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        Number 10
 May 15
, 2015

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

 

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911 BILL CONTINUES TO MOVE FORWARD

 

On May 4, the House of Representatives approved HB 911 by a 134-59 vote. The House vote keeps the 911 services system reform and funding legislation, CCAP's top priority for 2015, on track to meet the June 30 expiration of the surcharge on wireless lines.

 

House Bill 911, sponsored by House Veterans Affairs and Emergency Preparedness Committee chair Rep.

Steve Barrar (R-Delaware), represents more than two years of work among CCAP, PEMA, the General Assembly, communications providers and 911 professionals to develop a comprehensive rewrite of the Public Safety Emergency Telephone Act of 1990. House Bill 911 addresses the three objectives CCAP has sought, including improving 911 system administration, respecting counties' role as providers of the system while balancing the broader interests of coordination statewide, and working toward a sustainable and equitable fee and attendant financing structure. House Bill 911 satisfactorily addresses the first two of these objectives and offers an opportunity to continue discussion on the third.

 

A Senate Veterans Affairs and Emergency Preparedness Committee hearing set for May 13, cancelled due to scheduling conflicts with Senate floor session, will now be held the last week in May, and the Committee still plans to report the bill the first week of June. Although cancelled, testimony filed for the hearing is available on the Committee's web page, veterans.pasenategop.com.

 

Sen. Bob Mensch (R-Montgomery) also recently circulated a cosponsorship memo on a 911 funding alternative authorizing counties to impose a fee per occupied housing unit of up to $52 annually, and phase out the current subscriber fees over three years. Counties have not supported the alternative; because 911 is a communications-driven service, the subscriber fees have the closest funding nexus and should remain the primary funding source.

 

Additional information about the legislation, including county talking points, is available on CCAP's 911 Funding and System Reform web page.

HOUSE COMMITTEE REPORTS HOTEL TAX PROPOSAL

 

On May 13, the House Tourism and Recreational Development Committee voted 24-1 to report HB 794, which would allow certain third through eighth class counties the authorization to levy a hotel room rental tax of up to five percent. The legislation is part of CCAP's priority on tourism funding and hotel tax.

Act 142 of 2000 included a hotel tax authorization of three percent for any county that did not have the ability to levy the tax before that time. However, based on local needs, a number of bills were introduced over the past few years that would have allowed for increased hotel tax rates for specific counties, as had happened in the past. Counties have called for uniformity among county hotel tax authorizations and believe an increase in the rate is justified, in part because we appreciate the role tourism plays in our local economies and also due to the significant reductions in recent years in state funding to local agencies under the Tourism Promotion Act. House Bill 794 is a result of nearly two years of discussions involving the tourism industry and the counties to update the existing hotel tax statutes.

The committee unanimously adopted an amendment by chair David Hickernell (R-Lancaster) clarifying that, relative to campgrounds, only cabins would be subject to the hotel tax. House Bill 794 now goes to the full House for further consideration. 

IFO RELEASES REVENUE ESTIMATES  

 

On May 4, the state's Independent Fiscal Office (IFO) released initial revenue projections for FY 2014-2015 and 2015-2016, which the Office is required by statute to produce as an aid to the General Assembly's budget deliberations.

 

The IFO indicated that FY 2014-2015 General Fund revenues are estimated to be $30.55 billion, almost $600 million above the estimate issued at the beginning of the fiscal year. Much of that revision is due to unexpected revenue from the corporate net income tax and unclaimed property, although sales and use and personal income taxes are also meeting or slightly exceeding expectations.

 

For FY 2015-2016, General Fund revenues are projected to be $30.72 billion, an increase of just $170 million (0.6 percent) over the current fiscal year. These projections are $374 million higher for FY 2014-2015 and $97 million higher for FY 2015-2016 than in the Governor's budget proposal. All estimates exclude proposed statutory changes. IFO director Matthew Knittel noted that while the state's economy is expected to continue growing in FY 2015-2016, some of the revenue growth will simply offset one-time, non-recurring revenues received in FY 2014-2015. In its five-year outlook presented last fall, the IFO estimated that the state would face a revenue 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

BUDGET BILLS INTRODUCED 

 

Legislation comprising the Governor's budget proposal for FY 2015-2016 has been introduced in the General Assembly, with just seven weeks left until the June 30 deadline. House Appropriations Committee minority chair Rep. Joe Markosek (D-Allegheny) is sponsoring HB 1125 in the House, while Senate Appropriations Committee minority chair Sen. Vincent Hughes (D-Philadelphia) has introduced SB 810 in the Senate. In addition, House Appropriations Committee chair Rep. Bill Adolph (R-Delaware) recently introduced HB 1192 as a vehicle to begin the legislative process; the bill is essentially the enacted FY 2014-2015 budget with a few additions to reflect funding that was shifted to special funds in the current fiscal year, and does not reflect any legislative budget proposal at this time. Adolph has indicated that members' amendments will be considered on the House floor when the chamber returns to session the first week of June, although it is unclear whether any comprehensive proposals will be offered.

 

Meanwhile, consideration of state and school district pension system reform has begun, which Senate Majority Leader Jake Corman (R-Centre) has said is a priority of his caucus that must be considered before any state budget bill. On May 13, the Senate approved its pension reform legislation, SB 1, by a 28-19 vote, sending the bill to the House. The House, in return, took up school property tax reform, both a key component of Gov. Wolf's budget and a priority of the House Republican caucus, passing HB 504 by a 105-86 vote. The bill was amended on the House floor to incorporate language offered by Rep. Stan Saylor (R-York), increasing the state personal income tax to 3.7 percent and the state sales tax to seven percent, without expanding the items on which the latter is levied, to reduce school property taxes, differing from the plan proposed by Gov. Wolf in his March budget address. Neither HB 504 nor the Governor's plan addresses county or municipal property tax reform.

 

Additional information is available on the CCAP Budget News and Updates web page, with updates as the June 30 deadline to complete a FY 2015-2016 budget draws nearer. Counties are encouraged to continue advocacy for county budget priorities and to share with legislators how state funding trends, both current and historic, are impacting county services

SECRETARIES CONFIRMED, OTHER NOMINATIONS ADVANCE 

 

The state Senate has unanimously confirmed several of Gov. Wolf's cabinet nominations, including former Montgomery County commissioner Leslie Richards as PennDOT secretary and Dennis Davin, former Allegheny County economic development director, as secretary of the Department of Community 

and Economic Development. The Senate also confirmed Russell Redding (Agriculture), Dr. Karen Murphy (Health), Teresa Osborne (Aging), Kathy Manderino (Labor and Industry), Major General James Joseph (Adjutant General, Military and Veteran Affairs) and Curt Topper (General Services). Gary Tennis, prior Secretary of the Department of Drug and Alcohol Programs, was reappointed to his position as well.

 

The Senate Environmental Resources and Energy Committee also recently voted to recommend the nomination of Cindy Dunn (DCNR) to the full Senate, while the Senate State Government Committee referred the nomination of Pedro Cortés (State) to the full Senate, without taking a position on his nomination.

SENATE COMMITTEE HOLDS HEARING ON BLIGHT 

 

The Senate Urban Affairs and Housing Committee, chaired by Sen. Scott Wagner (R-York) and Sen. Wayne Fontana (D-Allegheny), held an informational meeting in Washington County on April 29 focusing on blight. Washington County Commissioner Harlan Shober provided testimony before the committee and discussed neighborhood blight and revitalization and its impact on Washington County. He explained that while blight is not a consistent problem across his county, and impacts vary, it leads to a loss of tax revenue from the blighted property as well as devaluation of neighboring properties. Funding is often a barrier to rehabilitation of blighted properties, Shober noted, and although the legislature has provided local governments with much-appreciated tools to address blight, additional funding would allow counties and municipalities to eliminate many of the blight issues that exist. Shober's written testimony is available on the CCAP Testimony and Advocacy webpage, and a video of the hearing and copies of the testimony are available on the Senate Urban Affairs and Housing Committee website.

CCAP RESOLUTIONS PROCESS 

 

CCAP policy committees will be holding their annual conference call meetings to consider resolutions amending the PA County Platform throughout the month of June, in anticipation of a membership discussion and vote in conjunction with the CCAP Annual Conference in early August. County officials are encouraged to review the Platform and to send any proposed resolutions to CCAP Government Relations staff or discuss with policy committee chairs.

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Contact Us: Douglas E. Hill Executive Director, CCAP