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JURY COMMISSIONERS
As the Bulletin goes to press, counties are awaiting a ruling from Sr. Commonwealth Court Judge James Gardner Colins on a petition by the Jury Commissioners Association that they be added to the May primary ballot, including a special petition circulation period. The need to deal with jury commissioner elections arises from the March 14 PA Supreme Court decision that declared Act 108, giving county commissioners the option to abolish the office, in violation of the constitution's single-subject rule. Forty-two counties had taken action to abolish the office and are affected by the decision.
The anticipated ruling follows an April 3 hearing on the matter, at which both CCAP and the Department of State (DOS) argued that a reopened petition process this close to the election would create nearly insurmountable difficulties in properly preparing the ballots (remote absentees have already been mailed, e.g.). Instead, we argued that the provisions of the Election Code allowing the party committees to place candidates on the November ballot, as is done for vacant offices and candidate withdrawals, would provide suitable ballot access.
The Association plans to provide direct notice to the affected counties when the decision is handed down, and the DOS will provide notice and instructions to county election directors.
IN OTHER DEVELOPMENTS, the House and Senate Republican leadership have filed a petition with the Supreme Court calling for a rehearing of the March 14 decision, arguing that the Court ruling over-reaches and creates significant uncertainty in the legislative process. They indicate they had not intervened earlier because they would have never anticipated a Court ruling on the grounds of single subject.
And work has begun on legislatively reinstating Act 108's provisions. The Senate Local Government Committee has scheduled SB 808, sponsored by Sen. Lloyd Smucker (R-Lancaster), for consideration April 9. In the House, Rep. RoseMarie Swanger (R-Lebanon) is circulating a comparable bill for introduction. |
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PRESERVE TAX-EXEMPT
MUNICIPAL BONDS
As Congress continues to debate federal tax policy, proposals to reduce or remove the federal income tax exemption for municipal bond interest remain a concern for counties. The National Association of Counties (NACo) is asking all counties to pass and forward to their congressional delegation a resolution supporting retention of the tax exemption for municipal bonds.
If the tax exemption were removed, the cost of local government borrowing would increase, which would have a detrimental impact on counties' ability to finance long-term investment in critical infrastructure projects. The exemption has been in law since the federal income tax was enacted more than 100 years ago, allowing state and local governments to receive a lower interest rate on their borrowing than they would if their interest were taxable to investors. NACo estimates indicate Pennsylvania local governments would have paid anywhere between $8 and $23 billion additional on projects for which state and local governments used these bonds from 2003 to 2012, had the various proposals currently before Congress been in place over the same time period.
CCAP has a long-standing policy position, reaffirmed in 2012, supporting maintenance of the tax-exempt status of municipal bonds. More information on the issue can be found on NACo's website, and a sample resolution supporting efforts to maintain tax-exempt municipal bonds is available on CCAP's Legislative Action Center. |
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MARCH REVENUE NUMBERS RELEASED
State General Fund revenue collections through the end of March 2013 were almost $70 million below projections for the month, as reported recently by the PA Department of Revenue. General Fund collections have trended below expectations for three months now, although fiscal year-to-date collections are still slightly above estimate.
April revenue reports will be the key measure playing into negotiations of the FY 2013-2014 Commonwealth budget. Other important factors include the Independent Fiscal Office reports that are required on May 1, showing initial revenue estimates, and June 15, showing final revenue estimates. Those reports, provided to the Governor and the General Assembly, are utilized to determine what funds are available for the coming fiscal year.
The Governor released his budget request in February, and the House and Senate Appropriations Committees have completed their hearings with agency heads on departmental budget details. Development of legislation to implement the budget typically follows shortly after hearings conclude in early March, and it is expected that the budget process will begin soon as the Senate and House return from their Easter recess on April 8.
CCAP members are urged to remind their House and Senate members of the importance of funding for county programs, particularly for human services areas. The Governor's proposal calls for flat funding across these lines, which is welcome news after a ten-year pattern of cuts and underfunding. However, there are several months remaining before a final budget is due and counties should communicate that further cuts are not sustainable at the county level, and restoration of cuts must be part of the discussion at the budget negotiating table. Fact sheets, sample letters and talking points are available at CCAP's Legislative Action Center. |
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FEDERAL FY 2013 BUDGET PROCESS COMPLETED
Funding for federal operations through the end of the fiscal year (Sept. 30, 2013) has been completed, with the enactment of the FY 2013 Continuing Resolution (CR) on March 26. Although a CR typically pro-rates funding for federal agencies and programs at the prior year's level for a short period, this CR instead locks in the $85 billion in sequestration (the automatic, across-the-board five percent cuts for domestic discretionary programs) that took effect on March 1.
The CR provides some new and adjusted FY2013 funding, along with some flexibility to implement sequester cuts, to several federal agencies, including the departments of Defense, Agriculture, Justice, Commerce, Homeland Security and Veterans Affairs. NACo has updated its presentation on sequestration impact on counties, which can be found on CCAP's budget web page. |
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CONGRESS BEGINS FY 2014 APPROPRIATIONS PROCESS
On March 21, the U.S. House of Representatives approved its budget resolution (H. Con. Res. 25), authored by Budget Committee Chairman Paul Ryan (R-WI), by a 221-201 vote, while the Senate debated and approved its version (S. Con. Res. 8) 50-49 after an overnight nonstop voting session. The President is scheduled to release his budget proposal on April 10.
One amendment receiving overwhelming bipartisan approval during the Senate process contained the Marketplace Fairness Act, with 75 Senators voting in favor. The amendment would give state and local governments the authority to collect already-existing sales and use taxes on remote or online sales. It is not a new tax, but instead a more efficient way of collecting the sales tax already owed to state and local governments. NACo has pointed out that the vote on the amendment is significant because it demonstrates support for the standalone Marketplace Fairness Act (S. 336/H.R. 684) as Congress moves toward comprehensive tax reform this year.
Pennsylvania issued a bulletin in December, 2011 that clarifies the "physical presence" rule under which some internet vendors are required to collect sales taxes, and separately instituted new procedures on personal income tax forms to collect use tax from purchasers. The new rules are expected to raise about $43M in FY2012-2013, and $67M in FY2013-2014. |
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CONSTABLE STUDY
On March 19, the House Judiciary Committee unanimously reported HR 138, calling for the Joint State Government Commission to examine the duties of constables and make recommendations to improve the system. The Commission would be required to report its findings to the Chief Justice of the Pennsylvania Supreme Court and the House Judiciary Committee within one year of final adoption.
Prime sponsor Rep. Tom Caltagirone (D-Berks) noted that it has been some time since there were updates to constable training and education requirements, and that there is widespread confusion regarding their duties and jurisdiction. CCAP has consistently supported efforts to reform the constable system, including improved standards of conduct (specifically referenced in the House resolution), as well as reform to fees and billing practices. |
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CHILDREN AND YOUTH LEGISLATION
The House of Representatives has taken up several bills that address recommendations of the Task Force on Child Protection related to investigation of child abuse.
House Bill 89, introduced by Rep. Ron Marsico (R-Dauphin), provides additional funding for organizations using a multi-disciplinary approach, including police, physicians, prosecutors and county children and youth workers to investigate and treat child abuse. Part of the funds generated from the sale of DARE license plates would be appropriated to the Pennsylvania Commission on Crime and Delinquency for the award of additional grants. The bill was unanimously approved by the House on March 12 and is now before the Senate for its review.
At a March 20 meeting, the House Children and Youth Committee unanimously reported HB 429, introduced by committee chair Rep. Kathy Watson (R-Bucks) which would provide protection against employment discrimination for individuals who make a good-faith attempt to report child abuse. Current law extends such protections just to mandated reporters. The bill goes to the full House for further consideration.
The same committee will hold a hearing April 18 on HB 726, introduced by Rep. Scott Petri (R-Bucks), which would update the definition of "child abuse" under the Child Protective Services Law, redefining the trigger for county children and youth agency investigations. |
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