Sen. Jay Costa Statement on Pennsylvania Supreme Court Redistricting Decision

Harrisburg – May 8, 2013 – State Democratic Leader Jay Costa (D-Allegheny) released the following statement on the decision of the Pennsylvania Supreme Court to uphold the legislative redistricting plan:

“The approval of the redistricting plan by the state Supreme Court is disappointing. We believe that we successfully argued that a fair map, one that includes far fewer municipality, county and community splits, could be created. Our arguments and rationale were consistent and constructive throughout the process.

“Our belief is that the map approved by the commission is partisan and only serves narrow, partisan political interests. We believe there are better alternatives and we offered those during the long reapportionment process.

“However Senate Democrats recognize that the court has now ruled and that it is time to move on in crafting policies that serve all the citizens of Pennsylvania.”

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Costa Pleased with Highmark/WPASH Affiliation Approval

Harrisburg,  April 29, 2013 – State Sen. Jay Costa released the following statement on the state Insurance Department’s approval of Highmark’s proposed affiliation with the West Penn Allegheny Health System (WPAHS).

Costa has been a strong proponent of the affiliation of the insurer and the hospital system as a means to promote competition in the delivery of health care in Western Pennsylvania, preserve community access and foster the growth of jobs in the industry.

“I am very pleased with the decision by the Insurance Department to permit the affiliation of Highmark and WPAHS. This affiliation is critical to a fair, competitive and robust health-care service delivery system in Southwestern Pennsylvania.

“For too long, there has been anxiety and apprehension about health-care choices and there has been too much controversy. This approval is one step in the long-term process of resolving all the health-care issues involving Highmark, WPAHS and UPMC.

“Consumers deserve a better, stronger WPAHS health-care system with choices. The affiliation will result in greater access, reduced costs, more employment opportunities, and it will help sustain communities.

“The affiliation is critical for the future of high-quality, reasonably priced health care in the Pittsburgh area. The community hospitals that are part of the WPAHS are more than health-care operations. For many in the Pittsburgh area, these facilities are lifelines.

“I am hopeful that this is just the beginning of reforming the health-care delivery system in the Pittsburgh area.”

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Senate Democrats Seek Job Creation, Education, Safety Net Dollars in Budget Discussions

Harrisburg, April 17, 2013 – Senate Democrats’ 2013-14 budget priorities are heavily weighted toward job creation, education investments, strengthening the social-services safety net, modernizing liquor sales and refocusing Pennsylvania’s business tax menu to help small businesses, they announced today at a Capitol news conference.

Senate Democratic Leader Jay Costa (D-Allegheny) said that Senate Democrats will go into this year’s budget negotiations with a clear purpose and “are resolved that the state’s economy must be jump-started. New jobs must be created and we have to reverse the negative course that the Corbett administration has plotted for Pennsylvania on education and protecting our most vulnerable.”

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“We have an opportunity and a responsibility to seek new investments and use resources that are available to change policy direction during this year’s budget negotiations.”

Costa said Senate Democrats believe that more than 120,000 jobs can be created quickly by enacting a responsible transportation plan, expanding Medicaid and using economic development policies outlined in their PA Works plan.

Costa was joined by a host of Senate Democrats in making today’s announcement.

Sen. Vincent Hughes, who serves as the Democratic chair of the Senate Appropriations Committee, said that by taking action now on key economic initiatives then restoring job creation and community programs to their past luster — before Corbett budgets sliced them to the core — is an excellent starting point.

“We need to start creating jobs right now and we can do that by working on transportation and Medicaid expansion,” Hughes (D-Philadelphia/Montgomery) said. “These initiatives coupled with rebuilding water and sewer systems, investing in schools and new technologies will create economic growth immediately.

“In addition, by investing in programs such as Main Street, Elm Street and international business we can help small business here while they market their products abroad.,”

Democratic Whip Sen. Tony Williams (D-Philadelphia/Delaware) said that the caucus was turning up the heat on the Corbett administration on jobs, health care, education and social safety net issues because the governor has failed to lead.

“We’ve outlined reasonable strategic policy alternatives that will reverse direction and provide a new path and we’ve identified revenues that will pay for the proposed expenditures,” Williams said. “Pennsylvania is rudderless on job creation and our economic numbers and business indicators under this administration illustrate the problem.

“Our most vulnerable can also not withstand another senseless round of Corbett cuts and we have to restore programs that promote help for those in need.”

Williams said that Pennsylvania is now 43rd in job creation, falling from eighth place among all states under Gov. Ed Rendell’s leadership. Plus, he said, last month’s unemployment claims fell nationally to below 350,000 but, because of Corbett policy short-sightedness, Pennsylvania led the country in new unemployment claims.

Senate Democrats said that they have laid out specific plans to achieve results in the 2013-14 budget in five areas. These include: strategic investments to create jobs; improving education; repositioning business taxes while closing business tax loopholes; modernizing the wine and spirits stores; and repairing and protecting social safety net programs.

The caucus leaders said that they’ve noted at least $750 million in annual savings, plus another $150 million in one-time revenues. They also said that we need to find resources to pay for specific new expenditures including $225 million for basic education, $50 million to aid distressed cities and communities, $40 million for transitional housing and homeownership among other items, and funds for new tax credits for a variety of areas including film production.

Democrats said that priority details include a three-year phase in of new monies to restore education dollars and key student-performance based initiatives that were cut by the Corbett administration in the last two budgets.

They also said that they would emphasize rebuilding struggling communities through their Growth, Progress and Sustainability (GPS) plan; seek new funds for transitional housing and new homeownership opportunities; and push for modernizing the wine and spirits stores rather than the opt for the risky privatization scheme that has been sought by the Corbett administration.

The Democrats indicated that they expected the negotiations to become more focused once the Senate returns to session in late April.

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Rand Study Supports Medicaid Expansion, Senators Say

Costa, Hughes prod Corbett to act

Harrisburg, March 28, 2013 – Two top Democratic state Senators who have been urging the Corbett administration to expand Medicaid said the governor should pay attention to a new, detailed study commissioned by The Hospital and Healthsystem Association of Pennsylvania (HAP) that shows the advantages of enrolling more Pennsylvanians in Medicaid.

Sen. Jay Costa (D-Allegheny), the Senate Democratic leader, and Senate Democratic Appropriations Chair Sen. Vincent J. Hughes (D-Philadelphia/Montgomery) said the study underscores the arguments they and their colleagues have been making: expanding Medicaid makes fiscal, political and moral sense.

“The evidence is clear that expanding Medicaid will help hundreds of thousands gain access to health care, save the state money, bolster the economy, create jobs and not cost the Corbett administration a dime,” Costa said. “The governor needs to weigh the evidence and do the math and expand Medicaid.”

Hughes, along with his Democratic colleagues on the appropriations committee, recently held a hearing on the issue in Pittsburgh and a roundtable discussion in Philadelphia to highlight the need for the expansion. Senate Democrats have introduced Senate Bill 12 which would compel Pennsylvania to participate in the expansion.

“The HAP study is conclusive that Medicaid expansion will deliver $2.2 billion to $2.5 billion in annual federal payments to Pennsylvania, generate more than $3.2 billion in economic activity and support more than 35,000 jobs,” Hughes said. “Most importantly, the study says 350,000 low-income, non-elderly Pennsylvanians would gain health insurance.”

The HAP study said Medicaid expansion will cost Pennsylvania $1.64 billion. However, $1.46 billion will be generated by gross receipts taxes and another $270 million will be generated from personal income taxes on jobs supported by the expansion. The revenue exceeds the costs by $90 million.

The proposed Medicaid expansion would cover individuals whose incomes are at or below 138 percent of the federal poverty level. The federal Affordable Care Act (ACA) included the expansion as a part of the coverage menu but was challenged in court.

The U.S. Supreme Court upheld the constitutionality of the ACA in its June 2012 decision but said states could decide on their own if they wanted to opt in to the expansion of Medicaid.

“We need to move aggressively in implementing provisions of the ACA so that we can help those who desperately need health care,” Hughes said. “The Corbett administration has been slow to come around to what we’ve been saying about the advantages of participating in the expansion of Medicaid.

“A small legion of Republican governors – including those from surrounding states and others who have far-right philosophies – have already said they will lead their states in helping more of their residents by expanding Medicaid. We need Gov. Corbett to take a good look at this study and lead.”

The HAP study says the enrollment of 350,000 more Pennsylvanians in Medicaid will drop the uninsured rate from 12.7 percent to 8.1 percent, and then 4.8 percent in 2016 when the non-compliance penalties of the ACA take effect.

“There is no question the HAP study shows there is significant upside to Pennsylvania’s participation in Medicaid expansion and very little downside,” Costa said. “The governor needs to understand we have a great opportunity and that expanding Medicaid is the right thing to do.”

The senators said that the HAP report only looked at economic benefits of the Gross Receipts Tax and the Personal Income Tax. It did not examine additional spinoff economic benefits or savings from offsets of state-funded programs that would result from the expansion.

A broader analysis by the Senate Democratic caucus concluded that 650,000 Pennsylvanians would gain access to health insurance through the Medicaid expansion, $670 million in new revenues would be generated, and $4 billion in federal monies would be leveraged.

The HAP report, “The Economic Impact of Medicaid Expansion on Pennsylvania,” was conducted by RAND Health, which is a research unit affiliated with the RAND Corporation.

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Costa, Ferlo Express Disappointment at Liquor Privatization Plan

Harrisburg, March 21, 2013 — Senate Democratic Law and Justice Chair Jim Ferlo (D-Pittsburgh) and Senate Democratic Leader Jay Costa (D-Allegheny) today released statements expressing their opposition to the passage of the wine and spirits privatization plan in the Pa House of Representatives.

“Governor Corbett and House Republicans are giving away an important public asset in their ideological thirst for privatization,” Ferlo said. “Their plan will destroy consumer choices, reasonable prices, family sustaining jobs, and it will cause social disruption in our communities.”

Expressing disappointment on behalf of his constituents, Ferlo questioned the motives in the privatization plan.

“Through today’s vote for wine and spirits privatization, Republican leadership in the governor’s office and the state House continued its assault on the middle class, showing no hesitation in eliminating family-sustaining, middle class employment in favor of giving their rich allies a chance to sell alcohol and pocket the profits.”

Ferlo strongly maintains that a better approach is his modernization bill; legislation that has gained 26 bipartisan co-sponsors. The bill would allow for more appropriate pricing, flexibility in hiring, acquisition of in-demand products and direct shipment of wine, while also providing for package reform in beer sales.

Senator Costa has long maintained the lack of need for privatizing the Liquor Control Board operations.

“I am very disappointed by the passage of the liquor privatization legislation by the House,” Costa said. “Instead of privatizing we should be modernizing the wine and spirits system. We should not be ceding the control of alcohol to companies that are driven by profit and not control.”

Costa expressed his deep concern about the loss of thousands of jobs to hard working Pennsylvanians, amidst the potential, significant loss of revenue for the commonwealth.

“The republican scheme to rely on one-time revenues while cutting thousands of family-sustaining jobs opens a door to fiscal instability that we will never be able to close. The House vote today puts hundreds of millions of dollars in the balance, and thousands of dedicated employees are caught in the middle of this debate.”

Costa asserted that divesting our current system for one that offers no future guarantees is a gamble that no one should be willing to make.

“This is the wrong time to allow a massive expansion of access to alcohol without proper safeguards,” continued Costa. “The liquor plan that passed the House is purposely confusing and convoluted and its passage was driven by special interests and political expediency.

“Gov. Corbett’s liquor expansion plan takes Pennsylvania in the wrong direction,” Costa said.

For more information on Senator Ferlo’s Pennsylvania Liquor Control Board and beer sales modernization bill, visit http://www.legis.state.pa.us/cfdocs/Legis/CSM/showMemoPublic.cfm?chamber=S&SPick=20130&cosponId=12007

CONTACT:

Stacey Witalec| Press Secretary

Senator Jay Costa and Senate Democratic Caucus
535 Main Capitol | Harrisburg, Pa 17120
Phone:(717)772-2368 | Cell:(717)877-2997
www.senatorcosta.com