Eye Opener – June 24, 2009

BUDGET UPDATE: AFTER PIT PROPOSAL, CAPITOL WAITS FOR RANK-AND-FILE RESPONSE

After several whirlwind days of budget developments, what exactly is the status of the negotiations? Let PLS sort through the clutter. Governor Ed Rendell has unveiled his long-expected broad-based tax increase proposal to help the state bridge its $3.2 revenue shortfall. The governor wants a temporary, three-year, 16 percent increase to the personal income tax (from 3.07 percent to 3.57 percent). He proposes spending $28.9 billion next fiscal year. The governor has argued the revenue increase is necessary for the state to maintain vital functions, particularly with education. House Democratic leadership – Appropriations Chairman Dwight Evans (D-Philadelphia), Majority Leader Todd Eachus (D-Luzerne), and Speaker of the House Keith McCall – backs the temporary tax hike. But support among rank-and-file House Democrats is clearly lacking. Rep. Evans said he is “working at” gaining the necessary 102 votes; Rep. Joe Markosek (D-Allegheny) told PLS Monday that right now, he’s “significantly short.” The Senate Republican budget stance is nearly unchanged since the legislative body approved a $27.3 billion spending plan in May. Republicans were highly critical of the governor’s original budget proposal then, and the since-included tax hike has only deepened their dismay. “There is no support for an income tax increase in our caucus,” said Erik Arneson, spokesman for Senate Majority Leader Dominic Pileggi (R-Delaware). Rep. McCall said Monday he prefers additional table games than the governor’s proposal to legalize video poker, and Senate President Pro Temp Joe Scarnati (R-Jefferson) has also indicated he might be supportive of it. A House committee Tuesday approved a severance tax on Marcellus Shale, but support in the Senate remains very soft. Senator Pileggi has said he doesn’t see the point of even considering many smaller revenue increases until the state is closer to solving its revenue gap. Go to www.mypls.com and click “News and Views” to read the entire Budget Update.

METCALFE, HOUSE GOP CALL FOR TAXPAYERS TO COMBAT PROPOSED TAX INCREASES

Rep. Daryl Metcalfe (R-Butler) and a group of fellow House Republicans on Monday asked everyday citizens to personally advocate against a tax increase backed by Governor Ed Rendell and House Democratic leadership. The press conference was the “second phase” of Rep. Metcalfe’s “taxpayer protest” plan, he said, a movement designed to counterbalance money-seeking interest groups that lawmakers continually face during budget negotiations.  The Butler County lawmaker accused House Democrats and Governor Rendell of blocking debate about the budget, despite the June 30 deadline looming in just eight days. “We are calling on Democratic Caucus leadership to allow us to debate the budget on the full floor of the House,” he said. “Bring up the Senate bill they shot down in committee, or bring up the governor’s budget.” Democratic budget proposals don’t add up in the face of a severe revenue shortfall, Rep. Metcalfe said. Instead of cutting state spending in the face of declining funds, Democrats are trying to increase the tax burden on families already struggling during a difficult economy, he added. Rep. Stan Saylor (R-York) said tax increases would burden taxpayers. “The people who are getting hurt are the taxpayers of Pennsylvania,” Rep. Saylor said. He criticized House Appropriations Chairman Dwight Evans (D-Philadelphia) for not introducing a budget bill to the full House floor and said he and Governor Rendell haven’t even revealed how they plan to spend money gained from a tax increase. Rep. Metcalfe finished the press event by saying Rep. Evans should cut the strings of his puppet master, Governor Rendell, and bring the budget up for debate in the House. Check the PLS Capitol Toolbox to read the full story.

COMMUNITY GROUPS RALLY TO RESTORE MAIN AND ELM STREETS PROGRAM FUNDING

Bill Fontana, the Executive Director for the Pennsylvania Downtown Center said the rally held yesterday in the Capitol Rotunda was to encourage legislators and the administration to support the New Communities Program which is designed to revitalize communities suffering from blight. Representative Bob Freeman (D-Northampton) gave thanks to all those involved in setting up today’s rally and thanked all those who have worked hard to revitalize older communities across Pennsylvania. Rep. Freeman suggested that one can’t help but see the extent to which Main and Elm Street programs have breathed renewed life into communities that the state has abandoned. These communities have a lot to offer in their wonderful architecture and history, as well as promising opportunities for first time entrepreneurs and homeowners, remarked Rep. Freeman.  Cynthia Philo, the Board Chair of the Pennsylvania Downtown Center said that the Main and Elm Street programs have produced clean, safe, economically developed communities within Philadelphia. The Pennsylvania Downtown Center, Philo stated, provides community outreach, technical assistance, as well as education and housing services. The Main and Elm Street programs, Philo said, have created 11,000 new jobs throughout the Commonwealth, have filled 800 vacancies in the city of Philadelphia, and last but not least have produced $400 million in community investment. Check the PLS Capitol Toolbox to read the full story.

REPORT SHOWS CASINO INTERESTS MADE LARGE POLITICAL DONATIONS

According to an article in the Pittsburgh Post Gazette, a citizens watchdog group said high-powered gaming interests gave $4.4 million to state politicians from 2001-08. Lawyers and lobbyists for the 14 casinos authorized by a 2004 state law contributed an additional $12.3 million, according to a report by Common Cause/Pennsylvania released yesterday. The top casino industry contributor was Philadelphia equity fund manager Ira Lubert, an investor in Pittsburgh’s Rivers Casino, who gave a total of $456,000. No. 16 on donors list was Chicago businessman Neil Bluhm, a major investor in the Pittsburgh casino, at $49,000. The total of $16.7 million in contributions listed by Common Cause was made from 2001 to mid-2005, when the ban on in-state contributions was upheld. That total also includes seven years of donations from out-of-state casino industry officials, said Common Cause official James Browning. In April, the ban on political contributions by in-state casino officials was struck down by the state Supreme Court. It had been challenged by Philadelphia developer Peter DePaul, who at $426,000 is No. 2 on Common Cause’s list of gambling industry donors. The top receiver of 2001-08 gaming industry donations is Gov. Ed Rendell, a strong casino backer, at more than $1 million. Convicted ex-state Sen. Vincent Fumo,( D-Philadelphia), is No. 2 at $400,000. Ex-Rep. Mike Veon,(D-Beaver), is 13th at $42,600. Attorney General Tom Corbett is eighth at $85,000. Click here to read the Pittsburgh Post Gazette article.

 

Upcoming Meetings

House Education
9:00 a.m., Room G-50, Irvis Office Building
To consider: HB 1615 Longietti Amends Public School Code re ed. tax credit HB 1148 Murt Amends Public School Code re food allergy HB 1659 Houghton Amends Public School Code re higher education

House Gaming Oversight
9:00 a.m., Room 140 Main Capitol
Informational meeting on: Table Games Impact Technical Memo, to be discussed by the Innovation Group.

House Transportation
9:00 a.m., Room 60, East Wing
Public hearing to receive testimony relative to speed enforcement technology

House Insurance
9:30 a.m., Room 205, Ryan Office Building
Public hearing on: HB 247 Mundy Amends Health Care Facilities Act

House Labor Relations
9:30 a.m., Room 8E-B, East Wing
Briefing with the L&I on Act 102 of 2008, Prohibition of MOT for direct health care employees

Senate Education
10:00 a.m., Hearing Room 1, North Office Building
Public hearing on the Governor’s nominee, Joseph A. Dworetzsky, to the Philadelphia School Reform Commission.

House Rules
10:45 a.m., Room 140 Main Capitol
Agenda to be announced

Senate Transportation
11:00 a.m., Room 8E-A East Wing
To consider the nominations of Timothy J. Carson, J. William Lincoln and A. Michael Pratt to the Turnpike Cmsn

Senate Appropriations
12:45 p.m., Room 461 Main Capitol
To consider: SB 936 Browne Amends Title 7 re mortgage loan industry

House Appropriations
Off the Floor, Room 140 Main Capitol
Agenda to be announced

House State Government
Off the Floor, Room 60, East Wing
To consider: SB 33 Pileggi Amends PA Election Code re election districts Amendment A02130

House Health and Human Services
Off the Floor, Room 205, Ryan Office Building
To consider: HR 294 Cutler Resolution re Amyotrophic Lateral Sclerosis HB 1572 Gerber Amends Title 24 re school foods reform HB 1641 Gingrich Act re circulating nurses in operating rooms HB 1679 Gerber Act re liability for false claims

Senate Rules and Executive Nominations
Off the Floor, Rules Committee Conference Room
To consider certain executive nominations, and to consider: SB 731 Wonderling Act re Victor W. Anckaitis Memorial Highway SR 140 Pippy Resolution re Taiwan as economic partner

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