2008 Budget Hearings
Highlights and Summaries
Wednesday, March 5, 2008
Monday, February 25, 2008
Tuesday, February 26, 2008
Wednesday, February 27, 2008
Thursday, February 28, 2008
Monday,
March 3, 2008
Tuesday,
March 4, 2008
Hearings
listed alphabetically
here
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This page will be updated frequently.
Department of Education Department of Education
Senator Mary Jo White (R-21) explains to Education Secretary
Gerald Zahorchak how the current school funding formula
shortchanges rural school districts. Senator Gib Armstrong (R-13), Chairman of
the Senate Appropriations Committee, urges Secretary of
Education Gerald Zahorchak to reconsider funding cuts to
technical schools. Senator Mike Waugh (R-28) discusses an
education incentive to help recruit volunteer fire and
ambulance personnel. Senator Pat Browne (R-16) and Senator Jake
Corman (R-34) question the value of a study of the
department’s five-month-old pre-kindergarten program, and
the Administration’s attempt to use the study to increase
spending on the initiative. During the budget hearing for the Department
of Education, Senator John Rafferty (R-44) raises concerns
about the impact of high property taxes on residents and
communities. Summary Members of the Senate Appropriations Committee pointed out several flaws in the proposed funding formula for public schools during a budget hearing with Department of Education Secretary Dr. Gerald L. Zahorchak. Chairman of the Senate Education Committee Senator James Rhoades, 29th District, asked how the new distribution formula for schools was created and questioned the total cost of adequacy funding formula. Senator Mary Jo White, 21st District, criticized the costing-out study that the formula was based on, saying that it discriminates against poorer rural districts. Senator White and Senator Rhoades pointed out a number of financial factors that were not considered in the costing-out study and Senator White criticized the Department for not giving schools enough time to plan for the new formula. Senator Pat Browne, 16th District, urged the Secretary to delay funding increases based on recommendations contained in the study until the funding formula could be better understood. Senator Jake Corman, 34th District, joined Senator Browne in supporting the concept of the costing-out study, but called the hasty implementation of costing-out study recommendations "irresponsible." Senator John Rafferty, 44th District, said the costing-out study does very little to help schools in his senatorial district and asked if the Department would do anything to fund public schools in a way that would reduce the crippling effects of rising property taxes in the southeast. Senator Stewart Greenleaf, 12th District, pointed out that 7 out of 10 schools in his senatorial district would receive the minimum funding increase under the funding formula, which forces local taxpayers to provide a disproportionate level of funding for schools. Senate Appropriations Committee Chairman Senator Gib Armstrong, 13th District, questioned why funding was cut by 20 percent for the Thaddeus Stevens College of Technology despite the school’s overwhelming success in job placement for graduates. Senator Bob Regola, 39th District, criticized the direction of the priorities in the budget proposal, including the elimination of funding for Science in Motion. Senator John Pippy, 37th District, asked if the Department supports access to cyber schools for the children of military members who are deployed out of state. Senator Pippy also asked what measures are being taken to support the construction of environment-friendly "green" buildings. Senator Mike Waugh, 28th District, asked if the Department would encourage the use of standardized school construction plans and if these plans would reduce costs. Senator Pat Vance, 31st District, asked how the state could incentivize greater local funding for libraries. Senator Vance also asked why there is a backlog in emergency certification for school nurses. Senator Browne asked what the Department had
planned for the Higher Education Equal Opportunity Program
(Act 101) and urged an increase in funding after several
years of flat funding. Senator Corman asked about the
Administration's philosophy in increasing funding for
community colleges and the State System of Higher Education
while state-related schools would see greater tuition
increases. Department of General Services
Summary Senator Rafferty thanked General Services Secretary James Creedon for his assistance with the Southeast Veterans Center. Senator Rafferty asked about "green buildings" owned by the state and how effective and energy efficient they have proven to be. Rafferty asked if the proposed new prisons to be constructed will be green buildings as well. Senator Browne commended the Secretary for the Strategic Sourcing program. Senator Browne inquired about expenditures and procurement, citing spikes in the upcoming fiscal year. Senator Vance asked if there are current plans for now-closed Harrisburg State Hospital property. She also asked about an agreement dealing with historic buildings in Philadelphia. Senator Greenleaf asked about the status of security in the Capitol building, including the ban of firearms and other weapons and the ability of Capitol Police to quickly respond to incidents. He also asked about the status and personnel of the judicial center now under construction in Harrisburg. Senator Greenleaf asked about other additional projects planned for the Capitol Complex. Senator Corman questioned the number of unfilled positions being requested in the Department’s budget request. Senator Regola asked about the current status of asbestos abatement in state buildings. Senator Regola also asked for an explanation of the temporary fleet vehicles line item in the budget. Senator White commended the Secretary for his Department's work on the preservation of the State’s Rare Books collection. Senator White asked if the number of insurance claims involving the state is trending up or down. Senator Waugh asked about the COSTARS program and if the Department was working on ways to do more outreach to municipalities. Senator Waugh asked about the Department's use of other alternative energy sources. He suggested that the Department take a look at the biomass dropped every year at the Farm Show for use as an energy project. Department of Revenue
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State Senator Pat Vance (R-31) expresses concern that the
Commonwealth is becoming too dependent upon the lottery fund.
Senator Mary Jo White
(R-21) questions whether a recent decline in lottery sales could be linked
to legalized gambling in Pennsylvania.
Senate Finance Committee Chairman Pat Browne (R-16)
tells Revenue Secretary Thomas Wolf the Commonwealth can
create more jobs by eliminating the Net Operating Loss
cap, under which Pennsylvania manufacturers are taxed at
a rate much higher than similar manufacturers in
surrounding states, encouraging companies launching a
business in Pennsylvania to later take jobs out of
state.
Summary Senator Browne, Chairman of the Senate Finance Committee, which has oversight over the Department of Revenue, asked Revenue Secretary Tom Wolf about several projected tax revenue estimates. Senator Browne specifically cited a projected decrease in Corporate Net Income Tax revenues during Fiscal Year 2008-09, while revenues for other business taxes are expected to increase over the same period. Senator Browne also questioned the projections for the Personal Income Tax. Senator Browne also noted a projected 3.4 increase in sales tax revenues, compared to an expected national increase of 2.2 percent even though Pennsylvania's sales tax base is "thin when compared to other states." Senator Rafferty said he had serious concerns about the extensive borrowing and fund transfers pushed by the Governor in the past and proposed for the future. Senator Rafferty specifically cited borrowing for economic development programs, Growing Greener II, and the proposed $850 million bond for alternative fuels, as well as the Governor's proposal to tap funds from MCARE and the tobacco fund. He cautioned that Pennsylvania could end up in a financial crisis such as the one currently facing New Jersey. "What about us financially with all the borrowing that we have done and are going to do if the Governor's plan is accepted? What position does that put Pennsylvania in?" Senator Vance noted that lottery sales revenues are down $47.1 million this calendar year to date. She added that Pennsylvania has spent $118 million over the past six years to modernize and upgrade the lottery program. "Are we really getting a bang for our buck?" Senator Vance asked. Citing the Administration's on-going transfer of funding for general government operations and other programs from the General Fund to the Lottery Fund, Senator Vance said that with the dip in sales the Department will have to work hard just to maintain the solvency of the Lottery Fund. Senator Greenleaf asked about revenues currently being generated by Pennsylvania's slot machine venues and the projections for when all 14 sites are operating. Senator Greenleaf also asked if increasing gas prices would impact Pennsylvania's Liquid Fuels Tax collections. Senator White said the Legislature had agreed to a plan that reduces the Capital Stock and Franchise Tax by 10 percent a year. She said she was surprised to hear that the reduction proposed for FY 2008-09 would be less than 10 percent. Secretary Wolf admitted that the proposed reduction was "less than half" of the 10 percent that was agreed to. Senator White also expressed concerns about the Governor's proposal to tap the Rainy Day Fund and the fact that the Governor is not adding money to that fund in FY 2008-09. Senator John Gordner, 27th District, said the Governor's rebate scheme would require a change in the law regarding the Rainy Day Fund. He said the law currently bans the use of the Rainy Day Fund for new programs. Senator Gordner said the law also requires the Governor to make a payment in FY 2008-09 and would have to be changed if the Administration intends to skip out on that mandated payment. Senator Waugh asked why tax revenues from horse racing are stagnant even though one of the "sales pitches" for slot machines was that they would help promote the racing industry in Pennsylvania. Senator Waugh also expressed concerns about the Governor's plan to tap the Rainy Day Fund. He suggested providing a $500 tax credit to Pennsylvania's emergency responders at one-third of the cost of the Governor's rebate scheme. Senator Roger Madigan, 23rd District, said commercial trucking companies pay a tax to the Commonwealth based on miles traveled, with revenues projected at $37 million. "How often is the program audited and what assurances are there that the numbers are accurate?" Senator Madigan asked. Appropriations Committee Chairman Senator
Armstrong followed up on that issue, saying that he has
heard that Pennsylvania "is being shortchanged." He
added that many drivers are buying fuel in New Jersey where
prices are lower than in Pennsylvania. Senator Armstrong
also asked what happens to money from gift cards that are
not redeemed. |
