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        Number 13
 June 26
, 2015

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

 

Serving Counties Since 1886
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HB 911 ON GOVERNOR'S DESK

  

Counties' top priority, 911 services system reform, has been approved by the House and Senate and as of publication of the Bulletin is on Gov. Wolf's desk awaiting his signature into law. 

 

HB 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. 

 

Prior to final passage of the legislation, the bill was amended by the House Rules Committee to remove language inserted by the Senate that would have permitted counties to impose a fee per occupied housing unit of up to $52 annually, coupled with a sliding scale per-employee fee assessed against businesses. The amendment also modified the effective date and made various technical changes. The House approved HB 911 as amended by a vote of 164-30, and the Senate concurred in House amendments with a unanimous vote. Gov. Wolf is expected to sign the bill before the current law's June 30 sunset. 

 

Additional information about HB 911, including an outline and analysis of the legislation, is available on CCAP's 911 Funding and System Reform web page.

BUDGET DEBATE CONTINUES

  

At the time of the Bulletin's publication, House and Senate leadership and the Administration remain far apart on both the budget and key issues that have been reported to be tied to the budget, including liquor privatization and public employee pension reform. While meetings with legislative leaders and the administration continue, reports indicate that House and Senate Republicans plan to send a budget plan to the Governor's desk prior to the start of the fiscal year on July 1 that does not increase taxes. Gov. Wolf in his March budget address had proposed increases in the state's sales and personal income taxes, as well as the levy of a severance tax, to increase education funding, provide school district property tax relief, and add recurring revenues to close the state's structural deficit.

 

The budget vehicle introduced by House Appropriations chair Rep. Bill Adolph (R-Delaware), HB 1192, which as of June 25 contained essentially the enacted FY 2014-2015 budget with various additions to restore funding that was shifted in the current fiscal year, is anticipated to continue moving through the legislative process ahead of the start of the new fiscal year on July 1, with a floor vote in the House to advance the bill's progress possible as early as June 26. The budget bill and any accompanying legislation would then go to the Senate, and then to the Governor, who could sign the bill, veto it in its entirety, or veto parts of it.

 

Counties continue to share with legislators and the administration their concerns about the unsustainability of further cuts to county-based human services programs. Over the past 12 years, counties have seen a steady decline in funding support from state and federal sources at the same time they are experiencing increasing caseloads and seeing more complex service delivery problems. On top of this ongoing trend, county Human Services Block Grant lines were reduced by 10 percent in FY 2012-2013, a cut that has been maintained in the two subsequent fiscal years. As a priority for 2015, counties support the inclusion of the Governor's proposed three-year restoration of the $86 million in the final FY 2015-2016 budget. Restoration, including a first-year increase of $28 million, is critical to address historic underfunding patterns. 

 
Additional analysis of FY 2015-2016 budget proposals and/or agreements related to county line items will continue to be posted on the CCAP Budget News and Updates web page
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HOTEL TAX BILL UPDATE


The House of Representatives continues to move forward with HB 794, introduced by Rep. Keith Gillespie (R-York), which would grant 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; counties have called for uniformity among county hotel tax authorizations and believe an increase in the rate is justified, in part because they appreciate the role tourism plays in 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 would not impact counties that are currently authorized to levy a hotel tax above three percent. 

 

On June 17, the House adopted an amendment offered by Rep. Gillespie that will assure the hotel tax would not apply to "yurts," or walled tents, by a 187-1 vote. The bill as amended has since been reported by the House Appropriations committee and is awaiting a final vote in the House.

SENATE HEARING EXPLORES INMATE MENTAL HEALTH ISSUES 

 

The Senate Public Health and Welfare Committee held a public hearing on June 23 which highlighted continuity of mental health care from prison to community, part of counties' 2015 priority to address the problems associated with increasing numbers of inmates with mental health and substance abuse issues. The hearing was the first of a series of hearings the committee plans to hold regarding the treatment of mental illness within various communities.

 

Berks County commissioner Kevin Barnhardt, chair of CCAP's Courts and Corrections Committee, provided testimony during the hearing, along with Berks County prison warden Janine Quigley and Berks County mental health administrator Dr. Ed Michalik. Barnhardt explained that inmates with mental health and substance abuse issues are a fast-growing sector of the inmate population which challenges all county prison operations. Both the drug and alcohol and mental health systems are strained financially and are not provided in a coordinated fashion that would assure diversion before booking an inmate into a county jail, or that would assure a plan of care after an inmate has been released. Counties advocate several tools to address the issue, including suspending rather than terminating medical assistance (MA) benefits while an individual is incarcerated, developing diversion programs and assisting counties with implementing best practices for diversion and re-entry.

 

Quigley concurred that optimal care is difficult to provide in an environment designed for custody and control, compared to an environment designed for treatment and psychological support, and argued for a system that would allow discharged inmates to gain access to swift, affordable outpatient treatment to avoid relapse, victimization and potential re-arrest. Michalik also advocated for quicker access to treatment and return to communities as well as more funding for diversion programs.

 

Additional testimony was offered by Lynn Patrone, mental health advocate with the Department of Corrections, and Dennis Marion, Deputy Secretary for the Office of Mental Health and Substance Abuse Services in the Department of Human Services, who explained that state and local partners are working to identify individuals with serious mental illness within the criminal justice system. Patrone further indicated that the departments have an initiative underway to ensure that inmates are enrolled in MA upon release.

 

Barnhardt's full testimony can be found on CCAP's Government Relations web page under Testimony and Advocacy. Video from the event can also be viewed on the Senate Public Health and Welfare Committee's web page at publichealth.pasenategop.com
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SENATE ADVANCES COUNTY PENSION COLA BILLS 

 

The Senate Finance Committee voted on June 24 to report HB 239, sponsored by Rep. Keith Greiner (R-Lancaster), clarifying language in the County Pension Law to allow counties to grant a limited cost-of-living adjustment (COLA), keyed to just the most recent year. The following day, the Senate adopted a floor amendment to similar legislation, SB 129, sponsored by Sen. Sean Wiley (D-Erie), designed to make the bill mirror HB 239 as approved by the House in April. Both bills are currently before the Senate for further action.

 

The vague language of current law, which obligates counties at least once every three years to examine whether to grant a COLA, has led to interpretation that any COLA must be retroactive to the last time a COLA was granted. For most counties, the COLA is infrequently granted, and so going back to the last COLA and compounding forward can yield an unsupportable increase in the benefit. The limited COLA under HB 239 and SB 129 would instead allow a county that has fund capacity to grant much-needed adjustments to monthly benefits without the adjustments being excessive and without the adjustments imperiling the solvency of the fund. House amendments would require counties to obtain an actuarial note for the proposed adjustment before its approval, and prohibit counties from providing a COLA unless its retirement system calculations can assure a funded ratio of 80 percent or higher after the actuarial cost of the adjustment is determined. Those counties using an actuarial valuation methodology that does not determine a funded ratio would be required to calculate one in order to meet the requirements of the amended bill.

HOUSE, SENATE ADDRESS ASSESSMENT FIX  

 

The House and Senate Local Government Committees have each advanced legislation to correct an error in the Consolidated County Assessment Law (CCAL). In January 2014, a Commonwealth Court opinion in the case of Pedersen v. Monroe County Board of Assessment Appeals brought to light an inadvertent drafting error caused by the merger of language from the prior assessment statutes, which potentially affects the assessability of buildings not permanently attached to the ground. Unless the CCAL is clarified, the Pedersen case has the potential to affect assessments, and ultimately all property taxpayers, throughout the commonwealth, as there are many examples of buildings that would arguably not be assessable or taxable under the decision. House Bill 912, introduced by Rep. Chris Ross (R-Chester), and SB 785, introduced by former CCAP member Sen. John Eichelberger (R-Blair), will address the issue by effectively returning the state's assessment laws to prior practice.

 

An amendment was adopted in both committees which will continue to provide a limited exemption for de minimus structures of 200 square feet or less, as well as a limited exemption for certain agricultural buildings of 1,000 square feet or less. The House committee reported HB 912 as amended by a 22-3 vote, while the Senate committee reported SB 785 as amended by a unanimous vote.

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Contact Us: Douglas E. Hill Executive Director, CCAP