KRISTIN PHILLIPS HILL DISTRICT OFFICE: MEMBER 6872 SUSQUEHANNA TRAIL SOUTH 93.d LEGISLATIVE DISTRICT P.O. BOX 277 JACOBUS, PA 17407-0277 PHONE: (711) 428-9889 HARRISBURG OFFICE: P.O. BOX 202093 EMAIL: [email protected] HARRISBURG, PA 17 I2O-2093 www.RepKristin.com PHONE: (717) 783-8389 pnuxe nf. ptyrextntatrftBx Commonwealth of Pennsylvania Harrisburg October 3,2017

The Honorable Tom Wolf Offrce of the Governor 508 Main Capitol Building Harrisburg,PA 17120

Dear Governor Wolf,

We respectfully request that you immediately expedite the issuance of tax credit approval letters by the Department of Community and Economic Development (Department) under the Educational Improvement Tax Credit (EITC) and Opportunity Scholarship Tax Credit (OSTC) programs.

Beginning in mid-August2017, House members began to hear from their constituents that the Department did not appear to be issuing timely tax credit approvals under the EITC and OSTC programs. When House staff inquired of the Department as to whether the approvals had, in fact, been delayed, House staff were initially told that approvals would be issued near Labor Day per an email dated August 15,2017. Letters still were not issued in mid-September. On September l9th, House staff were told during a phone conversation that approval letters were being processed but that there continued to be a delay in the sending of approvals which was caused only by a staffing shortage at the Department. During that conversation, the Department expected the letters would be released within l0 to 14 days. Much to our surprise, during a phone conversation with DCED on September 28th, we were told the approvals were not being sent because the Governor did not believe it was prudent to do so without a revenue package.

You will recall in20I6 the General Assembly reformed the EITC and OSTC programs to eliminate any perceived discretion on the part of the Department with respect to the timing of the issuance of tax credit approvals. Section 2005-8 of the Public School Code of 1949 provides the Department with clear direction, as follows:

"(g.l) Approval of tax credits.--Unless otherwise requested by the business firm and agreed to by both the business firm and the department, and unless all authorized credits have already been awarded: (l) For fiscal year 2016-2017, and each fiscal year thereafter, the department shall give written notice of its approval to each business Jirm that submitted a completed application under subsection (9 by August 15, or 30 daysfollowing receipt of the completed application, whichever is later. (2) For fiscal year 2016-2017, and each fiscal year thercafter, the department shall give written notice of its approval to euch business Jirm that submitted a completed application under subsection (fl(2) within 30 daysfollowing receipt of the completed application."

24 P.S. $ 2005-B(g.l) (emphasis added). As this provision indicates, the Deparhnent is required to issue all tax credit approvals no later than 30 days following the Department's receipt of the tax credit application. The Departrnent has no authority to withhold or delay tax credit approvals for any reason, regardless of whether that reason is a staff shortage or the absence of a fully completed budget agreement. The Departrnent's delay in issuing the letters of approval is clearly a violation of law.

The legislation passed by the General Assembly and signed into law on July 13,2016, thereby enacted as Act 86 of 2016, is being ignored. The delay in issuing approval letters is harming children, families and businesses. We request you now take immediate action to expedite the issuance of the approval letters for the ETIC and OSTC programs.

Respectfully

ps-Hill J Member, 93'd District Member, 163'd District l,h,,,J\L Mike Turzai Member, 94th DistrictM Member, 28th District b l Dave Reed Member, l00th District Member, 62nd District {* *;tu Frank Fany Mark Gillen Member , l42nd Member, l28th District

Keny ber,26th District Member, 171st District

Q,--- Member, 11lth District Member, l78th District

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John McGinnis Jim Cox Member, 79th District Member, 129th District

Bud Cook David Maloney Member,4gth District Member, 130ft District

Eric Roe Kaufer Member, 158th District Member, 120th District Marcy Tedd Nesbit Member, 147th District Member, 8th District

I3444-42{aL Brett Miller Member,4l't District Member, 6ft District bl *1,--

Ward Seth Member, 80th District Member, 196th District

Cris Dush Steve Bloom Member, 66th District Member, l99th District l&d&**,&* 93o* l,W Thomas Quigley Member,43'd District Member, l46th Di

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Emrick Pyle Member, 137th District Member, 60th District

Garth Everett Member, 84th District Member, l02nd District plr,ril& eJrJ

Ryan Mackenzie Member, l34th District Member, 124tr District #M trffi*"* Michael Con Will Tallman Member, l50th District Member, 193'd District #*,r-r.ry$-** , Member,ez& 9l't District Member, 92nd District Matt Gabler Member, 75th District Member,46ft District

Kathy Rapp Member, 65th District Member, 67tr District

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Ron Marsico Member, l05th District Member, 90th District t/.."e Wede Duane Milne Member, l67th District Member, 170tr District &e*- X'{;f* Rob Kauffrnan Member, 89ft District Member, l0l't District t^r, { f"-" * Ryan Wamer Member, 52nd District Member, 87th District

f 7 a*'124. *{a ",t4 Dave Hickernell Member, 98tr District Member,6ltt cA/&-,-e Aaron Bemstine Charlton Member, 10ft District Member, l65th District il l,il^Jj Nick Miccarelli Scott Petri Member, l62nd District Member, 178fr District Dril'\\

Becky Corbin lm Member, 155th District ber, 5tr Distict 7/lzr, 1l+ Watson Member, l44th District Member, 37th District zry Tom Sankey Member, 169th District Member, 73'd District

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Tina Pickett Member, 110th District Member, 97th District

$w #; Sheryl Delozier Daryl Member, 88th District Member, l2th District V^,^^ $^wY^f, Tom Murt Nelson Member, l52nd District Member,5 7th

Mike Reese Saccone Member, 59th District Member, 39ft District

Dowling R. Member, 5l't District Member,64fr District .fl;l eli^ ftp#..*c&; Rich Irvin Marguerite Quinn Member, 8l't District Member, 143'd District @ l*Uu Chris Quinn Fred Keller Member, l68th District Member, 85tr District

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Doyle Member, l22nd District Member, 63'd District

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