Eye Opener – July 2, 2009

JUNE REVENUE COMES UP $415.3 MILLION SHORT

Secretary of Revenue Stephen H. Stetlerreported yesterday that the state collected $2.3 billion in General Fundrevenue in June, $415.3 million, or 15.5 percent, less than anticipated.  Fiscal year 2008-09 General Fund collections totaled $25.5 billion, which is $3.25 billion, or 11.3 percent, below estimate. 

• Sales tax receipts totaled $675.6 million for June, which was $67.6 million below estimate. Sales tax collections for the fiscal year totaled $8.1 billion, which is $595.3 million, or 6.8 percent, less than anticipated.
•  Personal income tax (PIT) revenue in June was $818.4 million, which was $207.1 million below estimate. This brought fiscal year PIT collections to $10.2 billion, which is $1.3 billion, or 11.2 percent, below estimate.
• June corporation tax revenue of $411.6 million was $82.2 million below estimate. Fiscal year corporation tax collections totaled $4.8 billion, which is $613.9 million, or 11.3 percent, below estimate.

Check the Press Release section of the PLS Capitol Toolbox to get the complete listing of June collections.

CASEY STAYING OUT OF BUDGET BATTLE

U.S. Senator Bob Casey told reporters Wednesday that he’s staying out of the budget debate raging in Harrisburg, where Democrats and Republicans are debating how best to bridge the state’s $3.2 billion revenue shortfall. Governor Ed Rendell and House Democratic leadership are trying to persuade rank-and-file Democrats to support a temporary half percentage point increase to the personal income tax. Most House Democrats have said they haven’t decided whether they will support the proposal, which carries political risk. Asked whether he’s been asked to personally lobby some of the fence-sitters, Senator Casey said that’s not his role. “I think the kind of decision each legislator is going to have to decide on their own,” he said while on a conference call with reporters. “It’s purely a state government determination about what they will do.” He added later, “I don’t think they need me to weigh in on every aspect of the state budget.”

FRESHMAN REPUBLICANS MAD ABOUT BUDGET PROCESS

According to an article in the Pittsburgh Tribune Review, Freshmen House Republicans, angry over the refusal by Democratic leaders to bring a budget bill to the floor, are blasting the closed-door negotiating sessions between Gov. Ed Rendell and legislative leaders. “This is how we’re getting a budget? Ten guys in a backroom at the governor’s mansion?” Rep. Jim Christiana (R-Beaver County) said Wednesday. “This is the same old backroom politics that’s gone on for many years.”Rendell and Democratic and Republican leaders from the House and Senate on Monday and Tuesday evenings dined on steak and Chinese food at the governor’s mansion to review the budget line by line. The two-night tab: $480. “As a freshman, I gotta tell you, it’s maddening,” Rep. Mike Reese (R-Westmoreland) said about the private meetings and lack of House action. He and other freshmen want an opportunity to vote on a budget.Reese and newcomers like Rep. Tim Krieger (R-Westmorland) and Rep. Matt Gabler (R –Elk) say it’s absurd that the state ignored a June 30 budget deadline for the seventh year in a row — and noted that House members never even discussed a budget on the floor. “What the inexperienced freshmen Republicans want is what is known as a fake budget,” said Johnna Pro, spokeswoman for Appropriations Chairman Dwight Evans (D-Philadelphia). “It is not productive. It’s silly. It is theater, and it is simply politics. This is not a game. When there is a budget available, they will have ample opportunity to review it, debate it and vote on it.” Click here to read the Pittsburgh Tribune Review article.

DPW THE FOCUS OF TUESDAY’S NEGOTIATIONS; TALKS TO RESUME MONDAY

Budget negotiations will resume Monday after lawmakers and the governor finished a two-day, line-by-line review of the state’s expenditures Tuesday night, a process each side called productive but far from enough to bridge significant gaps between Republicans’ and Democrats’ spending plans. Tuesday’s talks, held at the Governor’s Residence, focused mostly on the Department of Public Welfare, lawmakers said, and concluded about 10 p.m. They were a continuation of negotiations on Monday night.  “There’s a lot more work to do,” House Appropriations Chairman Dwight Evans (D-Philadelphia) told reporters after the meeting.  June 30 is the budget deadline, although state employees won’t begin working without pay until July 17.  Asked if he agreed with Governor Ed Rendell’s assertion earlier Tuesday that lawmakers could reach a resolution in two weeks, Rep. Evans said, “We’ll find out.” The sticking points remain unchanged after the recent round of meetings, he said. Republicans and Democrats still strongly disagree about how much to spend on education, welfare, and economic investment, among other areas. Go to www.mypls.com and click “News and Views” to read the full story.

LESS SCHOOL PROPERTY TAX RELIEF THIS YEAR

According to an article in the Morning Call, Homeowners who applied for a slice of the state’s gambling revenue to lower their property tax will see some relief when their bill arrives — but not as much as last year. Though gambling revenue in Pennsylvania was slightly higher this year, from $612.9 million last year to $613.2 million this year, a spike in applications for the state’s tax rebate program caused most school districts to get slightly less. For most area taxpayers, the rebates will be just a few dollars less than last year — the amount ranging from $2 to $15. ”A district might have seen more people sign up since last year, which means the amount available in a district is divided among a larger number of homeowners,” said Michael Race, spokesman for the state Department of Education. The amount of money homeowners get is based on a formula that gives the most relief to districts that have high tax rates or low income, Race said. Click here to read the Morning Call article.

Upcoming Meetings

House Local Government
9:15 a.m., Room G-50, Irvis Office Building
Informational meeting on: HB 1682 Sturla Act re county sales, use & occupancy taxes

Senate State Government
9:45 a.m., Rules Committee Conference Room
To consider: SB 106 Ward Joint Resolution re limitation on session SB 107 Pileggi Act re gov’t salary information on Internet SB 491 White, M Act re land conveyances in Oil City SB 492 White, M Act re 2nd Ward of the City of Corry HB 109 Manderino Act re Project 70 lands in Lower Merion Twp HB 348 Staback Act re land conveyance in Twp of Canaan

House Rules
10:45 a.m., Room 140 Main Capitol
To consider: HB 250 Hornaman Act re municipal volunteer fire service HB 1102 Kula Amends Tobacco Settlement Act re elig. adult HB 1415 Boyle Amends Insurance Co. Law re nonadmitted ins. HB 1656 Daley Amends Dept. of Banking Code re protection HB 1676 Eachus Amends State Lottery Law re def. & rebate HB 1754 Grucela Amends PA Municipalities Planning Code HB 1770 Gergely Amends Unemployment Compensation Law HR 151 Thomas Resolution re PA World Championship Days HB 270 Costa, P Amends Title 23 re solemnizing marriages

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

PLS Seminars

PLS regularly offers free training seminars on various topics. Click here for more information or on the training session to sign up via email.

06/30/09: Agencies and Associations
07/01/09: Bill Tracking
07/10/09: C-Clips and Press Pass
07/20/09: Research and Reports
07/29/09: Agencies and Associations
08/12/09: Bill Tracking
08/14/09: Research and Reports
08/24/09: Agencies and Associations
08/03/09: C-Clips and Press Pass

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