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October 17, 2011
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Pennsylvania Senate Republican News Brief


"There was one case where $4 million in state money went to a $2 million project and because it went to prevailing wage, it increased the price of that project by close to $2 million – it essentially threw away $2 million in state funds."

-- Sen. Lloyd Smucker (R-Lancaster), Vice Chairman of the Senate Labor and Industry Committee, on the effect of the 50-year-old Pennsylvania Prevailing Wage Act in Lancaster County.


Preview

Senate Convenes Monday, October 17, at 1 p.m.

The Senate could take up the following bills:

  • Senate Bill 100, prison reform -- Sen. Stewart Greenleaf (R-Montgomery)
  • Senate Bill 354, prohibiting Pennsylvania participation in the federal REAL ID Act -- Sen. Mike Folmer (R-Lebanon)
  • Senate Bill 367, mineral resource development on state lands -- Sen. Don White (R-Indiana)
  • Senate Bill 449, child abuse recognition and reporting in schools -- Sen. Pat Vance (R-Cumberland)
  • Senate Bill 743, teen driver education -- Sen. John Rafferty (R-Montgomery)
  • Senate Bill 834, updated county bonding requirements -- Sen. John Eichelberger (R-Blair)
  • Senate Bill 397, pretrial procedure for death penalty cases -- Sen. Mary Jo White (R-Venango)
  • Senate Bill 560, State Military College Legislative Appointment Initiative Program Act -- Sen. Bob Mensch (R-Montgomery)
  • Senate Bill 850, cyberbullying and juvenile justice protections -- Sen. Stewart Greenleaf (R-Montgomery)

Tuesday: Pennsylvania Storms and Utility Services

The Senate Consumer Protection and Professional Licensure Committee, chaired by Sen. Tommy Tomlinson (R-Bucks), and the Senate Veterans Affairs and Emergency Preparedness Committee, chaired by Sen. Lisa Baker (R-Luzerne), will hold a joint public hearing on storm-related issues concerning utility services. (10 a.m. Hearing Room 1 N. Office Bldg.)

Wednesday: Office of Developmental Programs, PSSA Test Anomalies, JNET

The Senate Public Health and Welfare Committee, chaired by Sen. Pat Vance (R-Cumberland), will hold a follow-up public hearing on past payment practices of the Office of Developmental Programs. An earlier hearing revealed a significant lack of fiscal oversight of funds meant to provide services for those with intellectual disabilities. (9 a.m. Senate Majority Caucus Room)

The Senate Education Committee, chaired by Sen. Jeffrey Piccola (R-Dauphin), will hold a public hearing to receive testimony from Education Secretary Ronald Tomalis on results of department investigation and analysis of 2009 PSSA testing anomalies. (10:30 a.m. Hearing Room 1 N. Office Bldg.)

The Senate Communications and Technology Committee, chaired by Sen. Mike Folmer (R-Lebanon), will hold a public hearing to learn more about the state Justice Network. JNET is the Commonwealth's primary public safety and criminal justice information broker, providing a common online environment for authorized users to access public safety and criminal justice information. (9:30 a.m. Room 8 E-A)

Thursday: Act 47 overview and discussion of possible enhancements

The Senate Community, Economic and Recreational Development Committee, chaired by Sen. Jane Earll (R-Erie), and the Senate Local Government Committee, chaired by Sen. John Eichelberger (R-Blair), will hold a joint public hearing with House committees on Act 47 of 1987. The hearing will serve to begin discussion on possible enhancements to the law governing financially distressed municipalities and to examine Act 47-related challenges municipalities are facing. (9:30 a.m. House Majority Caucus Room)

Review

Senate Panel Hears Prevailing Wage Testimony

The Senate Labor and Industry Committee, chaired by Sen. John Gordner (R-Columbia), heard testimony Tuesday on the effects of state prevailing wage laws on taxpayer-funded projects and legislation introduced to update the laws.

The Chambersburg hearing was hosted by Sen. Richard Alloway (R-Franklin) and included discussion of three bills sponsored by Sen. Lloyd Smucker (R-Lancaster) to update the 50-year-old prevailing wage law.

Several local officials from Franklin and Adams counties cited inflated costs for public projects such as school construction, road resurfacing and water and sewer projects due to prevailing wage restrictions. For more information, please see In the Spotlight and Fast Facts, below.
Hearing Video and Testimony

Committee Highlights Bills to Modernize State System of Higher Education

The Senate Education Committee, chaired by Sen. Jeffrey Piccola (R-Dauphin), held a public hearing on Thursday to hear testimony on a package of bipartisan bills intended to modernize and update the statute governing the Pennsylvania State System of Higher Education.

The measures are aimed at helping the 14 SSHE schools raise needed funds, speed up campus projects and recruit research-driven faculty.

Among those testifying were SSHE Chancellor John C. Cavanaugh, the presidents of West Chester University and Shippensburg University, faculty representatives and others.
Hearing Video and Testimony

Appropriations Committee Holds Hearings at Temple, Lincoln Universities

The Senate Appropriations Committee, chaired by Sen. Jake Corman (R-Centre), continued its series of statewide public hearings on the role of the Commonwealth's state-related universities, holding hearings Wednesday at Temple University and Thursday at Lincoln University.

Temple and Lincoln are two of four state-related universities, meaning that they receive state funds but are independently operated. They share this status with the Pennsylvania State University and the University of Pittsburgh, where the committee held previous hearings. The committee heard testimony from university officials on a variety of topics, including the impact of the state budget on the university's operation.

Senator Corman: "Our objective is to examine how the state-related universities operate and the role they play in our higher education system. Like our other institutions of higher learning, state-relateds have faced the tough challenge of doing more with less during these difficult fiscal times."

Housing Needs, Affordability Focus of Committee Hearing

The Senate Urban Affairs and Housing Committee, chaired by Sen. Gene Yaw (R-Lycoming), heard testimony October 4 on the lack of affordable housing in Lycoming County.

The panel heard from county housing officials and other participants on the need for safer, more affordable housing options in the county.  Early next year, the Center for Rural Pennsylvania, a bipartisan legislative research agency, will begin a longitudinal research study to document the economic and community impacts, including housing, of the Marcellus Shale development in Lycoming, Bradford, Greene and Washington counties.

Senator Yaw: "As companies locate here, the growth is creating a huge demand for housing that we need to address, particularly in the area of rental housing. This issue has been further compounded by the recent flooding that has forced existing renters and homeowners out of their homes."
Hearing Video and Testimony

Game and Fisheries Committee Examines Quail, Pheasant Management

The Senate Game and Fisheries Committee, chaired by Sen. Richard Alloway (R-Franklin), held a public hearing October 7 in Mercersburg to examine the state's quail and pheasant management programs.

The hearing included an update on the Commonwealth's Wild Pheasant Recovery Area, Pheasant Conservation Reserve Enhancement Program and Quail Management Plan. Representatives of the national habitat conservation group Pheasants Forever were also on hand for comments regarding the programs.
Hearing Video and Testimony

In the Spotlight

The Senate Labor and Industry Committee discussed three bills sponsored by Senator Smucker that would update the Pennsylvania Prevailing Wage Act of 1961.

Senate Bill 820 would make the prevailing wage equal to the average hourly occupational wage in each county. The county wage shall be determined from wage information submitted by employers on quarterly unemployment compensation tax returns. Currently, the Secretary of Labor and Industry determines the general minimum prevailing wage for localities in which public work projects are being performed for each craft or work classification.

Under Senate Bill 821, prevailing wage would apply to public projects where the estimated cost exceeds $200,000. Current law sets the threshold at $25,000, an amount unchanged since enactment in 1961.

Senate Bill 822 provides definitions of maintenance work on roads, including replacement of guiderails, pipes, line painting and other road equipment; pavement repair and patching; road widening that does not result in additional lanes; and bridge cleaning, blacktop resurfacing and minor nonstructural repairs.  

Fast Facts

Pennsylvania Prevailing Wage Law

  • Prevailing wage requirements can increase the cost of many projects, such as construction of prisons, juvenile detention facilities and local courthouses and judicial facilities, by 10% to 15% depending on the region.

  • The cost for a new prison in Franklin County, built in 2006-2007, was a little more than $27 million. Using the 10% to 15% figure, approximately $2.5 million to $3.5 million of that cost is associated with the additional costs of prevailing wages.

  • Using a 20% to 30% estimate, approximately $4.5 million to $6.2 million of the cost can be associated with the additional costs of prevailing wages.

 

 

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