator, one
19 of the most important line items in this year's budget
20 is the $250 million Accountability Block Grant
21 Program.
22 Last year, I testified here about the
23 importance of the Accountability Block Grants and
24 full-day kindergarten. I am pleased to report that
25 because of our efforts, Abington School District in my
34
1 district is offering full-day kindergarten to every
2 student. In fact, like many school districts, 100
3 percent of its Accountability Block Grant goes to this
4 wise investment.
5 Last year, I requested an additional
6 $10 million for full-day kindergarten in the budget,
7 and the House unanimously backed my amendment. An
8 additional $50 million in this year's budget would
9 give thousands of our children the foundation they
10 need for future success. Study after study has shown
11 a direct correlation between strong early childhood
12 education and later success.
13 While we must be concerned about early
14 childhood education, we must not lose sight of
15 improving post-secondary education. This budget
16 provides to the SSHE, the state-relateds, and
17 community colleges. But the answer is not always just
18 to throw money around. The answer is oftentimes
19 reform.
20 We must reform the system to make it easier
21 for students to get their degrees more quickly, to
22 save money, and to get out in the Pennsylvania job
23 market sooner. I have sponsored legislation, House
24 Bill 1706, that would do just that. My legislation
25 would create a statewide articulation agreement among
35
1 our publicly funded colleges and universities.
2 Articulation agreements are formal agreements
3 between colleges and universities that define how
4 courses taken at one college or university can be used
5 to satisfy a subject-matter requirement at another
6 college or university. In simpler terms, it would
7 help students transfer their credits seamlessly
8 between our state system, state-related, and community
9 colleges.
10 There is a definite need for a uniform,
11 statewide credit transfer policy in the Commonwealth,
12 as an increasing number of students attend more than
13 one institution in their pursuit of a bachelor's
14 degree. This creates added pressure on receiving
15 universities that must consider the quality and
16 comparability of courses. It also causes confusion
17 and frustration for students who do not fully
18 understand the transfer-of-credit process.
19 My bill would allow more than 500,000
20 students to be able to transfer credits more easily.
21 College students would be able to seamlessly transfer
22 credits among our 14 community colleges, 14
23 state-owned universities and four state-related
24 universities.
25 Students and their parents would benefit by
36
1 not having to pay twice for the same credits. It
2 would also help them progress more quickly toward
3 graduation and a well-paying job in Pennsylvania's
4 workforce. There's also a benefit to taxpayers
5 because the state would save significantly on support
6 costs since grants and loans wouldn't be needed for
7 credits already earned.
8 Many of Pennsylvania's public and private
9 universities have articulation agreements in which
10 they accept credits earned at certain institutions of
11 higher education. I want to take those voluntary
12 agreements one step further by implementing the most
13 aggressive credit-sharing agreement between
14 state-supported colleges and universities in
15 Pennsylvania's history.
16 Many states, such as Minnesota, Mississippi,
17 South Carolina, Arizona, and Iowa, have already done
18 this with great success. Arizona, for example, has
19 articulation agreements between its public colleges
20 and more than a dozen Arizona community colleges.
21 An articulation agreement exists between
22 University of Iowa, Iowa State University, and
23 University of Northern Iowa and the 15 Iowa community
24 colleges.
25 Minnesota has a statewide articulation
37
1 agreement for all of its public colleges, as do
2 Mississippi and South Carolina.
3 Here in Pennsylvania, we've already taken the
4 first step by guaranteeing admission into the state's
5 public four-year colleges for students who complete an
6 associate's degree at one of the state's community
7 colleges. Florida is the only other state with such a
8 policy.
9 I believe it's time to take this a step
10 further by providing $200,000 in this year's budget to
11 assist our institutions of higher education in
12 planning, developing, and implementing a statewide
13 articulation agreement. This is not new money but
14 rather money that is already in the Governor's budget.
15 These reforms will benefit students, the state, and
16 workforce development.
17 This is an important step to making college
18 more affordable and keeping young people working here
19 in Pennsylvania.
20 And ladies and gentlemen, I would appreciate
21 your consideration of this important reform
22 initiative. I would be more than happy, Mr. Chairman,
23 to answer any questions.
24 CHAIRMAN FEESE: Thank you, Representative
25 Shapiro.
38
1 Are there any questions from the members for
2 Representative Shapiro?
3 Hearing none, again, thank you for your
4 testimony.
5 REPRESENTATIVE SHAPIRO: Thank you,
6 Mr. Chairman.
7 CHAIRMAN FEESE: Our next presenter will be
8 Representative Paul Clymer.
9 REPRESENTATIVE CLYMER: Good morning,
10 Mr. Chairman.
11 CHAIRMAN FEESE: Good morning.
12 REPRESENTATIVE CLYMER: Good morning, members
13 of the committee. Thank you for this opportunity to
14 talk on a very important issue that is of concern to
15 all of us, I do believe.
16 I'm here today to express my support for
17 Gaudenzia Incorporated and the work they do for the
18 residents of the Commonwealth of Pennsylvania.
19 Gaudenzia has worked diligently for almost 40 years to
20 provide drug and alcohol treatment for those in need
21 in our Commonwealth. It's only suitable that we
22 continue to support this great non-profit organization
23 and support their work in the city of Philadelphia, an
24 area that is most in need.
25 It is my understanding that for the past nine
39
1 months, Gaudenzia has been involved in negotiations
2 with the Governor's Office to be relocated from their
3 Arch Street location in Philadelphia to a new
4 location. I, like many of my colleagues, understand
5 that Gaudenzia is a non-profit organization that needs
6 monetary assistance from the Commonwealth to serve our
7 citizens with the highest quality of care for their
8 drug and alcohol rehabilitation services.
9 Due to their non-profit status, Gaudenzia
10 does not have the ability to operate without the
11 assistance of funds from the Commonwealth and various
12 private donations. Therefore, it is nearly impossible
13 for Gaudenzia to pay to the Commonwealth the requested
14 $2 million for renovations at their new location. The
15 $2 million price tag comes as a shock to Gaudenzia and
16 my colleagues.
17 It was my understanding that a compromise
18 agreement was made between the Commonwealth and
19 Gaudenzia in June of 2005 where Gaudenzia would not be
20 required to pay for any renovations at their new
21 location. They would be held harmless. That was an
22 agreement that was witnessed by many people here in
23 the Commonwealth. It is incomprehensible that the
24 Commonwealth would seek such a large sum of money from
25 a non-profit group that works hard to improve the
40
1 lives of our great Commonwealth, the lives of citizens
2 here in our great Commonwealth.
3 Once again, I must reiterate what an asset
4 the services that Gaudenzia Incorporated provides to
5 our men, women, and families throughout the
6 Commonwealth.
7 Their services and programs for both
8 inpatient and outpatient are invaluable to the
9 Commonwealth. Gaudenzia is saving the lives of our
10 fellow Pennsylvanians. Their treatment center on Arch
11 Street is in an area of the most need in Philadelphia.
12 However, with a price tag of $2 million, Gaudenzia may
13 be forced to close their facility. Therefore, the
14 Commonwealth would be losing a facility that has not
15 only saved lives but has saved families.
16 In addition to losing a great facility,
17 possibly, over 125 individuals would be losing their
18 jobs, over 100 of which are Pennsylvania social
19 service union employees. Many of these individuals
20 have had these jobs at the Arch Street facility for
21 over 20 years.
22 The center serves over 2300 inpatient and
23 over 100 outpatient clients. What's so unique about
24 Gaudenzia is that it's a role model for other states
25 to emulate. They come to this particular drug and
41
1 alcohol rehabilitation to see the wonderful services
2 that are provided and how effective the clients
3 respond to the treatment that they're receiving from
4 these dedicated workers.
5 The people who are in need have mental
6 problems as well. And so that center provides
7 security. It provides protection. They are able to
8 be rehabilitated and placed back into society. But if
9 this center were to close, you would have hundreds of
10 people in the city of Philadelphia without the help
11 and without the security that they so desperately
12 need.
13 So I'm here to tell you that we need to find
14 a solution to this problem and we need to do it soon.
15 The lease at the facility there on Arch Street extends
16 until June 30th. Unless there's an extension, they
17 will be out on the street.
18 This is a serious situation. We cannot allow
19 this problem to go unresolved. I share this with you
20 this morning and hopefully collectively, we can come
21 up with a solution. And there are many people who are
22 involved with this, looking to bring this matter to a
23 successful resolution.
24 I think it's important that the members of
25 the committee understand that your participation may
42
1 be required. I do thank you for this opportunity to
2 present this issue. I would be pleased to answer any
3 questions from the committee members.
4 CHAIRMAN FEESE: Thank you, Representative
5 Clymer.
6 Are there any questions from the members of
7 the committee?
8 Hearing none, again, thank you for your
9 testimony.
10 Our next presenter will be Representative
11 Gene DiGirolamo.
12 REPRESENTATIVE DiGIROLAMO: Thank you,
13 Mr. Feese and Chairman Evans and members of the
14 committee. I really appreciate the opportunity to be
15 here this morning. I'm here to draw attention to the
16 state's third leading disease killer, and that is
17 alcohol and drug addiction. Drug and alcohol
18 addiction affects one in every four families in the
19 state of Pennsylvania.
20 And there I say, which one among us do not
21 have a family member, a friend, a neighbor, certainly
22 many constituents who have a drug and alcohol
23 addiction problem? This is a really serious matter
24 because addiction is a disease that if left untreated
25 is always fatal. I'm going to say that again. It is
43
1 always fatal.
2 This morning for the members, I would like to
3 put a face on this terrible disease of addiction.
4 These are young people around our state who have died
5 because of addiction. This young gentleman's name is
6 Jeff. He's from Philadelphia County. Each one of
7 these stories in itself is certainly a tragedy. This
8 is Adam from Blair County. This is Jennifer from
9 Franklin County. This is Dana, who was also from
10 Franklin County. What a beautiful young lady. Look
11 at that. What a tragedy.
12 Most of these children's parents were
13 desperately trying to get them in treatment and were
14 not able to do so. This is Tyrone from Dauphin
15 County. Ashley is from Allegheny County. I met
16 Ashley's mom when I was out in Allegheny County for an
17 Act 106 hearing in front of the Commonwealth Court.
18 Steven is from Montgomery County; Steven, again, from
19 Chester County; from Bucks County, my district, Katie.
20 I have permission from all the family members
21 to use these pictures. Many of the families are very
22 heavily involved trying to get money into treatment.
23 It's a tragedy. Each one of these is a tragedy. And
24 unfortunately, it's a tragedy that plays out in every
25 one of our communities, every one of our districts,
44
1 every day, all across this great state.
2 But there is some good news. The recovery
3 rate from alcohol and other drug addictions is very
4 high. However, recovery rates are very high only when
5 we intervene aggressively and provide needed
6 treatment. And intervene we must.
7 What are the economics? You see the face of
8 the children. What are the economics of untreated
9 addiction? The impact of untreated addiction on the
10 state budget is a sea of red ink. In fact, the cost
11 of paying for the impact of untreated addiction drives
12 Pennsylvania's state budget every year. I'm going to
13 say that again. It drives our $25 billion state
14 budget every year.
15 Just think about it. Untreated addiction
16 drives 80 percent of the cost of corrections, 80
17 percent. Four to five inmates in our institutions are
18 there because of drug and alcohol addiction.
19 Untreated addiction drives 80 percent of the spending
20 of probation and parole. Untreated addiction drives
21 80 percent of the cost of the state police and our
22 local police departments. Untreated addiction drives
23 80 percent of the cost of criminal courts and the
24 judiciary. Untreated addiction drives the spending of
25 the Department of Health and the Department of Public
45
1 Welfare.
2 Consider just the cost for fetal alcohol
3 syndrome, fetal drug syndrome, other tragic birth
4 defects, including mental illness, HIV AIDS, or
5 hepatitis. Untreated addiction drives the cost of
6 healthcare in our hospitals, in our emergency rooms,
7 and in our state trauma centers. Untreated addiction
8 devours one in five dollars of our Medicaid dollars
9 that are spent in our hospitals. Untreated addiction
10 is involved in 80 percent of the families in our
11 counties' Children and Youth System.
12 My point, I guess, is a simple one. Here we
13 have a highly treatable illness, a highly treatable
14 disease, an illness, a disease that affects one in
15 four families in our state, an illness that drives
16 Pennsylvania's state budget. And we also know that
17 treatment saves money at the rate of every one dollar
18 that we put into treatment saves anywhere from seven
19 to twelve dollars.
20 Given the human tragedy here and given the
21 economics of the total cost of treatment, why in the
22 world would we tolerate any reduction in funding? Why
23 would we tolerate waiting lists to get into treatment
24 for our children in every one of our counties almost
25 every month?
46
1 Nonetheless, this year's budget contains over
2 $10 million in reductions in funding primarily because
3 of the phasing out of the Federal Intergovernmental
4 Transfer Program. Last year drug and alcohol lost
5 $5 million from its line item. And $5 million more
6 will be lost this year. An additional $1.932 million
7 also has been cut from Pennsylvania's share of the
8 Federal Drug and Alcohol Block Grant.
9 My colleagues and friends, because this
10 disease affects one in four of our families here in
11 the state of Pennsylvania, because this disease if
12 left untreated is always fatal, because treatment is
13 highly successful, and because untreated addiction
14 places an enormous burden on our state budget, I'm
15 here today asking for $10 million to be added to the
16 budget of the Bureau of Drug and Alcohol programs and
17 the Department of Health earmarked for addiction
18 treatment.
19 I just want to be very clear that this is not
20 an increase. We're just trying to get the money that
21 we lost back, although we could certainly use an
22 increase. But this is just part of trying to get that
23 money that we lost, because of the federal cuts, back
24 in the budget.
25 I would be glad to answer any questions if
47
1 anybody would have any.
2 CHAIRMAN FEESE: Thank you, Representative
3 DiGirolamo, for that powerful testimony.
4 Do any members of the committee have any
5 questions?
6 Hearing none, again, thank you very much.
7 REPRESENTATIVE DiGIROLAMO: Thank you.
8 CHAIRMAN FEESE: Our next presenter will be
9 Representative Mike Turzai.
10 REPRESENTATIVE TURZAI: Thank you,
11 Mr. Chairman and members of the Appropriations
12 Committee. My name is Mike Turzai. I'm a
13 representative from Allegheny County, the 28th
14 District.
15 I would like to talk to you today about
16 net-operating loss, carry-forward provisions, and, in
17 particular, the Governor's proposal in this budget to
18 raise the cap from $2 million to $3 million.
19 I think it's insufficient and I would like to
20 argue for a more aggressive increase of that cap on
21 net-operating loss, carry-forward provisions. And in
22 fact, I think we should, in fact, eliminate that cap.
23 The net-operating loss, carry-forward
24 provision allows certain employers to use a business
25 loss to offset income earned in future tax years in
48
1 order to adjust their corporate net income tax
2 liability. The federal government in 47 states,
3 including Pennsylvania, allow for the use of
4 net-operating loss, carry-forward provisions.
5 Currently, Pennsylvania caps the amount of
6 loss at $2 million a year to be used against a profit
7 in any one future tax year. This cap, which would
8 have been eliminated by House Bill 650, which
9 presently sits in the Senate and which passed in May
10 of 2005 with 170-plus votes in the State House, puts
11 Pennsylvania at a disadvantage as compared to other
12 states.
13 Of those states that permit net-operating
14 loss, carry-forward provisions -- and there's 47 of
15 them -- only Pennsylvania and New Hampshire
16 permanently limit the amount of loss that can be used
17 to offset income in each future tax year.
18 Net-operating loss, carry-forward provisions
19 are important to employers that experience cyclical
20 downturns -- and that's especially true in
21 manufacturing -- and for start-up firms which almost
22 always experience losses in their early years. The
23 ability to use net-operating losses gives employers
24 the opportunity, when they do make a profit, to use
25 the additional capital to invest in employees or
49
1 infrastructure.
2 According to the Pittsburgh Technology
3 Council, an average start-up technology company
4 typically takes up to seven years to show a profit.
5 On December 23rd of 2005, the Governor
6 derailed an attempt to bring good job opportunities
7 back to Pennsylvania by vetoing House Bill 515. House
8 Bill 515 took the concepts in House Bill 650 as well
9 as the original aspect of 515, moving us to a single
10 sales factor in computing corporate net income tax.
11 It had a phase-in of an increase in the cap
12 on net-operating losses. That phase-in would have
13 been up to $5 million for fiscal year 2006-2007, up to
14 $7.5 million for fiscal year 2007-2008, and up to $10
15 million for fiscal year 2008-2009 and then, finally,
16 in 2009-2010 for $10 million, or 75 percent of taxable
17 income.
18 Personally, I think we should just remove the
19 cap completely. But at least the phase-in was an
20 attempt to compromise with the Governor. We're losing
21 and have been losing since the Governor took office
22 2,000 manufacturing jobs per month. That's according
23 to the Center for Workforce Information and Analysis
24 and the Federal Department of Labor. It's also true
25 from our own state Department of Labor and Industry
50
1 statistics.
2 Family-sustaining jobs are the foundation
3 upon which strong communities are built. Without
4 employers, you don't have jobs. Without good family
5 sustaining jobs, you don't have good communities and
6 good schools. That's the bottom line.
7 This is one of the factors that make
8 Pennsylvania uncompetitive. And it's one of the
9 factors that when employers decide, should I stay
10 here? Should I expand here? they say, why would I
11 stay here if I'm not going to be able to make use of
12 these losses when states all around this country do?
13 We're either going to get competitive or not.
14 Governor Rendell's attempt to merely tax,
15 spend, borrow, subsidize economic growth, I would
16 contend, has failed. What we're doing is we're
17 increasing welfare roles, we're increasing welfare
18 expenditures as opposed to really focusing on
19 family-sustaining jobs.
20 House Bill 515 and House Bill 650, which I
21 contend we ought to be fighting for in this budget
22 process, represents a real economic stimulus plan. We
23 have to grasp the concept that without employers, you
24 do not have jobs. By reducing taxes through needed
25 reforms, giving manufacturers and high-tech companies
51
1 a better chance to succeed, we can build the strong
2 communities Pennsylvania families deserve.
3 Take a trip around any part of Pennsylvania
4 and you can see the decaying manufacturing base. Up
5 in Erie just recently, 450 jobs are leaving from a
6 company. They're going to phase them out over the
7 next year. And in large part, it's because
8 Pennsylvania does not have a competitive tax
9 environment, amongst other issues in terms of lack of
10 competition.
11 I would stress to you that in negotiating
12 this year's budget priorities, reducing taxes on
13 employers has to be a priority and taking care of the
14 corporate net tax carry forward provision by either
15 eliminating it or phasing in an increase with ultimate
16 elimination is a step in the right direction.
17 Thank you very, very much.
18 CHAIRMAN FEESE: Thank you, Representative
19 Turzai.
20 Are there any questions from the members of
21 the committee?
22 Hearing none, again, thank you for your
23 testimony.
24 REPRESENTATIVE TURZAI: Thank you very much,
25 Mr. Chairman.
52
1 CHAIRMAN FEESE: Our next presenter will be
2 Representative Michael Sturla, a member of this
3 committee.
4 REPRESENTATIVE STURLA: Mr. Chairman and
5 members of the Appropriations Committee, thank you for
6 the opportunity to testify today about the 2006-2007
7 state budget.
8 Governor Rendell's proposed budget will allow
9 Pennsylvania to continue its economic growth while
10 maintaining critical health and social services,
11 education funding, and economic development programs
12 with no tax increases. This is a positive step
13 forward for Pennsylvania, and I support the framework
14 laid out by the Governor.
15 Today, however, I will focus specifically on
16 the Thaddeus Stevens College of Technology, special
17 education funding, municipal fire grants, and state
18 police fine portioning as areas that could use some
19 positive adjustments to further benefit the
20 Commonwealth and its citizens.
21 First, I strongly urge the Appropriations
22 Committee to restore $1.5 million in funding for
23 Thaddeus Stevens College of Technology's operating
24 expenses. Thaddeus Stevens College has a placement
25 rate for its graduates of over 95 percent, and their
53
1 enrollment is growing. Restoration of this funding,
2 as has occurred in several previous budgets, is
3 critical to the continued success of the college and
4 its mission.
5 Secondly, I commend the Governor for
6 increasing special education funding by 4 percent, and
7 we on the Appropriations Committee have the
8 opportunity to make sure that the school districts
9 that need this additional money the most receive it.
10 As you are well aware, the state's current formula
11 treats every school district as having 15 percent of
12 their students in special education regardless of
13 whether they have less or more than that amount.
14 This formula, established in the early '90s
15 to curb the rising cost to the state for covering
16 excess costs, has created an inequitable system. This
17 means that a school district with 5 percent in special
18 education gets funded like they have 15 percent and a
19 school district with 22 percent gets only 15 percent.
20 I would recommend that the additional
21 $38.1 million in the proposed budget should only go to
22 school districts that have been identified as having
23 15 percent or more students in special education.
24 This method was adopted in several of Governor Ridge's
25 budgets for additional special education funding. It
54
1 guarantees that districts struggling with high numbers
2 of special education students are helped without
3 taking dollars from those districts that have
4 benefited for years from the current formula.
5 Third, I have proposed legislation that would
6 establish an $8 million grant program for municipal
7 fire, emergency service organizations, and rescue
8 squads to complement the $25 million already in the
9 budget that is dedicated to volunteer firefighters.
10 This program would be an appropriate addition to the
11 budget because our paid companies need assistance just
12 as much as our volunteer companies.
13 The awarded grants would range from $10,000
14 to $1 million and funding would not affect the
15 $25 million grant program for volunteer fire companies
16 and ambulance services. In the aftermath of September
17 11, with the President of the United States reminding
18 us on what seems to be a daily basis that "the threat
19 of terrorism is real" and with paid municipal fire
20 departments the likely responders to a catastrophic
21 event, I find it unconscionable that the Legislature
22 continues to thumb their noses at these men and women
23 and basically say they are not as worthy of equipment
24 and safety gear as their volunteer counterparts.
25 Lastly, the Governor's budget proposes an
55
1 increase in the complement of state troopers. I
2 believe the Appropriations Committee members should
3 seriously look at a proposal I floated on several
4 occasions to help offset the additional costs by as
5 much as ten to fifteen million dollars. The proposal
6 would phase out fine monies over a five-year period to
7 municipalities that do not provide local police
8 protection if a prosecution within their municipal
9 borders is the result of a state police action.
10 The phase-out breakdown would be 80 percent
11 of the amount paid in year one; 60 percent of the
12 amount paid in year two; 40 percent of the amount paid
13 in year three; 20 percent of the amount paid in year
14 four; and 0 percent in year five. This additional
15 revenue could be used to hire more state troopers or
16 purchase additional state police equipment.
17 Quite frankly, if the 75 percent of the
18 state's population that pays for their own policing
19 through local taxes is going to continue to subsidize
20 police protection for what, in some cases, are wealthy
21 suburban areas that do not provide a local policing
22 presence, then I think the fine monies generated from
23 that policing should go to help offset the costs, not
24 into the pockets of the local municipality.
25 Thank you very much for your time.
56
1 CHAIRMAN FEESE: Thank you, Representative
2 Sturla.
3 Are there any questions for Representative
4 Sturla?
5 Hearing none, again, thank you for your
6 testimony.
7 REPRESENTATIVE STURLA: Thank you.
8 CHAIRMAN FEESE: Our next testifier will be
9 Representative David Millard.
10 REPRESENTATIVE MILLARD: Mr. Chairman and
11 members of the committee, thank you for this
12 opportunity to testify today.
13 First, I would like to thank the General
14 Assembly for allocating vital funding to agriculture
15 research as part of the 2005-2006 state budget.
16 Agriculture is a multi-billion dollar industry here in
17 Pennsylvania and the lead force driving the state's
18 economy. It is, without question, well deserving of
19 all the funding it receives.
20 The agriculture research funding offered in
21 2005-'06 came as good news to Pennsylvania's Christmas
22 tree industry, as ornamental conifer research was
23 allotted $300,000. As you may know, Pennsylvania is
24 the nation's fourth largest producer of Christmas
25 trees, so the money provided to help the industry was
57
1 certainly beneficial to our economic standing as well
2 as our working families.
3 With these points in mind, I believe our
4 efforts should remain centered on providing key
5 programs, like ornamental conifer research, with the
6 funding needed to allow them to continue driving vital
7 dollars into our economy. However, we must make a
8 concentrated effort to do so without compromising
9 other key agriculture programs.
10 We, as members of the State Legislature,
11 have, for years, embraced our agricultural community
12 and applauded its benefit to the Commonwealth. In
13 2006-'07, I hope we will continue to do the same.
14 Thus, I am asking this General Assembly to
15 increase agricultural research funding by $300,000 for
16 ornamental conifer research, continuing the same
17 commitment this coming fiscal year that was made to
18 the state's Christmas tree industry in the current
19 fiscal year.
20 And on a side note, I notice also on the
21 budget that the funding for waste tires has been
22 removed out of the budget. I may be offering some
23 written testimony to be submitted a little bit later
24 concerning that. I'm still gathering facts and
25 statistics from DEP.
58
1 Mr. Chairman and members of the committee,
2 thank you again.
3 CHAIRMAN FEESE: Thank you, Representative
4 Millard, for your testimony. When you complete the
5 written testimony, submit it to the committee and we
6 will make it part of the record.
7 REPRESENTATIVE MILLARD: Thank you.
8 CHAIRMAN FEESE: Are there any questions from
9 the committee?
10 Hearing none, again, thank you for your
11 testimony.
12 REPRESENTATIVE MILLARD: Thank you.
13 CHAIRMAN FEESE: Our next presenter will be
14 Representative Paul Costa.
15 REPRESENTATIVE COSTA: Chairman Feese and
16 Chairman Evans, I am submitting the following remarks
17 for consideration by the House Appropriations
18 Committee. Thank you for allowing me to offer my
19 thoughts, hopes, and concerns at this budget hearing.
20 Governor Rendell has recognized the value
21 that education has in our state through his investment
22 in both key programs and new initiatives in this
23 year's budget proposal. Our challenge will be to
24 ensure we don't drop the ball and that we, in fact,
25 continue to build upon the small steps forward we are
59
1 making. We must continue to build upon our
2 educational infrastructure, increasing quality,
3 increasing access, increasing results.
4 Overall, our standards and accountability are
5 good and showing improvements. We were given a B
6 minus on our state report card. That's a decent
7 accomplishment. However, according to this same
8 report, Pennsylvania ranks 43rd in the equitable
9 distribution of its school funds. This is a dark and
10 deeply troubling finding. We must ensure the
11 equitable distribution of our funds throughout the
12 Commonwealth so that all our citizens benefit.
13 What's equally troubling, our higher
14 education institutions are slowly but surely closing
15 the doors to higher education for ever-growing numbers
16 of students, most especially our working class,
17 low-income, and minority students.
18 At this moment, thousands of community
19 college students in Allegheny County are worrying if
20 they will have enough funds to go back to school next
21 year. Our budget-strained community college is facing
22 a 3 percent tuition increase next year.
23 Despite mid-year spending freezes,
24 fund-raising drives, and a host of other efforts, CCAC
25 has an operating shortfall estimated at several
60
1 hundred thousand dollars. How can the college be
2 expected to handle sharply rising operating costs,
3 stagnant government aid, and a 4 percent enrollment
4 decline this year?
5 To deal with this, our community college is
6 being forced to consider doing the opposite of what
7 good education policies tell us we should be doing,
8 increasing class sizes, laying off staff, and raising
9 tuition rates for our already financially strapped
10 students.
11 We're trying to be creative and cost-cutting.
12 Our community college has tried to raise additional
13 funds, tightened its belt, cutting our non-essential
14 expenses, and has made great efforts to try out new
15 strategies. Included in their strategic plan is a new
16 Entrepreneur Institute intended to promote the growth
17 of small businesses. This taps into a great idea that
18 our state is already promoting through the Governor's
19 Job Ready Initiative, a workforce development program
20 that helps workers get the training they need to get
21 or keep family-sustaining jobs through strategic
22 investment in secondary and post-secondary education.
23 We cannot expect to foster innovations in
24 commerce, education, and science when we lack skilled
25 college graduates to create them. When we help an
61
1 individual receive a college degree, we are preparing
2 them for today's workplace and making an investment in
3 Pennsylvania's economic future.
4 Yes, we have already made historic
5 investments in higher education through this program
6 and the Governor has committed to continue funding
7 this effort. At the same time we make efforts to
8 continue funding, we must make similar efforts to
9 ensure this investment is equitable and we must ensure
10 that this money is fairly distributed throughout our
11 state to institutions like the Community College of
12 Allegheny County.
13 This is my eighth time I have come before
14 this committee. And I would say a majority of the
15 time I have asked for increased funding for not only
16 public education but also higher education on behalf
17 of my constituents. This year, I ask you as a parent
18 of a high school senior who is looking at colleges
19 now. But that will mean little unless he can graduate
20 from high school and continue his education at an
21 affordable, high-quality, highly-functioning institute
22 of higher education like CCAC.
23 No one should be denied a college education
24 in our state. We must ensure our education is
25 affordable and accessible to all Pennsylvanians. It
62
1 is our responsibility to guarantee each and every
2 child in this Commonwealth receives a quality public
3 education and that once they finish their studies,
4 they secure meaningful employment that will support
5 their families and the greater success of our state
6 economy.
7 John F. Kennedy urged us to remember that our
8 nation's first great leaders were also our first great
9 scholars. Let us also recognize that our state's
10 future leaders are sitting in our classrooms today and
11 the quality of their education will be directly seen
12 not too long from now in those that will follow in our
13 footsteps. For let us not forget, education is the
14 transmission of civilization. With that, let us
15 continue to invest in our educational system, ensuring
16 quality, ensuring access, and ensuring results, not
17 just in certain districts or in certain counties but
18 across the board across this Commonwealth.
19 Thank you again for the opportunity to
20 participate in today's budget presentation. Please
21 contact my office if you require any additional
22 information on the testimony I have provided here
23 today.
24 CHAIRMAN FEESE: Thank you, Representative
25 Costa, for your testimony.
63
1 REPRESENTATIVE COSTA: I have a daughter who
2 is a junior, so I guess I'll be back next year.
3 CHAIRMAN FEESE: Any questions for
4 Representative Costa?
5 Hearing none, thank you very much for coming.
6 REPRESENTATIVE COSTA: Thank you,
7 Mr. Chairman. Have a good day.
8 CHAIRMAN FEESE: Our next presenter will be
9 Representative Doug Reichley, who is a member of this
10 committee.
11 REPRESENTATIVE REICHLEY: Good morning,
12 Mr. Chairman.
13 And if Representative Costa's remarks are
14 acting as a precursor for mine, I've got an
15 eight-year-old and a six-year-old. So that means I'm
16 going to be back every year asking for more money for
17 tuition assistance, I suppose.
18 I don't have any prepared remarks. I
19 apologize if I forgot if that was the protocol or not.
20 But I think it's probably better to address you on an
21 informal basis. And as members of this committee know
22 better than most anybody in the House, I think we have
23 an obligation to look very carefully at this budget
24 and to do our utmost to bring this in at a lower level
25 than last year.
64
1 The Governor touted within his remarks last
2 week when he presented the budget that he was saving a
3 billion dollars. And yet when we've added up all
4 these line items and figures, we find that the budget
5 has actually increased $923.8, a 3.7 increase.
6 I think we owe it to the taxpayers of
7 Pennsylvania to try to reduce the spending or at least
8 hold it to last year's level. I think all of us know
9 that we are just putting off the inevitable. And if
10 we don't do more to restrain spending, we're going to
11 be looking at very substantial tax increases next
12 year.
13 One of the things I was troubled by in
14 reviewing the numbers from the Governor's budget are
15 the number of new programs or programs perhaps which
16 are repackaged from other line items appropriations,
17 at the same time when there have been cuts to programs
18 which I think have done very valuable and important
19 work in our communities. I noticed that the Ben
20 Franklin Partnership was level-funded again, which
21 really contributed very much toward the development of
22 new companies particularly in Lehigh Valley and
23 throughout the Commonwealth. And last year I looked
24 back on my remarks and I requested that this committee
25 consider a $2.8 million increase within that program.
65
1 As I continue through the budget, I notice
2 the Agil Manufacturing Program was again zeroed out by
3 the Governor. This was a program which Lehigh
4 University worked in conjunction with many local
5 businesses and the state government in being able to
6 provide certain efficiencies to workforce operations.
7 And, in fact, it saved $6 million with the
8 collaborative efforts that Agil Manufacturing has
9 entered into with Lehigh University with both the
10 private sector and the public sector.
11 The New Choices/New Options Program was
12 again, unfortunately, the victim of the budget ax. I
13 think this is a program which I have personally been
14 familiar with from the work it does with single
15 mothers who are trying to re-enter the workforce,
16 improve their educational capacity, and lead a life of
17 success. And I think it is shortsighted to eliminate
18 the funding for that particular program.
19 And then last but not least, I would refer
20 back as well to the inability of the Administration to
21 see that there is a need for additional funding for
22 the Human Services Development Fund, which is the
23 Department of Public Welfare. Last year I asked for
24 additional funds for substance abuse and mental
25 health/mental retardation treatment. And as much as
66
1 we talk about advocating increases in any one line
2 item, I think we also have an obligation to find ways
3 to cut that.
4 When I reviewed the budget, I found that the
5 Governor, within the educational support program, was
6 talking about adding $10 million for Science: It's
7 Elementary at the same time he cut $2.8 million for a
8 current program, Science in Motion. I think that the
9 addition of $9.5 million for teacher professional
10 development at the same time when he cut $5.3 million
11 for job training is an inappropriate use of the funds.
12 And I think if we look at the current funding
13 basis from last year's budget, we can find the room to
14 supply the necessary funding for many of these
15 programs.
16 The four items I listed before, Agil
17 Manufacturing, the Ben Franklin Partnership, the TANF
18 funding, and also I put in a request to provide some
19 level of funding for the Big Brothers/Big Sisters,
20 which I think Representative Mann already mentioned in
21 her testimony to you today, can all be achieved from
22 the $15 million that Governor Rendell proposed for
23 World Trade Pennsylvania.
24 While I think it's always important that we
25 do our best as a state government to promote
67
1 businesses and products that we produce here in
2 Pennsylvania, I frankly think that's a private sector
3 issue. And I think that's been the emphasis at the
4 federal level and I think that we should look very
5 carefully at whether the state government should be
6 taking the place of the private sector in trying to
7 promote our own business capacity overseas.
8 We already have line items in here for
9 marketing businesses and marketing to tourists. And I
10 think utilizing an additional $15 million at the same
11 time you're cutting New Choices/New Options and at the
12 same time you're cutting money from programs that are
13 working and you're not providing funding for a program
14 like Big Brothers/Big Sisters, which touches almost
15 every corner of Pennsylvania to provide after-school
16 mentoring to cut down drug abuse, to cut down on teen
17 pregnancy, to cut down on juvenile crime is really
18 something worthwhile to consider.
19 I would commend the committee for its
20 diligence today in listening to all the members'
21 requests. I'm sure the next three weeks will be very
22 interesting as we attempt to go through the numbers
23 and try to find a way of balancing the various demands
24 of Pennsylvania while sparing our taxpayers any
25 additional burden.
68
1 Thank you.
2 CHAIRMAN FEESE: Thank you, Representative
3 Reichley.
4 Are there any questions from the committee?
5 Hearing none, again, thank you very much.
6 REPRESENTATIVE REICHLEY: Thank you.
7 CHAIRMAN FEESE: Our next presenter will be
8 Representative Robert Godshall.
9 REPRESENTATIVE GODSHALL: Thank you,
10 Mr. Chairman.
11 I also don't have any prepared remarks. Just
12 on a spontaneous basis, I would like to discuss very
13 briefly the proposed Governor's budget for the tourism
14 industry. I would like to call your attention because
15 I'm not sure that everybody realizes what the various
16 parts of that budget do for the state of Pennsylvania.
17 The first budget item is Marketing to Attract
18 Tourists, which was cut by $1,500,000. DCED is part
19 of that budget which they use to advertise and sell
20 Pennsylvania.
21 Regional Marketing Partnerships had a
22 $500,000 increase. DCED encourages the different
23 counties to work together, which I totally approve of.
24 The Tourism Promotion Assistance Matching
25 Grant Program, which was cut $550,000 gives to your
69
1 local TPAs. It's the money that they exist on. So
2 that was cut under this budget by $550,000.
3 Tourist Product Development, which is special
4 events that come up, that was cut entirely out of this
5 budget. Actually, the budget decreased by $1,550,000.
6 And one other item, Tourism - Accredited Zoos
7 in Pennsylvania, which were funded at $2 million for
8 the last number of years, has been cut entirely.
9 If you want to know, the accredited zoos are
10 the Philadelphia Zoo, the Pittsburgh Zoo, the National
11 Aviary Zoo in Pittsburgh, the Erie Zoo, and the
12 Norristown Zoo. Those are the items that have
13 received no funding which have historically received
14 $2 million that was in the original budget.
15 I just want to go briefly over what tourism
16 does for the state of Pennsylvania. It's our second
17 largest industry and it's our leading major industry.
18 It employs 555,000 people with $16 billion in wages
19 and salaries. It generates about $32 billion for the
20 state of Pennsylvania. And in 2003, which was the
21 last year that I have, visitors' spending alone in
22 Pennsylvania was $23.45 billion.
23 And to do this, to arrive at where we are
24 today -- a couple of years ago, we were at the bottom
25 of the pack. We were at the bottom amongst states
70
1 when it came to promoting and selling Pennsylvania.
2 We've risen to fourth or fifth in the nation as far as
3 selling Pennsylvania. We've totally changed the way
4 we do business in this state as far as tourism goes.
5 We're leading, by a large degree, the nation in our
6 tourism and the attracting of tourists to the state.
7 We're way above the national average.
8 And I don't think really today at this time
9 it's time to turn our back on what's been a real
10 success story for the state of Pennsylvania. I guess
11 we can only look at -- I come from the eastern part of
12 the state, the southeastern part of the state, and we
13 know what tourism has done for Philadelphia. It's
14 really been the one product that has really
15 rejuvenated the city of Philadelphia. And it's meant
16 a lot, not only to Philadelphia but to the state of
17 Pennsylvania.
18 Again, I say, I don't think it's the time to
19 turn our back on our second leading industry with
20 $3.5 million worth of cuts in the budget of the
21 industry.
22 I appreciate your time and efforts. And I
23 would appreciate, again, your consideration for the
24 industry that my committee represents.
25 I'll answer any questions if you have any.
71
1 CHAIRMAN FEESE: Thank you, Representative
2 Godshall.
3 Are there any questions from the members of
4 the committee?
5 Representative Petri.
6 REPRESENTATIVE PETRI: Thank you,
7 Mr. Chairman.
8 Chairman Godshall, you mentioned that there
9 was a cut of $2 million for the accredited zoos. Have
10 you heard from any of those folks and what they
11 anticipate the implication is to their existence?
12 REPRESENTATIVE GODSHALL: I haven't heard
13 anything to date on that. But I have visited --
14 especially just recently, again, in Pittsburgh I know
15 what it's going to do to the Pittsburgh Zoo and
16 especially to the National Aviary, which is a national
17 landmark really. It's going to hurt them immensely.
18 What it's going to mean as far as survival, I'm not
19 sure. But it will be tough.
20 REPRESENTATIVE PETRI: Thank you.
21 CHAIRMAN FEESE: Are there any other
22 questions from the members of the committee?
23 Hearing none, again, Representative Godshall,
24 thank you for your testimony.
25 REPRESENTATIVE GODSHALL: Again, thank you
72
1 for your time.
2 CHAIRMAN FEESE: Our next presenter will be
3 Representative Tim Solobay.
4 REPRESENTATIVE SOLOBAY: Good morning,
5 Chairman Feese, Chairman Evans, and members of the
6 committee. Thank you for the opportunity to talk to
7 you about a few items in the budget that I feel very
8 strongly about.
9 First and foremost, I want to stress the
10 importance of the state's Volunteer Fire
11 Company/Volunteer Ambulance Company Grant Program. As
12 you know, I've been a volunteer firefighter for 28
13 years and still serve as an assistant chief at my home
14 fire department. We all know how important
15 Pennsylvania's volunteer first responders are to our
16 communities and the Commonwealth. They respond on a
17 moment's notice and put their lives on the line every
18 day to save lives and property. They save taxpayers
19 an estimated $6 billion dollars a year.
20 A few years ago, we established the
21 $25 million grant program to help these fire companies
22 obtain the equipment, the training, and firefighting
23 apparatus they need to do their jobs safely and more
24 efficiently.
25 In recent years, the grant program was funded
73
1 through a line item under PEMA. With the enhancement
2 of Act 71, the program was proposed to be funded in
3 2005-2006 through a transfer from the Gaming Control
4 Board. Last year, as you know, the State Supreme
5 Court dealt the program a setback when it rejected the
6 proposed funding stream. Unfortunately, that left the
7 program unfunded and up in the air for most of the
8 past year.
9 Now we have a supplemental appropriation
10 request before us to provide funding to continue this
11 program in the remaining months of this fiscal year.
12 A $25 million line item is also included in the
13 2006-2007 budget proposal.
14 I hope we can act quickly to approve the
15 supplemental request and preserve this as an annual
16 grant opportunity for volunteer fire and ambulance
17 companies. This funding for these is needed now and
18 is truly a bipartisan priority.
19 On behalf of the many dedicated volunteer
20 firefighters, I ask that you support these funding
21 requests to get this grant program up and running
22 again.
23 Second, I would like to see $500,000
24 earmarked for Civil Air Patrol, which would provide
25 the program with a needed increase. Civil Air Patrol
74
1 is a division of the U.S. Air Force and helps the
2 Commonwealth with search and rescue operations, aerial
3 reconnaissance for Homeland Security, disaster relief
4 aerial damage assessment, and the transport of blood
5 and tissue to critical care sites.
6 Civil Air Patrol is a non-profit organization
7 made up almost entirely of volunteers who defend our
8 nation. I would encourage the Legislature to restore
9 funding for these vital services.
10 I would also like to ask the committee to
11 allocate $350,000 for the Disabled American Veterans
12 Transportation Network. Continued state funding of
13 the program is essential in making sure veterans have
14 access to needed transportation for healthcare visits
15 at the state's VA medical centers.
16 The Disabled American Veterans Organization
17 has provided this valuable service since 1988, and
18 it's important that we continue our commitment to it.
19 Without this program, many of our sick and disabled
20 veterans would not be able to get the treatment and
21 prescription drugs they need to stay healthy. It is
22 an indispensable resource for veterans and its
23 continued funding is critical.
24 I would also like to see $500,000 dedicated
25 to research and care for people with lupus. More
75
1 Pennsylvanians are affected by lupus than sickle-cell
2 anemia and cystic fibrosis combined; yet they receive
3 larger state appropriations.
4 Lupus is a widespread and chronic lifelong
5 autoimmune disease that, for unknown reasons, causes
6 the immune system to attack the body's own tissue and
7 organs, including the joints, kidneys, heart, lungs,
8 brain, blood, or skin.
9 The Lupus Foundation of America estimates
10 that 1.5 million Americans have a form of the disease.
11 Despite the fact that lupus can affect men and women
12 of all ages, lupus occurs 10 to 15 times more
13 frequently among adult females than adult males.
14 Increased professional awareness and improved
15 diagnostic techniques and evaluation methods are
16 contributing to the early diagnosis and treatment of
17 lupus. With current methods of therapy, 80 to 90
18 percent of people with lupus can look forward to a
19 normal lifespan.
20 It is our responsibility to ensure that
21 awareness is increased and research programs are
22 available.
23 Finally, I would ask the committee to restore
24 funding to two important agriculture programs,
25 agricultural research and ag promotion and education.
76
1 Agricultural research is slated for a 30 percent cut
2 and agricultural promotion, education, and exports is
3 proposed for an 8 percent reduction. I would like to
4 see the programs fully funded at last year's levels,
5 $3 million and $1.28 million respectively.
6 As a member of the House Agricultural and
7 Rural Affairs Committee, I have seen firsthand how
8 important agriculture is to our state's economy. If
9 these proposed cuts are allowed to stand, it would
10 surely have an impact on our county extension offices;
11 our colleges and universities, like Penn State; and
12 the ability of farm families to compete.
13 If we want our farmers and agribusinesses to
14 survive and thrive in today's global marketplace, we
15 must make these critical investments in research and
16 promotion of our homegrown food and fiber products.
17 Thank you, Mr. Chairman and committee
18 members, for allowing me to offer remarks. I look
19 forward to working with all of you in the coming
20 weeks.
21 I'd appreciate the consideration on all those
22 requests. I realize that the job that you have and
23 that we all have as we prepare this budget is very
24 unique and challenging. The focus on the things that
25 I've presented to you this morning I hope will receive
77
1 your consideration in increased funding.
2 CHAIRMAN FEESE: Thank you, Representative
3 Solobay.
4 Are there any questions from members of the
5 committee?
6 Hearing none, again, thank you for your
7 testimony.
8 REPRESENTATIVE SOLOBAY: Thank you,
9 Mr. Chairman.
10 CHAIRMAN FEESE: Just for purposes of the
11 record, Representative Curtis Thomas will be
12 submitting written remarks for the record.
13 Our next presenter will be Representative
14 Bernie O'Neill.
15 REPRESENTATIVE O'NEILL: Thank you,
16 Mr. Chairman and members of the committee, for
17 allowing me to come before you today. Two days ago we
18 passed a very important piece of legislation -- and
19 that's House Bill 599. Now it sits on the Governor's
20 desk -- that puts the $25 million for the Volunteer
21 Fire Company and Volunteer Ambulance Service Grant
22 Program.
23 For several years this funding has helped
24 hundreds of the local volunteer fire and EMS companies
25 across Pennsylvania meet the basic needs of fuel,
78
1 training equipment -- and I could list 100 things.
2 One simple $3,000 grant can allow a fire company to
3 provide necessary first aid training, buy a few more
4 pairs of fire boots, or obtain a lifesaving automated
5 external defibrillator.
6 Since the program's inception, this program
7 has helped local communities and kept these vital
8 services operational. Within the past year, in my
9 district, the 29th District in Bucks County, we were
10 hit hard by two floods, back in September of 2004 and
11 then recently in April of 2005.
12 In April of this past year, I saw my
13 community come together in a way that would make any
14 legislator proud, all the residents, local and
15 municipal leaders, and law enforcement personnel who
16 spent countless hours getting businesses open,
17 residents back in their homes, and our local fire
18 company.
19 And I have to tell you a story. We had a
20 resident, who was an elderly lady, whose home was
21 extremely flooded out and destroyed in September of
22 2004. They moved her. The community got together and
23 moved her to another home, a rental property. In
24 April, that home was hit by the flood. The community
25 got together and placed her again in another home.
79
1 There was a gas leak and the home she was in blew up.
2 So now she was homeless for a third time. And I have
3 to tell you how proud I am of the residents and the
4 local fire company in New Hope because they really
5 came to this woman's rescue and really helped her out.
6 Anyway, I fear that another disaster could
7 strike our area and they would not have the resources
8 they need to help our residents if it does happen
9 again. While I'm pleased this very important
10 worthwhile program is on its way back to being put in
11 state law, I am very concerned about how it would be
12 funded. We still have not yet received funding for
13 the current fiscal year because it is dependent upon
14 revenue from the gaming industry.
15 Although the funding for the current year may
16 very well be made possible later this spring through
17 the supplemental appropriations, each day that goes by
18 without this grant program is another day that our
19 first responders go without lifesaving equipment or
20 training. Even though there is some hope that this
21 year's grant program will be funded as early as this
22 fall, I worry about next year's program, which would
23 still be funded through gaming revenue.
24 For the second year in a row, the Governor is
25 rolling the dice, hoping that by the end of the next
80
1 fiscal year, slot machines and licenses will be
2 awarded and millions of dollars will be streaming into
3 the Gaming Fund. Unfortunately, I'm not a gambler.
4 When we tell our volunteer fire companies
5 about authorizing the grant program, I want to make
6 sure that the money is where it is when they need it
7 and not two years down the road or later. That is why
8 I am respectfully requesting that we insert the grant
9 program into the 2006-2007 General Budget Fund to get
10 these fire and ambulance companies the much needed
11 desperate help.
12 In addition, I am requesting that we increase
13 that program by $5 million. And I understand the
14 constraints you're under. I would like to see it go
15 to a total of $30 million to better help our dedicated
16 volunteers. Our volunteer companies are always there
17 when we need them. And I think it's time that we be
18 there for them.
19 I understand the budget constraints; but I
20 have to tell you, this program has not increased over
21 the years since its inception. This past year, they
22 received absolutely nothing, although now we have a
23 supplemental appropriation.
24 And I can tell you, from my own experience,
25 coming from a family, myself a 20-year volunteer
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1 fireman, my father and my uncle who were fire chiefs
2 for close to 42 years, the time and effort that these
3 people put in. And I have to tell you, they are the
4 least appreciated community volunteers until you need
5 them at 2 o'clock in the morning. Then people
6 remember their fire companies and their ambulance
7 crews.
8 I can tell you, just in the southeast,
9 there's a list of ambulances that have gone out of
10 business and no longer serve the public due to the
11 lack of funds.
12 So I implore you. I understand all the
13 budget constraints that are put on you, but we're
14 talking about our first responders, the people that
15 are most vitally needed in our state more than anyone,
16 in my personal opinion, because you're talking about
17 people's lives.
18 Before I conclude today, I would just like to
19 share with you some positive thoughts I have on the
20 Governor's spending plan and his proposals. As a
21 former educator, I know firsthand the benefits of
22 public library systems and its efforts to foster
23 lifelong learning. I am especially pleased with this
24 proposal, as it will help offset the drastic cut in
25 funding libraries received in the 2002-2003 fiscal
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1 year.
2 Since then, many of our libraries have been
3 struggling to make ends meet. They have had to cut
4 hours, reduce services, and, in some cases, reduce
5 both. We all know that libraries offer a wealth of
6 resources to our residents. Today these education
7 facilities are not just lines of books and
8 encyclopedias. They offer a gateway to the world
9 through public access to the Internet and the
10 resources to help people learn skills and to find
11 employment. They enrich children, the love of reading
12 and learning, and they help us build stronger
13 communities.
14 I am pleased that the Governor has recognized
15 the importance of the hundreds of public libraries in
16 Pennsylvania by restoring much of the funding that was
17 cut from the budget a few years ago. And I am hopeful
18 that the additional funding that has been restored for
19 the libraries in this budget year will remain in the
20 final spending plan to further help these facilities
21 in our community.
22 My dear friend, Representative Semmel, and
23 myself have been fighting for the libraries and
24 getting what little we got in there. I am very proud
25 that the Governor has restored this funding. We hope
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1 that it stays in the budget.
2 I thank you for your time. I appreciate your
3 efforts. If you need me to strong arm you for the
4 fire companies, give me a call and I'll bring a ladder
5 truck in. And I have to point out one thing about the
6 fire companies. When I was a young fireman, I was on
7 a committee to buy our first ladder truck. That first
8 ladder truck in the 1970s cost $103,000. I did some
9 research about a week ago. That same truck, just with
10 those specs, not with today's new technology, would be
11 over a million dollars. That's what our volunteers
12 face. They have to raise that money themselves.
13 I thank you.
14 CHAIRMAN FEESE: Thank you for your
15 testimony, Representative O'Neill.
16 Are there any questions from members of the
17 committee?
18 Hearing none, again, thank you for your
19 testimony.
20 REPRESENTATIVE O'NEILL: Thank you.
21 CHAIRMAN FEESE: Our next presenter will be
22 Representative Richard Grucela.
23 REPRESENTATIVE GRUCELA: Good morning,
24 Chairman Feese, Chairman Evans, and members of the
25 House Appropriations Committee. I appreciate this
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1 opportunity to address you with regard to the
2 Governor's proposed budget for 2006-2007.
3 Overall, I think this is a very good budget,
4 especially since it meets the needs without a tax
5 increase. I am especially delighted with the emphasis
6 the budget places on educational priorities. I do,
7 however, have two concerns in the area of the
8 educational expenditures.
9 While I applaud the Governor's efforts in the
10 field of research and have the highest respect for our
11 educational institutions of higher learning, I request
12 that you specifically ask these institutions just what
13 they will be researching and what methods they will
14 employ under the Jonas Salk Grants.
15 Secondly, my local superintendents tell me
16 that the 2 percent growth supplement for basic
17 education is too high. Districts like Easton, which
18 is one of the fastest growing in the state, are unable
19 to meet this target. I respectfully ask that we lower
20 the threshold to enable these growing districts to
21 meet the demands of growth.
22 Finally, I concur with the remarks Chairman
23 Evans made on the House Floor that this ought not to
24 be a difficult budget and with cooperation and
25 compromise I believe and would hope we could pass this
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1 budget well in advance of the deadline.
2 Thank you, Mr. Chairman.
3 CHAIRMAN FEESE: Thank you, Representative
4 Grucela.
5 Any questions from members of the committee?
6 Hearing none, again, thank you for your
7 testimony.
8 REPRESENTATIVE GRUCELA: Thank you.
9 CHAIRMAN FEESE: Our next presenter will be
10 Representative Joseph Markosek.
11 REPRESENTATIVE MARKOSEK: Thank you very
12 much, Chairman Feese, Chairman Evans, members of the
13 House Appropriations Committee, and, of course, the
14 wonderful staff that helps us all do our jobs in such
15 a fine manner.
16 The Commonwealth of Pennsylvania has many
17 duties and responsibilities, as we all know. Some of
18 the obvious ones are, of course, providing an
19 education for our citizens, safe and efficient means
20 of transportation, as well as a clean and safe
21 environment.
22 One of the other duties that the Commonwealth
23 has that we don't maybe think about quite as often is
24 protection of our consumers, protection from fraud,
25 and particularly protection from erroneous
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1 measurements of weights and quantities; for example,
2 gas pumps being the issue de jour right now with the
3 price of gasoline, the measurement of whether or not
4 we are getting what we're paying for at the pump, deli
5 scales, retail scanners. Think about a Wal-Mart, for
6 example. How many scanners are in one Wal-Mart? And
7 how many scanners are currently in the Commonwealth of
8 Pennsylvania? Literally thousands.
9 The sale of cord wood is a measurement that
10 the Department of Weights and Measures and the
11 Department of Agriculture has responsibility for.
12 Packaged items. If you buy a box of spaghetti and it
13 says that there are so many ounces in that package, do
14 you know, in fact, that you're getting what you're
15 paying for? The Department of Agriculture has within
16 it the Bureau of Weights and Measures. And that is
17 where the duty and responsibility lies for these
18 measurements.
19 A little bit of history. In 1995, Act 155
20 was passed. Prior to that, local counties and cities
21 had the responsibility of having their own inspection
22 programs. In 1995, with Act 155, we gave them the
23 option to drop out and hand it all over to the Bureau
24 of Weights and Measures and the Department of
25 Agriculture.
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1 In the 1960s, there were 67 county programs,
2 inspection programs, and 38 city programs. Since Act
3 155 of 1995 was passed, today we have about 40
4 counties that have opted out and have handed this duty
5 over to the state, to the Department of Agriculture.
6 Needless to say, they are overwhelmed and simply can't
7 handle that kind of inspection that really the
8 consumers, our constituents, so much deserve.
9 On February 23rd, the Department of
10 Agriculture will be here in front of you to give their
11 own presentation about their budgetary needs, so I'm
12 not going to get into any details. Being a legislator
13 here for many, many years, I know what it's like.
14 Folks are constantly asking us for money. And
15 unfortunately, in our life here, everything boils down
16 to that. And they're certainly no exception. They
17 will come in and ask you for additional funds to hire
18 more inspectors. But also they may have some
19 innovative programs to discuss relative to outsourcing
20 some of these inspection services within our
21 Commonwealth.
22 I also want to point out in summary that just
23 today -- and I couldn't have timed it better. I have
24 no connection to the media. -- the Pittsburgh Tribune
25 Review in today's newspaper had an article that sums
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1 up what you all have here and much of what I said
2 today and gives you a little more additional
3 information.
4 I also have a copy of my House Bill 913,
5 which shifts the enforcement powers of the Bureau of
6 Weights and Measures from the Department of
7 Agriculture to what I think is more appropriate, the
8 Attorney General's Office.
9 So with that, ladies and gentlemen, I end my
10 brief summary. I certainly will answer any questions
11 that you may have. I want to thank you for your time
12 this morning.
13 CHAIRMAN FEESE: Thank you, Representative
14 Markosek.
15 Are there any questions from the members of
16 the committee?
17 Hearing none, again, thank you for your
18 testimony.
19 REPRESENTATIVE MARKOSEK: Thank you.
20 CHAIRMAN FEESE: As we wait for our next
21 presenter, we will stand in recess so that our
22 stenographer can rest her fingers.
23 For the record, Representative Curt Sonney
24 will be submitting written remarks.
25 This committee stands in recess until 11:05.
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1 (Recess taken from 10:55 a.m. until 11:05
2 a.m.)
3 CHAIRMAN FEESE: I would like to reconvene
4 this hearing of the House Appropriations Committee
5 with testimony being presented by the members of the
6 House of Representatives.
7 Our next presenter will be Representative
8 Cherelle Parker.
9 Representative Parker, thank you.
10 REPRESENTATIVE PARKER: Thank you.
11 Good morning, Chairmen Feese and Evans and
12 members of this distinguished committee. As the most
13 freshman member of this body, it is indeed an honor to
14 have the opportunity to share my concerns regarding
15 the Governor's proposed 2006-2007 budget with you,
16 members of this Appropriations Committee, who play a
17 vital role in shaping the fiscal matters of our
18 Commonwealth. I look forward to working in a
19 bipartisan manner to ensure that we pass a fiscally
20 responsible budget that addresses the needs of our
21 citizenry.
22 With this in mind, please note that I am an
23 avid supporter of long-term care initiatives for
24 Pennsylvania's elderly citizens. Since our
25 Commonwealth has one of the highest-growing senior
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1 populations in the country, I understand the need for
2 support networks that allow these seasoned men and
3 women to live out their lives with dignity and, when
4 possible, at home with their loved ones. I am the
5 caregiver for my grandfather. In this capacity, I was
6 often unaware of services available to assist me.
7 We need to have a comprehensive network in
8 place to ensure that caregivers never feel alone when
9 faced with what can be a difficult task without the
10 proper resources.
11 This is why I commend the Governor for
12 allotting $4.2 billion in combined state and federal
13 funds to provide nursing home and home- and
14 community-based services. This funding will allow
15 2,800 additional seniors to remain in their homes as
16 an alternative to nursing home care. It is my hope
17 that this $4.2 billion allotment remains.
18 Second, bringing more money into the homes of
19 Pennsylvania families is a paramount objective in this
20 year's budget.
21 As this committee goes forward in making
22 recommendations for funding our state programs and
23 agencies, I ask you to consider the impact on working
24 families throughout the Commonwealth. I am
25 particularly concerned with assisting homeowners and
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1 supporting small business owners.
2 I support the Governor's proposal to allocate
3 more than $8 million in funding for the Homeowner's
4 Emergency Mortgage Assistance Program. This
5 $3 million increase will allow HEMAP to meet the
6 increased demand being placed on the program. The
7 program has saved more than 33,000 homes from being
8 foreclosed on since its inception in 1984.
9 However, in just the last three years,
10 foreclosures in Pennsylvania have skyrocketed and an
11 estimated 55,163 homes have been lost to sheriff
12 sales. Obviously, the increased HEMAP funding is
13 necessary.
14 Furthermore, we need to support the growth of
15 small businesses in our state. I have created and
16 charged the 200th Legislative District Economic
17 Development Task Force to focus on the enhancement of
18 neighborhood commercial corridors that support the
19 community. Through this project and others, like the
20 Governor's Elm Street and Main Street project, we are
21 able to attract new businesses to our communities and
22 entice the people who live in these neighborhoods to
23 shop, reinvest, and ultimately use their purchase
24 power where they live. I salute the Governor for his
25 vision to restore neighborhoods to their original
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1 glory and improve the quality of life for people
2 across the state.
3 However, we need to do better. Small
4 business development must be given the support it
5 needs to thrive. I ask this committee to consider
6 advocating for greater assistance to small businesses
7 and for continued support for neighborhood commercial
8 development.
9 Community revitalization and urban
10 development programs are very important to the
11 community in which I serve. By supporting local
12 businesses within each of our respective districts, we
13 are keeping the heart of neighborhoods throughout
14 Pennsylvania palpitating with growth, prosperity, and
15 stability.
16 In closing, Mr. Chairmen and committee
17 members, I thank you for the opportunity to speak
18 before you today. I ask for your advocacy and support
19 in funding the aforementioned. I would be happy to
20 answer any questions.
21 CHAIRMAN FEESE: Thank you, Representative
22 Parker.
23 Are there any questions from the members of
24 the committee?
25 Hearing none, again, thank you so much your
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1 testimony.
2 REPRESENTATIVE PARKER: Thank you.
3 CHAIRMAN FEESE: Our next testifier is
4 Representative John Payne.
5 REPRESENTATIVE PAYNE: Good morning, Chairman
6 Feese, Chairman Evans, and fellow members on the
7 committee.
8 It is my privilege and pleasure to be able to
9 address the committee here today on behalf of the
10 students and parents residing in the 106th Legislative
11 District and on behalf of students and parents across
12 this Commonwealth.
13 While I have several concerns about the
14 Governor's over-reaching budget proposal, my primary
15 concern is the gross inequity in education funding.
16 And I realize each one of us represents our own
17 districts. And if it works in your district, this is
18 not a problem. However, the Governor's proposal
19 shortchanges local school districts in my district and
20 in growing school districts across Pennsylvania by
21 earmarking an inordinate and inequitable amount of
22 education funding for the Philadelphia City School
23 District in his 2006-2007 state budget proposal.
24 Under the Governor's proposed budget, Derry
25 Township School District in Hershey, Chocolate Town,
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1 would receive less than $34,000, less than $34,000
2 additional dollars, while Philadelphia City School
3 District would receive $39 million more. It's
4 unbelievable, and certainly unacceptable to me, that
5 our tax dollars continue to fund Philadelphia schools
6 rather than our own.
7 The four school districts located within the
8 106th Legislative District would see the following
9 increases in state educational subsidies under the
10 Governor's budget proposal:
11 Derry Township School District: $33,838, a
12 2 percent increase over 2005-2006;
13 Lower Dauphin School District: $161,401, a
14 2 percent increase over 2005-2006;
15 Middletown Area School District: $132,158, a
16 2 percent increase over 2005-2006;
17 Central Dauphin School District: $655,539, a
18 4.8 percent increase over 2005-2006.
19 Meanwhile, the Philadelphia City School
20 District, which already is receiving nearly
21 $788 million in state subsidies in the current fiscal
22 year, would receive an additional $39,108,268 under
23 the Governor's budget proposal, a 5 percent increase.
24 This approach to education funding has to
25 stop, and I will be forced to oppose the 2006-2007
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1 state budget unless a better balance is struck. It is
2 time to change the formula for education funding in
3 this Commonwealth.
4 I will continue to work with other
5 legislators who also represent growing districts to
6 create a more equitable and stable funding mechanism
7 for our public school system to ensure that every
8 student in Pennsylvania receives an equal educational
9 opportunity.
10 The current system relies too heavily on
11 local property taxes, which has resulted in a
12 disparity in per-pupil spending across Pennsylvania.
13 I'd like to see more of that burden shifted to the
14 state, which has a constitutional obligation to fund
15 public education.
16 The bottom line is this: Every school
17 district deserves equity in state funding and every
18 child deserves an equal education, regardless of his
19 zip code.
20 Thank you, Mr. Chairman, for the opportunity
21 to address this committee.
22 CHAIRMAN FEESE: Thank you, Representative
23 Payne.
24 Are there any questions from the members of
25 the committee?
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1 Hearing none, again, I thank you for your
2 testimony.
3 REPRESENTATIVE PAYNE: Thank you.
4 CHAIRMAN FEESE: Our next presenter will be
5 Representative Thomas Blackwell.
6 REPRESENTATIVE BLACKWELL: The copies of my
7 testimony will be here in a few minutes. They are
8 being copied.
9 CHAIRMAN FEESE: We could proceed with
10 Representative John Siptroth.
11 Would you yield the Floor to him?
12 REPRESENTATIVE BLACKWELL: I most certainly
13 will. You're the chairman, sir.
14 CHAIRMAN FEESE: We'll hear from
15 Representative Siptroth, and then we'll make sure you
16 get in, Representative Blackwell.
17 REPRESENTATIVE BLACKWELL: Thank you.
18 CHAIRMAN FEESE: Representative Siptroth,
19 thank you for being here.
20 REPRESENTATIVE SIPTROTH: Thank you.
21 Good morning, Chairman Feese, Chairman Evans,
22 and members of the Appropriations Committee. I thank
23 you for offering me the opportunity to testify before
24 you today.
25 The 2006-2007 budget proposal introduced by
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1 the Governor last week builds on the foundation set by
2 the Administration in the past three years. The
3 proposed budget continues to concentrate on and
4 advance several of the Commonwealth's most essential
5 objectives. Improving education and opportunity,
6 promoting workforce preparedness and job growth, and
7 keeping our state's next generation healthy by
8 expanding CHIP are all admirable endeavors.
9 However, there are areas where we can and
10 should focus more of our resources that would serve
11 even more Pennsylvanians.
12 Currently, 60 percent of county budgets are
13 dedicated to human services funding. At the county
14 level, governments are beleaguered by the trickle-down
15 effect of federal budget cuts. And while the state
16 has responded in several areas to mitigate the damage
17 caused by federal reductions, some parts of the state
18 still suffer disproportionately.
19 Pike and Monroe are the state's
20 fastest-growing counties. Between 1990 and 2004,
21 Monroe County gained more than 60,000 new residents,
22 for a population increase of 66 percent; for Pike, the
23 numbers are more staggering. Its population
24 practically doubled in 14 years, with an increase of
25 93 percent.
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1 State funding simply has not equaled the
2 massive growth we've experienced. This is why it's
3 important for state agencies to use the most current
4 population figures to calculate funding rather than
5 census numbers that may be older. Otherwise, the
6 residents of counties like Monroe and Pike with
7 astounding population growth do not receive their fair
8 share from the state.
9 The County Commissioners Association of
10 Pennsylvania has issued a list of priorities where
11 funding is most desperately needed, including nursing
12 homes, community mental health and mental retardation
13 facilities, juvenile detention, drug and alcohol
14 services, and the cost of doing business in general.
15 There is a lack of healthcare services in
16 general, due to a lack of qualified doctors. In many
17 cases, patients cannot find a doctor who accepts
18 Access or Access Plus. This deficiency requires
19 residents to travel to the Lehigh Valley or Scranton
20 for services, a trip which can be up to 80 miles or
21 two hours round trip. These trips are often at a
22 significant cost to the county medical assistance
23 offices, which are responsible for providing
24 transportation.
25 We need a federal qualified health center
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1 established to handle our local MA patients.
2 We also need to continue and complete the
3 projects begun under the last budget cycle, especially
4 projects pertaining to transportation infrastructure.
5 The overwhelming growth of Pike and Monroe also
6 presents our area with unique transportation needs.
7 Today's highly mobile society is magnified in
8 Pike and Monroe where a significant proportion of
9 residents commute to New Jersey and New York. Our
10 roads are heavily traveled and undergo a great deal of
11 wear and tear.
12 In order to improve safety and reduce traffic
13 congestion, we started construction on critical
14 transportation projects last year, namely, the
15 Marshalls Creek Bypass and State Road 2001.
16 The Marshalls Creek Bypass project still
17 needs funding for Phases Two and Three, which would
18 cost over $50 million. These phases are the heart of
19 the project. With Phase One fully funded, laying the
20 groundwork of traffic signalization and road
21 realignment, the next phases will construct the
22 bypass, which, when completed, will carry an estimated
23 40,000 vehicles per day.
24 Similar to the bypass, the project to
25 modernize State Road 2001 in eastern Pike County would
100
1 cost $24 million. The project includes reconstructing
2 a 20-mile stretch of the roadway, widening and
3 straightening it.
4 These projects are not only a response to
5 heavy traffic from our rapidly increasing population
6 but also corrections for poor initial construction.
7 These projects work in conjunction with other transit
8 projects in the region. Like a puzzle, a missing
9 piece will make the transit picture incomplete.
10 In order to continue the success of the
11 projects we have already undertaken and for the
12 residents of Pike, Monroe, and the surrounding
13 counties to truly reap the rewards of these transit
14 projects, these projects must be completed and done so
15 in a timely manner. This funding is needed now to
16 ensure that our past investments are not wasted.
17 The more easily our road system can be
18 navigated and traffic congestion can be mitigated, the
19 more inviting the area is for companies to locate,
20 especially with the competition from sites in our
21 neighboring states, creating jobs and revitalizing
22 communities.
23 Concrete transit networks will contribute to
24 the region's economic growth and build upon the other
25 investments being made in our workforce and schools.
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1 The budget must address these needs as the way to
2 maintain and improve residents' quality of life and to
3 promote the economic growth that will benefit all of
4 Pennsylvania.
5 I thank you for considering my testimony, as
6 I am sure the residents of the 189th Legislative
7 District thank you as well.
8 CHAIRMAN FEESE: Thank you, Representative
9 Siptroth.
10 Are there any questions from members of the
11 committee?
12 Hearing none, again, thank you very much.
13 REPRESENTATIVE SIPTROTH: Thank you,
14 Mr. Chairman.
15 CHAIRMAN FEESE: Our next presenter will be
16 Representative Scott Boyd.
17 REPRESENTATIVE BOYD: Thank you very much. I
18 didn't bring written testimony with me this morning.
19 I just simply have some information that will be
20 provided to you shortly.
21 I'm here to talk about something that happens
22 in our Commonwealth across the entire state. And
23 that's a situation whereby the host municipalities for
24 the State System of Higher Education, of which I
25 happen to represent Millersville Borough, which has
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1 Millersville University in, run into a situation where
2 they have a large amount of their property ultimately
3 that's tax exempt because it's owned by the state.
4 And what I have proposed in the last two
5 budgets, actually, was trying to put a line item in
6 the budget that would provide for a certain amount of
7 money that would then be distributed to the host
8 municipalities in lieu of a large amount of tax-exempt
9 properties that they have in their municipalities.
10 And I've provided actually a chart for you on
11 the second page of the handout after the cover page.
12 And if you will notice as an example, municipalities
13 have anywhere on average from 30 to as high as 70
14 percent of their property is tax exempt because it's
15 owned by the state-owned system or the state related
16 to the state-owned system.
17 Combined with that, I also included the
18 municipal population and then the university
19 population. And I'll just use Millersville in my
20 district -- and actually I was a graduates of
21 Millersville also. The borough has about 8,000
22 people. It also has 8,000 -- over 8,000 students.
23 And it has roughly 35 percent, 32 percent, of its
24 property tax exempt. If you combine those two things,
25 they lose some of their tax base and at the same time
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1 they really are providing municipal services for --
2 they're really doubling their population, particularly
3 when school is in session, which anymore is getting to
4 be year-round.
5 So what we've proposed in that last couple of
6 budgets is what I feel is a modest line item. About
7 $3 million I've asked in the last two sessions. And
8 it's made it through the House side of things and went
9 over to the Senate; and when it ultimately comes back
10 to the Conference Committee, we are not able to have
11 that. As I say, it finds its way to the cutting room
12 floor. I understand the budget process and how that
13 works.
14 I thought it would be important for me to at
15 least come before the Appropriations Committee and
16 explain what we're trying to accomplish by that. I
17 also have included a copy of the House bill that I've
18 introduced, House Bill 1418. I developed a formula
19 with the help of some folks -- I think Mr. Nolan
20 helped with this -- to come up with a formula as to
21 how that money could be distributed.
22 And, in essence, what I did is I combined
23 enrollment ratios with population ratios and then also
24 the percentage of state-owned property. And the
25 formula would actually work, whether there was a
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1 $1 million appropriation or a $3 million appropriation
2 or whatever.
3 Any help that the state system host could
4 give would be helpful. The language in House Bill
5 1418, I'm not locked into it. I've talked to the
6 other members of the State System and asked them if
7 they wanted to weigh in on this. It's a bipartisan
8 effort. I would be more than happy to amend that
9 piece of legislation. But it's really not important
10 if we can't come up with the revenue to support this
11 type of effort.
12 So that's what my intention is, is to offer
13 an amendment into this year's budget again to try and
14 accomplish this goal.
15 I would be happy to entertain any questions.
16 CHAIRMAN FEESE: Thank you, Representative
17 Boyd.
18 Are there any questions from the members of
19 the committee?
20 Hearing none, thank you very much for your
21 testimony.
22 REPRESENTATIVE BOYD: I appreciate your time.
23 CHAIRMAN FEESE: Our last presenter will be
24 Representative Thomas Blackwell. We saved the best
25 for last.
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1 REPRESENTATIVE BLACKWELL: I hope that's a
2 good sign.
3 Good morning, Mr. Chairman and members of the
4 committee. Thank you for the opportunity to testify
5 before you today about a few of my priorities in the
6 2006-2007 budget.
7 Affordable and reliable mass transit is an
8 issue of critical importance across the Commonwealth
9 but particularly in the communities I represent in
10 West Philadelphia. Many people depend on our buses,
11 trains, and subway system to get to and from work.
12 Seniors rely on it to get to their doctor's
13 appointments and for trips to the supermarket or
14 shopping centers.
15 We, as a Commonwealth, have an obligation to
16 fund our mass transit systems to the best of our
17 ability. It is something that benefits all of us,
18 even those who don't ride on a regular basis, because
19 it reduces traffic congestion, keeps our environment
20 clean, and is a key component of our economy.
21 Over the past several years, we have worked
22 hard to find a dedicated funding stream to support our
23 mass transit systems from the larger systems in
24 Philadelphia and Allegheny Counties to the smaller
25 ones that service rural areas of the Commonwealth. We
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1 still have more work to do, but I think we've made
2 considerable progress on the funding aspect of mass
3 transit. But as we all know, along with funding comes
4 accountability. That's why I'm here today.
5 I would like to focus your attention on an
6 issue of utmost importance to the people I represent.
7 Over the past several years, residents and business
8 owners have been devastated by a massive
9 reconstruction of SEPTA's Market Street El line in
10 West Philadelphia. This $600 million project involves
11 the reconstruction of more than two miles of El
12 support structure between 46th Street in West
13 Philadelphia and Millbourne Station in Delaware
14 County.
15 It began in 1997 with the promise of jobs and
16 spin-off economic benefits for our small businesses,
17 but it has not lived up to that billing. Not even
18 close. In fact, it has brought many more problems for
19 residents and businesses than it has benefited.
20 The construction project has brought constant
21 noise, dust, dirt, debris, and street closures to the
22 residential neighborhoods along Market Street. In
23 short, our quality of life has been severely impacted.
24 There has also been a tremendous negative
25 economic impact. At least 25 small businesses, which
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1 have been the lifeblood of our neighborhoods for
2 generations, have closed their doors due to a sudden
3 loss of business caused by SEPTA's project.
4 Constant and unpredictable street closures as
5 well as heavy equipment clogging our streets and
6 blocking driveways and parking lots have been the
7 primary factors. These businesses provide the goods
8 and services that my constituents need to survive and
9 thrive.
10 Residents in the 6000 block of Market Street
11 were unable to access the front of their homes for
12 several weeks during the construction. Residents and
13 local officials even had to request portable restrooms
14 for construction workers because none were provided.
15 The construction workers were urinating on the
16 residents' property in full view of the homeowners.
17 Worse yet, however, has been SEPTA's response to the
18 plight of residents.
19 Despite my repeated calls for SEPTA to work
20 with residents and businesses and make them whole
21 again, nothing has happened. You may recall a few
22 weeks ago when, during floor debate on a resolution to
23 create a select committee to investigate SEPTA's
24 operational and financial procedures, I rose on the
25 Floor to express my frustration on this issue.
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1 Several of my colleagues, Representatives Ron Waters,
2 Jim Roebuck, and Louise Williams Bishop, also
3 expressed their concerns as well.
4 In order to support those businesses that
5 remain and to try to revive some that were lost, I
6 have introduced House Bill 550 to provide up to
7 $5 million to businesses that have suffered a loss of
8 revenue due to public transit projects such as
9 SEPTA's.
10 I'm here today to ask for your assistance in
11 securing the funds needed to get this business
12 disruption initiative off the ground. I firmly
13 believe that if a government agency destroys your
14 business through negligence, it has an obligation to
15 make you whole again.
16 My legislation would create a grant program
17 that would be available to businesses that suffer
18 financially from a public transportation project such
19 as SEPTA's. The burden of proof would be on the small
20 business owner to prove that their losses were due to
21 the construction project and they would also have to
22 document their losses.
23 My legislation, which I jointly introduced
24 with former State Representative Alan Butkovitz, is
25 called the Butkovitz-Blackwell Business Disruption
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1 Initiative. I ask for your support in earmarking
2 $5 million for this purpose.
3 I would like to conclude my remarks by
4 talking about an issue that does not have a direct
5 impact on our budget but affects the family and
6 personal budgets of tens of thousands of working
7 families, the minimum wage.
8 Restoring value to the minimum wage is an
9 issue with which we should all agree. The federal
10 minimum wage has remained unchanged since 1997. Since
11 then, 18 states, including four of our neighbors, New
12 York, New Jersey, Delaware, and Maryland, have taken
13 action to increase their minimum wage.
14 The majority of the people I represent have
15 low-paying jobs and no health insurance. An increase
16 in the minimum wage would give them a chance to get
17 some type of health insurance coverage. By raising
18 the minimum wage to a living wage, they wouldn't have
19 to decide between whether they're going to eat or pay
20 for their heat. This would be a tremendous help to
21 the people in my district.
22 A family of three with a full-time,
23 minimum-wage household income falls $5,000 short of
24 the federal poverty guideline and a single parent with
25 one child comes to $2,000 short of the federal poverty
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1 guidelines.
2 For people who work hard and play by the
3 rules, it is absolutely unacceptable that, in many
4 cases, these families are living well below the
5 federal poverty level. We can no longer wait to act.
6 We, as a community, have a moral obligation to make
7 sure every person who works 40 hours a week, 52 weeks
8 a year, earn enough in their paycheck to pay for basic
9 necessities like food, clothing, heat, and housing.
10 In closing, I want to thank you for your time
11 and I would be happy to answer any questions.
12 CHAIRMAN FEESE: Thank you, Representative
13 Blackwell.
14 Are there any questions or comments from the
15 members of the committee?
16 Hearing none, thank you for your testimony.
17 This concludes today's hearing. We will
18 reconvene tomorrow morning at 9 o'clock and begin with
19 testimony from the State Higher Education System.
20 Thank you very much.
21 (The hearing concluded at 11:35 a.m.)
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1 I hereby certify that the proceedings
2 and evidence are contained fully and accurately in the
3 notes taken by me on the within proceedings and that
4 this is a correct transcript of the same.
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8 ______Jean M. Davis, Reporter 9 Notary Public
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