SENATE DEMOCRATIC WRAP-UP FOR THE WEEK OF
July 4, 2005

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             As a result of Bush Administration reductions in federal support of Medicaid expenditures and the uncontrollable rise in health care costs, sufficient funds were not available to strengthen many important state programs or support a general tax cut in the 2005-2006 budget (House Bill 815).

            Buoyed by Senate Democratic efforts, the $24.15 billion state budget managed to cut the Bush Administration’s inspired Medicaid cuts in half, hold the line on taxes, hike funding to school districts by $129 million, and use $625 million in voter-approved bond funds to make an unprecedented investment in Pennsylvania’s environment.

            In his February budget address, Gov. Ed Rendell direly predicted that the state faced a $400 million federal Medicaid funding shortfall in this year alone for crucial health services that serve the elderly, disabled and poor. Pennsylvania’s improved economy enabled lawmakers to pare the shortfall down to $200 million.

The final revenue surplus for the General Fund for the just completed 04-05 fiscal year was $442 million. That extra tax revenue created a $377 million General Fund surplus to begin this current fiscal year.   

            In the spending plan, lawmakers managed to restore all of the Medical Assistance dollars used for prescription drug purchases, and also cover much of hospitals’ ever-increasing uncompensated care costs (see House Bill 1168).

            Also attacking uncompensated care costs from another direction, lawmakers earmarked Blue Cross/Blue Shied contribution monies and tobacco settlement dollars to expand the state’s adultBasic health insurance program for the working poor by 25 percent. 

            On education (see House Bill 628), all school districts will average a 3 percent subsidy hike. Plus, supplemental state funds are earmarked for districts that have low per student expenditures to help close the funding gap between school districts. The new budget also includes a 2.5 percent increase in special education funding and $28 million in supplemental funds for tutoring in grades 8 through 12.

Community Colleges received a 10 percent state funding boost They were also provided with funding that reimburses them for operating costs based on enrollment in credit and non-credit courses.  In addition, community colleges will receive economic development stipends for offering courses that are responsive to business and workforce needs.

Embracing Gov. Ed Rendell’s call to invest in the state’s environment, lawmakers laid out a plan (see House Bill 3) that will preserve farmland and open spaces; clean up streams, brownfields and abandoned mine sites; repair and prevent landslides and sinkholes; revitalize older communities; and maintain the state’s 3.8 million acres of park, forest and game lands. 

The Growing Greener II program distributes the bond funds approved by the voters this spring for key environmental protection programs.  The program also targets $90 million for counties to use to fund local initiatives.

The conference committee budget measure was approved in the Senate by a 47 to 3 vote. The bill was enacted as Act 1A of 2005.

* * *

The Senate voted 43-7 to approve new Medicaid eligibility and reimbursement guidelines.

Gov. Rendell had predicted a $400 million deficit for Medicaid this year and proposed a variety of benefit cuts (many of which have been adopted in other states), but refused to drop anyone from the Medicaid rolls.  Through the budget negotiation process, many of the austerity measures proposed by the governor were scaled back significantly.  Under House Bill 1168, there are no limits on prescription drugs, ambulatory surgical center visits, or inpatient hospital stays for Medicaid recipients.

However, the new Medicaid rules institute limits on outpatient psychiatric services and stays at private mental hospitals.  The new guidelines also require parents of children with disabilities whose household income exceeds 200 percent of the poverty line to pay a premium for Medicaid services.  Also, the Department of Public Welfare must conduct eligibility reassessments every six months for many Medicaid recipients.

The governor signed the bill into law as Act 42 of 2005.

* * *

The Senate unanimously approved House Bill 628, continuing a significant investment in public education. Under the bill, funding for pre-kindergarten through 12th-grade programs will increase by $278 million, or 3 percent. Funding for basic education and related programs will increase by $186 million, or 3.9 percent. 

The Head Start program will receive a $15 million increase, allowing an additional 2,200 children to enroll. The bill also includes $28 million in supplemental funds for tutoring in grades 8 through 12, as well as a 2.5 increase for special education.

Pennsylvania’s community colleges will see an additional $22.8 million, the largest budget increase (10 percent) in 15 years.

            The bill also includes a $22.3 million “Foundation Supplement” designed to help poorer districts keep pace with the statewide average for per-student spending.

The bill also:

Establishes a state grant program to encourage schools, including vocational-technical schools, to enter into written agreements with postsecondary institutions that permit students to enroll in postsecondary courses and receive both secondary and postsecondary credits for such coursework.

Provides for a new funding system for community colleges for more predictability and changes how workforce development funds are used in order to create career opportunities. 

The legislation establishes a special Community College Capital Fund for approved capital projects. 

The bill was signed into law as Act 46 of 2005.

* * *

The Senate passed House Bill 3 by a 48 to 2 vote.  Under this legislation, funds would be allocated under Growing Greener II, which was approved by voters via a ballot referendum in May.  

House Bill 3 is an initiative to create a preserve farmland and open spaces; clean up streams, brownfields and abandoned mine sites; repair and prevent landslides and sinkholes; revitalize older communities; and maintain the state’s 3.8 million acres of park, forest and game lands.

The $625 million Growing Greener Bond will be spent over a six-year period and used to build on the state’s Growing Greener program.

Growing Greener II also targets $90 million for counties to use to fund local initiatives.

Senate Democrats were key players in winning legislative approval for the ballot question.

The bill was signed into law as Act 45 of 2005.

* * *

The Senate voted 45 to 5 in favor of Senate Bill 196, which would provide physicians and health care facilities with limited immunity from administrative and civil prosecution if they report patients to the police for the illicit use or attempt to obtain a controlled substance.

While the bill would protect doctors, who in good faith, report patients for the illicit use of prescribed drugs, it does not establish a duty to report if the physician does not believe that sufficient evidence exists that the controlled substance was used for an illicit purpose. 

Currently, licensed physicians and osteopathic physicians are prohibited from disclosing any confidential information concerning patients. The bill now goes to the House.

* * *

The Senate unanimously passed important consumer protection legislation in response to a rash of security system breaches at data collection agencies and companies.

            Senate Bill 712 would require companies to notify consumers when their personal information (including social security numbers, driver’s license numbers, and banking information) has been revealed due to a security system breach.

            The bill has been referred to the House Commerce committee.

* * *

By a vote of 27-23, the Senate passed House Bill 1521, which will increase the salary for members of the Judiciary, the General Assembly and Executive Branch.  The bill also creates a system for cost of living adjustments based on the salaries of designated federal officials.

The salary increase was given to all members of the Judiciary and District Attorneys. The measure outlines the list of top judiciary officials and the amount of increase they will receive.  Lower courts and District Attorneys will be compensated based on a percentage of higher-level judges.

Members of the General Assembly will receive a base salary ($81,050) that is equal to half of what a member of the U.S. Congress makes. The bill also outlines higher salaries for members of caucus leadership and committee chairs.

This bill also increases the salary for the Governor, the Lieutenant Governor, members of the cabinet and the three row officers.  The governor’s salary will be 85 percent of the Vice-President’s salary.  The Lieutenant Governor is based on the same scale as legislative leaders plus $15,000.  Members of the Governor’s Cabinet will receive a salary of 85 percent of the Attorney General of the United States.  The State Treasurer, Attorney General and Auditor General will receive salaries that are 94 percent of what the U.S. Attorney General makes.

The bill was enacted as Act 44 of 2005.

* * *

Beer distributors can be open on Sundays from noon to 5 p.m. following approval of Senate Bill 462.

The amended measure, approved in the Senate by a 39 to 11 vote, requires distributors to purchase a $100 annual Sunday sales permit.

For tavern owners, the bill removes the 30 percent food and non-alcoholic beverage sales requirement for a Sunday sales permit everywhere except in Philadelphia. The bill also increases the wholesale discount for retail licensees from 7 percent to 10 percent.

The bill was enacted as Act 39 or 2005.

* * *

            The Senate unanimously approved Senate Bill 63. The legislation, known as “Kristen’s Law,” would require child welfare agencies to keep a recent photograph with the child’s case file at all times.

            The Democrat-sponsored bill was introduced to prevent the kind of abuse that 4-year-old Kristen Tatar endured in her starvation death in Kittanning, Armstrong County, in 2003. Her parents locked her in the attic without food or water for five days. Her emaciated body was found in a small cooler thrown out with the trash. The child weighed only 11 pounds at the time of her death.

Since no photograph was included in Kristen’s case file when her case was transferred between agencies, it is believed that a caseworker -- who visited Kristen’s new home just weeks before her death -- mistakenly identified another child as Kristen.

The bill now goes to the House.

* * *

The Senate unanimously passed House Bill 107, the Health Savings Account Act. This legislation would authorize the establishment and maintenance of health savings accounts (HSAs) that would serve as an alternative to high-deductible health insurance plans

The bill would exempt from state income taxes any amount paid or distributed out of a HSA to cover qualified medical expenses or reimburse a beneficiary. Contributions to HSAs would not be exempt from state income taxes, and high-deductible insurance plans would be permitted to continue charging a deductible for certain benefits.

House Bill 107 was signed into law as Act 48 of 2005. 

* * *

By a 50-0 vote, the Senate approved House Bill 139, legislation that would allow all Pennsylvania counties to raise local revenues for enabling residents to purchase, rent and maintain quality residential housing.

            Pennsylvania counties would be permitted to increase the fee charged for the recording of deeds and mortgages. Under the bill, 85 percent of the fees would be distributed to local affordable housing initiatives and the remaining 15 percent would be used to offset administrative costs.  

            The bill was signed into law as Act 49 of 2005.

* * *

The Senate unanimously approved Senate Bill 669, which would standardize qualifications for those who interpret foreign languages in Pennsylvania courtrooms.

The current availability and quality of courtroom translators varies from county to county and courtroom to courtroom. Of the 2.2 million foreign-born Pennsylvanians, 8.5 percent speak little or no English. Supporters claim that this growing segment of the state’s immigrant population too often face a judicial system where translators are in short supply and possess widely differing capabilities and qualification standards – creating inconsistency and a potential for unjust treatment in courtrooms.

The Democrat-sponsored bill would direct the Administrative Office of Pennsylvania Courts to establish a statewide program for identifying and uniformly certifying qualified foreign language interpreters. To help courts locate more available translators, the measure would also ensure that a statewide listing of certified foreign language interpreters be made available to all Pennsylvania court venues.

The bill now goes to the House.

* * *

The Senate unanimously passed House Bill 1304, providing a six percent increase in library funding, and extending for one-year waivers of mandates that were costly to local operations.  The bill was signed into law as Act 53 of 2005.

* * *

The Senate unanimously concurred in House amendments to Senate Bill 511, which amends the Job Enhancement Act of 1996 to allow master’s degree students to participate in the Technology Work Experience Internship Program.  The bill was enacted as Act 29 of 2005.

* * *

            The Senate unanimously adopted the joint Conference Committee Report on House Bill 176, legislation that will amend Pennsylvania’s Tax Reform Code to allow for a check-off box on the state income tax return for military family relief assistance.

            The legislation will also increase the penalty for filing a fraudulent income tax return and provide for the film tax credit program, electronic fund transfers and reimbursements for tax collection costs.

            The Governor has signed the bill into law as Act 40 of 2005.

* * *

By a 46-4 vote, the Senate adopted the joint Conference Committee Report on House Bill 182, legislation that will provide for the transfer of surplus budget funds from the General Fund to the Budget Stabilization Reserve Fund.

The bill would require that, beginning in the 2005-2006 fiscal year, 25 percent of surplus funds be deposited into the Budget Stabilization Reserve Fund. Of the surplus funds available in 2004-2005, 15 percent will be deposited into the reserve fund, as well as one-quarter of all funds appropriated for tobacco use prevention and cessation programs and one-eighth of all funds appropriated for health investment insurance and Medicaid benefits for workers with disabilities.

House Bill 182 also gives the State Workers’ Insurance Board the power to invest a greater portion of the State Workers’ Insurance Fund assets into equities, such as securities including common stock. These equity investments cannot exceed 15 percent of the Fund’s assets or the Fund’s mandatory surplus after the discount.

In addition, the bill provides that any expenses, salaries and other costs incurred from the administration of the Senior Citizens’ Rebate and Assistance Act be paid from the State Lottery Fund.  

The Governor has signed the bill into law as Act 41 of 2005.

* * *

            By a 49-1 vote, the Senate approved House Bill 1646, also known as the Agriculture Communities and Rural Environment (ACRE) initiative. The legislation is intended to help Pennsylvania farmers avoid drawn-out legal disputes over “factory farms” and other local ordinances.

As part of the ACRE initiative, farm owners and operators will be permitted to request the Attorney General to review any local ordinance disputes. Local governments will be prohibited from adopting or enforcing any local ordinance that is deemed “unauthorized.”

            In addition, the adoption of ACRE will make Pennsylvania the first and only state to enforce farm odor mitigation, requiring that all new or expanded Concentrated Animal Feeding Operations (CAFOs) and Concentrated Animal Operations (CAOs) develop an odor management plan with strict water-quality requirements.

The Governor has signed the bill into law as Act 41 of 2005.

* * *

            The Senate unanimously passed Senate Bill 726, legislation that would set limits on assessments for second-class counties.

            The legislation would give second-class counties the opportunity to appeal, escrow and make payment under protest. In addition, the bill would prevent the reassessment ratio from exceeding 100 percent of the total amount of property tax revenue collected within the county in the previous year. To keep the reassessment ratio below 100 percent, municipalities and school districts would be required to reduce their millage rates to maintain revenue-neutrality.

            If a taxing authority seeks to raise the tax rate, the local governing authority would be required to cast a separate vote. The bill also would include a “good cause” provision, which would allow political subdivisions to increase the tax rate beyond revenue-neutral limitations with court approval.  

            Senate Bill 726 now goes to the House.

* * *

The Senate voted 46-4 to approve House Bill 489, which would make several changes to the Vehicle Code.  Several Democratic Senators opposed the bill over a provision that would revoke a vehicle registration when an individual has six or more unpaid parking tickets in Philadelphia.

Senate Democrats successfully lobbied for an amendment that gives impacted individuals one month to rectify their situation before PennDOT is notified.  The bill also weakens notification standards for those who have their vehicle impounded by the Philadelphia Parking Authority.

The bill was signed into law as Act 50 of 2005.

* * *

            The Senate unanimously approved Senate Bill 406, which would designate the bridge carrying SR 2096 over the Youghiogheny River in McKeesport as the Senator Albert V. “Bud” Belan Bridge.  Belan served three consecutive terms as a state Senator from 1989 to 2000 and had previously been a police officer and district justice. The bill was signed into law as Act 56 of 2005.

* * *

            The Senate unanimously approved House Bill 86, which immunizes the U.S. Army Corps of Engineers from damages that may result from construction, operation and maintenance of projects on the Delaware River Canal that it performs in conjunction with the state Department of Conservation and Natural Resources. The bill was signed into law as Act 47 of 2005.

* * *

The Senate passed Senate Bill 86 by a unanimous vote.  This bill would allow for the opening of a child abuse investigation in the child’s county of residence if the alleged abuse took place outside of Pennsylvania. The bill was signed into law as Act 43 of 2005.

* * *

The Senate unanimously passed House Bill 612, which would amend the Pennsylvania Infrastructure Investment Authority Act to allow PENNVEST to loan monies it obtains from federal and state sources to public and private water and sewer systems for security-related infrastructure improvements. The bill was enacted as Act 51 of 2005.

* * *

By a unanimous vote, the Senate passed Senate Bill 722.  This bill amends the Storage Tank and Spill Prevention Act (Act 32 of 1989), to provide for the continuation of an additional allocation for the Underground Storage Tank Environmental Cleanup Program. The bill was signed into law as Act 36 of 2005.

* * *

            By a unanimous vote, the Senate passed House Bill 1650, which would authorize the Fish and Boat Commission to issue a one-day fishing license for non-residents for $25.

Presently, there is no one-day non-resident license available.  There is a resident license one-day license available for $10.  The Fish and Boat Commission suggested this proposal as a way to promote fishing in Pennsylvania.  Many states, including bordering states, offer such a license.  This license will not be available in April to protect the vital fiscal impact of the first day of trout season.

The bill was signed into law as Act 54 of 2005. 

* * *

The Senate unanimously approved House Bill 1802, which would raise the cap on outstanding obligations for redevelopment assistance capital projects by $500 million, from $2.150 billion to $2.650 billion. Raising the total debt limit for redevelopment assistance increases the potential for the state to incur more debt and associated interest expense for redevelopment assistance capital projects. At current interest rates, the issuance of an additional $500 million in bonds would cost approximately $752 million over 20 years. Following Senate amendments, the bill has been returned to the House.

* * *

            The following Appropriations bills were all approved unanimously, and enacted:

House Bill 823 would provide for the $692 million capital budget for fiscal 2005-06 (Act 52 of 2005).

House Bill 824 would appropriate $317 million to the Pennsylvania State University (Act 9A of 2005). 

House Bill 825 would appropriate $164 million to the University of Pittsburgh (Act 10A of 2005). 

House Bill 826 would appropriate $168 million to Temple University (Act 11A of 2005).

House Bill 827 would provide $12.9 million for Lincoln University in Chester County (Act 12A of 2005). 

House Bill 828 would appropriate $6.7 million to Drexel University (Act 13Aof 2005).

House Bill 829 would appropriate $44.7 million to the University of Pennsylvania (Act 14A of 2005).

House Bill 830 would appropriate $11.7 million to the Philadelphia Health and Education Corporation (Act 15A of 2005).

House Bill 831 would appropriate $9.5 million to Thomas Jefferson University (Act 16A of 2005). 

House Bill 832 would appropriate $4.8 million to the Philadelphia College of Osteopathic Medicine (Act 17A of 2005). 

House Bill 833 would appropriate $1.8 million to the Lake Erie College of Osteopathic Medicine (Act 18A of 2005). 

House Bill 834 would appropriate $1.4 million to the Pennsylvania College of Optometry (Act 19A of 2005). 

House Bill 835 would appropriate $1.2 million to the Pennsylvania University of the Arts (Act 20A of 2005). 

House Bill 836 would appropriate $1.5 million to the Bureau Training School (Act 21A of 2005). 

House Bill 837 would appropriate $186,000 to the Johnson Technical Institute of Scranton (Act 22A of 2005).

House Bill 838 would appropriate $68,000 to the Williamson Free School (Act 23A of 2005). 

House Bill 839 would appropriate $388,000 to the Fox Chase Institute for Cancer Research (Act 24A of 2005).

House Bill 840 is a $306,000 non-preferred appropriation to the Wistar Institute in Philadelphia for operation and maintenance expenses and AIDS Research (Act 25A of 2005). 

House Bill 841 bill is a $130,000 non-preferred appropriation to the Central Penn Oncology Group (Act 26A of 2005). 

House Bill 842 is a $49,000 non-preferred appropriation to the Lancaster Cleft Palate for outpatient-inpatient treatment (Act 27A of 2005). 

House Bill 843 is a $418,000 non-preferred appropriation to the Burn Foundation, Philadelphia for outpatient and inpatient treatment (Act 28A of 2005).

House Bill 844 is a $970,000 non-preferred appropriation to the Children’s Institute, Pittsburgh, for the treatment and rehabilitation of certain persons with disabling diseases (Act 29A of 2005). 

House Bill 845 is a $451,000 non-preferred appropriation to the Children’s Hospital of Philadelphia for comprehensive patient care and general maintenance and operation of the hospital (Act 30A of 2005). 

House Bill 846 is a $105,000 non-preferred appropriation to the Beacon Lodge Camp in Mifflin County that serves special needs children and adults (49-1 vote) (Act 31A of 2005). 

The following Appropriations bills were approved by a 43 to 7 vote, and enacted by the Governor:

House Bill 847 is a $462,000 non-preferred appropriation to the Carnegie Museums of Pittsburgh for operations and maintenance expenses and the purchase of apparatus, supplies and equipment (Act 32A of 2005). 

House Bill 848 is a $699,000 non-preferred appropriation to the Franklin Institute Science Museum in Philadelphia for maintenance expenses (Act 33A of 2005). 

House Bill 849 is a $428,000 non-preferred appropriation to the Academy of Natural Sciences in Philadelphia for maintenance expenses (Act 34A of 2005). 

House Bill 850 is a $326,000 non-preferred appropriation to the African-American Museum in Philadelphia for operating expenses (Act 35 A of 2005). 

House Bill 851 is a $42,000 non-preferred appropriation to the Everhart Museum in Scranton for operating expenses (Act 36A of 2005). 

House Bill 852 is a $178,000 non-preferred appropriation to the Mercer Museum in Doylestown for operating expenses (Act 37A of 2005).

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