Harrisburg – Dec. 30, 2013 – Gov. Tom Corbett’s decision to discontinue his attempt to privatize the state Lottery is good news for Pennsylvania taxpayers and it aligns with repeated Senate Democratic calls for him to drop the plan and stop wasting resources, Senate Democratic Leader Jay Costa said today.
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Costa (D-Allegheny) was reacting to the governor’s announcement that his administration would not continue seeking an agreement with Camelot Global, LLC to privately manage the lottery.
Senate Democrats have been highly critical of the bid and the Corbett administration in its handling of the contract and the multiple extensions. They have said that the governor’s support of lottery privatization was wasteful of both time and money.
Last year, the Corbett administration awarded a contract to privately manage the Pennsylvania Lottery to Camelot Global, LLC. Earlier this year, Attorney General Kathleen Kane rejected the contract, citing instances where the proposal ran afoul of state statutes and constitutional provisions. The state Auditor General recently reported that the Corbett administration had spent, or contracted to spend, at least $4.5 million on the effort.
Costa’s statement is as follows:
“Throughout the process, Senate Democrats have been critical of the contract and the arrangement that the Corbett administration had with Camelot. Pennsylvania has an outstanding lottery that is efficiently and effectively operated by Pennsylvanians.
“There is simply not a good rationale or a responsible argument that the Corbett administration could offer that would justify privatizing the lottery in the manner they proposed. The Camelot proposal was unpopular, unwieldy and costly. It created questions when we should have been exploring answers to how we can help fund senior programs.
“Since the plan was first detailed, Senate Democrats asked tough questions and raised significant issues because we believe that the programs funded by the lottery are too important to be jeopardized.
“There are alternatives that would increase revenues to support senior programs without taking risks. In fact, Senate Democrats just unveiled a plan that would generate more than $1 billion in savings and revenues, a portion of which could be used to bolster senior programs and services.
“The best public policy and what makes most sense for taxpayers, seniors and the Lottery was for the governor to drop his arrangement with Camelot.”
The lottery reported record sales of $3.69 billion last year.
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The following are Sen. Costa’s remarks at the Healthy PA hearing in Pittsburgh on Dec. 20:
Thank you very much for providing me the opportunity to discuss Gov. Corbett’s Healthy PA plan.
This is an important initiative and I am pleased to convey my thoughts about Healthy PA, and share ideas from myself and other Senate Democrats regarding health care.
As you well know, Senate Democrats have been at the forefront of trying to provide health care for each and every Pennsylvanian. Last year, we led the effort to include language in a bill that would provide for the expansion of Medicaid to cover individuals who earn up to 138 percent of the federal poverty level.
We argued that by using the expansion of Medicaid, which is available under the federal Affordable Care Act, we can provide life-saving health care for hundreds of thousands of Pennsylvanians, create budget savings and draw in billions of new federal funds.
If Pennsylvania were to opt in to expanding Medicaid using the traditional model, it would book $400 million in total budget savings next fiscal year, create between 35,000-40,000 jobs and receive an economic boost from the billions of dollars that would flow into the state.
While we were successful in working with our Republican colleagues to pass this plan in the Senate, the state House of Representatives refused to adopt our plan. That was unfortunate and irresponsible.
Despite our efforts, and, while we were unable to get that plan to the governor due to House Republican intransigence, we are open to other alternatives. Although it is not our preferable route, we recognize that one of the possible ways to expand Medicaid has been outlined by the governor in his Healthy PA plan.
My comments today will be concerning the governor’s plan.
Senate Democrats are pleased the governor recognized that we should cover the hundreds of thousands of Pennsylvanians who need health care. In addition, we are glad that he has, in his way, opted-in to a main feature of the Affordable Care Act. Senate Democrats are also pleased that the governor has taken action and asked for federal approval of his plan.
While these are positive aspects of the governor’s approach, we are very concerned about the implementation timeline. Simply put, if the governor’s waiver is approved, coverage will not be available until January 1, 2015. That is unacceptable, counterproductive and costly.
In order to maximize budget savings and help the most people that we can in the limited time available, we need to get on-line with health care as quickly as possible. Pennsylvania needs a plan that is effective by July 1, 2014. We can have one in place if we expand Medicaid using the traditional model while the waiver approval is pending.
As I indicated, there are many aspects of the governor’s plan that move the process forward; however, the suggested work search requirement is one element of the plan that sets the process back. This requirement is unrealistic and unreasonable and it is my understanding that the approach has been rejected by federal officials.
We are also very concerned with the portion of the governor’s plan that requires a subscriber’s monthly fee. Our concern is that for many of those who would be covered by the governor’s premium support approach, the required co-pay or fee would make health insurance unaffordable. In addition, we believe the governor should follow the MCO approach. In our view, this provides the greatest cost savings and management features.
As I indicated, Senate Democrats think that we need to move expeditiously in implementing Medicaid expansion. While we think this is best achieved through traditional expansion, we understand that the governor has other thoughts and has pursued a different course.
We stand ready to work with the governor and others who share our interest in promoting health care. In fact, we have already joined with like-minded lawmakers and the governor to implement portions of Healthy PA – including the elimination of the children’s health insurance six-month waiting period (Act 74).
We also worked to pass “benevolent gesture” legislation (Act 79) that allows doctors to express empathy for unforeseen outcomes without the fear that the admission will lead to a lawsuit.
There is plenty of work to do and many ways to deliver health care to hundreds of thousands of Pennsylvanians via the Affordable Care Act. Democrats and Republicans must agree that quality health care is a right and it our duty to provide access.
Thank you for providing me with the opportunity to discuss the governor’s Healthy PA plan.
Harrisburg – Dec. 19, 2013 – In a significant decision announced today, the state Supreme Court overturned portions of Act 13, a law that established an extraction fee and regulations regarding Marcellus shale drilling in Pennsylvania.
Several members of the Senate Democratic caucus participated in the case by filing an amicus brief in support of overturning the blanket local zoning preemption provision and the setback requirements related to sensitive water resources.
State Sen. Jay Costa (D-Allegheny), the Senate Democratic leader, offered his reaction to the decision:
“The court’s decision to overturn portions of Act 13 – those provisions that involve zoning restrictions and the community’s right to protect their own water resources – provides Pennsylvania lawmakers with a second chance to craft a better, more responsible law. This is an opportunity to revisit an issue and devise a shale drilling law that is meaningful; one that offers protections for our citizens, communities and a valuable Pennsylvania natural resource.
“While Act 13 included a wide range of subjects, it failed to institute a reasonable shale drilling tax and took too much control away from local municipalities. We left too much control in the hands of gas drilling companies and the governor was too lenient in dealing with energy companies at the expense of Pennsylvania’s citizens and our communities.
“Senate Democrats are hopeful that the governor will work with legislators on a balanced plan that includes a responsible approach to drilling restrictions and community protections.”
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Harrisburg – December 12, 2013 – A legislative package designed to help prevent child abuse and increase protections for children has now cleared the Senate and is headed to the governor for approval, according to Senate Democratic Leader, Sen. Jay Costa (D-Allegheny).
“Senate Democrats have worked collaboratively with our Republican colleagues and together we have made progress in addressing key issues as it relates to child protection,” Costa said. “The legislation adopted by the Senate this week is significant and includes many priorities identified by Senate Democrats.”
The legislative effort to push meaningful upgrades in Pennsylvania’s child protective statutes gained momentum following the 2012 prosecution of Jerry Sandusky for child abuse.
The package of bills approved, and other measures still awaiting approval in the state House of Representatives and Senate, includes initiatives identified by the Pennsylvania Task Force on Child Protection.
The child protection bills passed by the Senate include:
- Senate Bill 1116 – (Sen. Washington) streamlines the duties and responsibilities of Multidisciplinary Investigative Teams (MDIT) to allow for a more open an expedited process of investigating reports of child abuse;
- Senate Bill 23 – (Sens. Baker/Tartaglione) amends the definition of “perpetrator” to include current and former spouses and paramours of parents, as well as certain family members. The bill also includes additional provisions for expunction of records in circumstances where the perpetrator was under the age of 18;
- Senate Bill 28 – (Sens. Browne/Leach) enhances criminal penalties for child abuse, as well as for instances of false reporting of suspected child abuse;
- Senate Bill 30 – (Sens. Erickson/Kasunic) provides for a statewide database for anyone who files a false claim of child abuse. Also provides parameters for expedited appeals of indicated reports;
- Senate Bill 34 – (Sens. Smucker/Williams) amends the Professional Educator Discipline Act to expand its jurisdiction and allows revocation of teaching certificates through the state Department of Education in instances of founded reports of child abuse.
Costa thanked Sens. Washington, Leach, Kasunic, Williams and Tartaglione, the sponsors or lead co-sponsors of the legislation that was adopted, for their leadership in helping push these measures through the process.
“In particular, Senator Washington has provided strong leadership on this issue for the Senate Democratic caucus,” Costa said. “Her knowledge of the issues and her deep concern for the welfare of children has been very helpful to members on both sides of the aisle,” Costa said.
Washington serves as the Democratic Chair of the Senate Aging and Youth Committee and has a long record of work in the area of preventing child abuse.
He said that the entire Democratic caucus has worked to ensure that their ideas were considered as a part of the comprehensive package of bills that have become the child protection package.
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Harrisburg – December 12, 2013 – The former Westinghouse Atom Smasher site that straddles Chalfant Borough and Forest Hills in Allegheny County will be the subject of an environmental site assessment funded by an $88,000 Industrial Sites Reuse Program (ISRP) grant, according to state Sen. Jay Costa (D-Forest Hills).
“The Industrial Sites Reuse Program is designed as a catalyst to spur redevelopment of old industrial and manufacturing sites,” Costa said. “This program provides seed money to do an environmental site assessment that is part of a cleanup plan for the facility.”
Senator Costa says the former Westinghouse Atom Smasher site that straddles Chalfant Borough and Forest Hills in Allegheny County will be the subject of an environmental site assessment funded by an $88,000 Industrial Sites Reuse Program grant. Here’s more with Senator Costa who says this is the first step in turning the abandoned industrial site into a planned residential community.Atom-Smashers-Site-Assessment-
Costa, who serves as Senate Democratic leader, has been a strong advocate of redeveloping brownfields and recycling former manufacturing facilities. He was notified that the environmental assessment grant was approved earlier this week.
Costa said that the 12-acre Atom Smasher site sits on land that could be developed provided that any environmental problems are remediated. He said the facility is conveniently located and has ready access to major traffic arteries so it has high development potential.
He said P&L Investments has plans to use the site for a new residential development.
“The Industrial Sites Reuse Program has been a key part of the development strategy of many old industrial sites,” Costa said. “Given the industrial heritage of our region, this program is a key that unlocks future development and job creation.”
The ISRP provides grants and loans of up to $200,000 for environmental assessments at brownfield sites and is able to make grants and loans of up to $1 million for remediation.
The grant was awarded to Forest Hills Borough.
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Harrisburg – December 10, 2013 – In advance of the governor’s planned mid-year budget briefing, state Senate Democrats today announced details of a plan to generate more than $1 billion in budget savings and revenues they say can be used to make key investments, avoid deep cuts or tax increases in dealing with a projected $839 million budget deficit.
“Senate Democrats have identified ample revenues to not only deal with the significant budget deficit that has developed under Gov. Tom Corbett’s watch, but we’ve also found resources to fund key job creation initiatives, education investments and safety net repairs that are needed as a result of short-sighted administration policies,” Sen. Jay Costa (D-Allegheny), the Senate Democratic leader said.
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In a November budget status report, the Independent Fiscal Office (IFO) reported that Pennsylvania was facing a structural deficit of $839 million.
At today’s news conference in the state Capitol, Costa detailed the Senate Democratic $1.091 billion savings and revenue plan. The plan includes the following features and fiscal benefits:
- Expanded Medicaid — $400 million;
- Escheat Reform — $150 million;
- Wine and Spirits Modernization — $125 million;
- Charter School Reform — $85.5 million;
- Capital Stock and Franchise tax phase-out freeze — $75 million;
- Multi-state claims processing for SSP/SSI – $75 million;
- Enhanced tax collection — $55 million;
- Medicaid Managed Care — $50 million;
- Tobacco products tax — $36 million;
- Vendor discount elimination — $40 million.
Senate Democratic Whip Sen. Anthony H. Williams (D-Philadelphia) said Pennsylvanians should not accept the recurring rhetoric from the Corbett administration that they have to cut and slash each and every year due to a revenue shortfall.
“Every year we have heard the same tune from the governor that his hands are tied because revenues are soft and the job market is flat,” Williams said. “For the last three years, Senate Democrats have put forth plans outlining how we can generate budget savings and additional revenues to make key investments without severe cuts.
“The song the governor keeps singing about his budget woes is stale and taxpayers are tired of it. The fact is we need a new more aggressive approach,” he said.
Senate Democratic Appropriations Chair Sen. Vincent J. Hughes (D-Philadelphia) said the reason Pennsylvania keeps having budget deficits and scrambling for money each year is the Corbett administration does not have a comprehensive and coherent job creation strategy.
“Under the governor’s leadership, we’ve gone from eighth in job creation to near last among all states, dead last among all our neighboring states and last among all big states,” Hughes said. “We have a Corbett jobs deficit of 166,000 on top of a Corbett budget deficit of $839 million.
“The reason we can’t move forward is that the Corbett corporate tax cuts of over $1 billion, combined with a lack of attention to the needs of everyday Pennsylvanians in job creation, education and safety net protections, weigh us down.”
Senate Democrats also continued to lament the $1 billion in cuts in education funding authored by the Corbett administrations several years ago. The Democrats said this policy has been counterproductive and costly to the average taxpayers because the state simply shifted the burden.
“We can devise a better approach to budgeting and revenue generation that will not result in our local taxpayers paying more in property taxes and children losing opportunities in school,” Costa said. “The Senate Democratic plan provides a path that is responsible and deals with the Corbett budget deficit.”
In addition to the budget and savings plan, Senate Democrats said they would soon announce their budget priorities for the upcoming fiscal year.
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