2008 Budget Hearings
Highlights and Summaries

Summary

Senator Pat Browne, 16th District, asked state Treasurer Robin L. Wiessmann why -- despite increased advertisement -- there is an estimated drop in enrollment in Pennsylvania’s tuition account program.

Senator John Gordner, 27th District, asked about the current fundability of the tuition account program.  Referencing challenges other states have experienced, he asked if the program is adequately funded.

Senator Gordner had a number of questions about the state’s decision to furlough workers during last year’s budget impasse. Citing a portion of the Federal Fair Labor Standards Act and a 1993 Commonwealth Court case under Governor Casey, Senator Gordner said he believes the state did have the authority and the obligation to pay state employees from funds in the Treasury. He wanted assurances that workers will be paid if a similar situation takes place during this year’s budget negotiations.

Senator John Rafferty, 44th District, asked the Treasurer about the value of unclaimed property and what steps are being taken to inform the public about how to reclaim that property.

Senate Appropriations Committee Chairman Senator Gibson Armstrong, 13th District, asked about the money invested in local government through the state’s INVEST program and whether these were short or long term investments. 

Senator Jake Corman, 34th District, asked about the cost of personnel in the Treasury Department’s budget request.  Asking if the increase was a result of negotiated union contracts that had to be paid, Senator Corman expressed concerns that government costs were increasing and services would be potentially cut.

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Department of Military And Veterans Affairs - - 1 hour 10 minutes

Speaking to Pennsylvania Adjutant General Jessica Wright, Senator Pat Browne (R-16) outlines the need for a cabinet-level position for the Department of Military and Veterans Affairs.

Summary

Senate Veterans Affairs and Emergency Preparedness Committee Chair Senator Lisa Baker, 20th District, asked state Adjutant General (Major General) Jessica Wright if her Department has adequate funding and staff to implement the growing number of new programs that it administers. Specifically, she said she has heard concerns about the processing of applications for the Persian Gulf Bonus program.

General Wright acknowledged that the Department is facing higher demands and is working to process applications more efficiently. 

Senator Baker also suggested that the Commonwealth partner with health care providers to improve treatment of post traumatic stress disorder and asked if the state pensions for blind or paralyzed veterans is spent down every year. General Wright said they are not, and she would like the legislature to give her the authority to use leftover funds for other veterans programs.

Senator John Pippy, 37th District, asked General Wright what she needs from the Legislature to assist with the growing number of programs for veterans, such as the Real Estate Tax Rebate Program and the Military Family Assistance Program.  Noting that the state does not reimburse local governments for properties of disabled vets that receive a tax exemption, he said “there are some who feel that if we believe in the program and mandate it, then we should fund it.”

Senator Gordner questioned General Wright about recruitment efforts and wanted assurances that the state had adequate funding to provide tuition benefits and life insurance to those serving their country.

A member of the Southeast Veterans Center Advisory Board, Senator John Rafferty, 44th District, praised the Department for its “dramatic leadership” in improving services at the state’s veterans’ homes.  He said that all the homes now have dementia units to help assist patients and that the quality of care is excellent. 

Citing a report that rated only 67 percent of Pennsylvania’s armories and field sites as “adequate,” Senator Browne asked if the Department needed additional resources to bring more facilities up to standards.  General Wright acknowledged that many of the facilities are old and outdated, but modernizing them is costly.  Senator Browne also applauded the Department for providing funding for veterans outreach assistance and said that there have been discussions in the Legislature about establishing a cabinet level position for Veterans Services.

Senator Stewart Greenleaf, 12th District, centered his questioning on the Base Realignment and Closure (BRAC) decision to close Willow Grove Air Station, which is home to the 111th Fighter Wing – an extremely skilled and important air unit.

Senator Bob Regola, 39th District, asked General Wright to explain how the increased funding for veterans outreach will be used. The General said veterans organizations will apply for money and demonstrate how they would they would use it, for example, to help eligible veterans process applications for benefits. The funds would not be used for direct assistance to veterans.

Senator Regola said he would push to restore funding for the Civil Air Patrol. General Wright acknowledged that she did not request the elimination of CAP funding, adding that it was the Administration’s idea and that she considers CAP “a very worthy organization.”

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Department of Aging - - 1 hour 27 minutes

Summary

Senate Aging and Youth Committee Chair Senator Pat Vance, 31st District, noted that 80 percent of the Department of Aging’s funding for support services goes to nursing home care and the remaining 20 percent is allocated for home- and community-based care, which places Pennsylvania 47th among states providing for in-home care.

Senator Vance expressed concerns about the extensive waiting lists for basic services for the elderly such as Meals on Wheels. She said that was especially troubling when the Governor’s proposed 2008-09 budget includes funding for increasing several new initiatives, but flat funds current programs.

Senator Gordner was informed that enrollment in PACE and PACENET currently stands at 157,000 Pennsylvanians in each program. He asked whether the Department anticipates any changes in Medicare Part D or in the contribution rate for enrollees in PACE and PACENET.

Senator Rafferty cited the special role that senior centers play in the lives of older Pennsylvanians and asked why the Department has not sought more funding to provide additional grants for those agencies.

Senator Greenleaf asked about the scope of community-based services available to families who want to keep an older person in his or her home. “It’s important that you keep up on that. Many people would stay in their homes if they could,” Senator Greenleaf said.

Senator Regola cited a newspaper article in which the Department stated that there was a waiting list of 3,000 individuals, of whom, 500 needed nursing home care and the other 2,500 needed in-home services “to make life easier.” Senator Regola asked whether it is more cost effective to channel funding to those needing critical services or those needing assistance to make life easier.

Senator Browne noted a shift in funding for Department of Aging General Government Operations from the General Fund to the Lottery Fund and asked whether there is a cap on the amount of administrative services that could be paid by the Lottery Fund. He specifically questioned tapping the Lottery Fund to pay for the oversight of services that aren’t covered by that fund.

Senator Pippy asked whether the Department has specific plans to improve community-based services on the local level. “We do these hearings every year and the intent is good, but sometimes I think everything gets lost in the budget. With the things you are talking about, you have to think statewide, but act locally.”

Senator James Rhoades, 29th District, asked if there is sufficient funding for the Property Tax Rent Rebate Program since the Legislature increased eligibility for the program. He added that he is introducing legislation that would divert unused money from that account to provide funding for energy assistance for senior citizens.

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Department of Environmental Protection - - 2 hours 8 minutes

Senate Environmental Resources and Energy Committee Chair Mary Jo White (R-21) questions Environmental Protection Secretary Kathleen McGinty about funding levels for PENNVEST, which helps communities pay for upgrading water and sewage treatment plants.

Senator John Rafferty (R-44) urges DEP Secretary Kathleen McGinty to upgrade and update flood plain maps for flood-prone areas.

Summary

Senate Environmental Resources and Energy Committee Chair Senator Mary Jo White, 21st District, said the Governor originally indicated that a proposed new tax on property insurance to pay for flood remediation would apply only to property owners in flood plain areas and asked if that was accurate. Secretary Kathleen McGinty said the tax would actually be assessed on all property insurance bills throughout Pennsylvania.

Senator White noted the Administration has not funded sewage treatment programs and took issue with the Administration’s claims that it was the result of federal cuts, noting that the federal 1999 law enacting cuts anticipated states would fund the programs. The senator also asked if the secretary would pledge to release the names and amounts of unsuccessful applicants for funding through the Energy Development Authority, as required by the Ethics Act regardless of whether a potential conflict of interest exists. The secretary said she had to check with legal counsel.

Senator Vance took the secretary to task for alleging in a newspaper column that critics of the proposed Chesapeake Bay Tributary Strategy are motivated by politics. The senator noted that efforts to protect the bay region have been led by governors of both political parties and that legislators in the affected area are speaking up for area taxpayers who will be seeing huge increases in sewer bills. The senator also noted that Virginia and Maryland provide funding for their bay mandates, while Pennsylvania’s is unfunded. The secretary said it’s “time to pay the bill” and that the legislature will face difficult votes on the issue.

On the issue of black fly spraying, the secretary told Senator Vance that the cost of the program has gone down, but there is no decrease in spraying.

Senator Gordner said a per-gallon production incentive is necessary to produce soybean biofuel production in Pennsylvania, otherwise producers will have to shut down and Pennsylvania will buy its biofuels from Midwestern states with incentives. Secretary McGinty said Pennsylvania currently offers a production incentive of 5 cents per gallon, and she would support increasing it.

Senator Gordner asked what steps the state is taking to explore the Marcellus Shale Fields, which runs from upstate New York, across Pennsylvania into eastern Ohio and West Virginia and could contain as much as 50 trillion cubic feet of recoverable natural gas. The secretary said DEP is meeting with Penn State researchers and investors coming to the state to consider development opportunities, and the senator urged her to continue the efforts.

Senator Rafferty thanked the secretary for DEP’s work in addressing TCE air emissions in his district. The senator asked if the state was planning a public education campaign to prepare consumers for the end of rate caps on electric bills. The secretary said the heart of the Administration’s plan is reducing energy prices, but mentioned no specific education plan. The senator noted that residential rates could go up 35 percent in his area and the state should protect consumers.

Senator Greenleaf asked what the Commonwealth was doing in the area of waste coal. The secretary said it has supported new waste coal plant construction and supports existing plants. The senator asked if there are any concerns regarding Pennsylvania’s water supplies, as some other states face. Secretary McGinty said the legislature implemented a five-year study of Pennsylvania’s water supplies, with the report to be issued on March 18.

Several members, including Senator Regola, noted the proposed cut in funding for Conservation Districts, even though they face increased work loads. The secretary said the proposed funding is level, at $3.1 million, but that the General Assembly has been responsible for the increase last year and in previous years. The senator asked if funding for emergency response hazardous cleanups was adequate, and the secretary noted that the Legislature’s recent passage of a bill funding the Hazardous Sites Cleanup Act was helpful.

Senator Browne asked DEP Secretary Kathleen McGinty for an update on the status of sewage grant permit approvals and asked about the budget for the Advanced Energy Development Program which reduces energy consumption in Commonwealth-owned buildings. Senator Browne noted the projected energy savings are constant for the next several years, with no improvement. Senator Browne asked Secretary McGinty if proposed DEP regulations to limit truck idling are different from his legislation to do the same. The secretary said some enforcement provisions may be different and that there is no plan before DEP to extend limits beyond commercial trucks.

On competing Alternative Energy Investment bills passed by the Senate and House, Senator Browne noted that one difference is the Senate bill provides more tax credits to energy development companies, which need them to get beyond the upfront assistance proposed by the House and Governor. The secretary said paying for credits is the issue, and the senator said the governor may have to reduce upfront capital to pay for it.

Many departments and agencies are faced with increased personnel costs tied to a union contract negotiated by the Administration, and the secretary acknowledged to Senator Corman that the bulk of the DEP budget increase is due to that contract. Senator Corman said he is concerned that the Governor has put legislators in a box, by limiting overall spending increases to around four percent while hiking personnel costs, making it less likely that initiatives such as Conservation Districts can have their funding restored.

Noting that the proposed Chesapeake Bay Tributary Strategy will impact taxpayers, sewer ratepayers and farmers, Senator Corman asked why the Administration has not yet advocated for assistance as it has for mass transit, for which the Governor has traveled the state and held rallies. Secretary McGinty said, “I think that’s to come.”

Senator Rhoades cited a newspaper article on a liquefied carbon project in Greene County that quoted the secretary as saying Pennsylvania has to find a way to not burn coal. The secretary said that is not her position, and that DEP is pushing approaches that enable coal use to grow even under carbon restraints, through the use of sequestration and other methods. Senator Rhoades also noted that while the use of biosolids and sludge has many of the same downsides as waste coal, they do not face the same scrutiny or restrictions. The secretary agreed that waste coal is no worse and should not be used to stoke fear.

On alternative energy, Senator Rhoades said the Administration has several far-reaching ideas for the future, but that more could be done to allow individual property owners to access alternative energy more quickly, without a vast energy program. He said Pennsylvania has abundant water, wind, oil and gas resources and the state needs a clearinghouse for innovative ideas that are already being used by individuals.

Senator Rhoades also said he supports ongoing use of hidden cameras to combat illegal dumping, and asked about news that South Carolina is going to close a dump that accepts radioactive waste from Pennsylvania. The secretary said the closing could happen, but there is no imminent problem.

Senator Roger Madigan, 23rd District, asked if there was anything the Legislature could do to clarify the issues involved with oil and gas leases, which often lead to conflict between property owners and those holding the rights to underground resources. The secretary said it would be helpful if laws were updated to clarify the rights of surface and subsurface property owners.

Senator Madigan asked what would be entailed in the upcoming release of a statewide inventory of Pennsylvania’s water supplies, authorized by the General Assembly five years ago. The secretary said it would lead to a series of findings, including water atlases for each region, water budgeting tools, and ultimately proposed regulations of water withdrawals and reporting.