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        Number 4
 February 20
, 2015

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

 

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COUNTIES UNVEIL 2015 PRIORITIES

   

During a press event at the Capitol on Feb. 11, the CCAP leadership unveiled a list of ten county government legislative priorities for 2015 that call on state lawmakers to give counties the tools to provide efficient delivery of important services to state residents.

 

Counties have chosen 911 services system reform as the top priority, highlighting significant challenges in meeting rapidly changing technology requirements, a funding stream whose failure to keep pace with need requires counties to rely heavily and increasingly on the property tax, and the pending June 30, 2015 sunset of a key funding source of the system, the wireless telephone surcharge.

 

CCAP is working on a comprehensive rewrite of Chapter 53 of Title 35 with the Pennsylvania Emergency Management Agency, legislative committees, emergency management professionals, the communications industry and other interests. Outcomes will include ability to accommodate all current communication technologies including social networking platforms, ability to anticipate and fold in Next Generation technologies, consolidation of some elements of the system, and improvement in and consolidation of funding streams.

 

The 2015 priorities reflect counties' commitment to improving county governance and to ensuring they can continue to provide a full spectrum of services to the Commonwealth's citizens. Rounding out the list of priorities are maintenance of the shale gas impact fee, human services funding and further system reform, commonwealth responsibility for court funding, revenue opportunities and tax fairness, inmates with mental illness and substance abuse issues, prevention of substance abuse and drug overdose, transportation systems and bridge infrastructure, solid waste management and recycling funding, and tourism funding and hotel tax.

 

More information about the counties' priorities is available at www.pacounties.org by clicking on "2015 Legislative Priorities" under Legislative Quick Links.

HOUSE, SENATE REVIEW 911 LEGISLATION

 

Both the House and Senate Veterans Affairs and Emergency Preparedness Committees held separate hearings on the rewrite of the 911 Emergency Telephone Act, each emphasizing the importance of moving a comprehensive update to the state's 911 law to the governor's desk before the June 30 sunset of the wireless surcharge.

 

The House committee, chaired by Rep. Steve Barrar (R-Delaware) and Rep. Chris Sainato (D-Lawrence), met on Feb. 11, offering the Pennsylvania Emergency Management Agency (PEMA), CCAP and other 911 

stakeholders an opportunity to outline the history of Pennsylvania's 911 system, the current system and funding needs, and to discuss the draft legislation in detail. CCAP explained that the draft represents more than a year of work among PEMA, legislative committees, the communications industry and other stakeholders, and incorporates the ability to anticipate and fold in future technologies, consolidates core elements of the 911 system, and improves and consolidates the current funding streams.

 

On Feb. 18, the Senate committee, led by Chairman Randy Vulakovich (R-Allegheny) and Chairman Jay Costa (D-Allegheny), focused its hearing on the finances and the future funding needs of the 911 system. CCAP Executive Director Doug Hill outlined the challenge to accommodate rapid changes in technological advances through a 1990 law amended in piece-meal fashion to accommodate intermediate technologies. He also noted that counties struggle to fund the system, which has seen no adjustment since 1990 in its basic funding mechanism, the telephone subscriber fees, and even the wireless and VoIP fees that were added later were keyed to the 1990 wireless rates.

 

In a 2012 report, the Legislative Budget and Finance Committee found that on average, only 71 percent of counties' costs to provide 911 service is covered by the current funding structure. This leads to a significant and growing backfill of local property tax dollars needed to keep 911 systems operational. Hill emphasized that the need to address the funding stream is immediate, and will reach crisis proportions if action is delayed past the June 30, 2015 expiration of the wireless telephone surcharge.

 

Testimony from both committee hearings, the current legislative draft, talking points and other information is posted to the CCAP 911 Funding and System Reform Resources page
.

GOVERNOR ANNOUNCES FULL MEDICAID EXPANSION

 

On Feb. 9, Gov. Wolf fulfilled a campaign pledge by announcing plans to replace former Gov. Corbett's HealthyPA plan with an expanded Medicaid program. The Governor identified a transition plan that will occur over several months and ultimately withdraw the state's waiver request initiated by Gov. Corbett.

 

HealthyPA was based on a federal waiver to allow the state to utilize federal funds to purchase private insurance for low-income residents. Gov. Wolf cited complications with HealthyPA as a motivating factor in the decision to transition to Medicaid expansion, and promised a simplified approach with full expansion. Problems with enrollment in HealthyPA have been encountered since late 2014, resulting in confusion for those attempting to enroll and difficulties in receiving services.

The Department of Human Services has been directed to develop a plan to transition individuals into one streamlined system without interruption to coverage or services, eliminating over time the use of the health screening tool put in place under HealthyPA. Some changes to the eligibility system are expected this spring with the transfer of individuals in General Assistance and SelectPlan to the new Adult package, followed by the close of the private coverage option to further enrollments. The transition of individuals enrolled in private coverage to the Adult package will occur over a longer period of time with a goal of ensuring individuals are clearly informed of changes and do not experience any gaps in coverage.

SEVERANCE TAX FOR EDUCATION PROPOSED

 

As outlined during his campaign, Gov. Wolf recently unveiled his natural gas severance tax proposal, the Pennsylvania Education Reinvestment Act. Modeled after West Virginia's severance tax, the Governor's proposal would levy a five percent severance tax plus 4.7 cents per thousand cubic feet of volume. While he has indicated that projected severance tax revenue will be included in his FY 2015-2016 budget proposal, the first full budget year for the tax would not be until FY 2016-2017 and at that time he expects the tax would generate more than $1 billion annually.  

 

The majority of revenues under the proposal would go toward education (both basic and higher education), with some monies designated to the state to provide additional oversight on drilling. The proposal repeals the current Act 13 impact fee, and while the Governor has indicated that his proposal contains similar payments as those currently being made to impacted communities, he also said that he had not yet worked out the specifics of how much local communities will get, other than indicating they will not lose funds under his proposal. Similarly, no detail was furnished whether the proposal specifically retains the Act 13 impact fee distribution structure for impacted counties and municipalities, and it is also unclear if the Governor's proposal includes the statewide distributions currently provided to all counties for open space purposes, at-risk bridges and conservation districts, or distributions to state agencies for issues like housing. 

 

One of CCAP's top priorities for 2015 is to preserve the current impact fee distribution structure, including revenues for both impacted local governments and the various statewide distributions, under any discussion of proposals to place a severance tax on the natural gas industry. More information can be found on CCAP's website by clicking on 2015 Legislative Priorities

STATE OFFICE TO LOOK FOR SAVINGS, EFFICIENCIES 

 

Gov. Wolf recently signed an executive order establishing the Governor's Office of Transformation, Innovation, Management and Efficiency.

 

Pennsylvania's governors have a historical trend of creating their own efficiency offices with the goal of making government more efficient by saving tax dollars while improving services. Gov. Wolf's office, per his executive order, will seek to achieve this goal through more efficient inter-agency coordination, public-private partnerships, leveraging the state's buying power for goods and services, and identifying key state employees to offer input on how to improve agency services. The Governor expressed his belief that these initiatives should yield at least $150 million in savings for FY 2015-2016. In announcing the office he cited his private sector experience, saying that efficiencies could include consolidating operations and making services more customer friendly.

 

The office will be led by a steering committee composed of Department of General Services Acting Secretary Curtis Topper, Office of Administration Acting Secretary Sharon Minnich, Director of Policy and Planning John Hanger, Budget Secretary Randy Albright and a yet-to-be-named director for the office. Agency heads will be required to identify key staff to form innovation teams, which will be responsible for recommending opportunities to reduce costs and for implementing initiatives identified by the office. More details regarding the office are expected over the next few weeks

GOV. WOLF BUDGET ADDRESS SET FOR MARCH 3 

 

Gov. Tom Wolf will address a joint session of the Pennsylvania House and Senate on Tuesday, March 3, to offer his budget proposal for the 2015-2016 fiscal year. Prior to the address, CCAP will be providing members with information on where to view the budget address and how to obtain copies of Gov. Wolf's remarks and budget proposal. More information, including an analysis of line items impacting county programs, will also be available on the CCAP Budget News and Updates page.

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Contact Us: Douglas E. Hill Executive Director, CCAP