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        Number 24
 November 28
, 2014

www.pacounties.org

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

 

Serving Counties Since 1886
In This Issue
Wolf Transition Update
IFO Presents Five-Year Budget Outlook
State Supreme Court Upholds Damage Caps
PA Supreme Court Issues Right to Know Ruling
CCAP, NACo Submit Comments on Waters of the U.S.
Congressional Activities During Lame Duck Session
 
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WOLF TRANSITION UPDATE

 

Gov.-Elect Wolf continues to establish his transition teams following his victory in the Nov. 4 election. A few weeks ago, Montgomery County Commissioner Chairman Josh Shapiro was named vice-chair of a special Budget Deficit and Fiscal Stabilization Task Force, chaired by former Rendell Budget Secretary Mary Soderberg.The Governor-elect announced on Nov. 25 that he has selected 11 other individuals to join the Task Force, including Dennis Davin, director of Allegheny County Economic Development, as well as Clay Armbrister, Rick Bloomingdale, Ida Castro, Michael Newsome, Bill Schenck, Glenn Steele, Larry Stern, Robin Weissmann, David Yarkin and Janet Yeomans.

 

To assist his previously named leadership team, a steering committee has been appointed that will be responsible for reviewing state agencies, commissions, departments and functions. That team includes Neal Bisno, David Barasch, Aradhna Oliphant, Mark Nordenberg, Phyllis Mundy, Robert Brooks, Julie E. Wollman, Shanin Specter, Carl G. Cooper, Nilda Iris Ruiz and Joseph Meade. Those chosen for the Task Force and steering committee have experience in numerous fields including government, healthcare, diversity management, the arts and the legal system.

 

In addition, Gov.-Elect Wolf has named Estelle Richman to his transition team as his Medicaid advisor. Richman served as secretary of the Pennsylvania Department of Human Services during the Rendell administration, and as COO of the U.S. Department of Housing and Urban Development (HUD) under President Obama.

 

CCAP has established a web page of resources about the transition, with additional details about transition team members as well as information on county government to share with the teams. A CD with these resources can be requested at PACountiesGR@pacounties.org.

IFO PRESENTS FIVE-YEAR BUDGET OUTLOOK

   

On Nov. 13, the Independent Fiscal Office (IFO) released its five-year economic and budget outlook, evaluating the demographic, economic, revenue and expenditure trends that will impact the commonwealth's fiscal situation over the next five years. That report predicts the state will face a shortfall of $1.85 billion in FY 2015-2016, including $171 million related to the current fiscal year and $1.679 billion related to the coming year, and that this anticipated budgetary shortfall is likely to result in a long-term fiscal imbalance in the state.

 

According to the IFO, a structural disparity in FY 2015-2016 will be caused by the use in the FY 2014-2015 budget of $572 million in non-recurring revenues, $619 million in one-time savings and $332 million in funding shifts. Expenditure growth in the short term will be driven by mandated employer pension contributions, although the report explains that trend should begin to moderate following FY 2016-2017.

 

Further, the IFO found that Pennsylvania is seeing a slow erosion of its tax base and expenditure growth, predicting the commonwealth's net revenue will increase at an average rate of just 2.7 percent per year. Further, revenues will likely be outpaced by expenditures, which are projected to grow at an average of 4.1 percent annually.  

 

The IFO was established to provide revenue projections for use in the state budget process and to deliver impartial and timely analysis of fiscal, economic and budgetary issues. The November report in its entirety is available for download on the IFO's website at www.ifo.state.pa.us.

STATE SUPREME COURT UPHOLDS DAMAGE CAPS

 

The state Supreme Court upheld the state statutory limit of $500,000 on damages recoverable against a local government agency in a unanimous decision issued Nov. 19. The case, Zauflik v Pennsbury School District, involved a student struck by a school bus in 2007, in which a Bucks County jury returned a verdict against the school district in 2011 in the amount of $14 million. The district maintained its liability under the Political Subdivision Tort Claims Act was limited to $500,000, and the trial judge agreed, reducing the verdict accordingly. A divided Commonwealth Court in 2013 upheld the decision to reduce the damages to the level of the cap, rejecting the plaintiff's constitutional equal protection challenge of the statutory cap. The state Supreme Court has now upheld the lower court's ruling, indicating that the cap is not unconstitutional.

 

However, the Court also noted that the General Assembly is in a better position than the Court to address the public policy questions surrounding the case - that is, whether the $500,000 cap for local governments should be raised. While several bills were introduced to increase the cap in the 2013-2014 session, those bills would have to be reintroduced when the new session convenes in January to receive any consideration.  

PA SUPREME COURT ISSUES RIGHT TO KNOW RULING

 

The state Supreme Court has issued a unanimous opinion in Pennsylvania Gaming Control Board v Office of Open Records, ruling that individuals who file written requests under the state's Right to Know Law must address them to the open records officers of the agencies they are targeting if they wish the requests to be enforceable under the terms of the law. The Nov. 10 decision reverses a June 2012 Commonwealth Court decision in which the lower court had determined that public records requests filed under the state's Right to Know Law do not need to cite the law or satisfy other technicalities, as long as they include the requester's name and address and enough information for government agencies to identify the records sought.

 

The case originated when the Pennsylvania Gaming Control Board chose to ignore a request for records because it was not submitted on an official form and did not say it was filed under the Right to Know Law. On appeal, the state's Open Records Office said that an agency cannot ignore requests for simple failure to comply with their procedures. The Commonwealth Court, on affirmation, concluded that agencies should presume written requests for records are Right to Know requests, even if not submitted on a designated form or to the proper agency officer. However, the Supreme Court sided with the Gaming Control Board, arguing that the Right to Know Law specifies that written information requests must be made to open records officers "in some meaningful way" and that this procedure must be followed to trigger the timeframes for response from the agencies.

CCAP, NACO SUBMIT COMMENTS ON WATERS OF THE U.S.  

 

On Nov. 13, CCAP submitted comments to the U.S. Environmental Protection Agency (EPA) and Army Corps of Engineers expressing counties' concerns with the proposed definition of "Waters of the U.S" (WOTUS) and asking that the proposal be withdrawn and modified after careful consideration of all comments submitted.

 

CCAP's comments highlight the vagueness of the definition, and argue that Pennsylvania already has a strong regulatory framework in place to protect all waters of the commonwealth, so an expansion of federal jurisdiction would only add a layer of permitting and paperwork without any benefit to the state's water quality. In addition, an expansion of the "Waters of the U.S." definition would remove decisions to the federal level, whose staff are not on the ground dealing with these issues every day in the same way that counties are. The National Association of Counties (NACo) also submitted comments on the proposal, both on its own and jointly with six other agencies representing local governments and agencies. More than 12,000 unique public comments were received prior to the Nov. 14 deadline.

 

Relatedly, Congressman Bill Shuster (R-PA), chair of the House Transportation and Infrastructure Committee, joined with ranking Republican on the Senate Environmental and Public Works Committee U.S. Senator David Vitter (R-LA), and other chairs and ranking members, to submit comments on the WOTUS proposal, seeking to have the agencies abandon the rule. The members emphasized that the proposal presents serious federalism concerns since it would call for an extra-constitutional relationship between the federal government and the states in the regulation of local land-use matters. Further, members of the Pennsylvania Congressional delegation submitted comments to the agencies, contending the rule jeopardizes Pennsylvania's ability to manage its own water resources. The signatories include Senator Pat Toomey, as well as Congressmen Glenn Thompson, Joe Pitts, Jim Gerlach, Tim Murphy, Tom Marino, Lou Barletta, Mike Kelly, Scott Perry and Keith Rothfus.
CONGRESSIONAL ACTIVITIES DURING LAME DUCK SESSION

The U.S. Senate and House of Representatives returned to Washington, D.C. on Nov. 12 for the final, post-election days of the 113th Congress, commonly referred to as the lame duck session, with a number of important issues expected to be addressed within this limited period of time. At the top of the list, Congress must act during the lame duck session to fund the federal government beyond December; while a short-term Continuing Resolution (CR) was approved in September to fund the government for FY 2015 (which began Oct. 1) at FY 2014 program levels, the CR is set to expire on Dec. 11. Groundwork has already been laid for an omnibus appropriations package that would set funding levels through Sept. 30, 2015, providing Congress a fresh start for the FY16 appropriations process next year.

 

As part of the ongoing budgetary discussions, NACo continues to press Congress for a one-year extension of mandatory full funding for the Payment in Lieu of Taxes (PILT) program for FY15. The permanent extension of this program expired in June and, without a mandatory authorization, counties will not receive important payments that offset tax revenue losses due to the presence of tax-exempt federal land. NACo has put together a PILT resources page on their website. 

 

Another item that could see action during the lame duck period is a long-standing priority for NACo, the Marketplace Fairness Act (MFA), which grants state and local governments the ability to enforce existing sales tax laws on remote or online sales.

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Contact Us: Douglas E. Hill Executive Director, CCAP