CCAP Trademarked Logo

Number 22
October 30, 2015

www.pacounties.org

LEGISLATIVE BULLETIN

An e-newsletter of the County Commissioners

Association of Pennsylvania

Serving Counties Since 1886

In This Issue

Budget Impasse Stretches Through Fourth Month

Counties Incurring Mounting Costs as Impasse Continues

County Hotel Tax Priority Moves Forward

House Panel Addresses Removal of County Share Requirement

Committee Advances Immigration Detainers Bill

House Local Government Committee Considers Bills

CCAP Fall Conference Activities

Quick Links

CCAP Website

Government Relations

Contacts

:: 717-526-1010

BUDGET IMPASSE STRETCHES THROUGH FOURTH MONTH

As the state's budget impasse concludes its fourth month, there remains no immediate prospect of a final budget agreement for FY 2015-2016. Various legislative strategies continue to be brought forth, including an Oct. 28 attempt by the Senate to override the governor's veto of SB 1000, the stopgap budget bill approved in both chambers in September. An override requires a 2/3 vote of each chamber, and the bill failed in the Senate on a 30-19 vote, with Republican members voting in favor and Democrats voting against.

In the meantime, Rep. Stephen Bloom (R-Cumberland) and Rep. Dan Moul (R-Adams) have introduced a package of emergency funding bills. House Bills 1583 to 1594 contain a full fiscal year's funding for some state and federal line items based on the FY 2015-2016 funds appropriated in HB 1192, the Republican legislative budget which the governor vetoed in June. These lines largely encompass funding for basic and higher education, but also include funding for domestic violence programs (HB 1585), rape crisis programs (HB 1590) and farmers' market food coupons (HB 1593). A separate bill, HB 1595, contains 50 percent of the state funding that legislative analysis concluded would have been available for child welfare in HB 1192 under the assumptions of the proposed rebalancing initiative. The bill also appropriates 100 percent of the federal funding for county children and youth agencies, as in HB 1192.

The bills have not been officially scheduled for consideration, but the representatives noted they have been introduced in the event no resolution on the budget impasse occurs in the next few weeks.

Speculation continues on whether a comprehensive budget agreement can be reached in the near future, with the legislative caucuses now holding joint meetings to see if they can find common ground on a legislative budget proposal.

COUNTIES INCURRING MOUNTING COSTS AS IMPASSE CONTINUES

Counties are implementing strategies to assure county residents have access to the important human services programs they need, even as the FY 2015-2016 budget impasse puts more and more pressure on limited resources. For many counties, the strain of meeting cash flow and service demands is already at crisis proportions. Still, while counties seek a prompt resolution to the budget impasse, it must be one that is adequate to meet program costs.

The strategies counties are using to meet cash flow needs come with a cost that will have longer term consequences. CCAP is documenting the strategies being used to mitigate the impacts of the impasse on its FY 2015-2016 Budget Impasse page of www.pacounties.org. Throughout October, counties have spent millions of dollars from their reserves to support programs typically funded with state dollars, and many have withheld payments to contracted providers. Many are incurring thousands in interest costs on lines of credit or costs associated with revenue anticipation notes. Other adjustments, such as travel restrictions, hiring freezes and deferred maintenance, are also being implemented.

Counties are asked to document actual costs for foregone interest earnings, interest paid on borrowing and late fees paid on past-due bills, and to continue to send updated information to PACountiesGR@pacounties.org on changes in county strategy to deal with the impasse.

COUNTY HOTEL TAX PRIORITY MOVES FORWARD

The Senate Community, Economic, and Recreational Development Committee voted unanimously on Oct. 28 to report legislation fulfilling CCAP's 2015 priority on tourism funding and the hotel tax. House Bill 794, authored by Rep. Keith Gillespie (R-York), is comprehensive legislation that would allow third through eighth class counties to levy a hotel room rental tax of up to five percent. The intent is to provide better uniformity in the levy and to meet increased local needs. CCAP for several years has been part of a working group with members of the tourism and hotel industries to develop this legislative update to the existing hotel tax statutes.

During consideration the committee adopted an amendment sponsored by committee chair and former Westmoreland County commissioner Sen. Kim Ward, which made a number of technical changes to HB 794, adding safeguards to ensure counties are receiving timely financial statements from tourism promotion agencies and instituting a match requirement for grant recipients.

The bill now proceeds to consideration by the full Senate.

HOUSE PANEL ADDRESSES REMOVAL OF COUNTY SHARE REQUIREMENT

The House Health Committee has unanimously reported HB 1062, which would eliminate the requirement for county nursing homes to pay ten percent of the non-federal cost of services for Medicaid residents. The legislation was introduced by former Delaware County Council member Rep. Tom Killion (R-Delaware) at the request of the PA Coalition of Affiliated Healthcare and Living Communities (PACAH), a CCAP affiliate.

The county share requirement, which totals approximately $18.5 million, is unique to county-owned homes and does not apply to private facilities. By removing the county share, the bill would free up federal funds generated by county homes that could then be paid directly to the counties in an incentive payment, thereby assisting those facilities struggling with low Medicaid rates and high Medicaid populations. The change is particularly critical because county homes have been privatizing at a growing rate due to deepening funding shortfalls, even though they serve an important role for Pennsylvania's most vulnerable individuals as the only facilities required to accept Medicaid patients on day one. The bill is now before the full House.

COMMITTEE ADVANCES IMMIGRATION DETAINERS BILL

By a 7-4 vote, the Senate Local Government Committee recently reported legislation to require local governments to enforce detainer requests issued by federal Immigration and Customs Enforcement (ICE).

Federal courts and agencies (see the Third Circuit's decision in Galarza v Szalczyk)have clearly established that ICE detainer requests are voluntary, and not mandatory orders. However, SB 997, introduced by Sen. Richard Alloway (R-Franklin), would hold a local government that does not comply with an ICE detainer request liable for future damages caused by the individual who is the subject of the request. The legislation further disallows local policies prohibiting enforcement of these requests; local governments with such policies would be ineligible for state law enforcement grants or to participate in the sale of state surplus property. An amendment was adopted by the committee to provide a means by which a local government could regain its eligibility, if it could prove it was enforcing immigration orders and had rescinded any existing policy prohibiting enforcement.

During the committee's discussion, Sen. Lloyd Smucker (R-Lancaster) shared information provided by his county on how the current system works if an individual is detained. He also explained that following the Galarza case, there could be liability on the county's part if it wrongly holds an individual, and that under SB 997 counties would be caught entirely in a Catch-22 situation. In addition to Smucker, Sens. John Blake (D-Lackawanna), Jay Costa (D-Allegheny) and minority chair Rob Teplitz (D-Dauphin) voted against the bill, which now goes to the full Senate for consideration.

HOUSE LOCAL GOVERNMENT COMMITTEE CONSIDERS BILLS

Two county-related bills received unanimous approval of the House Local Government during its Oct. 28 meeting. Senate Bill 785, introduced by former CCAP member Sen. John Eichelberger (R-Blair) would correct a technical drafting error in the Consolidated County Assessment Law (CCAL). Historically, all buildings were considered taxable, but the Commonwealth Court interpreted the statute in Pedersen v. Monroe County Board of Assessment Appeals (2014) to mean that only those buildings "permanently attached to land or connected with water, gas, electric or sewage facilities" may be subject to real estate taxation. The bill would return the CCAL to the original all-buildings language, although providing a limited exemption for certain de minimis structures of 200 square feet or less and certain agricultural buildings of 1,000 square feet or less. Prior to reporting the bill, the committee adopted an amendment to clarify that the exempt de minimis structures are those not permanently attached or not attached by gas or sewer.

The committee also approved Rep. Chris Ross's (R-Chester) HB 902 to extend the current law covering any contract or purchase of goods and property where bids are required but not received to also apply to purchase of services, under the same terms. Specifically, if no bids are received for a contract for services after two advertisements, a local government would be able to negotiate a contract to obtain the services advertised. The legislation also requires that the terms of any negotiated contract must be publicly announced at a meeting of the governing body before the contract is executed. This clarification of the statute will assist local governments in assuring they can take steps to complete necessary projects if no bids for services are received, while still maintaining appropriate standards of transparency.

CCAP FALL CONFERENCE ACTIVITIES

CCAP policy committee members will meet Nov. 22 in conjunction with the CCAP Fall Conference, Nov. 22 to 24 at the Hotel Hershey, to develop their 2016 work plans and to set legislative and policy priorities for 2016. A date for the formal announcement of the priorities at the State Capitol will also be finalized during the conference. The Conference also includes a membership voting session on Tuesday, Nov. 24. The agenda includes votes on the Association's 2016 action plan and 2016 dues schedule. The voting information will be emailed to the membership in advance of the Conference.

About Us Terms of Service Privacy Policy