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FOR IMMEDIATE RELEASE
May 4, 2009

Senate Weekly Session Wrap

Important Harrisburg Happenings:

Senate Approves FY 09-10 Budget Proposal

The budget proposal for Fiscal Year 2009-10 approved by the Senate highlighted the legislative actions of the Session week of May 4. Senate Bill 850, a $27.3 billion budget that reduces spending by just over 1 percent from the current year, now goes to the House of Representatives for consideration.

Senate Bill 850 reflects and responds to Pennsylvania’s tough economic climate. State revenues came in nearly $1 billion below estimate in April, showing that Pennsylvania’s economy continues to be in a downturn. Overall, Pennsylvania is facing a potential total shortfall of $2.9 billion or higher by the end of the current fiscal year on June 30.

“Senate Bill 850 looks at the long-term future of Pennsylvania’s economy,” Senator Pat Browne (R-16th District) said. “We must make difficult decisions today to weather the current economic crisis and plan for the future. We must pass a sensible, practical and fiscally responsible budget. There are challenges ahead, so now is the time to prioritize spending and make government work better for the people of Pennsylvania.”

During a milder recession in the early 1990s, Pennsylvania experienced a similar catastrophic revenue shortfall when the Commonwealth amassed a billion dollar deficit and, in response, raised taxes by $3 billion. That response devastated the Commonwealth’s economic climate and reduced its competitiveness with other states.

No tax increases are required for the budget as proposed in SB 850 and it maintains the $750 million balance in the Rainy Day Fund. In his budget proposal, Governor Rendell called for draining down the Rainy Day Fund and imposing tax increases on natural gas extraction, cigarettes and other tobacco products, and retailers who collect the sales tax.

Every spending cut recommended by Governor Rendell is included in SB 850. However, additional cuts were necessary to bring this budget into balance. The General Assembly’s operating line items are reduced by about 10 percent. In addition, $100 million of the General Assembly’s reserves would be redistributed into the General Fund

Overall, SB 850 includes approximately $24.6 billion in state funds, plus $2.7 billion in federal stimulus funds. More than $728 million of federal stimulus funds is allocated for basic education to maintain state support for Pennsylvania’s school districts at the current year’s level. An additional $720 million in federal stimulus money will go directly to Pennsylvania school districts through existing funding streams.

Other Bills Approved by the Senate During the Session Week of May 4 Include:

Senate Bill 33 restricts the ability of counties and municipalities to alter an election district between June 1, 2009 and November 30, 2012, or through resolution of all judicial appeals to the 2012 Congressional Redistricting Plan, whichever is later.

Senate Bill 59requires family day care homes to carry liability insurance and provide parents with information on compliance history and how to file complaints. The legislation also permits the Department of Public Welfare to order an immediate emergency closure of a family day care home upon evidence of gross incompetence, negligence, misconduct, mistreatment or abuse.

Senate Bill 142 authorizes the 27 licensing boards and commissions within the Department of State’s Bureau of Professional and Occupational Affairs (BPOA) to require anyone found to be in violation of a licensing act or regulation to pay the costs associated with investigating the violation. The bill also increases the maximum civil penalty that a licensing board or commission can impose from $1,000 to $10,000.

Senate Bill 446, co-sponsored by Senator Browne, eliminates the requirement that local registrars transmit death certificates to county boards of elections. The legislation requires the Department of Health to report death information electronically to the Department of State to be entered into the "SURE" system or a similar successor system, to be used by the county boards of election to remove deceased individuals from their voter registration rolls.

Senate Bill 731, co-sponsored by Senator Browne, designates a section of Bushkill Drive in Northampton County, from the intersection with Uhler Road to the intersection with 13th St. in Easton, as the Victor W. Anckaitis Memorial Highway.

Senate Committee Report:

Appropriations Committee Approves Stimulus Oversight Bill

The Senate Appropriations Committee approved legislation on Tuesday, May 5, 2009 that would provide transparency and oversight of all federal stimulus dollars spent in Pennsylvania as well as a bill that would authorize specialized "problem-solving courts" in Pennsylvania. The bills approved by the Committee include:

Senate Bill 6, co-sponsored by Senator Browne, would create a bipartisan nine-member commission to provide oversight and accountability for all funds distributed to Pennsylvania through the federal stimulus funding. In addition to monitoring all grant programs and state contracts issued as part of the stimulus package, the commission will be asked to make recommendations to enhance the Commonwealth’s ability to create jobs and identify ways to prevent waste and fraud. The commission’s reports and transcripts will also be available online in a database accessible to the public, as well as searchable information on how stimulus dollars are being spent. The website will offer greater transparency of stimulus spending.

Senate Bill 81 provides for the sale of wine at kiosks operated by the Pennsylvania Liquor Control Board (PLCB), authorizes the PLCB to sponsor “spirits” events for education purposes, permits the PLCB to establish customer relations marketing programs and clarifies that a member of a governing board of a public authority may have an interest in a beer distributor.

Senate Bill 383 encourages the use of mental health courts and drug courts to divert non-violent offenders from more costly jail cells and encourage rehabilitation through extensive supervision.

Banking and Insurance Committee Approves “Mini-COBRA” Bill

The Senate Banking and Insurance Committee approved two bills that include provisions of the HealthNET PA legislative package.

House Bill 1089creates a Mini-COBRA Small Employer Group Health Plan in Pennsylvania for businesses with 2 to 19 employees. The federal stimulus act provides a 65 percent federal subsidy for COBRA premiums. The subsidy is good for up to nine months for those covered by COBRA, which pertains to businesses with 20 or more employees, as well as those in state programs such as the Pennsylvania Mini-COBRA program established by HB 1089.

House Bill 84 allows health insurers to withhold payment to providers in the event of a preventable serious adverse event.  Specifically, a “preventable serious adverse event” is defined as a condition or negative consequence of care that results in unintended injury or illness that could have been anticipated and prepared for, but occurs because of an error or other system failure, and results in a patient’s death, loss of a body part, disability or loss of bodily function lasting more than seven days.

Environmental Resources Committee Approves Six Bills

The Senate Environmental Resources and Energy Committee approved six bills including legislation to extend the deadline for submitting a Pennsylvania Climate Change Action Plan and tighten Marcellus Shale gas well reporting requirements. The committee approved the following bills:

Senate Bill 297, co-sponsored by Senator Browne, requires Marcellus Shale gas well operators to submit a semi-annual report in addition to the existing annual report, and requires the Department of Environmental Protection to post well production information online.  The legislation is intended to encourage additional interest and investment in the Marcellus Shale play in Pennsylvania.

Senate Bill 617, co-sponsored by Senator Browne, establishes the Heritage Areas Program to identify, protect, enhance and promote the historic, recreational and scenic resources of Pennsylvania.

Senate Bill 783 amends the Hazardous Sites Cleanup Funding Act to change the date that the annual report on the Hazardous Sites Cleanup Fund is due from August 31 to December 31.  The bill was amended to also require any fines imposed under the Hazardous Sites Cleanup Act (HSCA) to be deposited into the HSCA Fund.

Senate Bill 829 extends the timeframe for submittal of the PA Climate Change Action Plan and restores a 60-day public comment period.

House Bill 262 encourages the continued use of prescribed burning for fuel reduction and ecological, forest, wildlife and grassland management purposes.

House Bill 263 requires zoning ordinances to protect the Appalachian Trail.  

Committee Approves Bill to Encourage Regional Fire Company Partnerships

The Senate Veterans Affairs and Emergency Preparedness Committee approved Senate Bill 303, a measure co-sponsored by Senator Browne, to encourage regionalization and partnership efforts among volunteer fire departments. The Committee also approved Senate Bill 196, a measure co-sponsored by Senator Browne, which will extend educational leave of absence to the spouse of a service member on active duty.

Contact:

Matt Moyer
(610) 366-2327