Harrisburg, February 4, 2014 – Senate Democratic leaders today called Gov. Tom Corbett’s 2014-15 budget proposal election-year pandering and woefully lacking on multiple levels.
“The governor really needs to stop promising and start delivering for Pennsylvania.” Senate Democratic Leader Sen. Jay Costa (D-Allegheny) said today following the budget address. “Today’s budget presentation was election –year political pandering that doesn’t move Pennsylvania forward. It simply backfills and covers over problems that the governor created over the last three years.
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“While it is a step forward that the governor has started to focus on priorities such as education with his $241 million block grant, it is still not good enough because schools are still struggling to deal with the governor’s previous $1 billion cut in education.”
The governor presented his $29.4 billion General Fund spending plan before a joint session of the General Assembly.
In the speech, the governor outlined his plan which is a 3.3 percent increase over the current year spending. The budget is balanced through the use of more than $1.1 billion in one-time funding options and shifts.
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He called for a new education block grant that would be distributed by a funding formula based on student count, aid ratio, poverty and English proficiency.
Gov. Corbett’s plan also includes $429 million more for the Department of Public Welfare – although a lion’s share of this funding is due to a declining share of federal dollars for Medical Assistance — and an increase of $78 million for corrections. The governor also called for lowering the pension collars from 4.5 percent to 2.25 percent. This would reduce state pension payments by $170 million and school pension payments by $130 million.
Costa said that Corbett’s previous $1 billion in education cuts, failure to detail a job creation strategy, inability fix the holes created in the social safety net and his stubborn refusal to expand Medicaid are coming back to haunt him.
Senate Democrats said that the governor’s new found attention to key issues was insufficient given the lack of leadership over the last three years.
“Senate Democrats have offered a host of solutions including a new $300 million investment strategy for education, and the PA Works job-creation plan and we will support the governor if he expands Medicaid, hikes the minimum wage and puts real dollars into human services programs,” Costa said.
Costa said that it has taken the governor three years, repeated calls by Senate Democrats and a tough re-election fight to see that education needs more funding. He said that recognizing these problems and responsible solutions “shouldn’t have taken so long, been so difficult or include an unbalanced distribution formula.”
Senate Democratic Whip Sen. Anthony H. Williams (D-Philadelphia/Delaware) said the governor’s new proposals were too little, too late.
Williams said the troubling jobs deficit of 180,000, the bottom-ten ranking in job creation, and the state’s poor fiscal health, illustrate the glaring gap in the governor’s understanding of the needs of the citizens.
“Every surrounding state that has increased minimum wage has increased their jobs. New York state alone grew 10,000 jobs – and they increased the minimum wage,” Williams said. “They did it not in the government sector, but in the private economy.”
Williams said that while other surrounding states are dealing with budget surpluses, Pennsylvania is still dealing with deficits.
“The governor can’t blame the previous administration for his continued budget troubles,” Williams said. “The fiscal problems faced by the taxpayers of Pennsylvania are the result of failed Corbett administration policies, period. Both sides have talked repeatedly about extending their hands on key issues, and I’m ready to finally see the handshake that moves Pennsylvania forward.”
Sen. Vincent J. Hughes, (D-Philadelphia/Montgomery) who serves as the Senate Democratic Appropriations Committee chair, said today that Pennsylvania has a long road ahead to recover from the damage done by ill-conceived Corbett administration policies especially as they relate to schools, health care, safety-net investments and jobs.
“The governor still doesn’t get it. He has slashed business taxes by $1.2 billion, cut education dollars by $1 billion and simply refused to address key issues such as job creation, Medicaid expansion, human service funding and the minimum wage,” Hughes said. “The presentation today was an election year budget that demonstrates the governor’s inability to properly identify policy priorities.
“Pennsylvania would have been better served by this governor if he agreed to expand Medicaid to help a half-million Pennsylvanians, invest long-term in a balanced education funding plan, put more of an emphasis on programs that create jobs and help our most vulnerable,” Hughes said.
Hughes said that Senate Democrats have crafted solutions to budget issues and a savings plan of more than $1.1 billion that can be used to make key, long-term investments in schools, health care, human services and jobs. Democrats have also endorsed an increase in the minimum wage, Hughes said.
The Senate Appropriations Committee will hold budget hearings over the next several weeks to examine the budget proposal in detail.
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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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Harrisburg, September 16, 2013 – Senate Democrats issued the following joint statement in response to Gov. Tom Corbett’s announcement of his plan to reform the state’s Medicaid program.
Senate Democratic Leader Jay Costa (D-Allegheny), Sen. Vincent J. Hughes (D-Philadelphia) Democratic Appropriations Committee chair, Democratic Health and Welfare Committee Chair Sen. Shirley Kitchen (D-Philadelphia,) and Sen. Mike Stack (D-Philadelphia) Democratic chair of the Banking and Insurance Committee comments on the Corbett proposal. The statement is as follows:
“Senate Democrats welcome the discussion about health-care access and affordability now that Governor Corbett has outlined his plan and vision for providing health insurance to 600,000 working Pennsylvanians.
“For more than a year, Senate Democrats have been focused on expanding options and providing help for those in need of affordable health care as soon as possible. We remain convinced that the best and most effective option is to enroll newly eligible individuals into Pennsylvania’s existing Medicaid program.
“Our plan, expanding the current Medicaid program, would allow 600,000 Pennsylvanians to have access to health insurance on January 1, save taxpayers $400 million annually and create more than 35,000 jobs. This is the cost-and-effectiveness standard by which the Corbett initiative will be measured.
“The process has to move quickly. The administration needs to put the final details of its proposal together and submit that plan to the federal government. Many states will have expansion in place by January 1, 2014, including the surrounding states of Maryland, New York and New Jersey.”
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Harrisburg, June 3, 2013– Senate Democrats today presented their version of a 2013-14 state budget which they say is a responsible alternative to the short-sighted and ill-advised spending plans offered by Gov. Tom Corbett and House Republicans.
Senate Democratic Leader Sen. Jay Costa (D-Allegheny) said that the $28.4 billion spending plan focuses on job creation, education and social service programs. He said it is a balanced plan that uses policy innovations and budget savings to make key investments.
“The Corbett Administration apparently believes there are not enough resources available this year to make meaningful investments in jobs, education, social service programs and other key lines. Instead, they have offered short-sighted, ill-advised budgets that fail to meet the needs of Pennsylvania,” Costa said. “The Senate Democratic plan proves the Corbett Administration is wrong and that more can be done.
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“Senate Democrats have produced a reasonable and responsible alternative to the Corbett and House Republicans budgets.”
Costa said that highlights of the Senate Democratic plan include $212 million more for education, an extra $125 million for job creation plus funding to help small cities deal with economic distress.
According to Costa, through policy changes the Senate Democrats believe they can develop the resources to make investments now without raising broad-based taxes. The Allegheny County lawmaker said the plan is fully paid-for and balanced and does not rely on accounting gimmicks
“The Senate Democratic alternative uses policy choices and proven strategies to produce a reasonable spending plan for not only this year, but next year as well,” Costa said.
Democratic Chair of the Senate Appropriations Committee, Sen. Vincent J. Hughes (D-Philadelphia) said that “the Senate Democratic budget changes the direction that Pennsylvania is going. The plan would put people back to work, invest in children and their education and makes the needs of the citizens of Pennsylvania the priority.”
Hughes said that the plan was formed through input from Democratic Senators and was the result of listening to citizens during a series of statewide policy hearings.
“The plan includes funding for jobs, education, innovation and technology in addition to funding for elements of the Senate Democratic initiative to help small cities rebound from economic challenges,” Hughes said.
Hughes said that it is important to Senate Democrats to detail a budget that uses available resources in order to demonstrate that priorities can be funded properly amid extremely difficult fiscal conditions.
Hughes said that Senate Democrats would use policy changes to produce a spending plan that overcomes budget challenges such as the estimated $360 million revenue deficit.
According to Hughes, the Senate Democratic budget alternative utilizes funds generated from liquor modernization, savings from the expansion of Medicaid and a one-year freeze in the phase-out of the Capital Stock and Franchise Tax to produce a reasonable spending plan.
“By agreeing to expand Medicaid, modernize liquor distribution and freeze the phase-out of the Capital Stock and Franchise Tax for one year we can responsibly generate funds and make a real difference,” Hughes said. “These policy decisions are not difficult and the governor should step up and agree to move Pennsylvania in a new direction.”
Hughes said the plan includes $9 million to hire 300 State Troopers and $8 million for the Attorney General that will be used to combat gang violence, illegal firearms and drugs.
Costa said other highlights of the plan include $39 million in new funds for distressed schools, an additional $50 million for Accountability Block Grants and other classroom assistance for a total of $150 million plus $84 million for a Charter Development Program. He said the plan trims spending for the Department of Public Welfare by $180 million and redistributes the savings for key items.
The Democratic Leader said he was hopeful that the plan would become part of budget negotiations. The budget deadline is June 30.
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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.
