2010 Budget Hearings
Highlights and Summaries

Department of Aging | Department of Agriculture | Department of Community & Economic Development/PA Housing Finance | Department of Conservation & Natural Resources | Department of Corrections/Probation & Parole | Department of Education | Department of Environmental Protection | Department of General Services | Department of Health | Department of Labor and Industry | Department of Military and Veterans Affairs | Department of Public Welfare | Department of Revenue/Governor's Budget Office | Department of State | Department of Transportation | Executive Offices and Office of the Governor | Gaming Control Board | Insurance Department | Judiciary | Office of Attorney General | Office of Auditor General | PA State Police | PA State System of Higher Education | PEMA/Homeland Security | Public Utility Commission | SERS/PSERS | State-Related Universities

Department of Aging  | - 1:13 | Back to Top

Members of the Senate Appropriations Committee questioned proposed funding levels for senior centers and other programs and services for older Pennsylvanians during a budget hearing with Department of Aging Secretary John Michael Hall.

Senator Greenleaf asked for additional information on how the proposed funding levels for senior centers would affect the quality of care. Senator Greenleaf also asked what progress was being made to reduce or eliminate waiting lists for state programs that help older Pennsylvanians stay in their homes.

Senator Baker questioned how much individual senior centers would stand to gain under the Department's competitive grant program and whether a match would be required for grant funding. Senator Baker requested additional information on the use of stimulus funding to help seniors modify their homes to meet their medical needs. Senator Baker also questioned the effects of the proposed elimination of funding for free legal advice for seniors.

Senator Waugh asked how the Department would determine recipients of grant funding for senior centers and requested a geographic breakdown of grant recipients. Senator Waugh also requested assurances that the General Assembly would not be asked to fill any future funding shortfalls for programs that are currently funded by stimulus dollars.

Asking questions on behalf of Senate Aging and Youth Committee Chairman Kim Ward, 39th District, Senator Vance asked why the Department is committing limited resources to the Integrated Care Option (ICO) program, a program that will not be implemented until 2011 and may not have the support of the next Administration.

Senator Vance requested additional information on the resources already committed to the ICO program and information on the benefits of multi-state pooling options for PACE/PACENET.

Senator Rafferty asked how the Department is working to address the growing number of Pennsylvanians who are affected by Alzheimer's Disease. Senator Rafferty also requested information on Pennsylvania Lottery ticket sales and asked how ticket sales could affect programs funded through Lotto revenue.

Appropriations Committee Vice Chairman Senator Tomlinson pointed out that a large number of his constituents were on the waiting list for the OPTIONS program and asked for an update on the Department's efforts to provide services to these individuals.

Senator Browne asked for additional information on the future funding needs of nursing homes. Senator Browne also asked for the cost differential between patients in nursing homes and those receiving home and community-based services.

Department of Agriculture | - 1:48 | Back to Top

Department of Community & Economic Development/PA Housing Finance  | - 1:18 |  Back to Top

Department of Conservation & Natural Resources | - 1:18 | Back to Top

Senate Environmental Resources and Energy Committee Chairman Senator Mary Jo White, 21st District, asked Acting Department of Conservation and Natural Resources Secretary John Quigley for an update on Marcellus Shale drilling.

Acting Secretary Quigley reported that six natural gas wells are operating on state forest land with 100 in various stages of development. The state anticipates $6 million in revenues from the sites in Fiscal year 2010-2011.

Senator White said the state spent $6 million studying carbon dioxide sequestration and asked for an update. The Acting Secretary said the state has ample space for carbon sequestration and could do it safely and economically, with costs to sequester carbon from a six coal plant network estimated to be the lowest in the world. However, each plant needs an estimated 100 square miles of carbon storage space, which is a significant hurdle.

Several senators expressed concerns about the lack of Heritage Areas funding. The Acting Secretary said his Department is trying to fill the gap with competitive grants. He told Senator John Rafferty, 44th District, that the state's funding cut resulted in a net loss of $10 million in other funding to the state and 500 fewer jobs from lost federal matching funds.

Senator Rafferty also sought assurances that the natural gas drilling environmental safeguards were working. Acting Secretary Quigley said that the six operating wells showed no significant problems, but it was a small sample. He noted that the lease document runs 74 pages in length with restrictions and safeguards.

Senator David Argall, 29th District and Chairman of the Government Management and Costs Study Commission, said one suggestion for savings was to sell the state-owned cabins in state parks and forests instead of leasing them. DCNR Deputy Secretary James Grace said the rentals bring in more than $800,000 a year in revenue and that managing 4,000 privately-owned cabins on state land would not be a good precedent. The Senator also notified DCNR officials of unsavory nighttime activity at Swatara State Park.

Senator Lisa Baker, 20th District, said her constituents are concerned with gas pipeline safety throughout the Marcellus Shale region. Deputy Secretary Grace said smaller lines are being installed, but larger interstate lines will be a significant issue in the coming years. Senator Baker noted that while state park visits are up 13 percent, the Governor's proposed funding for FY 2010-11 is lower than what was proposed in Senate Bill 850 last year – a measure that prompted DCNR to threaten to close state parks.

Noting that some state parks reported no visitors last year, Senator Pat Vance, 31st District, asked whether closing those parks during a funding shortfall would make sense. The Acting Secretary said the goal is to have a state park within 25 miles of every Pennsylvanian.

Senator Vance asked if the lack of gypsy moth spraying would be devastating for communities. Deputy Secretary Grace said infestations tend to be cyclical, the moth population is way down and no serious impact is anticipated.

Appropriations Committee Vice Chairman Senator Robert Tomlinson, 6th District, said there has been a push to implement a severance tax on natural gas drilling. The Acting Secretary said 14 other states impose the tax and that it is time for Pennsylvania to do the same. Senator Tomlinson wanted to how the state policed the dumping of post-drilling brine water. The Acting Secretary said water disposal is regulated by DEP and river basin commissions, while DCNR enforces provisions of the well leases.

Senator Lloyd Smucker, 13th District, said he was concerned about getting making DCNR data and information available to the public. He also said he was concerned about legislators having access to Marcellus Shale information. Senator Smucker reminded the Acting Secretary that the public owns the state forests, not the state.

Senator Pat Browne, 16th District, asked for clarifications of several budget line items, including timber sales, which seemed to show a projected increase in revenue, but a drop in the quantity sold. Senator Browne also asked for a status report on the reconstruction of the Laurel Highlands snowmobile bridge. The Acting Secretary said DCNR is gathering funds to begin reconstruction.

Senator Browne asked what happens if there is a conflict between a rail-to-trail site and the desire for rail traffic to reestablish old lines. Deputy Secretary Cindy Dunn said DCNR generally works with PennDOT's Rail Bureau on such projects, adding that she hasn't seen any conflicts yet.

In response to questions about the cell phone tower ban on DCNR land, the Acting Secretary told Senator Mike Brubaker, 36th District, that the Bureau of Forestry is studying a request to lift the moratorium in the northern tier of the state where cell phone coverage is poor and public safety could be at risk. Senator Brubaker also asked about the funding shortfall in the Mapping PA project.

Senate Appropriations Committee Chairman Senator Jake Corman, 34th District, asked for a 10-year revenue projection from the existing leases in the Marcellus Shale region. Acting Secretary Quigley said it is difficult to project, and that estimates made within the last six months proved to be off by 60 percent. Senator Corman noted that between royalties and tax revenue, the sites will provide $300 million a year in annual state revenue as the industry matures, and that DCNR should proceed cautiously but not give in to pressure to halt drilling. Senator Corman also commended DCNR on weathering last year's budget impasse without closing state parks.

Department of Corrections/Probation & Parole  | - 1:40 | Back to Top

Department of Education  | - 2:00 | Back to Top

Senator Greenleaf questioned state Education Secretary Gerald Zahorchak about funding for suburban school districts, noting those in his senatorial district saw an average 2.5 percent increase in funding, with one school district 87 percent locally-funded and only 11 percent of its money provided by state subsidies. Senator Greenleaf said some school districts in other areas receive state subsidies of 77 percent. Senator Greenleaf said all districts should receive a state funding increase of at least 3 percent based on inflation.

Senator Gordner asked about state oversight of Intermediate Units in light of news that an IU executive director in his senatorial district was given a salary contract reaching $350,000 per year. Secretary Zahorchak said representatives from member school districts oversee IU administrative costs and reports to the state do not break out administrative salaries by individual.

Senator Gordner was one of several members to question cuts to library funding, noting it is down significantly since the Schweiker Administration. The Senator asked how many libraries receive waivers from standards previously implemented to receive funding. The Secretary said the state received 138 waiver requests from 100 libraries last year, with 75 percent granted. 

Following up on Senator Gordner's comments, Senator Rafferty urged the Department to make recommendations as to whether Intermediate Units are still necessary and how to make them more efficient. Senator Rafferty asked if the state should consider the bulk purchase of text books for all school districts to save money. The Secretary responded that the emerging use of technology such as Apple iPads may eventually replace the need to purchase many books. Senator Rafferty urged adequate funding of the Education Improvement Tax Credit, saying it has been more beneficial than many expected.

Appropriations Committee Vice Chairman Senator Robert Tomlinson, 6th District, noted that in his senatorial district, for every dollar in taxes sent to the state, schools receive around 10 cents in return, while in Philadelphia the return is $2.20 on the dollar. The Senator pointed out that there are school districts with many low-income students in counties deemed "wealthy" by the state. Secretary Zahorchak replied that low-income students and English language learners have more needs than other students and that 25 percent of Pennsylvania's low-income students reside in the Philadelphia School District. He said that the state funding formula is based on property values and personal incomes within districts.

With unemployment high, many job-seekers rely on public libraries for Internet job searches, said Senator Vance, who asked how the state justified cuts to library funding. The Secretary said that Pennsylvania is ranked fifth in the nation in state support for public libraries, and communities need to contribute their share. Senator Vance noted school districts outside of Philadelphia have many English language learners, and it does not explain why Philadelphia receives 25 percent of Basic Education funding with only 11 percent of the state population. The Senator also asked the Secretary to supply the committee with figures on dropout rates for the Philadelphia School District.

Responding to the Secretary's comment that some school districts were receiving a 25 percent increase in state funding, Senator White said no district should receive such an increase in the current economy. Senator White said she was concerned that youths in juvenile detention centers were not receiving an adequate education, meaning they are more likely to get in trouble again and end up in prison.

Senator White said Higher Education Councils were caught off guard in January when their funding was suddenly eliminated. Many had taken out bridge loans that they can't repay. The Secretary said he heard the feedback, and that all but $200,000 of the $2 million has been restored. Senator White referenced a newspaper article suggesting that the senior year of high school is a wasted year and asked for a reaction. The Secretary said he agreed the senior year must be better spent, with students enrolling in college courses and advanced placement courses, but he was wary of sending young teens to college campuses.

Agricultural Research and Extension Services are treated as afterthoughts in the education budget, Senator Mike Waugh, 28th District, said. The Senator encouraged the Department to reconsider cuts to public libraries. Senator Waugh noted that the Education Department had more American Recovery and Reinvestment Act (ARRA) line items than almost any other state Department, and sought assurance that it was not making long-term funding commitments with the temporary funds. Secretary Zahorchak said every school district was made aware of the federal ARRA guidelines, and that the Department is closely monitoring the spending of ARRA funds. Senator Waugh also urged the Department to question the administrative costs reported by school districts, with his concern that districts are getting too top heavy.

Senator Smucker addressed the proposal from the Administration to deal with the looming increase in pension costs faced by school districts. The Secretary said the goal was to flatten the long-term increase, which will spike drastically from 2012 to 2020 without action. Senator Smucker asked about the Education Empowerment Act, which is due to expire this year. The Secretary said legislation sponsored by Senate Education Committee Chairman Jeffrey Piccola, 15th District, to reauthorize and improve the measure was a good start and that he has met with the Senator to discuss it.

Public libraries are a resource for citizens ranging from preschoolers to adult job-seekers, said Senator Baker, urging the administration to restore funding. Senator Baker said that one school district in her senatorial district received almost no ARRA funding, increasing the burden on local taxpayers. She asked the Secretary to report back with any other districts that received little or no ARRA funds.

Senator Baker asked about the impact on school districts taking students from the Scranton School for the Deaf and the Scotland School for Veterans' Children. Senator Baker said the juvenile justice system in Luzerne County put many juveniles in placement based on zero-tolerance policies and said the state must make sure such policies are not abused.

Senator Browne wondered how libraries could sustain themselves with funding cuts while the state is projecting an increased use of the facilities. Secretary Zahorchak said local communities must make a funding effort equal to that of the state's to help out. Senator Browne also wanted to know why no ARRA funding was provided for special education students applying to Approved Private Schools. The Secretary said it was based on the federal formula.

Continuing the focus on special education, Senator John Pippy, 37th District, said increasing basic education funding by the costing out study before addressing special education was great in theory, but doesn't help school districts and that funding should reflect actual costs.

The senator then asked for an update on Pennsylvania cyber schools, and the Secretary said he'd like the state to catalogue high school courses for students anywhere in the state to access via cyber schools. Senator Pippy referenced a recent report finding that while early childhood education provides an initial benefit, there is no long-term difference in results, and asked the department to provide a written response to the findings.

Senate Appropriations Committee Chairman Senator Corman said that last year the state applied for federal State Fiscal Stabilization funds, but sought to exclude state-related universities, which the federal government rejected. Secretary Zahorchak said the intent of the Department's request was a priority to get federal funding for basic education. Senator Corman cited the Secretary's earlier statement that education was a way out of the economic recession and responded that a 12th grade education is not enough to drive recovery. He added that while cuts to basic education may be passed on to local taxpayers, cuts to higher education are made up through higher tuition.

Department of Environmental Protection | - 1:47 | Back to Top

Senate Environmental Resources and Energy Committee Chair Senator Mary Jo White, 21st District, told Department of Environmental Protection Secretary John Hanger that she was pleased to see the delayed Nutrient Credit Trading program finally moving forward with PENNVEST conducting its first auction this month. The program allows farmers to take steps to reduce runoff and sell the credits to wastewater treatment plants, helping plants and taxpayers avoid costly upgrades.

Senator White asked if there were more incentives for farmers to participate. The Secretary said it is a great program, but assistance funds are limited and he hoped farmers would take part because it is a good investment.

Senator White said she is concerned that DEP is enforcing new rules for Total Dissolved Solids that were not approved by the Legislature or the regulatory process. Secretary Hanger said the changes are moving on parallel tracks, through the permitting process and the formal rulemaking process in order to meet requirements of the Clean Water Act.

On DEP seeking to increase the solar components of the Alternative Energy Portfolio by 600 percent, Senator White noted that the Public Utility Commission concluded it would result in higher consumer costs. The Secretary said other studies indicated that prices go down when wholesale supply of an energy source goes up.

DEP is warning that recycling funds will run out, although there is still a year-and-a-half of grant funding available, said Senator Rafferty. He said that in recent years the Administration has threatened that funds will run out for everything from state parks to state troopers as a tactic in budget negotiations, adding that he is "tired of it."

Senator Rafferty noted that legislation has been introduced to reauthorize the recycling fee needed to fund the program. The Senator urged DEP to find funds for funding black fly spraying, and urged DEP to offer assistance when municipalities take over troubled private water treatment plans that need major upgrades.

Senator John Gordner, 27th District, wanted to know if Pennsylvania was still the leading state for accepting out-of-state waste, even with an increase in tipping fees in recent years. The Secretary said he believed the Commonwealth still topped the list, but was improving -- with trash annual imports down from 12 million tons to 7 million tons. Senator Gordner noted that the downside to the decline in trash coming into Pennsylvania landfills impacted tipping fees, recycling funding and Growing Greener projects. The Senator also questioned increases in DEP salaries and benefits. Secretary Hanger said while union workers saw an increase, those not covered by collective bargaining are subject to a wage freeze.

DEP has received $367 million in federal ARRA funds, and as he has done with other Department heads, Senator Brubaker sought assurances that the federal dollars were going to their rightful destinations. The Secretary said he has personally reviewed funding applications and visits project sites to ensure that ARRA funds are being used as intended. Senator Brubaker noted that the Chesapeake Bay Commission faces new federal mandates to reduce nitrogen phosphorus sediment and asked if Pennsylvania will be able to comply by 2025. The Secretary said yes, if the Nutrient Trading Program works.

Senator Lisa Baker, 20th District, asked for an update on DEP staffing numbers. Secretary Hanger said there are a total of 2,835 employees in DEP, and after 67 new staffers are added to the Northeast region, there will be 193 employees dedicated to oil and gas well issues -- paid out of fees. Senator Baker said that locating natural gas wells near water sources raises concerns, with one proposed site one mile from a reservoir serving all of Wyoming County. She asked whether well location or proposed new regulations for stronger well casings would do more to protect water supplies.

Secretary Hanger said stronger casings are critical, with some drillers saying the regulations should be tightened. Senator Baker said municipal officials are concerned that DEP regional offices are denying permits over anti-degradation rules without written policies and no guidance. The Secretary said better communication is needed, and he will be meeting with municipal officials regarding the problems.

While DEP has reduced or eliminated backlogs in the processing of permits, Senator Argall sought assurances that delays would not return when the economy picks up. The Secretary said one type of backlog is the result of tighter federal rules for on-lot sewer systems, which require more oversight. The backlog in processing other permits has been eliminated, but he said it could return under current staffing levels if economic activity and permit applications increase.

Senator Argall asked about new regulations in the works requiring a 150-foot buffer for development near specially protected streams and whether DEP had calculated how many acres such a rule would remove from potential development statewide. The Secretary said he would check and get back with the figures.

Senator Pat Vance, 31st District, said the decision to not fund black fly spraying through 2011 was shortsighted, and then asked about state assistance for areas trying to meet new federal standards related to the Chesapeake Bay watershed. The Secretary said voter-approved bond issues such as the H2O PA program are available, but that the Nutrient Trading Program is the key.

Appropriations Committee Vice Chairman Senator Tomlinson said it appeared that increasing the solar portion of the Alternative Energy Portfolio could lower consumer costs by reducing reliance on high-cost peaking plants – plants that provide energy needed during peak use periods. Secretary Hanger said that is correct, since solar is running best during hours when prices peak most during hot days. The Senator said the issue of feeder pipelines could inhibit gas drilling in the Marcellus Shale region. Senator Tomlinson said DEP, the Department of Conservation and Natural Resources, the Public Utility Commission and the Legislature should work together to oversee pipelines for safety.

Noting that the cost of solar energy has dropped substantially, Senator Smucker asked the Secretary if he expected the drop to continue and how close it could get to "grid parity" -- the point at which such renewable electricity is equal to, or cheaper than, traditional grid power. Secretary Hanger said he didn't expect the 40 percent drop to continue at that rate, but said it should keep going down. He said the federal government has set a goal of 2015 for grid parity, but even before then new equipment and technology will make it cheaper to produce solar energy.

Senator Smucker said he gets complaints from local organizations and farmers who want to participate in stream restorations, but face a longer permitting process than necessary.

On the challenges facing the Nutrient Trading Program, Senator Mike Waugh, 28th District, said one way to make it successful would be to bring together the parties at odds over water protection -- farmers and water treatment plant operators. Senator Waugh also asked about the effect of cuts in funding for conservation districts. The Senator also noted that the proposed budget would reduce funding for the Chesapeake Bay Agricultural Source Abatement Program to $9 million, affecting programs designed to boost best management practices for farming.

Senator Stewart Greenleaf, 12th District, sought information on Alternative Fuel Incentive grants. Because their spouses worked for grant applicants, Secretary Hanger and Deputy Secretary Barbara Sexton both abstained from the process. Deputy Secretary Patrick McDonnell said the program will fund biodiesel production credits, as well as competitive grants for municipalities and school districts to purchase equipment and vehicles.

Senator Greenleaf sought a "definitive answer" as to whether coal can be used in an environmentally sound manner. The Secretary said there is no perfect energy source, but that scrubbers and carbon capture and storage technology can make coal a cleaner energy source. The Senator also received an update on flood control projects and grants, specifically on the status of the Upper Dublin flood control project in his district.

There are about 70,000 active gas wells in Pennsylvania and Senator Gene Yaw, 23rd District, asked about the frequency of gas migration -- when gas seeps into water sources. The Secretary said it happens about once a year, usually affecting private wells. Senator Yaw noted that, according to DEP, the drilling process called fracking has been in use for 60 years and EPA reports that there has never been a case of fracking contaminating a public water supply. The Secretary said there has been no contamination in Pennsylvania since Marcellus Shale drilling began.

Senate Appropriations Committee Chairman Senator Jake Corman, 34th District, commended the DEP for absorbing cutbacks in two difficult budget years, last year and this year. Senator Corman noted that well permit fees help pay for related DEP oversight and asked if the Department has sufficient personnel to monitor increased drilling activity. The Secretary said yes, but that needs to be evaluated every year.

On calls for a moratorium on drilling in state forest land, Senator Corman noted that the DCNR Secretary did not think it was necessary. Secretary Hanger said it is not DEP's role to decide, but that his Department can provide adequate oversight to the permitting of well construction on state land.

Department of General Services | - 1:23 | Back to Top

Several Appropriations Committee members sought updates on prison construction projects. Department of General Services Secretary James Creedon told Senator Gordner that projects include construction of new Rockview and Graterford prisons, as well as a new prison in Fayette County, along with additional housing at four other sites.

Secretary Creedon said that "outrageous bids" and litigation over Project Labor Agreements (PLAs) and the Separations Act have delayed work. The Secretary said the housing projects would add "hundreds" of new beds, but would not end the need to contract with other states for inmate housing.

Questioned by Senator Greenleaf, Secretary Creedon said even with the new construction, the state would need prison space in coming years if other changes are not enacted. The Secretary told Committee Chairman Senator Corman that an announcement regarding which construction project will begin first will be made in two weeks.

Senator Smucker said one reason for the high bids was the decision to use PLAs, which limited competition, and he encouraged DGS to reconsider that approach in the future.

The Secretary provided Senator Vance with an update on three state-owned facilities. There are no plans to sell Harrisburg State Hospital, with the campus still providing many uses. DGS would need General Assembly approval to dispose of property at the Scotland School. Senator Vance said DGS should consider turning it into a veterans' home. As for Mayview State Hospital, DGS is working with Senator Pippy and the community to find a future use for the facility.

Senator Vance also questioned DGS officials about the scoring system for awarding bids, and whether consultants are used. The Senator said she did not like additional points being awarded based on gender.

Senator White questioned the jump in DGS recycling costs and requested more information. The Secretary said cost is based on the market for recycled material, but that it's still cheaper than using trash haulers. On the DGS contract with Aramark to provide food services in the Capitol, Secretary Creedon said there are two years remaining on the contract. After two failed health inspections, the Agriculture Department is overseeing training, but DGS will terminate the contract if more serious trouble is found.

Appropriations Committee Vice Chairman Senator Robert Tomlinson, 6th District, noted DGS plans to increase its purchase of renewable energy by 10 percent, to a total of 50 percent. On Pennsylvania's application to become a member of the PJM power grid, Secretary Creedon said it could save energy as the Commonwealth moves from retail to wholesale power source. Senator Tomlinson also encouraged DGS to consider initiatives to increase Commonwealth opportunities for veteran-owned businesses.

Senator Browne sought information about how DGS utilizes facilities after downsizing. He also asked if DGS considered outsourcing the management of its vehicle fleet. The Secretary said it considered it with its pool fleet, but determined DGS could do it more effectively internally.

Senator Pippy asked why a bid to upgrade the Revenue Department's computer system was selected and they put out to bid again. Deputy Secretary Anne Rung said there was a problem in the scoring system and the project was rebid out of fairness. The Senator also encouraged DGS to consider using more Pennsylvania biofuels for its diesel fleet.

Senator Brubaker asked Secretary Creedon, who is responsible for the oversight in Pennsylvania of federal stimulus funding, if he could assure the Appropriations Committee that every dollar was going to its intended destination. The Secretary said, "Yes."

Senator Brubaker also wanted to know what DGS does to help Pennsylvania companies compete for state contracts. The Secretary said the state cannot require that contracts go to in-state firms.

The Secretary told Senator Greenleaf that DGS operates a website to help Pennsylvania firms bid for work.

Responding to Senator Rafferty, the Secretary said that Alternative Energy Grants for solar projects are awarded based on a points system. He said he works with the Department of Environmental Projection for follow-up on the grants and the progress of projects.

Department of Health   | - 1:31 | Back to Top

Department of Labor and Industry | - 1:12 | Back to Top

Members of the Senate Appropriations Committee questioned the possible effects of cuts to job training programs and workforce development initiatives during today's budget hearing with Department of Labor and Industry Secretary Sandi Vito.

Senate Labor and Industry Committee Chairman Senator Gordner asked how much money the state has borrowed from the federal government to ensure the solvency of the state's Unemployment Compensation Trust Fund. Senator Gordner urged the Administration to work with the General Assembly to address the future of the fund.

Senator Gordner questioned the Department's position on the use of prevailing wage requirements for inspection agencies. Senator Brubaker asked for additional information on the number of prevailing wage audits conducted on open shop contractors as opposed to union contractors.

Senator Vance asked for the rationale of eliminating the popular New Choices, New Options Program. Senator Vance also questioned the proposed increase in funding for the Department's general government operations while many of the Department's programs were eliminated or reduced in the Governor's budget proposal.

Senator Vance and Senator Smucker questioned the need for additional staff to handle workers' compensation claims. Senator Smucker also expressed concerns about cuts to the Commonwealth's workforce development programs.

Senate Appropriations Committee Chairman Senator Corman noted the elimination of funding for Beacon Lodge Camp and questioned if the Department was making an appropriate effort to fund programs for the visually impaired.

Senator Corman and Senator Rafferty urged Secretary Vito to work in conjunction with the Department of Education to ensure that workers are learning the skills they need to be successful in the workforce. Senator Rafferty also asked how the state is working to train displaced manufacturing employees for other types of employment.

Senator David Argall, 29th District, asked what response the Department has received from veterans following the recent closing of the Governor's Veterans' Outreach and Assistance Centers.

Senator Brubaker asked for an update on the Department's efforts to prepare workers for careers in agriculture.

Responding to a question from Senator Greenleaf, Secretary Vito said that individuals without post-secondary education have experienced the greatest difficulties in finding and retaining employment during the economic downturn. Senator Greenleaf also reported a problem with the Department's computer system for filing unemployment compensation claims and asked Secretary Vito to ensure that the problem is addressed.

Department of Military and Veterans Affairs   |- :52 | Back to Top

Department of Public Welfare  | - 1:36  | Back to Top

Department of Revenue/Governor's Budget Office | - 2:03 | Back to Top

Department of State | - 1:05  | Back to Top

Several senators voiced their approval for the job that Department of State Secretary Pedro Cortes and his Department are doing in implementing the Statewide Uniform Registry of Electors (SURE) and modernizing the state's voting system.  

Senator Greenleaf asked Secretary Cortes how much federal funding Pennsylvania receives for the Help America Vote Act (HAVA).  HAVA mandates that all states and localities upgrade many aspects of their election procedures, including their voting machines, registration processes and poll worker training.  Secretary Cortes said every county in the state is now using electronic ballots.

Senator Mike Waugh, 28th District, raised concerns about some of the mandates included in HAVA, saying that in future years federal funding may not be available for many of them, including new, higher-tech voting machines.

Senator White noted that the state's Lobbyist Disclosure Law is a step forward, but added that the focus is more on registration than on monitoring.  She said there should be a mechanism in place to move quickly to sanction someone who does not register, as required by law. "There doesn't seem to be a penalty that is quick or efficient, and I think we need to work on that," Senator White said. 

Senator White and Senator Smucker both commented on the Department's move to use technology to streamline efficiency.  Senator Smucker suggested that the Department take a closer look at the various licensing boards that have been formed in the past to see if they are still necessary. "At a time when the economy is down, it might be good to look at the effectiveness and necessity of some of those boards," Smucker said.

Senator Vance raised concerns about a Department of State practice of displaying professional licenses online. She said it makes it much easier for someone's identity to be stolen, citing a case where a person posed as a nurse, using false credentials.  Senator Vance suggested the Department use some sort of password so the general public cannot have access to personal information. 

Department of Transportation  | - 1:21  | Back to Top

Members of the Senate Appropriations Committee questioned the tolling of Interstate 80, mass transit funding and other transportation issues during a Wednesday afternoon budget hearing with Allen Biehler, Pennsylvania Secretary of Transportation.

Senator Rafferty, Chairman of the Senate Transportation Committee, asked if the Department has heard of a federal ruling on Pennsylvania's request for the tolling of Interstate 80 and what percentage of PennDOT's proposed Fiscal Year 2010-11 budget is dependent on revenues from those tolls. Senator Rafferty wanted to know if the Administration would file an appeal if the federal government rejected the tolling request.  He then asked what the Department will do if the federal decision is delayed until late in calendar year 2010.

Senator Greenleaf wanted to know how much the state spends for maintenance of I-80 and whether Pennsylvania receives federal funding for that work. Senator Greenleaf wanted to know what percentage of the state funding for I-80 maintenance comes from Southeastern Pennsylvania. He also questioned a reduction of traffic volume on the Pennsylvania Turnpike and whether those vehicles are now using I-80.

Senator Gordner again stated his strong opposition to the tolling of I-80. He said it would have a negative impact on Pennsylvania residents and could limit economic development in the future. Senator Gordner then discussed funding for mass transit, citing a report that stated that SEPTA and the Port Authority of Pittsburgh are the top mass transit agencies in the nation in receiving state support.

Senator Smucker asked about PennDOT efforts to improve and upgrade Pennsylvania's bridges. He also asked about the costs incurred by PennDOT for clean-up after this winter's storms.

Senator Vance wanted details regarding $7 million in federal money PennDOT provided to SEPTA to resolve its contract with its union employees.

Senator John Pippy, 37th District, questioned funding for mass transit and regionalization of service, especially in Western Pennsylvania. He also requested details about an increase in MAGLEV funding. Senator Pippy suggested PennDOT consider ways to improve efficiency in mass transit as a way to better use funding for those services.

Senator Waugh wanted reassurances that PennDOT is not using temporary federal stimulus money to create permanent program costs. He also commented on problems with state roads in his senatorial district caused by winter storms. 

Senator Brubaker inquired whether PennDOT is open to working with farmers to develop rules and regulations to improve safety on rural roads in regard to the movement of farm equipment.

Executive Offices and Office of the Governor  | - 1:49  | Back to Top

Concerns about Pennsylvania's statewide radio system and information technology (IT) improvements were among the issues raised by the Senate Appropriations Committee during a budget hearing with Secretary of the Budget Mary Soderberg and Secretary of Administration Naomi Wyatt.

Senator Rafferty, Chairman of the Senate Transportation Committee, requested an update on the statewide radio system, noting that there are still problems with coverage. Senator Rafferty specifically noted communications problems during last year's G-20 conference in Pittsburgh. Senator Rafferty said his committee will continue to monitor implementation of the radio system.

Senator Baker, Chairman of the Senate Veterans Affairs and Emergency Preparedness Committee, said her committee has held hearings on the statewide radio system and will continue to follow its progress. Senator Baker asked which counties are currently experiencing coverage problems.

Senator Lloyd Smucker, 13th District, said information technology systems vary widely between various departments in state government. He asked Secretary Wyatt for an update on the state's efforts to upgrade and improve its IT systems.

Senate Appropriations Committee Chairman Senator Corman agreed that IT improvements are essential, but disagreed with Secretary Wyatt's contention that the legislature was at fault for lagging IT improvements in the Department of Revenue. Senator Corman reminded the Administration officials that all budget decisions represent three-way agreements between the Governor, the House and the Senate.

Senator Corman also asked Secretary Soderberg about the adequacy of state funding for the Judiciary.  He also asked when would be the earliest point that the Administration could certify a revenue estimate for Fiscal Year 2010-11. Secretary Soderberg said the estimate could be available in early May.

Senator Gordner noted that Governor Rendell has used the threat of furloughs and/or payless paydays for state employees during the last three budget cycles. Senator Gordner asked if the Office of Administration has reviewed the recent court ruling that under the Federal Fair Labor Standards Act the Governor is not required to furlough workers during a budget impasse and the state must pay workers if they are working.

Senator Greenleaf noted that the Executive Office budget included funding for intermediate punishment and intermediate drug and alcohol treatment programs. He said the use of those programs could result in cost savings and added the Administration should urge local courts to use those resources.

Senator Vance discussed funding for public television. Senator Vance also discussed a major disparity in recent raises for union employees compared to those given to management employees.

Senator White raised concerns about the lack of adequate high-speed broadband access in rural areas of the Commonwealth. Senator White questioned Secretary Wyatt about funding for telecommunications infrastructure improvements. Senator White also asked if the state has a fallback position if Pennsylvania doesn't receive the more than $1.1 billion in anticipated funding from the federal government.

Senator Brubaker asked about the Administration's contract with Global Insights for economic information. Senator Brubaker also asked the Administration officials if they could ensure the Appropriations Committee that federal stimulus funding spending by the state is in compliance with federal requirements.

Senator Mike Waugh, 28th District, questioned a proposed $24.7 million payment from the Motor License Fund to the General Fund.

Gaming Control Board  |- 1:43  | Back to Top

Insurance Department | - 1:17

Several Senators raised concerns about Pennsylvania's adultBasic program and the impending end of the Community Health Reinvestment (CHR) agreement with the "Blues" during the Senate Appropriations Committee's budget hearing with state Insurance Commissioner Joel Ario.

Senate Appropriations Committee Chairman Senator Corman asked whether there is anything in state statute or the groups' charters that requires a "social mission" on the part of the "Blues." He wanted to know the justification for the CHR paid to the state as part of the social mission aspect.  Commissioner Ario said Pennsylvania could look at the CHR as something comparable to a 2-percent premium tax paid by for-profit insurance companies.

Senator Corman also noted that Pennsylvania invests about $7 billion for subsidized health care programs (CHIP, Medicaid and adultBasic). The total state and federal investment in those programs is about $14 billion, he said.

Senator Gordner discussed CHR, which is set to expire at the end of the year. Specifically, he questioned a significant increase in the Governor's budget in anticipated contributions from Pennsylvania's four major health insurance providers. Senator Gordner asked Commissioner Ario if the Insurance Department has drafted legislation for renewing the CHR.

Senator Vance applauded the Insurance Department for instituting a "rolling admissions" policy for adultBasic coverage. She had pushed for the policy for two years. Senator Vance also asked about the Department's fall-back position if the General Assembly doesn't approve CHR legislation.

Senator Rafferty requested information on the total amount that Pennsylvanians pay for auto insurance premiums and the total amount that insurance companies pay out in claims. Senator Rafferty added that he was disturbed that some auto insurance companies were "strong-arming" policyholders to use "preferred" auto repair shops.

Senator Argall asked why Act 4 of 2009, sponsored by Senator Corman and providing for insurance coverage for dependents ages 30 and under, only applies to group health care plans and is not available to individual families. Commissioner Ario said the law only applies to employer-paid plans and does not include individual plans.

Senator Greenleaf noted that there is an apparent stabilization in the market since the enactment of medical malpractice reform legislation in 2002. Commissioner Ario said there were some increases in premiums in the years after 2002, but they have stabilized and in some cases decreased since then. However, Pennsylvania's premiums are somewhat higher than the national average, Commissioner Ario said.

Senator White said $100 million was borrowed from the Underground Storage Tank Indemnification Fund (USTIF) in 2002. Only $3 million was repaid in the 2008-09 budget and no money was allocated for repayment in the 2009-10 budget nor proposed for the 2010-11 budget. She said the failure to repay the loan represents a "backdoor" tax on gasoline.

Noting that 198,000 children are enrolled in CHIP and there is no waiting list, Senator Tomlinson asked for a justification for increased funding for the program.

Judiciary  | Back to Top

Pennsylvania Supreme Court Justice Max Baer said the Judiciary's $341 million budget request includes $21 million supplemental appropriation request for the current year. He said that only 6- to 7-percent of the Judiciary's budget is discretionary, with the rest paying for constitutionally mandated judges or as grants passed on to county courts. Justice Baer asked that the Legislature work with the Judiciary to work out long-running funding problems.

Senate Appropriations Committee Chairman Senator Corman said funding challenges are a problem across state government and said he was open to discussing judicial funding issues.

Appropriations Committee Vice Chairman Senator Tomlinson agreed that the Judiciary has a structural funding problem that the Legislature takes seriously.

Senate Judiciary Committee Chairman Senator Greenleaf noted that temporary filing fees set last year brought in less revenue than expected. Justice Baer said increased fees could be considered, but he said he has concerns about funding a branch of state government through fees. The Senator also noted that court system expenses have increased in part because of a 1,600-percent rise in the state prison inmate population from 1980 to 2007 and asked if the justices had recommendations for reducing incarceration rates and costs.

Justice Thomas Saylor said many states are reconsidering mandatory minimum sentences. Justice Baer said that Pennsylvania has the largest death row in the nation, which also drives up costs.

Senator White said mandatory sentences are not a large part of the cost problem and added the courts could do more on their own to reduce costs. She said the Legislature authorized intermediate punishment options that could divert nonviolent offenders from the state penal system but those options are not used frequently enough. Senator White also noted that there are alternatives to re-incarceration for technical parole violations that more judges might use if given proper guidelines.

When told that judges and staff do not contribute to their health insurance plans, Senator Vance  said the Judiciary should consider changing that policy, as the legislature did for members and staff. Justice Baer responded that he was reluctant to reduce benefits because they are important to retaining judges. Senator Vance said that one benefit of employee contributions to health insurance coverage is that users are more aware of costs. It was noted that health insurance costs for the Judiciary increased by 13 percent last year.

In a time of limited revenue, every state entity must look for ways to cut costs, said Senator Waugh. He wanted to know what specific measures the Judiciary has taken to reduce costs. Justice Baer said the Judiciary withheld COLAs and merit salary increases for staff last year, changed the employee co-pay for prescription drugs and left several positions vacant.

Senator Browne noted that the Judiciary seemed to use its Computer Augmentation Account as a general reserve fund, and suggested that a separate account be created for that purpose. Senator Browne also sought the Justices' opinions on the fact that Pennsylvania does not help pay for legal counsel for indigent defendants.

Senator Stewart Greenleaf (R-12) raises concerns about the steadily rising prison population during the budget hearing for the Judicial Department. 

Office of Attorney General | - 1:32