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.
###
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.”
Part 1
Part 2
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.
# # #
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.
-30-
PITTSBURGH, January 30, 2014 – Flanked by people who have struggled due to state human services budget cuts, Senate Democrats today detailed their budget priorities and challenged Gov. Tom Corbett to produce a spending plan that is aligned with the needs of Pennsylvanians.
Senate Democratic leader Jay Costa (D-Forest Hills) joined Senators Wayne Fontana (D-Brookline) and Matt Smith (D-Mt. Lebanon) to discuss proposals that would create jobs, strengthen education investment and provide an extra $85 million in the upcoming state budget for county human services programs. Funding for such programs has fallen significantly during the first three Corbett budgets.
“We must begin repairing holes in the social safety net by using $85 million in Medicaid budget savings for human services programming such as drug, alcohol and mental health programs,” Costa said. “Expanding Medicaid and extending health care to 500,000 Pennsylvania families would also generate $400 million in budget savings while boosting our economy.”
The Pittsburgh news conference was part of a statewide outreach where Democrats discussed their budget priorities. Similar news conferences were held in Erie, Johnston, Scranton, Hazleton and Philadelphia.
Sen. Wayne Fontana focused on investing in proven job creation and business development programs. He also called for Pennsylvania to increase its minimum wage to at least $9 per hour, and $10.10 by 2015. The legislature has not acted to increase the minimum wage in seven years.
“Since the recession began, my Democratic colleagues and I have sponsored numerous bills aimed at stoking our economy, helping businesses grow, embracing new business opportunities and training people for jobs that are actually out there,” Fontana said. “We need a comprehensive approach that invests state dollars into proven and promising initiatives that will create jobs, retrain workers, and attract business investment and expansion.”
Sen. Matt Smith added, “While other states are making thoughtful investments in education, Pennsylvania has regressed and placed the burden on hardworking families and cash strapped school districts. “Senate Democrats understand that education investments at all levels – beginning with pre-K – will yield direct economic benefits for all Pennsylvanians and is not only the right move, but also the smart one.”
Under Gov. Corbett’s leadership, Pennsylvania has fallen from the top 10 to 48th in job creation. The Democrats said they could bolster state funding for important budget line items by “realigning spending priorities and realizing greater efficiencies. They said they could accomplish this without raising broad-based taxes.”
Senate Democrats said they will also push for the following in this budget:
- Creating jobs by funding targeted water and sewer rehabilitation projects, strengthening school-to-work programs and expanding community economic zones throughout the state; and
- Investing in education with a $300 million boost, bolstering funds for early education and committing to a long-term financing plan that restores funding
- Costa said he realizes the investments and initiatives identified cost money so the Senate Democratic Caucus has devised a budget savings-and-revenue plan of more than $1.1 billion to address the budget shortfall and fund the priorities.
- The governor has scheduled his annual budget address to the General Assembly for next Tuesday, Feb 4.
The news conference featured people who have struggled under the Corbett human services cuts. Officials from the following organizations also took part: Mercy Behavioral Health, Consumer Health Coalition, Community Human Services, Conference of Allegheny Providers, and the Pittsburgh Association for the Education of Young Children.
# # #
October 18, 2011 – Sen. Costa joined a bipartisan group of House and Senate members from Western Pennsylvania to update the public on the ongoing efforts to bring an end to the UPMC/Highmark impasse.
[hdvideo id=14 ]
“We have strongly urged both of these entities to do the right thing. They need to get back to the table and start showing everyone that the people of Western Pennsylvania whom they serve are a priority for them. We intend to pursue every option available to us as elected officials to make sure that happens. While stepping into the affairs of private enterprise is usually frowned upon, we are very concerned when it potentially affects the health and well-being of our constituents,” said Costa.
