Potential funding stream would freeze property taxes for seniors
Harrisburg – October 24, 2013 – State Senate Democrats said today they were pleased that Gov. Tom Corbett has now signaled his approval of their plan to direct revenues generated from small games of chance in taverns to the Lottery Fund. The Democratic plan would bolster lottery programs and create a potential funding source for a property tax freeze benefitting seniors.
“Senate Democrats are unified in the desire to use the revenues generated from small games of chance in taverns to help seniors,” Sen. Jay Costa (D-Allegheny), the Senate Democratic leader, said. “Our members believe strongly that these new revenues should be targeted to aid seniors instead of being disbursed into the General Fund.
“We certainly hope that the final version of the small games legislation includes our idea to target the revenue for the Lottery Fund.”
Costa, Democratic Appropriations Committee Chair Vincent J. Hughes (D-Philadelphia) and Sen. John Blake (D-Lackawanna), who sponsored the plan as an amendment to House Bill 1098, said today that the new revenues from the Senate Democratic plan would provide flexibility and create opportunities.
On Wednesday, the Corbett administration circulated an email to lawmakers indicating that they were supportive of putting the money from the tavern small games into the Lottery Fund.
The Senate Democratic plan — detailed in the Blake amendment — was voted down during a Senate Appropriations Committee meeting on Tuesday. The legislation was eventually reported from committee and passed in the Senate, 39-11. It is now in the House of Representatives.
The new tax on small games of chance in taverns is expected to generate $38 million this year and $156 million in 2014-‘15, according to Senate fiscal notes.
“Senate Democrats have tried to explain why this was so important and how it could be used to help fund critical senior programs,” Hughes said. “We are hopeful that with the governor’s endorsement of our plan, House members will adopt the approach and support it when they return to session in November.”
Blake said helping fund senior programs is important and the new revenue may be the funding conduit that allows the General Assembly to develop a property tax freeze for seniors.
“The new funds would give the legislature flexibility and resources that can be set aside to help seniors address high property taxes,” Blake said. “These new revenues must be employed effectively and a specific use must be identified.
“My amendment made it clear that the revenues should be earmarked for the Lottery Fund, from which we already provide property tax relief and from which we already fund essential programs for our seniors.”
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SCRANTON, Oct. 8, 2013 – Venture capitalists, public policy experts and economic development analysts today debated the strategic elements of the Senate Democratic plan to grow jobs and foster business creation and expansion in Pennsylvania.
Called “PA Works,” the Senate Democratic strategy is a multi-faceted approach that includes dozens of proposals and incorporates Sen. John Blake’s (D-Lackawanna) groundbreaking “Innovate in PA” program.
If enacted, “PA Works” would create an estimated 80,000 jobs and generate $2 billion in new private investment.
“We’re talking to local, state and private experts on the economy because we believe Pennsylvania can do more to drive economic activity and encourage investment and job growth. We’re excited about ‘PA Works’ and its prospects for both short- and long-term benefits to our state’s economy,” Blake said.
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The Senate Democratic Policy Committee, chaired by Northampton County Sen. Lisa Boscola, engaged three panels of experts at the University of Scranton’s Loyola Science Center.
“Stoking our economy, getting people back to work and helping businesses succeed should be government’s top priority,” Boscola said. “This is why we are presenting ‘PA Works’ and Sen. Blake’s ‘Innovate in PA’ to get this state moving again.”
Blake’s “Innovate in PA,” which was enacted when the governor signed the state’s tax code into law, is designed to improve Pennsylvania’s capacity to support the job creators of the future with new investments of nearly $100 million in the life sciences, advanced manufacturing, information technology and energy business sectors.
Mike Gausling, the managing director of Originate Ventures, praised “Innovate in PA” for being there for new businesses.
“Investors who don’t take as much risk aren’t going to show up (with investment dollars), so it is critical for the state to step up and provide early stage risk capital,” Gausling said.
For each dollar the state invests, said Ben Franklin Technology Partners of Northeast PA CEO Chad Paul, there will be a $3.60 return.
The five critical elements of “PA Works” that were spotlighted at the hearing will invest in the state’s small businesses (SB 200, SB 205, SB 216), develop and rebuild infrastructure (SB 201, SB 236, SB 224, SB 1033, the expansion of H2O PA, and new PENNVEST funding), better prepare workers for in-demand jobs (SB 223, SB 230, SB 208, and industry certification), train veterans for fulfilling civilian careers (SB 203, SB 215, SB 231, SB 452, and increased opportunities for veteran contracting), and ease the burden on minority women and families (SB 228, SB 219, and SB 858).
“Pennsylvania is at a crossroads,” Blake said. “We need to choose the right path forward to create long-lasting and positive opportunities for business, job creation and economic development.”
Pennsylvania’s unemployment rate increased in August to 7.7 percent while the national jobless rate hovered at 7.3 percent. The U.S. Department of Labor’s Bureau of Labor Statistics said PA is 45th in the country in 2013 for year-to-date employment growth.
“Whether it’s struggling with a budget crisis, maintaining city services, or fighting crime and blight, we need a comprehensive strategy that will enable our urban cores to revitalize themselves, attract new investment, and emerge as destination points for new residents and businesses,” Boscola said.
“The creation of a single job ripples through the economy and benefits us all,” said Institute for Public Policy & Economic Development Executive Director Teri Ooms. “We all win.”
Others testifying before the committee on the “PA Works” plan and “Innovate in PA” were Richard Stein, CEO, Klios Inc.; Amy Luyster, assistant vice president, The Scranton Plan; Dr. Mel Billingsley, CEO, Life Sciences Greenhouse of Central PA; William J. Schoen, administrator, Skills in Scranton; Ronald Vogel, regional representative, PA Department of Labor & Industry; and David Jadick, acting public affairs officer, Tobyhanna Army Depot.
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No Legislative Oversight, Lack of Financial Backing Panned by Senate Democrats
Harrisburg, May 13, 2013 – A new unfunded education mandate now being quietly pursued by the Corbett administration will soon saddle school districts with a $300 million expense and threaten graduation for thousands of students across Pennsylvania, Senate Democrats said today at a Capitol news conference.
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Sen. Andrew Dinniman (D-Chester) Democratic chair of the Senate Education Committee, Senate Democratic Leader Jay Costa (D-Allegheny), Sens. Judy Schwank, John Blake and Jim Brewster all expressed their displeasure and concerns about the proposed changes.
“We are not opposed to the implementation of Common Core standards for Pennsylvania’s students,” Dinniman said. “But we are opposed to Common Core standards without adequate state financial resources for our schools so that all of our students have the opportunity to succeed under those standards, including those in financially distressed school districts.
“For the Commonwealth to increase standards without the adequate fiscal resources is a charade. It is a sham that will only lead to false hope,” Dinniman said.
Common Core standards are being sought by the state Department of Education as a way to determine proficiency and graduation eligibility.
According to Dinniman, the implementation of Common Core standards will result in an unfunded mandate of at least $300 million for local schools. There is no specified funding or plan to provide for the remedial instruction, the redesign of curriculum, or the project-based assessments for those who repeatedly fail the tests.
“The implementation of these new standards should be reviewed thoroughly by the General Assembly,” Costa said. “This whole new testing structure will cost taxpayers dearly and it is being implemented without a full understanding of the benefits for students, teachers, administrators and taxpayers.
“A complete explanation of what is being sought by the department is necessary before Pennsylvania schools put these new standards into play.”
Schwank, who represents the economically and academically struggling Reading School District, said the new testing will be particularly devastating to fiscally challenged schools.
“School districts like Reading, as well as many others around the state, are drowning in red ink now,” Schwank said. “These new mandates, without proper fiscal support, will make their financial plight even worse.
“There is certainly nothing wrong with increasing proficiency standards but students, teachers and schools must have resources to invest to address deficiencies.”
To implement new standards and testing procedures without adding dollars makes no sense, Blake (D-Lackawanna) noted. Especially, he said, after the Corbett administration has slashed basic education support by $900 million.
“To add new core testing procedures and a mandate at a cost exceeding $300 million after cutting education support is irresponsible,” Blake said. “The local property taxpayer is going to get squeezed and economically strapped schools and taxpayers will bear an even greater burden.”
Brewster said instead of implementing more tests and costs, educators and the Corbett administration need to step back and decide whether the current testing structure is constructive. He has proposed Senate Bill 823 to create a bi-partisan commission to recommend changes or a total scrapping of the current student testing procedures.
“My belief is we need to look at what we are doing with student testing and come up with a new, better approach that accurately reflects student, school, teacher and community performance,” Brewster said. “Today’s tests are flawed and the whole system is need of restructuring.”
Senate Democrats also lamented that the new Common Core tests involve 10 days of testing, which takes even more time away from traditional instruction.
They added that districts could receive a deeper financial bludgeoning if students fail to pass the tests.
The new Common Core standards will exacerbate the problem of teaching to the test, Senate Democrats said.
Harrisburg, February 11, 2013 – State Sens. Jay Costa (D-Allegheny) and John Blake (D- Lackawanna/Luzerne/Monroe) said that instead of outsourcing the Pennsylvania Lottery’s operations to a U.K. company, Camelot Global Services, the governor should allow the Lottery to implement AFSCME’s recommendations to raise new revenue.
“Instead of privatizing the management of the Pennsylvania Lottery, the governor should instruct the Lottery to move on many of the recommendations made in the AFSCME report so that hundreds of millions in new revenue can be generated,” Costa, the Senate Democratic Leader, said. “If current Lottery employees were given the latitude that is called for in the PMA with Camelot, they would clearly equal or exceed the revenue projections of the proposed contractor.”
“Instead of privatizing lottery operations without the consultation of lawmakers, we should be using our current, dedicated and capable Pennsylvania employees to grow the Lottery and generate more revenue to aid our seniors,” Blake said.
Blake, who serves as the Democratic Chair of the Senate Finance Committee, said that it would make more sense to build on the strengths of a successful system and a successful Lottery workforce rather than turning the entire operation over to a private, for-profit enterprise.
“I see no reason why we need to privatize the Lottery using a foreign concern when we can implement many of the recommendations made in the AFSCME report to boost revenue,” Blake said. “The governor should reconsider the decision on outright privatization and instead build on our successful system by expanding its discretion and simply augmenting its operations with any needed outside marketing or managerial experience.”
The recommendations made by AFSCME were contained in a counterproposal that the union generated following the governor’s decision to privatize the Lottery using a Private Management Agreement (PMA). AFSCME indicated that it could generate $1.5 billion more in lottery profit.
A recent Franklin and Marshall survey indicated sixty-four percent of registered voters who were asked oppose privatization of the Pa Lottery.
“The AFSCME proposal contains recommendations that will boost revenue, institute more internal controls and provide for greater accountability. We need to give our Lottery and our workers a chance to create more revenue and expand before we send the management of our system overseas,” Costa said.
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Harrisburg, December 18, 2012 – Acknowledging the escalating problems in economically-challenged communities across the state, Pennsylvania Senate Democrats today discussed their plans to address a wide range of problems impacting aging and distressed cities.
The “Growth, Progress & Sustainability” or GPS plan focuses on developing new policies that foster cooperation while addressing and strengthening the core of distressed communities.
“The reality is instead of planning for growth and economic development, many cities are contemplating bankruptcy,” Senator Jay Costa (D-Allegheny) said. “We could no longer stand back and watch while the rich heritage of Pennsylvania erodes amid shrinking tax revenues and tax bases.”
Costa said the intention of the plan is to help transform communities and bring some much needed light to the end of the tunnel.
“Pennsylvania needs a new road map to help our cities and our towns,” said Senator John Wozniak (D-Cambria). “Communities are struggling – from Scranton to Harrisburg and Reading to Johnstown and all places in between. Today we’re presenting the GPS plan to serve as a foundation to address the issues and transform our cities and communities.”
Senate Democrats are committed to working with local leaders to further develop the GPS plan which highlights broad areas of legislative interest. The areas the Senate Democrats outlined are including:
- Economic development
- Rebuilding the local tax base
- Urban blight
- Crime/Public Safety Initiatives
- Education & workforce development
- Modernizing and streamlining local government to reduce costs
- Act 47 and Local government Unit Debt Act
According to Senate Democrats, many of the identified communities continue to face huge obstacles as each attempts to provide government services at a time when tax revenues and tax bases are shrinking. They said that they recognize no solution can be effective or lasting without addressing each of the interconnected parts outlined in the plan and understanding how they affect residents.
“Revitalizing our urban areas and strengthening surrounding communities requires we assess and understand their struggles,” said Senator Judy Schwank (D-Berks). “Our focus needs to be squarely on quality of life for the families living in these areas. We owe it to them to ensure these issues are addressed and their needs met, as we move forward.”
Working with local governments, Senate Democrats acknowledged the need for vision, focus and commitment. This includes providing the tools communities need to help themselves before their circumstances become untenable, they said.
“We want public policy that is proactive, cooperative and supportive, not reactive, punitive and vindictive,” said Senator John Blake (D-Lackawanna). “We want to develop long-term, sustainable solutions that will enable these communities to rebuild and thrive.”
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