Costa, Fontana Call For Removal of ICA Director, Criminal Investigation

Harrisburg, April 5, 2016 – State Sen. Democratic Leader Jay Costa (D-Allegheny) and Caucus Chairman Wayne Fontana (D-Allegheny) called today for the removal of Pittsburgh Intergovernmental Cooperation Authority (ICA) Executive Director Henry V. Sciortino and requested a criminal investigation into the financial activities involving the authority.

“There certainly are serious questions about the executive director’s activities and there simply has been a lack of scrutiny and accountability,” Costa said. “The ICA is dealing with millions of dollars with little transparency and oversight.

“The ICA should remove Sciortino as the first step toward regaining some semblance of credibility.”

A series of news reports over the weekend and into this week have raised questions about the operations of the ICA and Sciortino’s role with the authority.

“The news reports confirmed what I have believed all along,” Fontana said. “The ICA was accountable to no one; rudderless, led by an individual who had little incentive to help Pittsburgh – other than personal gain.”

“The issues that have been raised over the weekend about the ICA’s executive director add fuel to the fire. Enough is enough.”

Costa and Fontana said that the issues raised in the media reports were so significant that not only should Sciortino be removed as executive director, but they have asked the district attorney and/or attorney general to consider an investigation to determine if laws were broken.

The ICA was created as an oversight board when Pittsburgh was in the throes of a financial crisis. Sciortino is its lone employee.

According to published reports, 92 percent of records, most bank records between 2004 and 2009, minutes of board meetings and information relative to no-bid contracts with vendors have been destroyed.

“Given the lack of records and accountability, we need an investigation that will look behind ICA denials and the loopholes in the law to determine if there were any financial improprieties,” Fontana said.

Fontana, who has been an outspoken critic of the ICA, called for the authority to be disbanded last year. At the time he said that “the authority has morphed into a bureaucracy bent on impeding Pittsburgh’s economic resurgence . and going to ridiculous length to continue operating.”

The Democratic senators said they are preparing legislation to require additional Department of Community and Economic Development oversight and were, for instance, insistent on a forensic audit of the ICA by the state auditor general.

The legislation will also require:

  • An update of Act 11 to provide greater transparency at the authority, record keeping that meets the standards of other state agencies, and the means to address governance issues raised by the Auditor General’s recent audit;
  • A records retention policy that is consistent with the policy of the Department of the Office of Administration. This record retention policy will require that most financial information be maintained for a minimum of four years; tax information, payroll, and audits have to be maintained for seven years;
  • The Auditor General to conduct a forensic audit to determine current fund balances, both for the operation of the ICA and money that was intended to be held or allocated to the City of Pittsburgh. The audit will attempt to ascertain the expenses and contracts of the authority over the last seven years;
  • The ICA to file reports with DCED on the finances, including ledger sheets, any contracts that the agency enters, and reports on allocations made to Pittsburgh from gaming revenue;
  • The ICA to maintain a publicly accessible internet website and post completed financial records online, including budgets and contracts entered; it will also provide a formal process for determining the use of the gaming monies and will specify when and how gaming money is to be distributed to Pittsburgh;
  • Once new staff is hired and the forensic audit is completed, the legislation will require that Pittsburgh use the monies for pension payments.

“The ICA has operated behind the curtain long enough. It is time to shine light on the operations of the ICA, their finances and the activities of their executive director,” Costa said.

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Senate Democrats Say Wolf’s Budget Focused on Education, Deficit Reduction

Harrisburg – Feb. 9, 2016 – Facing an unfinished 2015-16 budget with the need to reconcile a 2016-17 spending plan that has a looming $2 billion deficit, Gov. Tom Wolf was forced to focus his second state budget proposal on education and deficit reduction, according to Senate Democratic Leader Jay Costa (D-Allegheny.)

“Lawmakers have choices to make about Pennsylvania’s future; deal with tough issues up front or watch Pennsylvania wither as a consequence of self-inflicted fiscal wounds,” Costa said. “We need to come together and negotiate a bipartisan budget with the governor that makes key investments in education and deals with a $2 billion structural deficit.”

Wolf presented his $32.7 billion spending plan before a joint session of the General Assembly today. The plan uses the $30.8 billion yet-to-be-enacted budget agreement from last fall as the foundation for this year’s plan.

For 2016-17, the governor calls for $200 million more in education funding, $50 million for special education and an additional $60 million in pre-K dollars.   The budget also focuses on tackling the estimated $2 billion deficit in 2017 with a revenue enhancement package.

“It is incredibly frustrating to deal with issues year after year because there is no political will in the state House to finish the job it was sent to Harrisburg to do,” Senate Democratic Appropriations Chair Sen. Vincent J. Hughes (D-Philadelphia) said. “We need to complete the 2015-16 budget and get to work in dealing with those issues that are holding us back.

“Lawmakers can address the deficit and invest in education as a simple, direct approach that will pay dividends for years to come or they will have to explain why deep long-lasting cuts have to be made again.”

In his speech, the governor painted a picture of Pennsylvania’s landscape if there is continued inaction on adopting a reasonable forward-looking budget. He said property taxes will rise, human services will be stripped of funds and drug assistance programs for seniors would be slashed.

Senate Democratic Whip, Sen. Anthony H. Williams (D-Philadelphia/Delaware) said it is unwise for Pennsylvania to continue to jump from one fiscal crisis to another and that a bipartisan budget is a necessity.

“The negotiated agreement that passed the Senate in December proved that a bipartisan budget could be crafted even in a very partisan environment,” Williams said. “That spending plan included healthy education investments, support for job creation, human services, seniors and our most vulnerable.

“This budget plan makes lawmakers face up to the reality that if nothing is done to address the budget deficit than its growth will swamp all other initiatives.”

The proposed budget for 2016-17 is built from the budget agreement that awaits a final vote in the state House. However, if there is continued inaction there will be a $500 million deficit by the end of the year that will balloon to a deficit in excess of $2 billion next year.

The governor also said if lawmakers refused to act, funds for state-related universities (Penn State, Pitt, Temple and Lincoln) would be eliminated, another $1 billion would be cut from basic education, human services funding would be reduced by $600 million, and property taxes would skyrocket.

Wolf proposed a revenue package to deal with the deficit and make education investments. His plan would include an increase in the Personal Income Tax from 3.07 percent to 3.4 percent, sales tax expansions, taxes on tobacco, banks and the imposition of a new 6.5 percent tax on shale drilling.

“The Senate worked with the governor in a bipartisan way to produce an accord last year that would have addressed many of Pennsylvania’s most pressing issues,” Hughes said, noting that the bipartisan budget passed the Senate 43-7.

The legislature will soon begin a series of budget hearings to examine Gov. Wolf’s 2016-17 budget in detail.

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Senate Democrats React to Budget Line-Item Veto

Harrisburg – Dec. 29, 2015 – Senate Democrats provided the following reaction to Gov. Tom Wolf’s line-item veto of a Republican budget plan. The governor released six months of emergency funding for schools and human service programs, or $23.39 billion of the House Republican’s original $30.3 billion proposal.

Senate Democratic Leader Jay Costa’s (D-Allegheny) remarks follow:

“The governor’s action today will hopefully force House Republican lawmakers back to Harrisburg to finish work on a responsible spending plan. Legislators need to return to business and work toward the passage of the $30.8 billion budget framework agreement.

“The House Republican budget was $500 million out of balance. It does not address the $1.3 billion structural deficit that has hobbled state government and simply continued Corbett-type budgeting for another year. After the House Republicans walked away from a responsible budget plan last week, the governor had few options.

“The governor’s release of six-months of emergency funding for schools and human service programs pushes money to schools and programs that are confronted by serious financial challenges.”

Senate Democratic Appropriations Chair Sen. Vincent J. Hughes (D-Philadelphia/Montgomery) on the line-item veto:

“The purposeful decision of House Republicans to repeatedly stonewall the agreed-to framework budget has left Pennsylvania’s school system on the brink of collapse, so I applaud the governor’s decision to approve emergency funding for school districts throughout the commonwealth.

“Our schools have gone above the call of duty to keep their doors open. They cannot continue to do that, nor should we allow that to happen.

“Pennsylvania’s financial situation remains an urgent one despite the governor’s action today. Members of the House GOP need to get back to Harrisburg as quickly as they left and approve the agreed-to framework 2015-2016 budget because this is short-term help. Schools will close if the leadership in this lone caucus continues its bad behavior.”

Senate Democratic Whip Sen. Anthony Williams (D-Philadelphia/Delaware) provided the following statement on the governor’s action:

“The organizations that operate in the shadows of Pennsylvania life are closing their doors because of House Republicans are willfully and callously ignoring their plight.

“Our human service agencies needed a relief valve from the unfair financial burden being placed on them by one of the four legislative caucuses, and Gov. Wolf rightly gave it to them.”

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Contact: Stacey Witalec
Sen. Jay Costa
717-877-2997
switalec@pasenate.com

Senate Approves General Fund Budget

Harrisburg – Dec. 7, 2015 –The Senate approved a $30.5 billion General Fund budget that provides for a historic increase in school funding, the restoration of job creation and human service program funds, and long-term fiscal stability without a broad-based tax increase, Senate Democratic Leader Jay Costa (D-Allegheny) said today.

“This was a grueling, troubling and very difficult budget but it is time to bring closure,” Costa said. “The citizens of Pennsylvania, our schools, service providers and taxpayers need relief and fiscal stability now.”

Senate Bill 1073 passed the Senate with a bi-partisan 43-7 vote. The negotiated budget was nearly six months past due and still must clear the state House of Representatives and be signed by the governor.

“Our main focus was on helping schools, repairing the safety net, promoting job creation and ensuring fiscal responsibility and that’s why it has taken so long to find common ground,” Costa said. “The plan provides a more than $460 million boost for schools and it wipes away a $1.3 billion structural deficit.”

Costa said that in addition to the largest increase in Pennsylvania history for education, there is $300 million more in overall funding for human services, in addition to $50 million in Pre-K Counts and $10 million for Head Start.

Senate Democratic Appropriations Chair Sen. Vincent J. Hughes (D-Philadelphia) said the Senate’s approval of a responsible, meaningful and significant bipartisan budget is a major step forward in restoring Pennsylvania’s future.

“Schools will be helped and we’ve started the process of restoring crucial human service program dollars that were slashed over the last four years,” Hughes said. “The budget includes key Senate Democrat priorities and proposals with the governor’s initiatives intertwined.”

Hughes said the agreement includes more than 70 percent of the governor’s original request for education, 100 percent of his human service ask, 70 percent of the community and economic request, and puts Pennsylvania on the path to fully restore – within three years – all of the funds cut from safety net programs by the Corbett administration.

“Given the recent budget history and the serious difficulties that have been imposed on Pennsylvania citizens as a result of deep cuts in education, human services and job creation it is clear that we had to change course and make investments,” Hughes said.

Former Gov. Tom Corbett cut education by $1 billion, severely cut back human service funds and downsized economic development programs.

Senate Democratic Whip Anthony Williams (D-Philadelphia) said Pennsylvania needed to refocus policy on children and seniors while supporting human services and ensuring that taxpayers are well-served. He said that Pennsylvania could ill afford another year of Corbett-type budgets.

“This budget refocuses fiscal policy in Pennsylvania away from short-term, reactionary decision- making,” Williams, said. “It includes many initiatives sought by Senate Democrats and makes children and our most vulnerable citizens priorities.

“A budget is a statement of priorities and I am pleased with what we are saying in this proposal.”

The budget framework uses $670 million in additional revenues this year to balance the books for this year and includes enough recurring income to eliminate the $1.3 billion structural deficit that Gov. Tom Wolf inherited.

Costa said the negotiated budget was far better than previous Republican budgets that were vetoed by Gov. Wolf. Those plans featured less funding for schools and were balanced with one-time expenditures and gimmicks.

“The budget the Senate passed today reflects many priorities of Senate Democrats,” Costa said. “We wanted more investments in education, human services and job creation and they are prominently featured as part of this plan.”

Hughes said the challenges left on Gov. Wolf’s doorstep by the previous administration were significant as there was a need to properly fund education and pull away from budget shortfalls and fiscal gimmicks that spiraled into state credit downgrades and increased local property taxes.

Costa said he hoped the days of slash-and-burn budgeting were over because the short-term approach that required jumping from one fiscal crisis to the next put Pennsylvania in a precarious financial position.

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Costa, Bartolotta Highway Worker Safety Legislation Heading to Governor for Signature

Harrisburg, Nov. 18, 2015 – Legislation geared toward preventing distracted and aggressive driving in work zones is heading to Gov. Tom Wolf for signature after unanimous concurrence by the Senate this week, according to the bill’s sponsors, Senate Democratic Leader Jay Costa (D-43) and Senator Camera Bartolotta (R-46).

“I am honored and humbled at the overwhelming support by my House and Senate colleagues for this critically important measure. We have the opportunity to save lives with this legislation and to show our support for those working to keep our highways safe and we’ve done just that,” Costa said. “There isn’t a text, an email or a phone call that is more important than our workers returning home safe to their families.”

Senate Bill 887, which originally passed the Senate in June, toughens penalties for drivers who endanger or kill a highway worker or first responder in a construction zone. The bill also broadens the scope of “highway workers” to include emergency personnel, local government and municipal workers, members of the Pennsylvania State Police and law enforcement community, and contractors or utility company workers.

“The frequency of incidents in work zones is troubling, and highway workers and their families live in constant fear that the irresponsible actions of a distracted or aggressive driver will ultimately lead to a tragedy. By strengthening the penalties for reckless drivers, we can help limit the dangers faced by the men and women who help maintain our vital infrastructure,” Bartolotta said. “I am pleased my colleagues recognized the significance of this bipartisan legislation and that we owe it to workers and their families to do everything in our power to limit the dangers they face.”

Under the bill, violators could face fines and penalties exceeding $1,000 for irresponsible driving in work zones. More serious offenses involving injuries to highway workers or emergency responders could result in a fine of up to $5,000 and a six-month suspension of the violator’s driver’s license. Drivers causing the death of a worker would pay a fine of up to $10,000 and surrender their license for one year.

Amendments made in the state House clarified that the increased fines and license suspension called for in the bill begin upon conviction, adjudication of delinquency or admission into accelerated rehabilitative disposition program. The House also changed the effective date from 60 days to six months.

The National Institute for Occupational Safety and Health reports that approximately 100 workers are killed and another 20,000 workers are injured every year in highway and street construction accidents.

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Costa Comments of Announcement of State Budget Framework

Harrisburg – Nov. 10, 2015 – Senate Democratic Leader Jay Costa (D-Allegheny) said today that he was pleased that a framework for the 2015-16 state General Fund budget has been crafted and that significant progress has been made toward a comprehensive agreement.

Costa joined Gov. Tom Wolf, House Democratic Leader Frank Dermody (D-Allegheny) and Republican leaders of both the House and Senate at a news briefing outside the governor’s office today to announce the budget framework.

Costa’s statement follows:

“While there is more work ahead, I am pleased that a budget framework is in place that may put us in position to consider a comprehensive budget agreement in the near future. What we announced with the governor today was an outline of a plan that leaders of both parties can take to their members once details are finalized.

“The hope is that the process can be concluded shortly and that a full general budget plus historic agreements on key issues will be before the General Assembly within the next couple weeks.

“Today’s announcement was a positive development. Clearly, there is momentum and both Democrat and Republican leaders are working with the governor to reach consensus on the details of a spending plan that addresses key priorities.”

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