Democratic Leaders Seek Details on Shell Agreement

HARRISBURG, June 4, 2012 – Top Senate Democrats today asked Gov. Tom Corbett to release details of the deal that will bring a petrochemical cracker plant to Western Pennsylvania.

In light of recent reports asserting that the deal with Shell Chemical was sealed with expensive long-term tax breaks, Democratic Leader Jay Costa, Appropriations Chairman Vincent Hughes and Finance Chairman John Wozniak have requested a meeting with Corbett administration officials to discuss details of the agreement.

In a letter sent today, the three Democrats reasserted their praise for the administration’s effort to bring a significant number of jobs to Beaver County, but noted that there is little time left in the current budget negotiations to review complicated – and perhaps controversial – tax and revenue proposals.

“Therefore, it is vital that the members of the committees who handle tax and revenue legislation be informed immediately of possible fiscal impact,” the letter said. “It is critical that the legislature and the citizens of Pennsylvania have all the time possible to examine, consider and possibly amend a plan that could have costs and implications well into the next generation.”

After months of negotiations with several states, Shell Chemical announced in March their intention to develop a $4 billion cracking plant on the site of a soon-to-be-abandoned zinc plant in Beaver County.

The Corbett administration and industry officials said such a plant would generate as many as 10,000 construction jobs and hundreds of permanent positions in a region that has been hit hard by the collapse of the steel economy and the recent recession.

FULL TEXT OF THE LETTER:

Dear Governor Corbett:

As you know, Senate Democrats were quick with praise for your administration’s efforts to convince Shell Chemical to develop their petrochemical cracker plant in Western Pennsylvania.

The jobs and economic development from such a facility would be a tremendous boost to a region hit hard by a changing economy and the recent recession. However, there are a number of questions which have arisen and growing indications that important details of the arrangement with Shell have not been disclosed to the members of the General Assembly.

We are sure you are aware of public reports asserting that there are long term tax and revenue implications. Therefore, it is vital that the members of the committees who handle tax and revenue legislation be informed immediately of possible fiscal impact. Then, the full General Assembly should be briefed.

With less than a month to go before the budget deadline, we ask that members of your

administration privy to the particulars of the petrochemical cracker deal meet with Democratic members of the Senate Appropriations and Finance Committees to explain legislative action that might be necessary to consummate the deal with Shell.

It is critical that the legislature and the citizens of Pennsylvania have time to examine, consider and possibly amend a plan that could have costs and implications well into the next generation.

We are available to meet at your earliest convenience.

Sincerely,

Jay Costa
Vincent J. Hughes

Costa Legislation to Alter Improvement District Voting

HARRISBURG – May 14, 2012 – Under a bill to be introduced by state Sen. Jay Costa, the practice of Neighborhood Improvement Districts counting unreturned ballots as “yes” votes in district elections would be discontinued.

A Neighborhood Improvement District is a limited geographic area within a municipality in which a special tax is levied for the purpose of promoting the economic and general welfare of the district.

“Under the current law, when property owners within a Neighborhood Improvement District have a chance to vote for the approval, amendment or disapproval of a plan, a ballot that is not returned is counted as a ‘yes,’” Costa said. “That is unfair and unfortunate and the vote should not be counted one way or the other.”

Costa (D-Allegheny) said that the legislation, if enacted, would bring fairness and balance to the system of tabulating votes in a Neighborhood Improvement District.

The Forest Hills lawmaker said that the issue was brought to his attention by a constituent who requested the measure in response to the formation of a local improvement district on the South Side.

“This is common-sense legislation that closes a loophole in the Neighborhood Improvement District Act,” Costa said. “I am hopeful the bill will move quickly through the legislative process.”

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Weiss Appointed to Audit Commission on Costa’s Recommendation

Harrisburg – May 8, 2012 – A nationally known public sector legal authority with vast experience in municipal, education and tax law has been appointed to the Legislative Audit Advisory Commission on the recommendation of state Sen. Jay Costa (D-Allegheny).

Costa, the Senate’s Democratic Leader, recommended lawyer Ira Weiss to Senate President Pro Tempore Joe Scarnati for appointment to the commission.

“Attorney Ira Weiss has decades of experience in municipal law and can provide expertise as a member of the Legislative Audit Advisory Commission,” Costa said. “The commission reports annually on the financial operations of the General Assembly.”

Costa said that the commission’s work is mandated by Article VIII, Section 10 of the state constitution and consists of eight members, including four public members, one each recommended by the caucus leaders and four members of the General Assembly.

“Ira has been a leading attorney in the field of education law for many years and is regarded as an expert in municipal law,” Costa said.

Weiss serves as solicitor for numerous school districts, municipal authorities and municipalities throughout the Pittsburgh region. He currently is solicitor for the Pittsburgh school district and several other school districts and municipalities in Western Pennsylvania.

He was solicitor for Allegheny County and participated in many legislative study commissions and boards.

“Ira has been recognized by his peers for his outstanding work and received the 2008 President’s Award for Distinguished Achievement in School Law,” Costa said. “Unquestionably he will be an asset to the Legislative Audit Advisory Commission.

The Legislative Audit Advisory Commission was established in 1970.

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Sen. Costa Statement on Highmark-UPMC Contract

HARRISBURG, May 2, 2012 — Senate Democratic Leader Jay Costa (D-Allegheny) today issued the following statement on the agreement between Highmark and UPMC:

“The extension of the contract between Highmark and UPMC is good news and it’s the right thing to do for all health care consumers in the Western Pennsylvania.  Many people have worked on this issue and worked toward this agreement.  It is good to know that these efforts were not in vain.

“For too long there have been too many questions and too much apprehension about where consumers would be able to turn for life-saving health care if this issue were not resolved.   Individuals, businesses, workers, seniors and so many others who are impacted can now be assured of access to high quality, low-cost health care for the near future.

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“By agreeing to provide access to health care facilities until 2015, the insurance and health care markets in Pittsburgh will have increased stability in a time of market adjustment.  This access period will allow time to negotiate an even longer agreement that benefits all health care consumers in the Pittsburgh area.

“The agreement provides the kind of protection that workers, families, businesses, seniors and communities deserve.  It is the type of arrangement that Sen. Don White and I – and all our colleagues from the region – envisioned when we drafted our legislation (SB 1358).

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“I want to personally commend the collective work of Gov. Corbett, Sen. Don White and members of his caucus, House leadership including Reps. Dermody and Turzai, lawmakers from Western Pennsylvania and especially my Senate Democratic colleagues who provided the strong support that was needed to work through the various problems and issues.

“I am pleased that we can put this issue aside and provide relief for all health care consumers served by both Highmark and UPMC.”

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Senate Democratic Leaders React to the Independent Fiscal Office Report

HARRISBURG, May 1, 2012 –Senate Democratic Leader Jay Costa and Senate Democratic Appropriations Chair Vincent Hughes offered the following comments regarding today’s Independent Fiscal Office (IFO) Revenue Estimate Report, which stated that the projected shortfall will be $300 million, not $719 million as reported by the governor during his budget presentation earlier this year.

Sen. Jay Costa:

“The Independent Fiscal Office release of its independent preliminary estimate of the fiscal condition of Pennsylvania confirms what Senate Democrats have predicted since the governor made his budget presentation in February.  The governor’s estimated deficit of more than $700 million was way off target.

There now is no question that there will be far more available dollars to restore key budget lines that support job creation, education, safety net programs and investments for the future.

Funds are tight and resources must be stretched.  However, it is clear that the administration does not need to cut so deeply into social safety net programs, education and human services that impact so many.”

Sen. Vincent Hughes:

“For a second year, the governor has miscalculated the revenues. The Independent Fiscal Office has reinforced what Senate Democrats have argued for months.  There is additional funding available, by IFO estimates, of more than $800 million.

With April’s revenue collections reducing our current shortfall to below $289 million, the likelihood is that our yearend shortfall could be below $200 million, providing even more state revenue.

Instead of providing false choices – pitting seniors against students – we have the option to do so much more – restore education, protect our social safety net programs and tackle our number one priority – job creation.

The devastating cuts that the governor has proposed should be set aside and a new fiscal plan developed that is reconciled with the new revenues.  Pennsylvania can move forward if it moves away from the governor’s fuzzy budget numbers based on rhetoric not arithmetic.”

 

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