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Number 24
November 27, 2015

www.pacounties.org

LEGISLATIVE BULLETIN

An e-newsletter of the County Commissioners

Association of Pennsylvania

Serving Counties Since 1886

In This Issue

Work Continues on Budget Framework

Counties Seek Action to End Budget Impasse, Prevent Future Harm

Bills on Governor's Desk

House Holds Hearing on Long-Term Managed Care

Senate Panel Advances Military Voting Bill

House Votes to Clarify Law on Service Contracts

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WORK CONTINUES ON BUDGET FRAMEWORK

A final FY 2015-2016 spending plan remains in flux as the Bulletin goes to press, with the process continuing to hit many bumps, twists and turns along the way.

Legislative leaders and Gov. Wolf announced a rough budget framework just a few short weeks ago, but it now appears that framework may take a slightly different form. As originally presented, it was designed to address the state's structural deficit, provide an increase in basic education funding and provide some level of school property tax relief. However, reports now indicate that the school property tax relief measures may be taken off the table as agreements to increase the state sales tax to provide replacement revenue remain elusive. In a Nov. 23 bellwether vote on the issue, the Senate took up an amendment to HB 683, to insert Sen. Dave Argall's (R-Schuylkill) Property Tax Independence Act. The plan would eliminate school property taxes by increasing the state personal income tax to 4.95 percent and increasing the state sales tax to seven percent, coupled with elimination of most exemptions. The amendment failed 24-24, with Lt. Gov. Mike Stack breaking the tie with an additional negative vote.

Late the following afternoon, with reports that negotiations were on the precipice of falling apart, the Senate announced plans for an evening vote on a veto override of the governor's Sept. 29 veto of SB 1000, an $11.2 billion stopgap budget. Following another meeting between the leaders and the governor's office, though, the override threat was called off. Instead, Senate Majority Leader Jake Corman (R-Centre) told the media that a budget framework is in place, and that staff would be working through the weekend to work out details, aiming for a vote early the week of Nov. 30.

The General Assembly has continued to move various other bills related to the state liquor stores and reform of the state and school pension systems through the legislative process, positioning them for action once final agreements on their content are reached. For the time being, the bills are serving as placeholders.

The House is scheduled to return to session on Dec. 1, and has scheduled session days through mid-December. The Senate returns on Dec. 2, and while it does not have as many days scheduled at this point, Sen. Corman also noted that once that chamber returns it will be in session until the budget is complete. Additional information will be provided on CCAP's Budget News and Updates web page as it becomes available.

COUNTIES SEEK ACTION TO END BUDGET IMPASSE, PREVENT FUTURE HARM

With many counties already at or quickly nearing fiscal crisis, county commissioners and council members on Nov. 23 approved a motion at their fall conference in Hershey authorizing the Association's legal counsel to research the potential basis for litigation against the commonwealth related to the impasse. Specifically, the Association will explore requiring the release of commonwealth and federal funds for essential services provided by counties, in the same manner that the state has used funds collected over the last five months for its own services. At the same time, counties also authorized CCAP to investigate the legal ramifications to counties and county officials of ceasing to remit funds collected at the county level on the state's behalf during an impasse, and allowing those funds to be used for essential local services.

After nearly five months without a state budget, Pennsylvania's counties continue to bear the brunt of cash flow and service demand needs. Many have incurred direct costs such as interest on borrowed funds, interest and fees on payment delays and foregone interest earnings on funds drawn from reserves. 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. As part of the FY 2015-2016 budget, counties are seeking reimbursement for these costs.

Counties further continue to press two other critical asks for the FY 2015-2016 budget. First, the children and youth rebalancing initiative, contained in the vetoed HB 1192, must not be part of any final budget solution. By failing to directly appropriate fourth quarter funding, rebalancing violates children and youth statutory requirements and prevents counties from being able to plan for a full year of funding even as they deal with increased caseloads from the recent changes to child protection laws. Second, as a priority for 2015, counties call for restoration of the 10 percent reduction to the seven line items that are included in the Human Services Block Grant, which affect core human service programs for all counties whether part of the Block Grant or not.

BILLS ON GOVERNOR'S DESK

At press time, two county bills are on the Governor's desk awaiting signature. House Bill 239, sponsored by Rep. Keith Greiner (R-Lancaster), clarifies 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.

Vague language in the current law has led to the 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 would instead allow a county with fund capacity to grant adjustments to monthly benefits without imperiling the solvency of the fund. The final day for Gov. Wolf's action on HB 239 is Nov. 27.

House Bill 753, authored by Rep. Linda Culver (R-Northumberland), establishes the Pennsylvania Long-Term Care Council under the Department of Aging. The Council will comprise 35 members including state agency and legislative representatives, consumer advocates, nursing facilities and other stakeholders, as well as a representative of CCAP. It will make recommendations relating to long-term care, such as access to quality care, service models and delivery, work force, housing and behavioral issues. The governor has until Nov. 28 to take action on this bill.

A full list of the 2015 Acts that impact county government can be found on the CCAP website under Government Relations/Legislation.

HOUSE HOLDS HEARING ON LONG-TERM MANAGED CARE

On Nov. 23, the House Health Committee held an informational meeting discussing Community Health Choices, the administration's plan to deliver managed long-term services and supports through capitated Medicaid managed care programs, rather than the commonwealth.

Kelly Andrisano, executive director of the Pennsylvania Coalition of Affiliated Healthcare and Living Communities (PACAH), a CCAP affiliate, provided testimony before the committee. She explained that counties have oversight and control of several long-term care programs like Area Agencies on Aging (AAAs) and county nursing homes, and other human services programs that impact long-term care, such as Behavioral Health Choices, local mental health and developmental services programs, and the Medical Assistance Transportation Program.

While PACAH supports efforts to improve Pennsylvania's long-term care system, Andrisano cautioned that such serious program changes should be done carefully to ensure success. For instance, a managed care environment would change the process for how Medicaid rates are set, significantly impacting the ability of county homes to provide services in their facilities, which have Medicaid populations nearing 85 to 95 percent. In addition, Andrisano said, the expertise of the local AAAs must be built upon. She also shared concerns that the care provided through Community Health Choices will need to be coordinated with the existing Behavioral Health Choices program.

Additional testimony was provided by Department of Human Services (DHS) Secretary Ted Dallas, Department of Aging Secretary Teresa Osborne, Deputy Secretary for the DHS Office of Long-Term Living Jennifer Burnett, and others representing managed care organizations, nursing facilities, and long-term care services.

PACAH's full testimony is available on the CCAP Government Relations Testimony and Advocacy web page.

SENATE PANEL ADVANCES MILITARY VOTING BILL

The Senate State Government Committee has given its unanimous approval to legislation which would authorize the use of electronic balloting options for military-overseas voters. Senate Bill 1052, introduced by Sen. Pat Stefano (R-Fayette), would require the Department of State to develop a secure online system for military-overseas voters to return their absentee ballots. The system would be operational by January 2017. During the committee meeting, Sen. Stefano noted that he was aware of security concerns with SB 1052, and would be working on an amendment for future consideration to allow military-overseas ballots to be returned by email or fax, but not by web-based voting system. The bill now goes to the full Senate for its review.

HOUSE VOTES TO CLARIFY LAW ON SERVICE CONTRACTS

The House of Representatives recently gave its unanimous approval to House Bill 902, introduced by Rep. Chris Ross (R-Chester), which would provide that if no bids are received for a contract for services after two advertisements, a local government could negotiate a contract to obtain the services advertised. The process would be similar to that in current law covering contracts or purchases of goods and properties where bids are required but not received. The legislation also requires that the terms of any negotiated contract for services must be publicly announced at a meeting of the governing body before it is executed. 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. House Bill 902 now goes to the Senate for consideration.

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