PA PUBLIC SCHOOLS SITTING ON $2.75 BILLION IN RAINY DAY FUNDS

According to an article in the Patriot News, Governor Ed Rendell has made increasing investments in public schools his top priority.  But much of that money has wound up in public schools’ rainy day funds.  Since Rendell came to Harrisburg, public schools have amassed $2.75 billion in reserve accounts. That figure has climbed 83 percent from Rendell’s 2003 inauguration to June 30, 2009, according to the most recent data available from the state Department of Education. Click here to read the Patriot News article.

REPORT RANKS PA HIGHWAYS 38TH IN NATION

According to an WITF article, as policy makers in Harrisburg discuss transportation funding a new study from a libertarian think-tank ranks Pennsylvania’s roads near the bottom. The Reason Foundation’s 19th Annual Highway Report, which looks at 11 categories, puts the commonwealth’s roadways at 38th overall. Lead author David Hartgen says they get the lowest marks in the nation when it comes to “narrow rural lanes.” “The state has a relatively high percentage of narrow lanes on the primary system,” he says. “It’s a large system that Pennsylvania has — it’s the fourth-largest state-owned highway system in the country. Many of these roads have narrow sight distances and the topography is challenging, to say the least.” Click here to read the WITF article.

LAWRENCE COUNTY RACETRACK GIVEN MORE TIME

According to an article in the Pittsburgh Tribune Review, the state Harness Racing Commission gave the bankrupt developer of a proposed Lawrence County racetrack and casino one month to find someone to buy the project. If no one bids on the long-stalled Valley View Downs project, the commission said Friday it will revoke the harness-racing license, potentially killing a project Lawrence County was counting on to bring thousands of jobs. The license would become fair game for anyone who wants to build a racetrack and casino anywhere in the state. “If there’s no bidder, that pretty well puts an end to a possibility, at least in the short term, of a track in Lawrence County,” county Commissioner Dan Vogler said. Click here to read the Pittsburgh Tribune Review article.

Upcoming Meetings

House Judiciary
1:00 p.m., Room G-50, Irvis Office Building
Public hearing on: HB 2629 Costa, D Act re Pennsylvania Blue Alert System

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GOVERNOR ANNOUNCES ENERGY PROJECT GRANT WINNERS, URGES AEPS SOLAR POWER INCREASE

Governor Rendell reported yesterday that $20.5 million in state and federal funding will be directed to 40 renewable energy projects across Pennsylvania, creating 1,400 jobs and generating or saving the equivalent of 10 billion kilowatt hours over their lifetimes. The governor said the state investments will leverage more than $211 million in private investments. The projects are funded through three sources – Growing Greener II, the American Recovery and Reinvestment Act (ARRA), and Duquesne Light Co. settlement funds, which accounted for $2.5 million for eight projects in the Pittsburgh area. Governor Rendell added the return on investments for the state on such projects will include increased tax revenues over time as a result of jobs created, in addition to the ripple effect through the supply chain. Check out the Press Conferences section of the PLS Capitol Toolbox to read the full story.

ONORATO LAYS OUT MARCELLUS SHALE SEVERANCE TAX POLICY

Democratic gubernatorial hopeful Dan Onorato held a press conference in the east wing of the capitol building yesterday to discuss his Marcellus Shale severance tax policy. Onorato said the issue of Marcellus Shale is “very big in this race and is probably bigger today than it was nine months ago as people begin to focus on the Marcellus Shale and natural gas.” He also noted it is another issue where he and his Republican opponent, Pennsylvania Attorney General Tom Corbett, differ. He called the opportunity to drill for Marcellus Shale a “once in a life time opportunity for Pennsylvania” and said “we only get one chance to make this right and that is the challenge with Marcellus Shale.” He explained the industry has the potential to be a “golden opportunity” for the commonwealth, but said it can also be a major cost if not handled right. Check out the Press Conferences section of the PLS Capitol Toolbox to read the full story.

AUGUST REVENUE $7.1 MILLION MORE THAN ANTICIPATED

Secretary of Revenue C. Daniel Hassell reported yesterday that Pennsylvania collected $1.8 billion in General Fund revenue in August, which was $7.1 million, or 0.4 percent, more than anticipated,. Fiscal year-to-date General Fund collections total $3.5 billion, which is $6 million, or 0.2 percent, above estimate. Check out the Press Releases section of the PLS Capitol Toolbox for a listing of all the collection figures.

DEP, STATE POLICE INCREASE WASTE HAULER INSPECTIONS

According to an article in the Scranton Times, state police and the Department of Environmental Protection will increase funding for roadside inspections of waste haulers, including trash trucks and wastewater tankers involved in the Marcellus Shale natural gas drilling industry, the agencies announced Wednesday. A memorandum signed by the agencies allows for DEP to reimburse the state police up to $550,000 for the program through July 2011. The funding, from an account supported by fees, fines and penalties paid by the waste-hauling industry, will allow the unannounced roadside inspections to run longer and more often, DEP spokesman Tom Rathbun said. Click here to read the Scranton Times article.

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At the press conference the governor also urged the legislature to increase the state’s solar energy mandate from 0.5% to 1.5% as part of the Alternative Energy Standards Portfolio. He noted that while it was ahead of the pack when AEPS was originally passed, Pennsylvania’s alternative energy requirements have slipped behind neighboring states in recent years. Check the Press Conferences section of the Capitol Toolbox later for the full story.

VEON TO STAND TRIAL FOR FRAUD JANUARY 31

According to an article in the Pittsburgh Tribune Review, Former Rep. Mike Veon and an aide are scheduled to stand trial Jan. 31 in Dauphin County Court on criminal charges of defrauding nonprofit Beaver Initiative for Growth. Judge Bruce Bratton asked lawyers to submit motions Oct. 7. Taxpayers spent $10 million on BIG, the nonprofit corporation created to spur economic development. But prosecutors allege much of the money went to salaries, administrative costs and payments to politically connected contractors. Veon, the former House Democratic whip, is serving 6 to 14 years for 13 felonies and one misdemeanor. Click here to read the Pittsburgh Tribune Review article.

DRILLERS DRAW STRONGER WARNING FROM DEP SECRETARY

According to an article in the Pittsburgh Tribune Review, natural gas drilling companies should identify the chemicals they put into the ground, embrace a tax on production and find ways to avoid simple mistakes, the state’s top environmental regulator said Tuesday. With public confidence eroding, companies need to prove their industry’s worth, John Hanger, secretary of the Department of Environmental Protection, told industry officials at the Pennsylvania Independent Oil & Gas Association’s conference in Monroeville.  “We have to have the vast majority of Pennsylvanians believing that this (gas industry) is a good thing — or certainly not a bad thing — for Pennsylvania,” Hanger said. Click here to read the Pittsburgh Tribune Review article.

HUNDREDS TURNOUT FOR GETTYSBURG CASINO HEARING

According to an article in the Patriot News, the state Gaming Control Board says a hearing to discuss a plan to bring gaming to Adams County was the largest they’ve seen. Most local residents support the idea of a resort casino that would reinvigorate the ailing Eisenhower facility, create an estimated 375 jobs and generate an estimated $96 million in economic activity each year. Anti-casino experts vociferously challenge those numbers, but Tuesday they were voices in a wilderness of “Pro Casino” signs and banners. People supporting the casino outnumbered opponents 2-to-1 on the long list of registered speakers, said casino spokesman David LaTorre. Click here to read the Patriot News article.

Upcoming Meetings

12:30 p.m., Gov’s Reception Room Governor Rendell to announce alternative energy investments

1:30 p.m., East Wing Rotunda Dan Onorato to discuss his vision for Marcellus Shale development

House Judiciary
University, 1145 King Road, Immaculata
Public hearing on: HB 2592 Yudichak Amends Admin. Code re campus police duties HB 2593 Yudichak Amends Title 22 re nonprofit educational corp.

Senate Democratic Policy Committee
10:00 a.m., PennDOT Engineering District 6-1, Second Floor Conference Room, 7000 Geerdes Blvd., King of Prussia
Joint Hearing with the Senate Majority Policy Committee and the Senate Transportation Committee on Tolling Options.

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PA SCHOOL PENSION FUND POSTS 14.6 PERCENT RETURN

The Public School Employees Retirement System announced yesterday that the Fund posted a positive 14.59 percent for the fiscal year ended June 30, 2010, outperforming the 12.00 percent median return of the Wilshire Associates Inc.’s database of public pension funds and the 10.87 percent return of the Fund’s custom policy benchmark. PSERS Chief Investment Officer Alan Van Noord reported, “PSERS’ investments rebounded adding over $6 billion in net investment income to the Fund over the past fiscal year and earned well above the Fund’s assumed long-term actuarial investment rate of return of 8.00 percent. Check out the Press Releases section of the PLS Capitol Toolbox to read the full statement.

JOBLESS RATE IN WESTERN PA CLIMBS

According to an article in the Pittsburgh Post Gazette, The Pittsburgh region’s unemployment rate followed the state trend by ticking up one-tenth of a percentage point to 8.4 percent for July, the state Department of Labor and Industry reported this morning. The region also lost jobs. The state reported that the seasonally adjusted number fell by 1,800 jobs in the seven counties that make up the Pittsburgh Metropolitan Statistical Area. Click here to read the Pittsburgh Post Gazette article.

RESIDENTS OPPOSE PROPOSED RV WORLD CASINO

According to an article in the Patriot News, if Monday’s public hearing is any indication, the residents of Hampden Township don’t think much of an “RV World” resort casino proposed at the Holiday Inn West on the Carlisle Pike outside Mechanicsburg. Except for the developers, no one spoke in favor of the proposal during an official hearing before the Gaming Control Board. Hampden Township commissioners Al Bienstock and John Thomas took a neutral position, but asked for help from the Gaming Control Board on issues of traffic, parking and adequate funding of necessary municipal services should the board grant the license to Penn Harris Gaming. Click here to read the Patriot News article.

SESTAK RELEASES FIRST TV AD AGAINST TOOMEY

According to an article in the Philadelphia Inquirer, U.S. Rep. Joe Sestak, the Democratic candidate for Senate, is launching his first TV commercial of the fall campaign Tuesday, a populist spot that slams his Republican opponent as a corporate champion indifferent to the middle-class.  Former U.S. Rep. Pat Toomey “thinks corporations shouldn’t pay any taxes,” the ad says, using a clip from a 2007 CNBC telecast in which he advocated eliminating corporate taxes to help U.S. firms compete internationally and thus create more jobs. Click here to read the Philadelphia Inquirer article.

Upcoming Meetings

House Consumer Affairs
9:30 a.m., University of Pittsburgh Johnstown, 450 Schoolhouse Road,
Heritage Hall Living/Learning Center, Johnstown
Public hearing on: HB 2619 Preston Amends Titles 53 & 66 re electric generation

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SIDES CLASH THIS WEEK OVER GETTYSBURG CASINO

According to an article in the Pittsburgh Post Gazette, the numbers are amazing and show how deep the emotions run on both sides of the Gettysburg casino issue. More than 400 individuals and groups have signed up to speak — some pro, some con — at a public hearing this week on whether the state should license a gambling parlor containing 600 slot machines and 50 table games just south of the Gettysburg National Military Park. Some speakers are strongly opposed to a casino, calling the historic area “hallowed ground” because of the many Union and Confederate soldiers who died during a three-day battle in early July 1863. Click here to read the Pittsburgh Post Gazette article.

CORBETT VOWS TO CUT SPENDING

According to an article in the Patriot News, Tom Corbett says that if he is elected governor, he would make unpopular cuts in state services, even if it meant he would become the state’s first one-term governor in 40 years.  At a campaign stop at ASK Foods in Palmyra on Friday, Corbett, the Republican gubernatorial nominee, said steep cuts might be needed in state government.  Corbett, the state attorney general, made it clear Friday that his focus is on reducing spending, rather than raising fees or taxes, to deal with financial challenges. “If I only serve one term, I only serve one term,” Corbett said Friday. “I think people want to see you cut –except their program.” Click here to read the Patriot News article.

DEPARTMENT OF REVENUE STEPS UP EFFORT TO COLLECT BACK TAXES

According to an article in the Patriot News, every week the state’s budget office reviews thousands of bills submitted for payment, but not every one of them is approved. On average, 353 of the 24,000 invoices processed weekly by that office get caught up in what is called the Contractor Responsibility Program filter. This is an effort the state has in place to delay or block payments of $5,000 or more to companies that owe the state government something, usually money or a tax return. It also flags contracts and grants issued to a company that owes back taxes, a Department of Revenue official said. It is part of the state’s ongoing — and increasingly more aggressive — effort to go after the 3 percent of individuals and companies in Pennsylvania owing back taxes. Click here to read the Patriot News article.

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CORBETT, TOOMEY STILL LEADING IN LATEST POLL

According to an article in the Patriot News, the Franklin and Marshall College poll released yesterday found that Republican Tom Corbett leads Democrat Dan Onorato 38 to 27 percent in the Governor’s race and Democrat Joe Sestak trails Republican Pat Toomey 40 to 31 percent in the race for U.S. Senator. “Democrats are at a decided disadvantage when it comes to voter motivation,” said F&M pollster G. Terry Madonna. The poll points to ominous signs for Democrats. Voters are pessimistic about the state’s direction, the economy, and the performance of President Barack Obama, Madonna said. And Democratic voters say they are less likely to vote than Republicans. Click here to read the Patriot News article.

DOH REPORTS PENNSYLVANIA’S FIRST HUMAN CASE OF WEST NILE VIRUS OF 2010

The Department of Health reported this year’s first human case of West Nile virus in Pennsylvania yesterday. The individual is a 69-year-old man from Philadelphia County. West Nile virus is spread to people and animals by infected mosquitoes. Usually, the infection does not result in any illness. Older adults and persons with compromised immune systems are at greatest risk of becoming ill after a West Nile infection. Check out the Press Releases section of the PLS Capitol Toolbox to read the Department of Health’s full statement.

REPUBLICAN LEADERS QUESTION LEGALITY OF PROPOSED OIL PROFIT TAX

According to an WITF article, critics are raising questions about whether an oil company profits tax pitched by Governor Rendell would be legal. Some Republicans doubt the oil company tax would hold up in court — namely whether it would be legal to ban companies from passing the cost of the levy along to consumers. “I think most of us believe it’s unconstitutional and the fact that it’s not going to be passed through to the public just isn’t a reality,” says House Minority Leader Sam Smith. Senate Transportation Committee chairman John Rafferty, a Republican, says lawyers are exploring the legality question. “It only behooves us to do that. It’s beneficial to the people to the commonwealth,” he says. Click here to read the WITF article.

Upcoming Meetings

House Republican Policy Committee
1:00 p.m., Hempfield Hunt Club, 220 West Pennsylvania Avenue, New Stanton
Public hearing on PICS/NICS – gun registration systems

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PA LOSES RACE TO THE TOP

Governor Rendell held a press conference yesterday to announce that Pennsylvania’s application for the second round of Race to the Top grant money was rejected by the United States Department of Education. Governor Rendell said Pennsylvania lost by 24 points and missed out on the funds because the state does not have an alternative education certification procedure, did not have statewide participation, and does not have a teacher evaluation system tied to performance. Check out the PLS Capitol Toolbox to read the full story.

OIL INDUSTRY SAYS PROPOSED PROFITS TAX IS ILLEGAL

According to an article in the Pittsburgh Post Gazette, a spokesman for oil companies in Pennsylvania today assailed Gov. Ed Rendell’s call for an 8 percent tax on the gross profits of oil companies. Rolf Hanson claimed the idea has been shown in the past to be illegal and a violation of federal rules on interstate commerce. He added that if it were enacted, it would financially hurt many small oil companies in the state and could cause them to lay off workers. “He’s just plugging an idea he first proposed in early 2007,” said Mr. Hanson, executive director of the Harrisburg-based Associated Petroleum Industries of Pennsylvania. “It wasn’t palatable to legislators back then and it won’t be any more attractive now.” Click here to read the Pittsburgh Post Gazette article.

ONORATO ASSAILS CORBETT VOTE FOR TAX  INCREASE 22 YEARS AGO

According to an article in the Pittsburgh Post Gazette, twenty-two years ago Tom Corbett voted for a 20 percent property tax increase as a township commissioner in Shaler. That, argued fellow gubernatorial candidate Dan Onorato, should raise red flags about the Republican’s ability to balance the state’s $28 billion budget. The Corbett campaign called Mr. Onorato’s claim “a desperate act by a desperate candidate.” The Allegheny County executive called a news conference in front of the Shaler municipal building to assail Mr. Corbett over the long-ago property tax vote and remind voters that he never approved such a tax increase as Allegheny County executive or as a Pittsburgh City Council member in the 1990s. Click here to read the Pittsburgh Post Gazette article.

Upcoming Meetings

House Democratic Policy Committee
8:30 a.m., McGowan Institute for Regenerative Medicine, 450 Technology Drive, Suite 300, Pittsburgh
Joint tour of life sciences companies with the House Life Sciences Caucus and House Republican Policy Committee

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