Senate Democrats Announce Leadership Team

Harrisburg – November 16, 2016 – Senate Democrats today elected leaders for the 2017-18 legislative session. State Senator Jay Costa (D-Allegheny) was re-elected Democratic Floor Leader.

“It is an honor and a privilege to once again be chosen to serve the caucus as Leader,” Costa said. “We face many challenges moving into the new session but our members are focused and determined to address key issues and provide for the needs of all Pennsylvanians.”

Costa was elected to the Senate in 1996 and was elected into leadership in 2006, serving first as Caucus Chairman and later Democratic chair of the Senate Appropriations Committee.

Costa will be joined in leadership for the 2017-18 legislative session by:

Sen. Anthony Williams (D-Phila./Montgomery), Democratic Whip. Williams has served in the state legislature since 1988 and was elected to the Senate in 1998. He has served as Democratic Whip since 2011.

Sen. Vincent J. Hughes (D-Phila./Montgomery), Democratic Appropriations chair. Senator Hughes was elected to the Senate in 1994 and served the caucus previously as Caucus Chairman. This will be Hughes’ fourth term as Democratic Appropriations chair.

Sen. Wayne Fontana (D-Allegheny), Caucus Chairman. Fontana was elected to the Senate in 2005 and was appointed to the leadership team in 2011 as Caucus Administrator where he served for four years.

Sen. Larry Farnese (D-Philadelphia), Caucus Secretary. Sen. Farnese has represented the First Senatorial District since 2009 and has served on the Democratic leadership team as Caucus Secretary since 2014.

Sen. Lisa Boscola (D-Northampton/Lehigh), Policy Committee Chair. Boscola has served in the legislature for more than 20 years and was chosen to serve in 2010 as Caucus Administrator and elected in 2011 as Policy Committee chair.

The leadership positions are effective Dec. 1.

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Joint Legislative Hearing in Pittsburgh Focuses on Eradicating Blight

Wilkinsburg, August 4, 2016 – At the request of state Senate Democratic Leader Jay Costa, a joint state Senate-House Democratic Policy Committee hearing was held today on efforts and resources to fight blight within our communities, including the successes and challenges of land banks.

“Blight is a scourge that impedes both business and residential interest in a community,” Costa said. “We must do what we can to give our municipalities the resources, tools and flexibility they need to quickly eradicate blight and begin revitalization efforts.”

Costa said blight poses health and safety risks, reduces neighborhood property values, drains municipal revenue on enforcement and maintenance efforts, and discourages community investment and growth.

 

Sen. Lisa Boscola (D-Northampton), who chairs the Senate Democratic Policy Committee, said “transforming dilapidated properties from community liabilities to revitalization linchpins must be our shared goal.”

Boscola added that Pennsylvania has approximately 300,000 vacant properties – many of them eye-sores. She said legislators should steer clear of “one-size-fits-all solutions” and give local government leaders the “flexibility to tailor revitalization efforts that fit their unique needs.”

State Rep. Ed Gainey (D-Allegheny), who co-chaired the hearing, said the state has passed several laws in recent years aimed at assisting local governments in blight removal and revitalization initiatives. He added that there are also numerous proposals under consideration in the legislature that would generate more funding for demolition and revitalization work and toughen penalties against absentee owners.

Costa said a 2012 law that established land banks provides an innovative way to acquire and ready properties for reinvestment. He pointed to the local Tri-COG Land Bank as a “promising program that numerous Allegheny county communities should look into.” Tri-COG recently received a pledge of $1.5 million in seed funding from the Heinz endowment.

A land bank acquires blighted properties, clears delinquent taxes and liens, and prepares the property for investment and revitalization – all aimed at returning the property to the tax rolls and productive use. A county or municipality must have a population of at least 10,000 to form a land bank. Local governments have the option of joining and must pay 5 percent of yearly delinquent tax collections to help fund the program.

Urban Redevelopment Authority Director Kyra Straussman lamented that a fourth of the city’s footprint is abandoned and vacant property that the government does not control.

“While our tax base is eroding, we are simultaneously directly paying millions in tax dollars annually to keep problem vacant and abandoned property just as it is,” she said.

Matt Madia, who serves as chief strategy and development officer for Bridgestone Capital investment program, discussed his firm’s revitalization work, including its $9.6 million effort to revitalize the Homewood neighborhood in Pittsburgh. He said some of their business loans have resulted in new businesses occupying commercial space that would otherwise be vacant. He said providing this core business sector with its products and services helps make a neighborhood “welcoming and livable.”

Mark Mohn, vice-chair state Association of Realtors Legislative Committee, said rising property local taxes has worsened the blight problem by making home ownership less affordable. He said lawmakers should consider shifting the tax burden away from homeowners to more broad-based local and state resources.

“It’s time to stop picking the pockets of homebuyers,” Mohn added, suggesting that lawmakers should consider allowing bond referendums and Social Impact Bonds where municipalities can pay back outside investors for transforming blighted properties into productive ones.

Others who testified were: Cynthia Whitman Daley, policy director of the PA Housing Alliance; Tracey Evans, executive director of the Wilkinsburg Community Development Corporation; A. William Schenck, TriState Capital Bank Board Member, Pennsylvania Economy League of Greater Pittsburgh; An Lewis, Director, Steel Rivers COG; Daniel Lavelle, board member, Pittsburg Land Bank; and Liz Kozub, Community Development coordinator, Turtle Creek COG.

Joining Costa, Gainey and Boscola were Senators John Blake (D-Lackawanna), Jim Brewster (D-Allegheny/Westmoreland), Wayne Fontana (D-Allegheny), and Representatives Chris Sainato (D-Lawrence) and Paul Costa (D-Allegheny).

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Senate Unanimously Approves Reforming Pittsburgh Intergovernmental Cooperation Authority

Harrisburg – June 28, 2016 – Legislation establishing accountability and transparency at the Pittsburgh Intergovernmental Cooperation Authority (ICA) received unanimous support in the Senate today, said Senators Jay Costa (D-Allegheny), Wayne Fontana (D-Allegheny) and Randy Vulakovich (R-Allegheny/Butler).

Amid serious concerns regarding a lack of oversight and financial accountability raised by auditors in May, Senate Bill 1221 (co-sponsored by Costa, Fontana and Vulakovich) takes immediate steps to reform the agency.

 

“Given the circumstances there was a need for substantial reforms to provide openness and transparency at the ICA,” Costa said. “The legislation passed by the Senate today provides clear accountability standards and procedures that will move both the authority and the city forward.

“It’s a win-win and one that I’m pleased my colleagues supported.”

Fontana added, “Given the lack of records and accountability as well as the gross improprieties by the former executive director, these reform measures are crucial. The ICA was accountable to no one in the past and my hope is that the provisions in this legislation improve the operations of the authority and bring about greater transparency to taxpayers.”

In addition to calling for further oversight by the Department of Community and Economic Development, Senate Bill 1221 also:

  • Requires greater transparency at the authority and record keeping that meets the standards of other state agencies;
  • Creates a records retention policy that is consistent with the policy of the governor’s Office of Administration and retains financial information for a minimum of four years and tax information, payroll and audits for seven years;
  • Provides a formal process for determining the use and distribution of gaming revenues for Pittsburgh; and
  • Requires the agency to maintain a publicly-accessible website to include complete financial records, budgets and contracts.

“I am pleased that today the Senate passed much needed reform to the ICA,” Vulakovich said. “The unfortunate actions of the past were a learning opportunity for us to take recommended changes and put them into law. I want to commend Senators Costa and Fontana for their leadership on this and look forward to working with the ICA board in the future.”

Costa and Fontana previously called for the removal of the now former ICA Executive Director Henry Sciortino and called on the Allegheny County District Attorney to investigate the authority’s financial activity. That investigation, along with a forensic audit of agency financial records is ongoing.

Senate Bill 1221 now moves to the House of Representatives for consideration.

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State Senate Hearing in Pittsburgh Focuses on Opiate Addiction Treatment

Pittsburgh – April 7, 2016 – At the request of state Senate Democratic Leader Jay Costa, the state Senate Democratic Policy Committee today held a hearing on ways to improve access to treatment for people suffering from addiction to opiates, such as heroin, opium and prescription drugs including Oxycontin, Percocet, Vicodin, morphine and others.

“Pennsylvania worsening opioid addiction crisis is both tragic and frightening,” said Sen. Lisa Boscola (D-Northampton/Lehigh), who chairs the committee. “Apart from the devastating human toll, this drug epidemic is spurring a new wave of crime, swelling our prisons and straining limited state and county treatment resources.”

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Last year, 246 deaths in Allegheny County were attributed to opioids, the county medical examiner reported.

Much of today’s hearing focused on treatment coverage and what resources are needed to help people overcome their addiction to opiates. Boscola noted that most Pennsylvania insurance plans only cover two to four weeks of inpatient rehabilitation despite national health expert claims that it takes a minimum of three months of inpatient care for treatment to work.

Costa added that “apart from the devastating human toll on opiate addicts and their families, there is a correlating financial consequence on state and local health agencies, prisons and service delivery systems.

“To help these people get off and stay off these drugs, we have to find a way to give them access to the appropriate level of treatment. Otherwise, we’re doing little more than recycling addicts, adding to police blotters, crowding our prisons and draining limited social service and healthcare resources.”

Last year, the legislature approved a measure (Act 139) that enables first responders and police officers to carry naloxone kits to reverse overdoses. Drug and Alcohol Programs Secretary Gary Tennis announced in September that officers had already saved 289 people. The law also provides Good Samaritan type protections for others who call 911 and provide help to those who are overdosing.

Deb Beck, who serves as president of the Drug and Alcohol Service Providers of Pennsylvania, cautioned that if “addictions go untreated, people will die.” She said the state’s drug and alcohol treatment system is overwhelmed.

Beck was critical of the health insurance industry, accusing them of engaging in “patterns of denial.” She said insurance carriers are playing “keep-away” with benefits. Beck added that she “met with numerous families with children who had died. They learned that they had coverage, but couldn’t figure out how to access it.”

She also noted that the prescription drug industry rakes in $16 billion nationwide from the sale of opiate pain killers, but has done nothing to help clean-up the epidemic these drugs have spurred.

Chris Monahan of the market regulation branch of the state Insurance Department said his agency has not received many individual complaints, but said the department will be doing a widespread market conduct study to make sure insurance companies are complying with coverage requirements.

Pittsburgh City Council President Bruce Kraus, called drug addiction a “cancer on our culture,” and urged a greater emphasis on pre-emptive education, training and treatment.

Boscola said addiction to opiates knows no race, sex, creed, color or economic stature. She said addicts range from the “neighbor who was injured at work and became addicted to pain killers” to the “kid next door who tried some Oxycontin that a friend stole from his mom’s medicine cabinet and sold him at school.”

Costa suggested that the Insurance Department consider appointing an ombudsman to help consumers get around barriers. Allegheny County Executive Rich Fitzgerald suggested a database be created to help prevent addicts from supporting their habit by skipping around between doctors.

Senators Wayne Fontana (D-Allegheny), John Wozniak (D-Cambria) and Sean Wiley (D-Erie) joined Costa and Boscola on the Senate panel. The following also took part in the discussion:

  • Secretary Gary Tennis, PA Department of Drug and Alcohol Programs
  • Secretary Ted Dallas, PA Department of Human Services
  • Christopher Monahan, Deputy Insurance Commissioner for Market Regulation
  • Sandy Ykema, Department Counsel, Pennsylvania Insurance Department
  • Mark Sarneso, Central and Western Region Director, Gaudenzia
  • Steve Roman, Chief Planning Officer, Greenbriar
  • Paul Bacharach, President and CEO, Gateway Rehabilitation Center
  • Deb Beck, President, DASPOP
  • Dr. Abigail Schlesinger, Medical Director, Outpatient Behavioral Health and Child and Family Counseling Center, Children’s Hospital of Pittsburgh
  • Honorable John A. Zottola, Court of Common Pleas, Allegheny County
  • State Rep. Ed Gainey (D-Allegheny)
  • Allegheny County Executive Rich Fitzgerald and Pittsburgh City Council President Bruce Kraus both provided opening remarks.

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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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