Costa Seeks Legislative Input in “Patients First” UPMC-Highmark Talks

Harrisburg – June 6, 2014 – Senate Democratic Leader Sen. Jay Costa (D-Allegheny) said today he has sent a letter to Gov. Tom Corbett asking for a meeting with lawmakers who have sought a resolution of the contract dispute between Highmark Inc. and UPMC.

Specifically, Sen. Costa said lawmakers want to meet with the governor’s “Patients First” team to ensure that unlimited access for patients to doctors and health-care facilities are part of the discussion.

The “Patients First” initiative, announced earlier this week, includes the state’s health and insurance commissioners who are to meet with managers at UPMC and Highmark to establish “clarity” about the health care access after Jan. 1, 2015.

In the letter, Costa said he is “troubled” that the governor’s team has met with UPMC and Highmark without legislative involvement and that the stated goal of the initiative is “clarity” rather than health care access for all.

“Meetings are important, and engagement and open dialogue are necessary, but the discussion must include in-network access to doctors and facilities for all if a patient has insurance,” Costa said. “The governor’s team should meet with lawmakers who have been actively seeking a long-term solution to the UPMC-Highmark impasse because we have plenty to offer.”

Costa and Sen. Randy Vulakovich (R-Allegheny) have sponsored Senate Bills 1247 and 1248, which would allow consumers access to hospitals and doctors regardless of the insurance they are carrying. Similar legislation has also been introduced in the House.

“No patient who has insurance should wonder whether they can see their doctor or be treated in a nearby hospital,” Costa said. “These are non-profits and there is a compelling interest in brokering an agreement that includes access for all, without restrictions.

“We have legislation drafted and introduced that will solve the problem without reservation and that proposed solution should be part of the talks.”

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View Sen. Costa’s Letter to Gov. Corbett →

Costa Comments on Corbett’s Decision to Drop Voter ID Appeal

Harrisburg – May 8, 2014 – State Senate Democratic Leader Sen. Jay Costa (D-Allegheny) released the following statement following the Corbett administration’s announcement that they would not appeal the court decision which struck down Pennsylvania’s controversial voter ID law:

“We should never have gotten to the point where the Corbett administration was deciding whether or not to appeal an unconstitutional law. The law, on its face, was inappropriate and it never should have been adopted.

“There was no question that the whole law was based in politics and that its goal was to disenfranchise voters and suppress voting. The case fell apart almost immediately because the court rightly saw there was no evidence of fraud.

“The Corbett administration wasted time and money in the pursuit of this law and the court actions that resulted from its passage. Taking away the right to vote is a very serious matter and that is what the court addressed. The right to vote deserves to be protected and participation should be preserved.”

The law would have had impacted Pennsylvania’s estimated 8.2 million voters. Trial testimony indicated that more than 750,000 voters do not have proper ID’s and would have been prevented from voting.

More than 9 percent of voters did not have proper PennDOT-issued voter ID’s. PennDOT driver’s licensing centers, where voters are supposed to pick up ID’s, do not exist in nine counties and have limited operations in 22 others.

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Costa, Dermody Say There should be No Votes on Bills after November’s Election

Accountability and transparency concerns cited

Harrisburg – April 28, 2014 – Senate Democratic Leader Jay Costa (D-Allegheny) and House Democratic Leader Frank Dermody (D-Allegheny) said that there should be no votes on bills after Election Day in November.

In order to formally ask that there be no votes in a lame-duck session, Costa said today he has sent a letter to the Senate’s president pro tempore and the speaker of the House of Representatives urging them to announce that neither body will hold post-election session days.

In his letter to Senate President Pro Tempore Joe Scarnati and Speaker of the House of Representatives Samuel Smith, Costa acknowledges that while post-election sessions may be necessary at some point in the future, “in the interests of member accountability to the citizens of each district and transparency of the process, I do not believe we should be holding post-election sessions this year (.)”

Dermody said both leaders are concerned that the problems Gov. Tom Corbett has encountered in getting his agenda adopted could lead to a wave of bills that the General Assembly could confront post-election.

“Neither the governor, nor members of both parties in both chambers are immediately accountable to the citizens of their districts via the democratic process if votes are taken in a 2014 lame-duck session,” Dermody said. “The governor may try to use a lame-duck session to push aggressively for issues that found little support when he was directly accountable to the voters.”

“We need to be upfront and allow citizens to evaluate the full record of the General Assembly and the governor at the ballot box, not after votes have been cast,” Costa commented after disclosing the details of his letter. “By November of this year, the legislature will have had nearly two full years to work through issues.”

Costa said that it was time that the General Assembly consider prohibiting lame-duck sessions. He pointed to legislation (SB 695) authored by Sen. Rob Teplitz (D-Dauphin) that would take steps toward such a prohibition.

The General Assembly adjourns sine die on November 30.

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Editor’s Note: Text of Costa’s letter follows

April 28, 2014

Hon. Joseph Scarnati, President Pro Tempore
Senate of Pennsylvania
292 Main Capitol Building
Harrisburg, PA 17120

Hon. Samuel H. Smith, Speaker
Pennsylvania House of Representatives
139 Main Capitol Building
Harrisburg, PA 17120

Dear President Scarnati and Speaker Smith:

As you well know, it is critical that members of the General Assembly be held accountable to the citizens of their districts for votes cast on the Senate and House floor.  Therefore, post-General Election voting sessions, in which substantive legislative matters are considered, should be held only in emergency situations or in limited instances when there is a compelling need.

In the interests of member accountability to the citizens of each district, and transparency of the process, I do not believe we should be holding post-election sessions this year to move pieces of the governor’s policy agenda which failed to be considered prior to the General Election.

Therefore, I am requesting that you announce that the General Assembly will not be scheduling post-General Election session days this year.   The final session days for both the Senate and House of Representatives should be held prior to the November election and the sine die adjournment on November 30, 2014.   This ensures that the members of the General Assembly and the governor are held accountable for their votes and that their full record is available for scrutiny.

It is imperative that a decision regarding session is made and announced soon so that there can be proper planning by all members.  In addition, it is important that the announcement be timely so that floor leaders in both the House and Senate can properly manage the legislative calendar.

Please advise me as soon as possible concerning my request to refrain from holding legislative session following this year’s General Election.

Sincerely,

 

Sen. Jay Costa

Democratic Leader

Costa Issues Statement on the Death of Sen. Ray Musto

Harrisburg – April 24, 2014 – Senate Democratic Leader Jay Costa (D-Allegheny) issued the following statement on the death of former Sen. Ray Musto. Musto served in the Senate from 1982 to 2010 representing Luzerne, Carbon and Monroe Counties.

Musto began his career in public service when he won a special election in 1971 to fill his late father James Musto’s unexpired term in the state House of Representatives. He served in the House until 1980 when he was then elected to the United States Congress in a special election. In 1982, he was elected to the state Senate.

Costa’s statement is as follows:

“Our thoughts and prayers go out today to Senator Musto’s family and friends as we mourn his passing. Senator Musto was a champion of the environment, a legislative force and a friend who always had a kind word to help his colleagues during difficult times.

“Senator Musto was a lawmaker of depth, substance and compassion. He took time to learn issues and he used his experience and expertise to benefit the citizens of Luzerne County and Northeastern Pennsylvania.

“From legislation that established curbside recycling to Pennsylvania’s Growing Greener program and the landmark legislation to spur the development of abandoned industrial property, Senator Musto played a significant role in crafting environmental policy in his nearly 40 years in the legislature.

“During his long years of public service, he achieved a great deal for Northeastern Pennsylvania. His contributions will live on and his policy footprint will continue to guide future generations. Pennsylvania is a better place today because of Senator Ray Musto’s service.”

Musto served in the U.S. Army from 1951-53. He graduated in 1971 from King’s College in Wilkes-Barre and holds Doctorate of Letters degrees from Kings and Wilkes Colleges.

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President Obama, Vice President Biden to Announce Refocused Job Training Initiatives

New Federal Proposals Would Build on Senate Democrats PA Works Plan

Harrisburg – April 16, 2014 – President Barack Obama and Vice President Joe Biden are scheduled to appear at the Community College of Allegheny County (CCAC) West Hills Center to highlight a revised $500 million federal job-training program and trumpet new grants for industry apprenticeships.

State Senate Democratic Leader Sen. Jay Costa (D-Allegheny), who is not only a CCAC graduate but is a current board member and treasurer, said today that the initiatives the president and vice president will highlight dovetail nicely with a comprehensive job-training program that is included in the Senate Democrats’ PA Works Plan.

PAWorks“President Obama and Vice President Biden are aggressively promoting initiatives that will help both business and workers adjust to changing economics and rapid shifts in markets,” Costa said. “There is plenty of action needed in retooling our job-training programs at both the federal and state levels.

“Senate Democrats have already produced a comprehensive package of legislation to address needs in the workforce development area and we are ready to work with President Obama and Vice President Biden to help more people through partnerships and apprenticeships.”

The goals of the PA Works job-training proposals are to coordinate job-training programs and create a one-stop system of workforce investments, enhance training programs for emerging industries and tailor workforce training to fit employer needs.

Senate Democrats have a menu of legislative proposals that is focused on repositioning job-training programs. Among the bills in the PA Works job-training package is an employer-driven Train-To-Work PA program (SB 223), tax credits for businesses that hire qualified interns (SB 230), summer youth employment program development (SB 208) and to permit vocational students to earn industry accreditation in accelerated programs.

News reports have indicated that the president and vice president are expected to discuss a $500 million grant program that uses revised criteria for federal Trade Adjustment Assistance and $100 million in new grants for apprenticeships.

According to news reports of discussions with administration officials about the new initiatives, the goal of the new federal grant programs is to create a collaborative environment between local academic institutions, businesses and industry groups.

Senate Democrats previously held a policy hearing and roundtable discussion on the role of education in job training at CCAC West Hills Center.

Costa said at that hearing that “any legislative effort to energize our economy and create jobs must include an aggressive workforce training plan. Job creation and training will continue to be the central core of the Senate Democrats’ agenda.”

The PA Works plan would leverage $2 billion in private investment to help put people to work, cut business taxes and help small businesses be more competitive, rebuild the state’s aging infrastructure, foster the growth of promising new clean and green energy industries and retool worker training programs.

The aim of both federal grant programs that are slated to be discussed by the president and vice president is to create a “collaborative ecosystem” among community colleges, universities, individual employers and industry associations, according to reports of discussions of the administration officials.

According to published reports, the new federal initiative will require that successful applicants for the grant dollars establish a direct connection between their applications and job placement.

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Senate Democrats Unveil Pension Reform Proposal to Save Billions for Taxpayers

HARRISBURG, March 12, 2014 – State Senate Democrats today said they would save Pennsylvania taxpayers billions of dollars and solve the state’s pension problem if their proposal to further reform pension rules, refinance billions and help school districts avoid escalating payments is adopted.

Senate Democratic Leader Jay Costa (D-Allegheny); the Democratic chairman of the Senate Finance Committee, Sen. John Blake (D-Lackawanna), Senate Whip Anthony H. Williams (D-Philadelphia); the Democratic chairman of the Senate Appropriations Committee, Sen. Vince Hughes (D-Philadelphia); and Sen. Larry Farnese (D-Philadelphia) unveiled the caucus’ proposal during a briefing with Capitol news correspondents.

With the State Employees’ Retirement System and the Public School Employees’ Retirement System drowning in a sea of underfunding approaching $50 billion, the Senate Democratic proposal would refinance $9 billion of that, further reform the state pension law to stop charter schools from receiving double-dip state reimbursements, and lower the collars on state and school district payments to provide short-term budget relief while also making it easier to manage future cost increases.

“The pension reform plan we are suggesting is smart and innovative. It saves money and creates a plausible responsible fiscal roadmap for the future,” Sen. Costa said. “Refinancing $9 billion in existing unfunded liabilities would decrease long-term payments by $24 billion. Over the next five years, it would save school districts $600 million and the commonwealth $1 billion.”

The Democratic Senators said they are making this proposal because it would avoid the dangers posed by Gov. Tom Corbett’s pension proposal, such as:

  • $2 billion in additional payments over the next four years, including $550 million more in the 2015-’16 state budget
  • $5 billion more in unfunded pension liabilities, and
  • The camouflaging of increased future costs that could add millions more to the pension crisis.

Sen. Blake repeated the Democratic Caucus’ mantra that time is of the essence for these critical changes to happen.

“If we continue to delay our responsibility to fulfill our fiduciary requirement and deliver what has been promised in retirement to thousands of educators and public employees, it will be taxpayers, their children, and their children’s children who will have to pay the bill,” Blake said. “We cannot allow that to happen.

“The Corbett administration has already refinanced billions in debt to make a bad situation better when it floated nearly $4 billion in bonds to restore Pennsylvania’s unemployment compensation reserves in 2012. We must do the same with pensions,” the Lackawanna County Democrat said.

Senate Democratic Appropriations Chairman Vince Hughes urged bipartisan support for the caucus’ proposal.

“People from across the political spectrum are, and have been, educators and state employees. They are depending on us to fix this growing problem and this is the solution we need,” Hughes said. “Republicans and Democrats in the General Assembly must work together to get this idea to the governor’s desk.”

Sen. Williams said he believes fiscally responsible lawmakers will especially like the proposal to eliminate the current practice that allows charter schools be reimbursed by the state for pension payments that are completely paid for by school districts.

“This has been a good deal for charter schools, but the set up is hurting school districts, taxpayers and students across the state,” Williams said. “Making this change will significantly reduce school district pension payments because it will eliminate the 50 percent reimbursement that charter schools now receive after districts pay the escalating pension bill.”

And, Sen. Farnese said it is important for the commonwealth to continue its defined benefits pension system because it requires financial professionals to manage contributions.

“Too many people who are approaching retirement don’t have the nest eggs to guarantee them the security and independence they need to do the things they dreamed of doing when they were working,” Farnese said. “Defined benefit pensions are still the most efficient way to save for retirement. Moving away from that system will only hurt the financial security of future generations.”

The National Bureau of Economic Research in Cambridge, Mass., issued a report in February indicating that half of the households where people are on the cusp of retirement (65 to 69 years old) have retirement accounts of $5,000 or less.

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