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LEGISLATIVE BULLETIN NOW AVAILABLE ELECTRONICALLY
Dear ,
In an effort to continue providing the most up-to-date and efficient legislative news reports, county officials and other interested parties will begin to receive the CCAP Legislative Bulletin in their email as well as the traditional hard copy beginning with the current June 15 edition. Anyone who receives the Bulletin by email but would prefer not to continue to receive the electronic version can unsubscribe by clicking the "SafeUnsubscribe" link at the bottom of the email message. Questions or comments regarding the new format, requests to subscribe to the electronic newsletter and requests to discontinue receiving the hard copy of the Bulletin can be directed to Brenda Hill at |
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BUDGET PROCESS CONTINUES
Budget deliberations continue in the General Assembly, as the beginning of FY 2012-2013 draws closer. Legislative leaders and the Governor continue to meet, with the immediate issue during the week of June 11 being consideration of the bottom-line spend number, an issue still not clearly resolved at week's end.
Governor Corbett originally proposed a budget of $27.1 billion, while the budget bill approved by the Senate in May (SB 1466) upped the overall spending to $27.6 billion, based in part on improved revenue projections and on Senate interest in restoring education and human services cuts the Governor had proposed. When the House considered the Senate bill on June 5, they adopted several amendments but agreed to hold to the Senate's spending level.
Governor Corbett had originally indicated that the Senate budget represented a "ceiling" for budget negotiations, but more recent media reports have indicated that he would prefer to see that level come down, to enable a $500 million carryover to bank against the coming year's funding obligations, including pensions. Achieving that objective would reduce the overall spend by an estimated $250 million.
The debate was compounded by the release of the state's May finances, which showed about $35 million lower revenues than originally projected for the month, and the release by the state's
Independent Fiscal Office (IFO) of final revenue estimates for FY 2012-2013, which fall about $48 million short of their original projection in early May (the IFO's final revenue estimates for FY 2011-2012 project the same year-end deficit figure as May, about $300 million). Most agreed the projections would not significantly affect the FY 2012-2013 spend level discussion, but they nonetheless will be a factor.
Once the spend number is settled, the discussion will begin in earnest on individual line items. There appears to be some consensus on restoration of basic education, higher education, and human services funding, but the priorities vary among the caucuses.
The discussions also include legislative issues that will accompany budget passage, including tax code, fiscal code, and welfare code issues among others. The centerpiece issue for counties is the proposed Human Services Block Grant, and other issues include corrections reform and transfer of the State Tax Equalization Board responsibilities to the Department of Community and Economic Development (see related articles).
CCAP asks counties to contact their legislative members, requesting that they restore funding both for human services programs within the block grant and for nursing homes, to the highest extent possible within available funds. Additionally, counties should discuss the need for maximum flexibility in service delivery, to better utilize scarce dollars as effectively as possible, which would be achieved through the adoption of the Human Services Block Grant.
Talking points and other information and analysis related to the budget process are on the
Budget News and Updates link on the CCAP website. |
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HUMAN SERVICES BLOCK GRANT UPDATE
On Tuesday, June 5, CCAP officers joined Lt. Governor Jim Cawley and DPW Secretary Gary Alexander for a media event announcing that substantial agreement has been reached on the elements of a Human Services Block Grant, proposed by Gov. Corbett as a component of his budget for 2012-2013.
The announcement outlined the parameters of the agreement, noting that counties will have a choice of whether to move immediately to a block grant funding structure, or to continue funding programs along current categorical lines. Additionally, the program will be phased in over several years, allowing for the development of comprehensive local planning and public involvement, opportunities to analyze county structures and the needs of citizens, and to manage resources most effectively during the transition.
The block grant must be implemented through legislation, which the Governor has identified as one of his five priority bills that he would like approved concurrently with the passage of the FY 2012-2013 budget. Elements of a bill are being finalized to address the components of the agreement, and address issues such as county liability, accountability, fiscal reporting and comprehensive planning, county matching funds, joinders and single county authority arrangements.
The block grant will collapse funding lines for mental health base, intellectual disability base, homeless assistance, human services development fund, child welfare special grants, behavioral health and some drug and alcohol treatment funds into a single funding structure.
Counties would have the ability to utilize dollars more effectively under this structure, removing the burdens created by categorically restricted spending requirements that force family and individual circumstances to be matched to programs rather than matching programs to the needs of clients. The proposal also calls for streamlined reporting and planning processes that will help counties reduce administrative costs, allowing for funds to be better focused toward programs. The proposal also includes provisions for advance funding, greatly improving county cash flow.
During the month of June, CCAP is conducting a series of educational forums for its members and affiliates to assist in local determinations on administering human services programs under a block grant. Additional and more intensive educational programming on implementation issues is planned after passage of legislation, in conjunction with the Department of Public Welfare. Fact sheets on block grants and related issues are posted to the CCAP budget page. |
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JUSTICE REINVESTMENT CLEARS HOUSE
A series of policy recommendations resulting from the Governor's Justice Reinvestment work group are advancing quickly in the General Assembly so that changes can occur in the near future to allow for cost savings for the state corrections system, and to allow redirection of resources toward local public safety entities to employ new and more effective practices.
The proposals reflect a data-driven approach to reduce corrections spending and reinvest a portion of the savings in strategies that can improve public safety, including components impacting sentencing practice, state parole, accountability of community corrections, and placement of technical parole violators. Further, the work group's report recommends providing additional financial assistance to local law enforcement, counties, and support for crime victims, among others. The elements of the recommendations were recently amended into SB 100 by the House Judiciary Committee, and the bill was unanimously approved by the House on June 12 and sent back to the Senate for a concurrence vote.
Meanwhile, the elements of reinvestment funding, including the formula for driving funds to counties for probation and county jail reinvestment, are expected to be amended into HB 135, which is currently in the Senate Appropriations Committee. These bills together complete the package on justice reinvestment initiatives as recommended within the report, and are key components in redirecting public safety resources to where they can be most effectively applied, including county programs. The Governor is urging the Senate to finalize legislation prior to the summer recess. |
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TAX ABATEMENT FOR FLOOD DAMAGE HEADS TO GOVERNOR
Legislation offering options to help Pennsylvanians continue to recover from last fall's flood damage is on its way to the Governor's desk to be signed into law.
House Bill 1913, introduced by Rep. Lynda Schlegel Culver (R-Northumberland), would allow local governments to abate real estate taxes for properties damaged due to recent flooding. The legislation provides counties, municipalities and school districts with the ability to abate real estate taxes for 2011 on property damaged by the storms, either by refund or credit in the coming fiscal year. The county assessment office would be authorized to reassess damaged properties retroactive to August 1, 2011, to reflect reductions in property value as a result of the storms, or could use a damage assessment it has performed in conjunction with FEMA for purposes of determining Federal disaster aid, to determine the abatement of real estate taxes.
In addition, HB 1913 provides local governments the option to temporarily exempt reconstruction or repairs to property damaged by these storms, limited to the difference between the assessed valuation prior to the damages and the increase in value due to the actual cost of reconstruction or repairs. Any exemptions must be granted for 100% of the eligible assessment in the first year, 50% in the second year and 25% in the third year, and property owners must begin reconstruction or repairs within three years of the storms to be eligible. The bill was unanimously approved by the House in late March, and passed the Senate 47-0 on June 13. |
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