Weekly Wrap
The House of Representatives and Senate Appropriations Committees began budget hearings this week to examine Governor Wolf’s proposed 2017-2018 Fiscal Year budget. Monday was a state Holiday, but on Tuesday, both committees heard testimony from the Independent Fiscal Office. The Director, Matthew Knittel, stated that Pennsylvania has a $2.5 to $3 billion shortfall with a revenue projection of 0.3 percent. Beyond revenue projections, hot button issues raised by multiple legislators included raising the minimum wage and the Governor’s proposed severance tax. The Senate also held a hearing with the newly-elected Treasurer, Joe Torsella. The Treasurer discussed ways his office hopes to provide savings to the Commonwealth, including a lease-leaseback arrangement for the Farm Show Complex, debt refinancing and merging the functions of the state retirement systems (SERS and PSERS).
On the House side, members also held a hearing with the Department of Revenue. Secretary Eileen McNulty fielded questions about the potential of iGaming and its effects on the Pennsylvania Lottery. Taxes and tax credits were also up for discussion, in particular, the tobacco products tax and digital downloads tax imposed last fiscal year, as well as the Governor’s proposed severance tax and tax credit block grant program for the upcoming fiscal year. The Department of State (DOS) wrapped up the first day of budget hearings with a discussion on the ins and outs of the election process and how the process may improve going forward. Other topics up for discussion with DOS included online registration of voters, oversight of charities and professional licensure.
Wednesday started with a break from budget hearings as the House Veterans Affairs and Emergency Preparedness Committee held an informational meeting on the PA Military Community Enhancement Commission and fire/EMS training via community colleges. Then it was back to the grind, with each chamber holding three budget hearings throughout the day.
In the House, the committee heard from the state’s two major pension systems, the State Employee Retirement System (SERS) and the Public School Employee Retirement System (PSERS). As talks of pension reform have heated up in the last year or so, this hearing was packed as members discussed the numerous pension proposals circulating and the challenges both systems face ahead. Next up was the Department of Labor and Industry, where mostly all the hearing focused on the state unemployment and workers compensation systems. The Department of Transportation wrapped up the day in the House. Secretary Leslie Richards highlighted the department’s funding for projects and new initiatives, including automated vehicles.
Moving over to the Senate, Secretary Pedro Cortes of the Department of State provided an election update and threw in some procedural discussion on licensure and business reporting. Auditor General Eugene DePasqaule touched on a wide range of topics during his budget hearing. The Charter School Law was at the top of the list, since the Auditor General previously called it the “worst in the nation.” Lastly, Attorney General Josh Shapiro discussed the budget for his office. The hearing sounded similar to Shaprio’s campaign stump speeches, with a high priority on the opioid epidemic, protecting children from abuse and making sure guns don’t get in the wrong hands.
On Thursday, the Treasury Department had their budget hearing in the House. The State Treasurer went through the different savings programs citizens of the Commonwealth have at their disposal and also highlighted new investment measures in the Department. The Auditor General was up next in the House where, like in the Senate, he was asked about charter schools and unemployment compensation. Frank Brogan, Chancellor of the Pennsylvania State System of Higher Education (PASSHE), followed the Auditor General. The Chancellor placed emphasis on the declining enrollment in PASSHE schools and how tuition costs and other factors play a role. Rounding out the week in the House was the Attorney General, who answered questions pertaining to consumer protection, discrimination and medical marijuana.
The Senate heard testimony from PASSHE as well on Thursday. Senators were interested in a study commissioned by the Chancellor to examine why PASSHE’s 14 schools have enrollment declines. Following PASSHE was Pennsylvania State Police (PSP) Commissioner Colonel Tyree Blocker. Col. Blocker reviewed PSP’s complement and its upcoming trooper classes. He also discussed PSP’s radio system and the Governor’s proposed $25 per-resident fee for to any municipality without local police coverage.
Look Ahead
Budget hearings continue next week.
Expect hearings beyond budget issues as well. On Monday, the House State Government Committee will hold an informational meeting to receive a presentation from the Office of Administration. Also on Monday, the Joint Legislative Budget and Finance Committee will meet to release reports on the Commonwealth’s Access to Justice Act and the Pennsylvania Department of Corrections Overtime Study.
Wednesday, the House Commerce Committee will be in Philadelphia for a public hearing on contractor and subcontractor payments. Meanwhile in Harrisburg, the House State Government Committee will hold another informational meeting, this time for a Department of State presentation. Finally, the House Labor and Industry Committee will hold a public hearing to focus on furloughs and service delays in the Unemployment Compensation system.
See below for links to the complete budget hearing schedule:
In Other News
- Governor Wolf wrote an op-ed about this year’s budget.
- The new Senate Education Committee Chairman is already making news this session.
- Pennsylvania Turnpike Commission Chairman Sean Logan resigned and is joining the Pennsylvania Gaming Control Board.