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        Number 20
 October 5
, 2012

www.pacounties.org

LEGISLATIVE BULLETIN
An e-newsletter of the County Commissioners
Association of Pennsylvania

 

Serving Counties Since 1886
In This Issue
Block Grant Counties Announced
Court Issues Preliminary Injunction on Voter ID
Justice Reinvestment Inches Forward
Pension Reform
Limited 911 Reforms Moving
IFO Discusses Report on Property Tax Bills
MAP-21 Guidance Issued
 
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Dear  ,   

 

BLOCK GRANT COUNTIES ANNOUNCED

 

On Sept. 27, Department of Public Welfare Secretary Gary Alexander announced the 20 counties selected as pilot counties for the Human Services Block Grant under Act 80 of 2012. The block grant encompasses mental health and intellectual disabilities base funds, Act 152 drug and alcohol funds, behavioral health services initiative (BHSI) funds, the Human Services Development Fund, child welfare special grants and homeless assistance funding.

 

Although Governor Corbett's original proposal announced concurrent to his budget address intended all 67 counties to be provided the option of participating in the block grant, the final legislation created a pilot program for 20 counties. The Department received applications from 30 counties for the 20 spots.  

 

The 20 chosen counties will continue to receive their funding for the seven included line items based upon categorical allocations, but will be permitted flexibility in its expenditure across program lines, with limitations. In year one, pilot counties will be required to utilize 80 percent of the funds within the categorical area for which those dollars are provided. Having this standard assures that counties selected for the pilot will have substantial guidance and oversight during the transition. In addition, at full implementation, the selected counties will still be required to fund each of the seven program areas, and cannot defund any of the included line items completely.

 

All counties within the block grant are required to submit detailed plans on how funds will be utilized and must conduct two public hearings in order to inform local citizens and clients of the changes that may accompany the new model.

 

The legislation also provides other needed reforms for both pilot and non-pilot counties, including a unified planning and reporting process and improved cash flow.

COURT ISSUES PRELIMINARY INJUNCTION ON VOTER ID   

 

The Commonwealth Court, on remand from the Supreme Court, has issued a preliminary injunction regarding the Commonwealth's new voter ID law. The injunction extends the "soft rollout" of the photo ID requirements from the April primary to November's general election; that is, all voters will be asked to show proof of identification, but they will not be required to vote by provisional ballot in the event that they do not show proof of identification.

 

The decision was based on a finding that the Court did not expect the Commonwealth to be able to timely meet the requirements that voters have the liberal access to PennDOT and alternate IDs required by the act, thus raising the potential of voter disenfranchisement.

 

The ruling lets stand the new requirement for absentee applicants to provide ID. The Department of State also issued guidance to county election directors indicating that the first-time voter requirements in place prior to the act still apply in the general election. The guidance also requires counties to furnish to voters an informational piece on voter ID requirements for future elections.

 

The full opinion is available on the CCAP web page, www.pacounties.org,under What's New.

JUSTICE REINVESTMENT INCHES FORWARD

 

A key amendment to complete the justice reinvestment funding package and redirect public safety resources where they can most effectively be applied, including county programs, has been unanimously approved by the Senate Appropriations Committee but still awaits final action in the Senate.

 

House Bill 135 establishes the Justice Reinvestment Fund, which is the companion funding piece to Act 122 of 2012 (SB 100). Act 122 made needed changes in sentencing based on recommendations made by the Governor's Justice Reinvestment Work Group and refocused emphasis onto local resources, including movement of some non-violent short-term state offenders into local criminal justice programs.

 

An amendment to HB 135 adopted by the Senate Appropriations Committee, offered by Sen. Stewart Greenleaf (R-Montgomery), directs the Department of Corrections to place an estimated $16 to $20 million in total savings from diversion of short-term inmates into the Justice Reinvestment Fund for grants to counties, split into shares. Under the amended bill, 25 percent will go toward automated victim notification services, 21 percent to implement contracts with counties for diverting short-term offenders, and 26 percent to grants for county probation and parole services. Funding is also provided for local police departments and for state-related services, beginning with the 2013-2014 commonwealth budget.

 

HB 135 must still be approved by the Senate and concurred in by the House before being sent to the Governor's desk. CCAP thanks those counties that haveadopted resolutions supporting HB 135 and urges other counties to also consider adopting a resolution as a way of demonstrating to legislators the importance of funding county corrections programs that will be impacted by sentencing changes. A sample resolution can be found at www.pacounties.org under the Legislative Action Center.

PENSION REFORM 

          

Pennsylvania's Public Employee Retirement Commission (PERC) has been holding a series of hearings on pension reform at the local level. On Oct. 3, CCAP first vice president Christian Leinbach presented testimony on county plans to the commission.

 

In his remarks, he noted that while county plans are

structurally sound and do not have the systemic problems common to municipal plans or the funding shortfalls facing the school plans, the plans are nonetheless creating significant fiscal pressure on counties statewide. In particular, the plans' predominant defined benefit component, combined with significant declines in investment return based on the decline in the economy and investment markets, has meant significant increases in counties' annual required contribution (ARC). He asked the Commission to consider the resolutions adopted by the CCAP membership calling for the ability to move to defined contribution plans as a means to stabilize the plans and allow counties greater budget certainty.

LIMITED 911 REFORMS MOVING  

  

Legislation is now moving that represents the first step toward reform of the Public Safety Emergency Telephone Act. House Bill 1020, now on the House floor, would tighten the provisions regarding recovery of 911 personnel costs, and change the provisions relating to carry-over costs. Both are issues brought up in the recent report by the Legislative Budget and Finance Committee on county administration of 911 systems. The bill further provides direction and incentive for regionalization of technology and voluntary consolidation while still honoring county discretion in the administration of the system.

 

The parties negotiating the bill, including the Pennsylvania Emergency Management Agency (PEMA), CCAP, and the associations of county emergency management professionals, agree more sweeping reforms are needed to the statute than the remaining time in the 2012 session allows. PEMA is currently developing a strategic plan for upgrading the system to next-generation technologies (Director Cannon will discuss the strategy at the CCAP Fall Conference), and the Senate Veterans Affairs and Emergency Management Committee has scheduled a hearing on the matter for October 16; both portend legislative action in the 2013-2014 session.

IFO DISCUSSES REPORT ON PROPERTY TAX BILLS  

 

A House select committee organized to study all current sources of school district and local government tax revenue recently heard an Independent Fiscal Office (IFO) analysis that suggests a proposed shift to sales and income tax as a replacement for property tax could fall far short of replacing lost revenue. 

 

The two bills reviewed, HB 1776 (Rep. Jim Cox, R-Berks) and SB 1400 (Sen. David Argall, R-Schuylkill), propose to eliminate school property taxes and replace those revenues with an expanded and increased sales tax, as well as increased income taxes. The IFO report, presented to the select committee on Oct. 1, concluding that the bills would lead to a $1.5 billion shortfall in school funding in FY 2013-2014, growing to $2.02 billion in FY 2017-2018.

 

Further analysis showed that retired homeowners would receive the largest relative tax cut and working age renters would receive the largest relative tax increase. Overall, the proposal creates a pronounced shift in tax burden toward individual taxpayers, because the net increase in sales and income taxes compared to property tax savings is proportionately higher for individuals than for businesses.

 

The report also noted that Pennsylvanians who itemize deductions would pay an additional $500 million in federal taxes, because property tax is deductible and sales tax is not. In addition, the IFO determined the proposals would likely increase home prices, leading to an increase in property tax revenues for counties and municipalities (which was not quantified), and an increase in realty transfer tax revenues.

 

The full IFO report can be read at www.ifo.state.pa.us. The final report of the select committee is due to the General Assembly by Nov. 30.

MAP-21 GUIDANCE ISSUED

 

In late September, the U.S. Department of Transportation released new guidance documents on implementation of MAP-21, the 27-month reauthorization of the federal surface transportation law, enacted on July 6. The law provides nominal increases in funding, at just under $40 billion for federal FY 2013, and just over $40 billion for FY 2014.

 

In particular, the guidance documents detail the funding and eligibility for the Surface Transportation Program, which includes the off-system bridge set-aside requiring states to allocate at least 15 percent of their federal bridge funding to off-system (e.g. county) bridges.

 

The guidance documents and other information can be found at www.fhwa.dot.gov/map21.

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