Commonwealth Budget Overview 
 

It's been nine years since the state has had a budget enacted before the July 1 start of the fiscal year.

The $27.2 billion spending plan was enacted without a single Democratic senator or member of the House of Representative voting for it.

The spending package cuts spending by about 3 percent, largely due to more than $1.1 billion in cuts in aid to public schools and 18 state-supported universities, as Corbett insisted on cuts in state government and no tax increases to balance what he called a multibillion-dollar deficit.

Republicans call it a fiscally responsible budget that reaches balance without raising taxes. Contending they were left with little choice but to cut spending as billions of dollars in temporary federal budget aid dry up and state tax collections still recover from the recession.

Democrats say a massive surplus should have been tapped to avoid devastating cuts to education and health care.
 

Bill to Limit Civil Liability in Pennsylvania Passes 
 

By: Anthony S. Potter, Esquire and Richard J. Davies, Esquire; Powell, Trachtman, Logan, Carrle & Lombardo, P.C.

A bill that dramatically alters the allocation of liability among defendants in negligence actions in Pennsylvania passed both houses of the General Assembly on Monday, June 27, 2011. The "Fair Share Act" (Senate Bill 1131) was signed by the Governor the next day on June 28, 2011 as Act 17 of 2011.

The Senate Bill will have a beneficial effect upon Architects and Architectural firms, which are often named as defendants in negligence actions simply because of their connection to a Project and the existence of their errors and omissions insurance policies. Accordingly, AIA Pennsylvania has been actively monitoring "The Fair Share Act."

"The Fair Share Act" will, in most instances, eliminate joint liability among defendants found liable to a plaintiff in a negligence action. This is a significant change in Pennsylvania law. In the past, joint liability applied to defendants found liable for negligently causing personal injuries or property damages to a plaintiff. In such cases, any defendant found liable, if only for 1% of plaintiff's damages, could be compelled to pay another defendant's share of liability if that other defendant did not have the resources to do so.

However there are a few exceptions contained within the bill where joint liability of a defendant would apply and a defendant could still be forced to pay more than its "Fair Share." The exceptions when joint and several liability would remain are as follows:
--when a defendant is found to be sixty percent (60%) or more at fault or liable;
--when a defendant's liability is premised upon intentional misrepresentation;
--when a defendant's liability is based upon an intentional tort;
--when a defendant's liability is based upon a violation of the Hazardous Sites Cleanup Act; and
--when a defendant is liable and determined to have violated the Liquor Code.

A similar bill passed the General Assembly twice before in Pennsylvania, first in 2002. After it became law in 2002, House Democratic leaders sued and state appellate courts overturned this tort reform law on grounds that the bill into which it was written violated the Pennsylvania Constitution's requirement that bills confine themselves to a single subject. The legislature later passed a replacement bill, but it was vetoed in 2006 by then-Governor Rendell. Governor Corbett made passage of the Fair Share Act a priority during his campaign.
 

HB 1326 (Grove) Referenda for School Construction 
 

With the passage of the language from HB 1326, voter referenda may be needed for school districts to undertake construction projects. The language removed certain provisions of the Taxpayer Relief Act (Act 1 of Special Session of 2006) relating to public referenda for approving school property tax increases. It prohibits school boards from electing to raise taxes above the rate of inflation without voter referendum.

If a referendum fails, taxes may be raised but not above the rate of inflation. Taxes increased for fiscal year 2011-12 under an Act 1 exception would be rescinded. In its original form, HB 1326 was approved in committee by a vote of 15-10 and was never brought up for a vote by the House.

In the House, on June 29, HB 1326 was amended into SB 330. The amendment won passage on a vote of 99-98. Because of the amendment, the House requires a 24-hour waiting period before the final vote can occur. SB 330 was voted finally on the evening of June 30, by a vote of 109-86. With the clock ticking to the budget deadline and Gov. Tom Corbett insisting this legislation be part of the overall budget package, the Senate voted 32-17 to send the bill to the governor for his signature. Corbett signed SB 330 as Act 25 of 2011.

Under Act 25, school districts can only raise taxes without a voter referendum if the reasons for the tax increase are for pensions and special education. These two exceptions survived from the 10 or so exceptions in the original Act 1 law.

AIA Pennsylvania has fought against back-end referenda for school construction for many years. Our Government Affairs Committee and lobbyist, Bob Keaton, followed this legislation closely, and, jointly with the Pennsylvania Society of Professional Engineers, we advocated to keep the construction exception. Thank you to those of you who responded to our alert. In the end, we were outmuscled by the Governor's Office and support of the majority parties of both the House and Senate.

Other school code legislation: HB 257 was amended into the School Code (HB 1352) as part of the overall budget package. This language ends the requirement for school districts to comply with PLANCON process in acquisition of buildings and lease agreements when they are not seeking state reimbursement. Corbett signed HB 1352 as Act 24 of 2011.
 

New Bills Introduced 
 

SB 1136 (Rafferty) - State Owned Green Buildings
This legislation will apply to all new major facility projects that are owned or leased by the Commonwealth. This legislation will also apply to new school building construction and renovation projects in rapidly growing school districts only. Rapidly growing school districts would include districts where the Average Daily Membership has grown over 7.5 percent during a three year period. This bill will require the Department of General Services, in cooperation with DEP, to develop regulations and adopt high- performance building standards. The legislation will apply to any new construction, renovation, and commercial interior tenant fit-out projects in which the building is larger than 5,000 square feet.

The purpose of this legislation is to promote effective energy and environmental standards for buildings in the Commonwealth while at the same time, optimizing energy conservation in the state through proper building construction and design.

AIA Pennsylvania is working with Senator Rafferty and a coalition of organizations on this legislation.  We feel confident that we are closer to getting this passed this session.



SB 1150 (Smucker) - Historic Preservation Tax Credit
This legislation establishes an historic tax credit program in Pennsylvania. The tax credits will be accessible to property holders that own buildings within a municipality's designated historic district. The program will provide an incentive to reinvest and renovate historically significant structures throughout our oldest communities.

The bill establishes a tax credit in the amount of 25% for qualified rehabilitation expenditures for commercial projects within cities of the third class. The tax credit applications will be administered by the Department of Community and Economic Development (DCED) and reviewed by the Pennsylvania Historical and Museum Commission (PHMC) to ensure the historic integrity of the project.

DCED shall not grant more than $10 million in tax credit certificates in a single fiscal year. The tax credit may not exceed $500,000 for a single commercial applicant in a single fiscal year. Tax credit certificates will be exclusively granted to properties located in local government historic districts.

AIA Pennsylvania is working closely with Senator Smucker and is participating in a coalition led by Preservation Pennsylvania on advocacy efforts to pass this bill.
 

10K Friends of PA
2011 Commonwealth Awards 
 

Call For Entries
The entry deadline for the 10,000 Friends of Pennsylvania 2011 Commonwealth Awards has been extended. The entry deadline is now July 15, 2011.

The Commonwealth Awards help 10,000 Friends of Pennsylvania put smart land use, smart design, and smart growth in the spotlight. Through these awards, 10,000 Friends aims to raise awareness of projects that successfully demonstrate sound land use principles around the Commonwealth - projects that are development or redevelopment; in settings from urban to suburban to rural. In addition to honoring smart growth projects, we also recognize individuals that help further the mission and goals of 10,000 Friends of Pennsylvania and smart growth principles.

For project and individual entry forms and more information, please click here.


Sponsorship Available
The Commonwealth Awards program is a great way to celebrate your commitment to smart growth. We would be honored to have you join us as a sponsor. For more information, including sponsorship levels, please click here.


Save the Date - September 20, 2011
Commonwealth Awards Ceremony
Hilton Harrisburg, Harrisburg, PA
For any questions, please contact
Andrea McCormick at 717-234-6070, ext. 10
or amccormick@10000friends.org. 

Job Opening: Chief Architect for Historic Sites (DC) 
 

The National Trust for Historic Preservation is soliciting visionary and dynamic candidates for the Graham Gund Architect, a full-time endowed staff position with broad oversight responsibilities related to the conservation and preservation of the architecture and landscapes of the National Trust's twenty-nine historic sites located across the nation, most of which are also National Historic Landmarks. The architecture and landscapes of National Trust Historic Sites are essential components to the individual stories - as well as to the collective narrative of preservation - and the Architect will oversee the timely, practical, and appropriate delivery of technical services to ensure their conservation and preservation.

The Architect reports to the Vice President of Historic Sites and works as part of the Historic Sites Department, a collaborative team based at National Trust headquarters in Washington, D.C. The Department, in partnership with our colleagues in the field - particularly Site Directors and other Site staff - works to ensure excellence in stewardship and preservation of its historic sites. The successful candidate will collaboratively provide and support the conservation and preservation of the more than 400 roofed structures and approximately 4100 acres of land at those sites. The candidate must be familiar with and supportive of best practices in the field of historic preservation and have experience in architectural preservation or the architectural interpretation of culturally diverse sites. Additionally, the candidate will embrace and actively promote the use of a variety of delivery systems to accomplish work and associated contracting at the sites, including design/build and IDIQ approaches, the use of owner's representatives, and other various project management models. The Architect is also responsible for managing an Associate Architect, an early career Fellow, and other staff as applicable.

More details and application instructions are available at http://www.preservationnation.org/career-center/nthp/chief-architect.html.