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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Harrisburg – February 20, 2014 – Senate and House Democrats said today that Gov. Tom Corbett’s budget speech and follow up opinion pieces and interviews have painted a picture of Pennsylvania that is blurry, inaccurate and badly in need of correction.
Senate Democratic Leader Jay Costa (D-Allegheny), Sen. Vincent J. Hughes (D-Philadelphia) Democratic chair of the Senate Appropriations Committee and House Democratic Policy Chair Rep. Mike Sturla (D-Lancaster) were joined by other Senate and House Democrats to raise questions about assertions made by the governor and to unveil a new fact-check website.
“The governor’s claim that ‘Pennsylvania has turned a corner’ and is ‘now ready to hit full economic stride’ is a distortion that is in need of correction,” Costa said. “Under this governor, Pennsylvania has not turned the corner on job creation, education, health care or budget management. We just keep going down a one-way street the wrong way.
“I am concerned about the view from the governor’s office because it is not the same as what most Pennsylvania families are seeing.”
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Given the governor’s slanted view of the problems that face Pennsylvania, Democrats said that it was important that citizens can access objective information. That’s why they have produced a new website where the governor’s claims can be reviewed. The website can be found at www.checkthefactsgovcorbett.com.
“The governor has made job, deficit, health-care and education claims that are distorted,” Hughes said. “The citizens of Pennsylvania need an honest appraisal of the problems that we face and a roadmap that takes us in a new direction.”
“In his employment claims, Governor Corbett fails to mention the 20,000 education jobs lost, the health care jobs that would be created under Medicaid expansion, and that our college grads are fleeing PA for jobs created in our neighboring states all while our unemployment rate is consistently above the national rate.” Sturla said. “He continues to throw money at defending the Tea Party backed policies he’s championed.”
Specifically the Democrats questioned the governor’s assertion that 150,000 private-sector jobs were created. They said that he fails to acknowledge that Pennsylvania has a 180,000 jobs deficit relative to federal economic growth and we’ve moved from seventh to 48th in job creation since Corbett took office.
The Senate Democrats also disputed the governor’s claim that he has invested in education.
“Since the governor took office, he cut $1 billion from education, failed to increase the basic subsidy, treated less affluent districts poorly and ended a long-term funding equity plan that would have rectified funding disparities,” Costa said. “The governor’s new-found election year desire to invest in education cannot overcome the massive problems he caused for schools and taxpayers.”
Hughes said that Corbett has also failed to fully explain his unconscionable decision to by-pass Medicaid expansion and instead is rely on a problematic private insurance-based health care proposal.
The West Philadelphia lawmaker said that the governor’s failure to expand Medicaid “costs $400 million, prevents 500,000 Pennsylvanians from accessing health care and keeps 35,000 from job opportunities.”
Hughes also questioned the governor’s budget balancing saying that “the governor used one-time gimmicks, an inflated growth rate and policy tricks that add billions to the unfunded pension liability to make the $1.2 billion deficit disappear.”
Costa said that many states are examining ways of investing or returning budget surpluses this year and are still not dealing with fiscal despair.
“For the fourth year in a row, under this governor, we’ve had to struggle with revenues because we have not created an environment that is conducive to economic development and job creation,” Costa said. “Many of our surrounding states have invested wisely, grown their economies and regained their fiscal health, while we have been stuck in reverse and going the wrong direction.”
The Democrats said that the narrative that the governor has been pitching across the state since his budget address is an election-year ploy to cover a four-year record of failed economic, job, health and budget initiatives.
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Harrisburg, February 4, 2014 – Senate Democratic leaders today called Gov. Tom Corbett’s 2014-15 budget proposal election-year pandering and woefully lacking on multiple levels.
“The governor really needs to stop promising and start delivering for Pennsylvania.” Senate Democratic Leader Sen. Jay Costa (D-Allegheny) said today following the budget address. “Today’s budget presentation was election –year political pandering that doesn’t move Pennsylvania forward. It simply backfills and covers over problems that the governor created over the last three years.
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“While it is a step forward that the governor has started to focus on priorities such as education with his $241 million block grant, it is still not good enough because schools are still struggling to deal with the governor’s previous $1 billion cut in education.”
The governor presented his $29.4 billion General Fund spending plan before a joint session of the General Assembly.
In the speech, the governor outlined his plan which is a 3.3 percent increase over the current year spending. The budget is balanced through the use of more than $1.1 billion in one-time funding options and shifts.
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He called for a new education block grant that would be distributed by a funding formula based on student count, aid ratio, poverty and English proficiency.
Gov. Corbett’s plan also includes $429 million more for the Department of Public Welfare – although a lion’s share of this funding is due to a declining share of federal dollars for Medical Assistance — and an increase of $78 million for corrections. The governor also called for lowering the pension collars from 4.5 percent to 2.25 percent. This would reduce state pension payments by $170 million and school pension payments by $130 million.
Costa said that Corbett’s previous $1 billion in education cuts, failure to detail a job creation strategy, inability fix the holes created in the social safety net and his stubborn refusal to expand Medicaid are coming back to haunt him.
Senate Democrats said that the governor’s new found attention to key issues was insufficient given the lack of leadership over the last three years.
“Senate Democrats have offered a host of solutions including a new $300 million investment strategy for education, and the PA Works job-creation plan and we will support the governor if he expands Medicaid, hikes the minimum wage and puts real dollars into human services programs,” Costa said.
Costa said that it has taken the governor three years, repeated calls by Senate Democrats and a tough re-election fight to see that education needs more funding. He said that recognizing these problems and responsible solutions “shouldn’t have taken so long, been so difficult or include an unbalanced distribution formula.”
Senate Democratic Whip Sen. Anthony H. Williams (D-Philadelphia/Delaware) said the governor’s new proposals were too little, too late.
Williams said the troubling jobs deficit of 180,000, the bottom-ten ranking in job creation, and the state’s poor fiscal health, illustrate the glaring gap in the governor’s understanding of the needs of the citizens.
“Every surrounding state that has increased minimum wage has increased their jobs. New York state alone grew 10,000 jobs – and they increased the minimum wage,” Williams said. “They did it not in the government sector, but in the private economy.”
Williams said that while other surrounding states are dealing with budget surpluses, Pennsylvania is still dealing with deficits.
“The governor can’t blame the previous administration for his continued budget troubles,” Williams said. “The fiscal problems faced by the taxpayers of Pennsylvania are the result of failed Corbett administration policies, period. Both sides have talked repeatedly about extending their hands on key issues, and I’m ready to finally see the handshake that moves Pennsylvania forward.”
Sen. Vincent J. Hughes, (D-Philadelphia/Montgomery) who serves as the Senate Democratic Appropriations Committee chair, said today that Pennsylvania has a long road ahead to recover from the damage done by ill-conceived Corbett administration policies especially as they relate to schools, health care, safety-net investments and jobs.
“The governor still doesn’t get it. He has slashed business taxes by $1.2 billion, cut education dollars by $1 billion and simply refused to address key issues such as job creation, Medicaid expansion, human service funding and the minimum wage,” Hughes said. “The presentation today was an election year budget that demonstrates the governor’s inability to properly identify policy priorities.
“Pennsylvania would have been better served by this governor if he agreed to expand Medicaid to help a half-million Pennsylvanians, invest long-term in a balanced education funding plan, put more of an emphasis on programs that create jobs and help our most vulnerable,” Hughes said.
Hughes said that Senate Democrats have crafted solutions to budget issues and a savings plan of more than $1.1 billion that can be used to make key, long-term investments in schools, health care, human services and jobs. Democrats have also endorsed an increase in the minimum wage, Hughes said.
The Senate Appropriations Committee will hold budget hearings over the next several weeks to examine the budget proposal in detail.
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MT. LEBANON, Feb. 3, 2014 — State Senator Matt Smith (D-Mt. Lebanon) announced that he will introduce legislation in the near future to strengthen the penalties for severely injuring or killing a police animal.
The Senate delegation from Allegheny County – Senators Jim Ferlo (D- Lawrenceville), Wayne Fontana (D-Brookline), Jim Brewster (D-McKeesport), Randy Vulakovich (R-Shaler), Tim Solobay (D-Canonsburg) and Democratic Leader Senator Jay Costa (D-Forest Hills) – will join Smith as sponsors.
“These animals don’t volunteer yet they are selected and serve with the highest level of dedication and bravery,” Smith said. “When someone deliberately harms a police animal, they should bear the full weight of the law.”
“There is no question that animals who are involved in police work are integral parts of law enforcement and deserve protection,” Costa, the Senate Democratic leader who formerly served as a Deputy Sheriff in Allegheny County, said. “The Senate delegation from Allegheny County strongly supports the new initiative because we all realize the value of animals who are involved in police work.”
Smith said Senate Bill 1260 will be known as “Rocco’s Law” after the Pittsburgh police dog that was killed Thursday evening in the Lawrenceville neighborhood. The dog was stabbed while apprehending a suspect.
Smith said his bill would increase the offense to a second degree felony, which comes with a fine of $25,000 and up to 10 years in prison.
“The tragic death of Officer Rocco, a dog that put his life on the line to protect his partner for five years, should spur us to action in Harrisburg,” Senator Jim Ferlo said. “Canine officers are defending the public each and every day and deserve a higher level of protection under state law than we currently provide. Hopefully we will act quickly in Harrisburg to help protect all police dogs like Officer Rocco.”
Fontana added that “police canine dogs are members of a highly trained specialty unit within our police departments. Above and beyond the humane issues an attack on these dogs brings up, we must remember that their duty is to protect our officers from harm and are true members of the force. Legislation such as this is aimed at deterring future tragedies like what happened in Pittsburgh.”
The federal penalty for killing a law enforcement dog is up to 10 years in prison and a fine of $1,000. Current state law classifies the torture or killing of a police animal as a third degree felony offense punishable by up to seven years in prison and a $15,000 fine, but the same penalty applies to the taunting or striking of a police animal.
Smith’s bill recognizes the fundamental differences between the two crimes by strengthening the penalty for the more serious offense.
“It is an injustice that Pennsylvania’s law lags behind the federal standard in terms of maximum prison time,” Smith said. “It is currently unacceptable that state law currently imposes the same penalty for the separate offenses of taunting or police dog as for its killing.”
“Police dogs provide an essential service and they are faithful public servants that make our communities safer,” said Sen. Vulakovich, a former police sergeant. “When a criminal viciously attacks a police dog, it is appropriate that they face a punishment that is fitting with the crime.
“The dog the officer works with becomes a part of his family both on the job and at home. We can put no price on the loyalty and love that dog has for the officer he works with every day. The dog places his life in jeopardy to protect the officer and when the dog is threatened or killed in the line of duty the punishment should be appropriate.”
The Senators are pushing for rapid consideration of the bill.
“This bill reflects the increased importance of trained dogs as partners in law enforcement,” Solobay said. “Hopefully, this bill will give them the measure of protection they deserve.”
“This legislation is a great way to honor a hero who died protecting and defending his fellow officers,” Brewster noted. “As a former Mayor, I understand how they become a part of the officer’s family and community. Rocco’s loss has affected all of us in Western Pennsylvania.”
“Our hope is that Senate colleagues from all corners of Pennsylvania support this effort to make sure that Rocco’s sacrifice leads to stronger penalties for anyone who would dare harm a law enforcement animal,” Smith said. “Our thoughts and prayers go out to his handler, family and fellow officers.”
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PITTSBURGH, January 30, 2014 – Flanked by people who have struggled due to state human services budget cuts, Senate Democrats today detailed their budget priorities and challenged Gov. Tom Corbett to produce a spending plan that is aligned with the needs of Pennsylvanians.
Senate Democratic leader Jay Costa (D-Forest Hills) joined Senators Wayne Fontana (D-Brookline) and Matt Smith (D-Mt. Lebanon) to discuss proposals that would create jobs, strengthen education investment and provide an extra $85 million in the upcoming state budget for county human services programs. Funding for such programs has fallen significantly during the first three Corbett budgets.
“We must begin repairing holes in the social safety net by using $85 million in Medicaid budget savings for human services programming such as drug, alcohol and mental health programs,” Costa said. “Expanding Medicaid and extending health care to 500,000 Pennsylvania families would also generate $400 million in budget savings while boosting our economy.”
The Pittsburgh news conference was part of a statewide outreach where Democrats discussed their budget priorities. Similar news conferences were held in Erie, Johnston, Scranton, Hazleton and Philadelphia.
Sen. Wayne Fontana focused on investing in proven job creation and business development programs. He also called for Pennsylvania to increase its minimum wage to at least $9 per hour, and $10.10 by 2015. The legislature has not acted to increase the minimum wage in seven years.
“Since the recession began, my Democratic colleagues and I have sponsored numerous bills aimed at stoking our economy, helping businesses grow, embracing new business opportunities and training people for jobs that are actually out there,” Fontana said. “We need a comprehensive approach that invests state dollars into proven and promising initiatives that will create jobs, retrain workers, and attract business investment and expansion.”
Sen. Matt Smith added, “While other states are making thoughtful investments in education, Pennsylvania has regressed and placed the burden on hardworking families and cash strapped school districts. “Senate Democrats understand that education investments at all levels – beginning with pre-K – will yield direct economic benefits for all Pennsylvanians and is not only the right move, but also the smart one.”
Under Gov. Corbett’s leadership, Pennsylvania has fallen from the top 10 to 48th in job creation. The Democrats said they could bolster state funding for important budget line items by “realigning spending priorities and realizing greater efficiencies. They said they could accomplish this without raising broad-based taxes.”
Senate Democrats said they will also push for the following in this budget:
- Creating jobs by funding targeted water and sewer rehabilitation projects, strengthening school-to-work programs and expanding community economic zones throughout the state; and
- Investing in education with a $300 million boost, bolstering funds for early education and committing to a long-term financing plan that restores funding
- Costa said he realizes the investments and initiatives identified cost money so the Senate Democratic Caucus has devised a budget savings-and-revenue plan of more than $1.1 billion to address the budget shortfall and fund the priorities.
- The governor has scheduled his annual budget address to the General Assembly for next Tuesday, Feb 4.
The news conference featured people who have struggled under the Corbett human services cuts. Officials from the following organizations also took part: Mercy Behavioral Health, Consumer Health Coalition, Community Human Services, Conference of Allegheny Providers, and the Pittsburgh Association for the Education of Young Children.
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Harrisburg – Jan. 17, 2013 – Senate Democratic Leader Jay Costa (D-Allegheny) issued the following reaction to Commonwealth Court’s rejection of the controversial voter ID law.
The law required all voters to produce approved photo identification prior to casting their votes in election.
“Senate Democrats have said clearly and repeatedly that the voter ID law was an overreach that would result in the disenfranchisement of hundreds of thousands of voters. It was a law that should have never been approved and we are very happy that the court turned aside the measure today.
“There has been too much upheaval and confusion about preserving the right to vote. Plus taxpayers have had to pay too much in trying to defend this ill-conceived law.
The measure was unconstitutional and political and could not stand legal scrutiny. Simply put, it was an effort by Republicans to deny citizens access and a voice in their government that should have been dismissed.
“Instead of trying to find ways to stop citizens from voting, we should be doing more to encourage all Pennsylvanians to participate in elections.”
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