June 2009
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House Health & Human Services – 10:00 a.m.

The House Health Committee this morning held a public hearing on the Department of Public Welfare’s proposed MCO assessment. DPW and the Insurance Department defended the proposed 2% assessment, whereas Capitol Blue Cross, the Insurance Federation, and the PA Chamber advocated a use tax on Medicaid managed care plans, as has been adopted by Michigan.

Look for the complete story in the Capitol Toolbox this afternoon.


Governor Says "The numbers will drive the budget."

At a Capitol Hill news conference, Governor Rendell disputed the idea that his new budget plan is going to “make it difficult to get a budget on time.” He said, “If we work on it, apply ourselves, and look at the numbers closely, there is no reason we can’t have a budget by June 30.” According to Governor Rendell, “The numbers will drive the budget.” Check the Capitol Toolbox later for the full story.

Public Employee Retirement Commission – 10:00 a.m.

The Public Employee Retirement Commission met today to discuss actuarial notes for HB 1039, HB 1132, and SB 466. The Commission adopted the recommendation of each actuarial note to attach the actuarial note to the bill and request the General Assembly and Governor to consider the policy issues noted in the actuarial note. Check the Capitol Toolbox later for the full story.

House Republican Policy – 9:00 a.m.

The committee held a public hearing spending transparency. Kansas State Representative Kasha Kelly, and Ed Martin, Former Chief of Staff, Missouri Governor Matt Blunt discussed how their states were able to implement a database that allows citizens to track information on revenue and expenditure information. The committee also heard from testimony from Terry Mutchler, Executive Director, PA Office of Open Records, the Commonwealth Foundation and the Americans for Tax Reform. Rep. Jim Christiana (R-Beaver), prime sponsor of HB 1460, said that the bill has 91 cosponsors and took issue with Senate Democratic claims that  the database would cost millions of dollars. Check the PLS Capitol Toolbox later today for the full story.

Eye Opener – June 18, 2009

RENDELL: “WE SIMPLY CANNOT CUT ENOUGH TO BALANCE THE BUDGET.”

In a statement released yesterday afternoon, Governor Rendell acknowledged he believes a broad-based tax increase is necessary, in conjunction with additional cuts, to make up the state’s budget deficit. He outlined his plan as follows:

“First, unfortunately we must suspend the business tax cuts that were planned for this year known as the phase out of the Capital Stock and Franchise Tax.  Since taking office, I have cut business taxes by $1.7 billion.  But business must shoulder some of the burden.  I am not – I repeat – I am not raising taxes on businesses.  I am proposing that — in this recession — we delay further business tax cuts. Next, I am proposing to raise our state income tax, the nation’s second lowest, from its current rate of 3.07 percent to 3.57 percent. Even with this increase, Pennsylvania will have the third lowest personal income tax rate in the nation. And I propose that when we enact these tax changes, we write the laws to guarantee that the phase-out of the business taxes begins again in 2012 and that we roll

Continue reading Eye Opener – June 18, 2009