March 13, 2015

Weekly Wrap:

The House of Representatives Appropriations Committee held its first round of budget hearings this week. Chaired by Rep. Bill Adolph (R-Delaware) and Rep. Joe Markosek (D-Allegheny), the committee heard budget request presentations through Thursday from various offices and agencies. And while Republicans and Democrats might have trouble finding common ground on the budget, they do agree on one thing: the proposal presented by Gov. Tom Wolf will definitely change throughout the course of negotiations. Majority Chairman Adolph told the PLS Reporter that the governor’s proposal is just that, a proposal. “I’ve always said that the governor’s proposal…it’s just a blueprint and we work off of the governor’s blueprint. I always start with last year’s budget as the starting point.” Minority Chairman Joe Markosek echoed the sentiment, stating that ““His budget is the size of a phonebook, so my guess is there’ll be some changes,” he said. “Besides the governor’s office, there’s four caucuses involved, so obviously everybody’s going to have their say.” For more from the chairmen, check out:

http://www.theplsreporter.com/Home/TabId/56/ArtMID/472/ArticleID/615/Gov-Wolf%E2%80%99s-budget-proposal-will-be-altered-House-Approps-chairs-say.aspx

Monday started with a briefing on the commonwealth’s economic outlook by the Independent Fiscal Office. The Director of the IFO informed members that the Commonwealth’s deficit is approximately $1.5 billion, while the Wolf Administration contends that the deficit is slightly higher, at $2 billion (what’s a couple million between friends?). An accurate and agreed-upon estimate of the commonwealth’s revenue is critical to enacting a balanced budget: you can’t spend what you don’t have.

In the afternoon, the committee heard from the Department of Revenue and Pennsylvania Lottery, where the discussion was dominated by tax talk. Not surprisingly, each caucus and the governor’s office voiced a different estimate of the amount of revenue the proposed tax increases in the governor’s budget would generate. The day closed out with a presentation by the Department of Aging, where the discussion focused on issues important to older Pennsylvanians: the use of Lottery Fund money, PACE/PACENET, funding for home and community-based services and funding for Alzheimer’s care.

All three row officers – the Auditor General, Treasurer and Attorney General – presented their budget requests on Tuesday, with both Auditor General Eugene DePasquale and Attorney General Kathleen Kane requesting funding increases for staffing. There was very little, if any, discussion about the legal challenges facing former Treasurer Rob McCord or Attorney General Kane. The committee later heard from the Department of Agriculture, including a discussion of the viability of the Race Horse Development Fund.

Department of Community and Economic Development was first up on Wednesday morning. At DCED’s lengthy hearing, members inquired about all sorts of economic development issues, from the newly proposed Made in PA job program to tourism industry issues to the economic impact of the proposed severance tax. Immediately after, the Consumer Advocate and the Small Business Advocate appeared for a joint hearing to talk about issues important to the persons and entities they serve.

The better part of Wednesday afternoon was devoted to energy issues, as members heard budget presentations from the Department of Environmental Protection and the Public Utility Commission.  During both hearings, members had plenty of questions on the natural gas industry; DEP also fielded questions about alternative energy and pollution issues, while the PUC discussed electricity rates and consumer issues.

Thursday brought another busy day, starting with the Gaming Control Board’s budget hearing, where dialogue focused on revenue being generated from the commonwealth’s casinos, as well as the prospect of legalizing internet gaming in PA. After that, the committee discussed the rising cost of higher education at a presentation by the Pennsylvania Higher Education Assistance Agency and finished off the week debating the state procurement process at the Department of General Services’ budget hearing.

A Look Ahead:

Budget presentations will continue next week, but count on twice as many since the Senate will start to hold their hearings. For a complete list of hearings, go to: www.legis.state.pa.us

In Other News: