PathWays PA Policy Blog

(from our friends at the Pennsylvania Budget and Policy Center) A severance tax bill is now going to the House floor for a vote today, September 28 . SB1155 sets a competitive tax rate and has no front-end exemptions. It is expected to raise $120 million in the first six months of 2011 and $326 million in Fiscal Year 2011-12. A vote is scheduled for 3 pm. Please contact your legislators right now! The final bill allocates the first $75 million in funds raised this fiscal year to the General Fund. $70 million will make up for Pennsylvania's reduced FMAP allocation , and $5 million will go to the Department of Labor and Industry for worker training. The legislation also includes an annual $10 million job tax credit. After the first $75 million this year and for all future years, funds are distributed as follows: 60% to the General Fund 40% to environmental programs and local governments SB 1155 will provide a stable source of new funds for health care, human services, and ...

( from our friends at the SEPA Budget Coalition and Better Choices for Pennsylvania ) As the Pennsylvania House and Senate come back into session, the House is making plans to debate a severance tax on natural gas.  The severance tax is necessary to make up for the reduced FMAP allocation and has already been included in this year's state budget . Without it, Pennsylvanians can expect at least $70 million in cuts this year alone in addition to the cuts that have already been made . In the future, the severance tax will play a major role in state budgets - if industry production estimates are accurate, the severance tax could be the 4th largest state revenue source.. House members are debating the structure of the tax. It is important that education, health and human service groups weigh in to remind our representatives that kids, seniors and people with disabilities should not be forgotten in this debate. We are asking you to support the following: A strong severance tax th...

House Labor Relations Committee Held Hearing on Earned Sick Time Bill On August 17, the House’s Labor Relations Committee held a hearing to discuss the Healthy Families, Healthy Workplaces Act (HB 1830), which gives Pennsylvania’s workers the opportunity to earn up to 6.5 days (52 hours) of paid sick time.  Workers would be permitted to use the hours they earn to care for themselves or a family member when they are sick or in instances of domestic violence. PathWays PA, along with other members of the Coalition for Healthy Families and Workplaces, attended and testified at the hearing.  Prior to the hearing, Coalition members met with legislators to talk about this important issue and held a press conference.  Even in the dog days of summer, the Coalition was able to make a great deal of progress on moving toward allowing workers in Pennsylvania to earn paid sick days. To learn more about this issue please and to learn about our day in Harrisburg visit the Coalition...

With FMAP funding being less than what the state had budgeted for, a $282 million hole needs to closing. The Governor has a two-part plan . The first part includes across-the-board cuts in departmental spending, including the layoff of 100 state workers by early September. The Governor expects to save $212 million by making a 1.9 percent cut in the budgets of dozens of agencies. In addition, he is urging the General Assembly, independent agencies, and state courts to cut their 2010-11 spending by the same amount. The second part includes the enactment of a new severance tax on the natural gas being pumped from Marcellus Shale. It is anticipated that this would raise $70 million in new revenue from that levy. If the tax is not enacted by early October or if agencies and the legislature do not trim their budgets, the additional layoffs may be necessary.

State House Labor Relations Committee to Hold Hearing on Earned Sick Time Bill On August 17, the House’s Labor Relations Committee will hold a hearing to discuss the Healthy Families, Healthy Workplaces Act (HB 1830), which gives Pennsylvania’s workers the opportunity to earn up to 6.5 days (52 hours) of paid sick time. Workers would be permitted to use the hours they earn to care for themselves or a family member when they are sick or in instances of domestic violence. Currently in Pennsylvania 46 percent of workers have no earned sick time, and a majority of employees without this benefit work in food service and care giving positions. When workers without earned sick time are sick, they have to choose between going to work – where they could potentially infect co-workers or customers – and staying home – where they will lose pay and possibly their jobs. Please join advocates in Harrisburg for a press conference to discuss the need for earned sick time in the Capitol Rotun...

Sources say that in meetings with legislative leaders today, Governor Rendell made the following proposals to close the budget gap left by FMAP funding.  Currently, the proposal seems to involve the following: 1.9% cuts across the board in discretionary appropriations (expected to total $198 million, including a $50 million cut in basic education funding) 1.9% cut to legislature (totaling $6 million) 1.9% cut to courts (totaling $5 million) 1.9% cut to elected independents (totaling $3 million) Governor Rendell also expects to use $70 million in funding from a proposed tax on Marcellus Shale. As many of you know, FMAP passed out of the House yesterday, but at lower levels than the state originally budgeted.  Pennsylvania will be receiving approximately $600 million instead of $850 million from FMAP. image courtesy of http://en.wikipedia.org/wiki/File:Skalm_2.JPG

As expected, FMAP spending was concurred on by the House of Representatives today, setting the stage for the bill to be signed by President Obama.  Over $16 billion in funding will now go to states to bolster their weakened budgets. Pennsylvania will receive approximately $600 million from FMAP and almost $400 million in federal education funding. Even after the funding, Pennsylvania will have a budgetary gap of between $200 million and $250 million.  Governor Rendell and state legislators are scheduled to meet tomorrow to discuss how best to meet that gap.  Please contact your state legislators today to support the important services that Pennsylvania's families continue to rely on in these tough economic times. image courtesy of http://en.wikipedia.org/wiki/File:OvalMedallion.jpg

(from our friends at the Southeastern Pennsylvania Budget Coalition and HCAN ) On August 10, 2010, a bipartisan press conference will be held in Media, PA, in support of FMAP funding (which creates a temporary increase in federal funding of Medicaid and Medical Assistance for states).  The press conference will come on the same day that the House is expected to vote on FMAP funding , following a Senate vote on the bill last week. At the press conference, Senators Edwin Erickson (R-Delaware), Stewart Greenleaf (R-Montgomery), Daylin Leach (D-Montgomery), and Leanna Washington (D-Philadelphia and Montgomery) and Represntative Tom Murt (R-Montgomery) will join together to discuss how the need for FMAP funding rises above partisan lines. In Pennsylvania, FMAP funding is expected to preserve a wide range of services and to prevent the loss of possibly 20,000 jobs in the public and private sector. While FMAP funding will help fill the $850 million gap in the state budget, it is no...

Coffee Hour with Content: Come Network and Learn about the Need for Earned Sick Time Did you know that 46% of workers in Pennsylvania have NO earned sick time? In other words, 2.2 million Pennsylvanians either go to work sick or risk losing their pay when ill-or their jobs! The Coalition for Healthy Families and Workplaces is hosting a coffee hour where individuals can network while learning about the issue of earned sick time and current legislation working its way through the General Assembly and City Council. Come enjoy some free coffee and a light breakfast and learn more! WHEN: Thursday, August 12th 8:00 am -9:00 am (You must RSVP by August 11!) WHERE: Ballard Spahr, LLP, 1735 Market Street, 42nd Floor, Peter Mattoon Conference Room, Philadelphia, PA To register for the event visit: http://coffeehourwithcontent.eventbrite.com (You must RSVP to attend!) Please join the Coalition for Healthy Families and Workplaces to give workers the ability to earn sick time to ca...

Yesterday's cloture vote regarding FMAP in the Senate has paved the way for a final vote on the Senate legislation to occur sometime today.  Pennsylvania expects to receive approximately $600 million in funding from the bill, leaving a budget shortfall of $250 million for the upcoming year.  Governor Rendell announced yesterday that he plans to meet with legislative leaders in the next week to determine how to fill that $250 million gap, which could be done through layoffs of up to 11,000 people, spending cuts, or a combination of the two. As states piece together their budgets with FMAP funding, a few hurdles still must be crossed.  In addition to the upcoming Senate vote on the measure, the House must cast their votes in order for the bill to pass.  While the House was not expected to return to session until September, Speaker Pelosi indicated that she plans to call the House into session by next week so that they can vote on the bill. If you believe this bill ...

The proposed vote on Federal Medical Assistance Percentages (FMAP) that was originally scheduled for yesterday has now been moved.  It may take place as early as tomorrow.  However, this vote will pose a dilemma for many, as it may cause one important program (SNAP, also known as food stamps) to lose money in order to fund another.  FMAP, as we have discussed many times , is a critical component of the Pennsylvania state budget as it stands today.  Through FMAP, which provides matching federal funds for certain state social programs and insurance, Pennsylvania expected to fund $850 million of the state budget that passed in July 2010.  The Commonwealth will probably receive only 75% of that funding if FMAP is passed by the Senate, which will create a $255 million budget shortfall.  However, it is still critical that FMAP pass so that Pennsylvanians do not face cuts to even more services. At the same time, funding FMAP through cuts to SNAP poses many c...

Federal Act Now: Pennsylvania Could See an $850 Million Hole in the Recently Passed State Budget While the state budget has been passed and signed, there is unfortunately still work to do as the budget includes $850 million in federal funding that Congress has yet to approve. Without the funding, layoffs at all levels of government, as well as teachers and emergency workers, and additional cuts to programs are likely . This funding would come from the extension of the federal percentage of matching funds for state Medicaid expenditures, known as the Federal Medical Assistance Percentage (FMAP). The American Recovery and Reinvestment Act of 2009 enhanced the FMAP contribution for states through December 2010. Legislation now before Congress would extend the enhanced FMAP funding to states through June 2011, but the bill has stalled. If Congress fails to approve the FMAP funding, the Governor and legislators will have to find another way to balance the budget, which will likely...

While the state budget has been passed, there is unfortunately still work to do as the budget includes $850 million in federal funding that Congress has yet to approve. This funding would come from the extension of the federal percentage of matching funds for state Medicaid expenditures, known as the Federal Medical Assistance Percentage (FMAP). The American Recovery and Reinvestment Act of 2009 enhanced the FMAP contribution for states through December 2010. Legislation now before Congress would extend the enhanced FMAP funding to states through June 2011, but the bill has stalled. If Congress fails to approve the FMAP funding, the Governor and legislators will have to find another way to balance the budget, which will likely require cuts in funding for critical human services . If you believe this funding is important, please contact your federal legislators today and urge them to extend FMAP. Below is a sample message, please feel free to add your own stories or thoughts ab...

Federal Help Move the Paycheck Fairness Act Currently, women working full-time, year-round make an average of 77 cents to every dollar that men make. This means that the average woman loses $700,000 in pay due to gender discrimination in her lifetime. For women of color, this number can be even higher. Fair pay is especially critical in this tough economy because more and more women are the sole breadwinners in their families. The Paycheck Fairness Act, which has already passed the House, would deter wage discrimination by closing loopholes in the Equal Pay Act and barring retaliation against workers who disclose their wages. The bill also allows women and men to receive the same remedies for sex-based pay discrimination that are currently available to those subject to discrimination based on race and national origin. In addition, the bill would improve the collection of pay information by the Department of Labor and the EEOC to enable those agencies to evaluate pay disparitie...

Since Governor Rendell has signed a budget, this will be our last Special Budget Alert of this budget season. Please see this Policy Blog and sign up for our E-Newsletter for information regarding the severance tax and other issues affecting Pennsylvanians.  PathWays PA like to thank all of our readers for their support and feedback on our alerts. In an effort to improve future alerts, we have created a brief survey . Please take a few minutes and let us know what you thought of our Budget Alerts and how we may be able to improve them. Also, please stay turned, as next year's budget is already right around the corner while revenue for this year’s budget has not been fully determined. State Budget Signed Earlier this week, the Governor signed a $28.05 billion spending plan . The budget includes a $250 million increase in funding for basic education and a severance tax on natural gas extraction to go into effect in January 2011. The General Assembly has until the fall to w...

( You can also view selected line items on our blog or an updated spreadsheet of line items as a PDF. The updated spreadsheet includes differences between the 2009-2010 budget and the 2010-2011 budget.) A budget deal between the four legislative caucuses and Governor Rendell was reached Tuesday. The agreed-to spending plan, which must still find approval from rank-and-file members in the House and Senate, would spend about $28.05 billion, nearly $1 billion less than the Governor’s original request for a $29 billion budget. If enacted, the new budget would spend about six-tenths of one percent more than the current fiscal year, which allocated about $27.9 billion. As reported by PLS , Governor Rendell said there are still “potential storm clouds” that could affect the agreement. In particular, the budget assumes $850 million in extended FMAP funding from the federal government which has yet to be approved. The Governor indicated that if FMAP money is not forthcoming, the state la...

State Budget Last week, the Governor and members of the General Assembly held their first official budget negotiation . All sides expressed a willingness to compromise in order to finish the budget by the June 30 deadline, however, the Governor has signaled that he will not back down from the funding he is seeking for public education. It appears that negotiations will continue surrounding revenue-raising options. Some options being considered include increasing the cigarette tax, imposing a tax on smokeless tobacco, and a severance tax on the extraction of natural gas from the Marcellus Shale. Some legislators are expressing that the severance tax could have enough votes to pass , however, passage will depend on what details go into any bill. Any revenue raised will certainly go a long way to ensuring that there are fewer cuts in the budget protecting many programs and services relied upon by many Pennsylvanians. Layoffs Likely Without FMAP Funding Congress is considering legi...