Harrisburg, August 13, 2013 – Senate Democratic Leader Sen. Jay Costa (D-Allegheny) today issued a statement disputing the Corbett administration contention that state funding earmarked for the Philadelphia School District was contingent on additional concessions from the city or organized labor.
Costa and other Senate Democrats participated in discussions in June with the governor’s senior aides — prior to the adoption of the state budget or Fiscal Code – concerning the $45 million state grant for the city. Philadelphia school officials have maintained that without the additional state funds the school district will not be able to open for the upcoming year.
“In the context of our discussions with the governor’s top aides there were no additional labor concessions discussed regarding the state grant.
“The fact is the district has already started implementing a wide array of significant fiscal, operational and education reforms pursuant to Act 71. These include labor contributions, transportation efficiencies and other important changes that will help address the district’s funding crisis.
“Act 71 refers to the type of systemic reform that the district has now put in motion not the imposition of contractual changes that have not been agreed to during the collective bargaining process.
“The Corbett administration needs to honor the commitment that it made and release the grant funding.”
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Harrisburg – July 29, 2013 – Senate Democratic Leader Jay Costa (D-Allegheny) released the following statement concerning the death of former Pennsylvania Gov. William Scranton. Gov. Scranton died Sunday in California.
Scranton, who was elected as Governor of Pennsylvania in 1962, also served in the U.S. House of Representatives, as United States ambassador to the United Nations, and various high level national boards, commissions and missions during his public life.
“Pennsylvania has been blessed with many governors of outstanding ability and skill and, although his government service ended many years ago, I believe Governor Scranton was one of our most effective executives. His record of public service as governor and in various capacities on the national level is impressive. He serves as a role model for others who aspire to a life of public service.
“Pennsylvania – and our nation – is a better place because of Governor Scranton and his good works. Our thoughts and prayers are with the Scranton family today as they mourn the loss of the former governor.”
Record Lottery Sales and Revenues Prompt Request
Harrisburg – July 19, 2013 – Citing yesterday’s announcement by the Pennsylvania Lottery of record sales and revenues for the 2012-13 Fiscal Year, Senate Democrats released a letter that was sent to Gov. Tom Corbett today asking that he immediately end plans to privatize the Lottery.
The Lottery announced yesterday that it finished the 2012-13 fiscal year with $3.69 billion in sales and an excess of $1 billion in net revenues, which are well above the previous year and prior all-time sales record of $3.48 billion.
Corbett has aggressively pursued a plan to privatize the management of the Lottery. He contracted with a foreign-based British company to run the operation. Corbett’s plan was halted earlier this year when Attorney General Kathleen Kane rejected the contract on constitutional and statutory grounds. The governor has since sought one extension after another with the company to keep the possibility of privatization alive.
Sen. Jay Costa, the Democratic leader said that given the recent sales record and revenue increase, the reduction in administrative costs and the benefits that the lottery provides to seniors and the economy it would be foolish to pursue privatization. Costa said Senate Democrats believe it is important to restate their objections to the privatization scheme and to send those sentiments to the governor.
In the letter to Corbett, Senate Democrats wrote that given the Lottery’s success as a commonwealth agency, “it is difficult to fathom why your administration — or any public official for that matter — would still be pursuing the privatization of the Lottery.
“It is time to publicly announce that you are ending the plan to privatize the Lottery so that we can move on to other important public policy issues that result in job creation, more investment in education and repairs to the social safety net,” Costa said in the letter.
“The continued pursuit of privatization by the governor is a waste of energy and money,” Costa said.
Editor’s note: View Senate Democrats letter to Gov. Corbett.
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Harrisburg – July 15, 2013 – More than $1.1 million in state tax credits that will help finance a multi-phased development in Homestead have been approved by the Pennsylvania Housing Finance Agency (PHFA), state Sen. Jay Costa (D-Allegheny) said today.
“This is excellent news and I am pleased that the Homestead project was able to compete and gain support from PHFA,” Costa said. “The PHFA tax credits will leverage more than $10 million in private investment and help complete the financing for the $13 million project.”
According to Costa, the ONE Homestead project includes townhomes on Amity Street between 9th, 10th and 11th Avenues; the redevelopment of the old post office at the corner of Amity Street and 9th Avenue into loft apartments; and, a 30 unit apartment building along 8th Avenue.
“The revitalization of the corridor along 8th Avenue and the surrounding area will help attract even more redevelopment and jobs,” Costa said.
The state Department of Community and Economic Development is contributing $500,000 to help with the financing while Allegheny County is providing an additional $1.7 million. The project will add 51 housing units.
“The project brings new affordable housing to the community and will generate pedestrian activity and business opportunity,” Costa said.
Costa noted that the new development is very accessible to other local attractions including the Waterfront, Carnegie Library, Propel Charter School, Barrett Elementary and public transportation.
“This is a unique location and an important project that will spur even greater interest in the area for businesses, residents and new development,” Costa said.
Costa, who serves as Senate Democratic Leader, said that the ONE Homestead project is a part of a coordinated community revitalization effort involving Allegheny County and the Borough of Homestead.
PHFA tax credits are used to access private dollars to help fund public housing projects. The innovative financing enables state tax credits to be multiplied so that larger projects can be completed.
The new initiative in Homestead involves the development of 67,400 square feet.
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Harrisburg – June 30, 2013 – Senate Democratic Leader Sen. Jay Costa (D-Allegheny) released the following statement after the Senate passed Medicaid expansion language as a part of the Welfare Code legislation:
“The expansion of Medicaid is a win for Pennsylvania. It is responsible, meaningful and good public policy. The expansion will improve the lives of so many who need help. It will permit more than a half a million Pennsylvania citizens to gain access to health care.
“Medicaid expansion makes fiscal sense. It is fully paid for by the federal government for the first three years and it will generate significant budget savings for Pennsylvania. The expansion will save an estimated $150 million the first year and create significant additional savings in years to come.
“The expansion of the program has been a priority for Senate Democrats for many months. Senate Democrats traveled the state to learn how the program expansion will help citizens from all walks of life. We recognized its value and worked with Senate Republicans to craft language that was acceptable.
“I am very pleased that the language was approved with bi-partisan support and I am hopeful that the House will endorse the plan.”
According to independent estimates Medicaid expansion will create 35,000 to 40,000 jobs and inject $4 billion into our economy and will provide an important economic boost.
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Harrisburg – June 30, 2013 – State Senate Democratic Leader Jay Costa (D-Allegheny) said that while he has reservations about the budget plan that was approved in the Senate today, he was willing to support the $28.375 spending plan because it includes positive aspects.
“There are many things that I would do differently if Senate Democrats were crafting the plan — such as investing more in schools and job creation — but there are key elements in the plan that I support,” Costa said. “We can do better and we shouldn’t be satisfied, but we need to move the process and put a budget in place.”
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Costa said in particular he was satisfied that all schools will share in the $130 million boost in the basic subsidy, but he was disturbed that a slice of that increase was earmarked for selected school districts in mostly Republican areas.
“On balance, because all school districts will see an increase, the budget is helpful but we need to do more for distressed schools,” Costa said.
Costa said the plan provides an increase of $8 million for the Attorney General including an additional $3 million for the Child Predator Interception Unit, plus new funds to modernize technology in the Auditor General’s office.
The budget also includes an increase in funding for the Pennsylvania State Police to provide for three new cadet classes – approximately 300 cadets.
“These new funds for the Attorney General and State Police are critical to improving public safety and protection in our communities,” Costa said.
The Democratic Leader said that an important aspect of the tax and spending plan includes a freeze in the phase-out of the Capital Stock and Franchise Tax which was an initiative of the Senate Democratic caucus. This provision is included in a separate tax code bill.
“With limited revenue available this year, the freeze in the phase-out of the Capital Stock and Franchise was a Senate Democratic priority and I am pleased they are part of the overall budget approach,” Costa said. Costa said that the freeze in the phase-out of the Capital Stock and Franchise Tax “will generate $54 million that can be used to meet critical needs this year.”
One of the most important parts of the overall budget package is the inclusion of Medicaid expansion language in the welfare code legislation, according to Costa.
The senator said that the welfare code changes would permit the governor to enter into an agreement with the federal government under certain conditions to expand Medicaid to cover individuals earning up to 138 percent of the federal poverty level.
It is estimated that more than 500,000 Pennsylvanians will gain access to health care access as a result of the expansion and between 35,000 to 40,000 jobs will be created.
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