December 9, 2015

Senate Readies Budget Package For Final Vote Thursday, Still No Agreement With The House

The Senate positioned the General Fund budget bill-- House Bill 1460; the Fiscal Code bill-- House Bill 1327; and the Administrative Code bill-- House Bill 941-- for final votes Thursday sending them to the House where there is yet to be agreement on the package.
The Tax Code-- House Bill 1198; Liquor privatization- House Bill 1690 and Education Code-- House Bill 530 bills are still awaiting action in the Senate Appropriations Committee.
The Senate did pass a Welfare Code bill-- House Bill 1322 (Kaufer-R-Luzerne) to the House for its consideration.
Sen. Joe Scarnati (R-Jefferson) said Wednesday night said the budget is “a House drill now” because all the major budget bills will be in the House by the end of this week.
He said he understands the House has to go through a process, but he said he hopes some “sane people” come to the table and realize we’ve got to get a budget done.
To facilitate getting the bills to the House, the Senate will now be in session December 10.
Here’s a thumbnail summary of action on each of the bills in the budget package--
-- Amended House GOP General Fund Budget: House Bill 1460 (Adolph-R- Delaware) House Republican General Fund vehicle was amended in Senate Appropriations Committee with the agreed-to General Fund budget passed by the Senate on Monday and reported from Committee.  It is now on the Senate Calendar for final action.
-- Fiscal Code: House Bill 1327 (Peifer-R-Pike) Fiscal Code vehicle was referred into the Senate Appropriations Committee, amended with the omnibus agreed-to provisions and is now in position for a final Senate vote sending it back to the House.  Click Here for the text of the amended bill.  
Among the issues included in the bill are: financially distressed municipalities, state workers’ insurance board, use of tobacco settlement fund and distributions from the PA Race Horse Development Fund and other specific budget implementation provisions.
-- Administrative Code: House Bill 941 (Regan-R-Cumberland) amending the Administrative Code was amended and reported from the Senate Appropriations Committee and is now in position for a final vote Thursday.  Click Here for a copy of the amended bill.  
Among the issues included in the bill are: regulation of ride-sharing services, race horse industry reform-- Senate Bill 352 (Vogel-R-Beaver--  and historic distillery license fee reduction.
-- Tax Code: House Bill 1198 (Dunbar-R-Westmoreland) possible Tax Code vehicle was reported out of then back into Senate Appropriations Committee.  Tax Code provisions have yet to be considered by the Senate Appropriations Committee.
-- Liquor Privatization: House Bill 1690 (Turzai-R-Allegheny) House Republican liquor privatization proposal was referred to the Senate Law and Justice Committee, amended with the agreed-to provisions related to liquor regulation, reported from the Committee and referred to the Senate Appropriations Committee.  Click Here for a copy of the amended bill when it is posted online.
On the main issue of privatization, the bill creates a study commission to look at if and how Pennsylvania should privatize either or both its wholesale or retail liquor markets and have those recommendations to the General Assembly by June 30.
-- Education Code: House Bill 530 (Reese-R-Somerset) Education Code provisions have yet to be considered by the Senate Appropriations Committee.
-- Welfare Code: House Bill 1322 (Kaufer-R-Luzerne) possible Welfare Code vehicle was amended and reported out of the Senate Public Health and Welfare Committee, referred into and out of the Senate Appropriations Committee and passed by the Senate.  It now goes to the House for action.
-- Pension Reform: Senate Bill 1082 (Browne-R-Lehigh) state and school employee pension reform bill agreed-to by Senate Republicans and Gov. Wolf was passed by a vote of 38 to 12 Monday and is now in the House.
Stay tuned for more…
NewsClips:
Wine Privatization Measure Takes First Step In Senate
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Senate Unanimously Approves Resolution Setting Hearing On The Removal Of Kane

The Senate voted unanimously to approve Senate Resolution 256 (Gordner-R- Columbia) containing procedures for considering the removal of indicted Attorney General Kane, including a Senate hearing on the issue January 12.
NewsClips:
Senate Launches Bid To Remove Kane From Office
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Without Changes, IFO Sees $3.5 Billion Deficit Over Next 2 Fiscal Years

The Independent Fiscal Office Wednesday released its long-term economic and budget outlook for FY 2015-16 through FY 2020-21 saying the state faces a deficit of over $3.5 billion over the next two fiscal years under current laws and policies.
“Under current laws and policies, lawmakers face potential imbalances of $1.1 billion for FY 2015-16 and $2.4 billion for FY 2016-17.” Knittel said. “New policies or revised spending levels enacted with the FY 2015-16 budget will alter the projections.”
The report evaluates the demographic, economic, revenue and expenditure trends that will affect the Commonwealth’s fiscal condition through FY 2020-21. Based on assumptions used in the report, the evaluation finds that various factors contribute to a long-term fiscal imbalance.
The findings include:
— For FY 2017-18 through FY 2020-21, the rate of increase for pension contributions moderates and the imbalance begins to stabilize as net revenues and expenditures each increase at an average rate of 3.7 percent per annum.
— Pennsylvania’s economic growth over the next decade is constrained by the projected contraction of the working age population (ages 20-64).
— Demographic projections assume an increase of 32.2 percent in the 65+ cohort through 2025.  The increase in this cohort will (1) restrain the growth of tax revenues (personal income and sales) due to the changing income and spending patterns associated with an aging populace and (2) increase state expenditures associated with the long-term care of the elderly.
Act 120 of 2010 created the Independent Fiscal Office to provide revenue projections for use in the state budget process along with impartial and timely analysis of fiscal, economic and budgetary issues.
A copy of the report is available online.
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Senate Bill To Remove PA Supreme Court From Appointing Judicial Oversight Boards

Senators. Anthony Hardy Williams (D-Philadelphia) and Judy Schwank (D-Berks) introduced Senate Bill 1083 (not yet online) a proposal for a constitutional amendment that would strip the Pennsylvania Supreme Court of its power to appoint members of two judicial oversight boards.
The proposal follows the revelation that the now formally charged Supreme Court Justice Michael Eakin attempted to appoint someone he favored to the Court of Judicial Discipline to review accusations that he transmitted racist, misogynistic and homophobic emails using Commonwealth-owned equipment.
The Judicial Conduct Board is the other panel that reviews the behavior of Pennsylvania’s judges.
The JCB Tuesday recommended four counts against Eakin for his role in what Sen. Williams has called “Hategate.”
“The Judicial Conduct Board is heavily influenced by those they are supposed to be investigating,” Sen. Williams said.
Under the proposal for a constitutional amendment to strip the Supreme Court’s authority to appoint members of the JCB and the Court of Judicial Discipline, the lawmakers said Senate Bill 1083, if voters approved, would end the court's ability to end-run a constitutional process established in 1993.
The bill would also--
— The Supreme Court's authority to appoint members of the Judicial Conduct Board and the Court of Judicial Discipline would be transferred to the governor, who would get two additional appointments to the conduct board; and to the legislature, which would get four appointments to the conduct board and four to the disciplinary court.
— The number of seats held by judges on the conduct board and disciplinary court would be reduced to four from seven.
— The board and court would be funded through a distinct line-item within the judicial budget. And,
—  Would require the immediate interim suspension of a judge upon the formal filing of disciplinary (such as were just announced against Justice Eakin) or felony charges.
"What we've seen recently is that we really need to fix the system to restore public confidence in the courts,” Sen. Schwank said in a statement. “If the public can't have confidence in them, the system simply cannot work right."
Representatives Joanna McClinton (D-Delaware) and Jordan Harris (D-Philadelphia) joined Sen. Williams at Wednesday’s announcement.
On the possibility for the impeachment of Justice Eakin, Sen. Williams said he will talk to members of the House of Representatives.
“While there’s not been any conclusion and, certainly, Justice Eakin deserves his day in court, the findings themselves – and the activities surrounding this – are very, very important. For those reasons, we expect that members of the House will be interested in the possibility of pursuing those articles of impeachment,” the Senator said.
Sen. Williams said it’s also problematic that Justice Eakin, according to the Judicial Conduct Board, used his state-issued computer to transmit his hateful emails.
“The JCB’s findings that Justice Eakin used Commonwealth-owned equipment to bring disrepute to his office, one of the highest judicial offices in PA, clearly meet the criteria for suspension or removal based on those precedents,” he said.
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Wednesday PA Capitol Digest NewsClips

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December 8, 2015

Senate Will Send Amended House Republican Budget Bill Back To House By Thursday

Within just a few minutes of the House passing House Bill 1460 (Adolph-R- Delaware), the House Republican General Fund budget, the Senate Appropriations Committee scheduled a meeting and later stripped the bill of the House budget and put in its place the agreed-to, bipartisan General Fund budget passed by the Senate on Monday and reported the bill from Committee.  
Senate Majority Leader Jake Corman (R-Centre) said the intention of the Senate is to send the amended bill back to the House.
In an interview posted by PLS, Sen. Corman said he would be happy to consider a budget bill from the House the Governor will sign, but the version passed by the House is not that bill.  The Senate-passed version is.
Sen. Corman said he respects the lower spend number in the House Republican budget, but to sit here for six months and raise taxes, which the bill will take, and not get pension reform or liquor reform is not something he can recommend to his caucus.
He also said the House Republican budget is predicated on expanding gaming which does not have enough support in the Senate.
Sen. Corman said the agreed-to budget passed by the Senate is a compromise, everyone gets something.
House R Reaction
In response to the intended Senate action to send back the House Republican budget bill, House Speaker Mike Turzai said, “Sending back a budget bill is not really responsible governance. Tell us how you’re paying for it.”
He said the agreed-to framework agreement would essentially provide for a $3 billion tax increase, including $600 million this fiscal year and $2.2 billion in the next fiscal year to support promised increases in education spending and cost-to-carry.
“Who is voting for the $3 billion and what’s the tax package look like? We’d be glad to look at it and if they want to run it and send it over here, we can always put it up for a vote and see if we have the votes for it,” Speaker Turzai added.
“I can tell you this, there are no votes, I do not see any votes for something like a $3 billion tax increase,” he said. “I’m not just talking about Republicans, I don’t see Democrats voting for that kind of a tax increase.”
NewsClips:
Analysis: Blame House Republicans For Budget Nightmare
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Judicial Conduct Board Alleges Violations Of Code Of Conduct By Justice Eakin

The Judicial Conduct Board Tuesday filed formal charges by Board Complaint in the court of Judicial Discipline against Supreme Court Justice J. Michael Eakin alleging violations of the Code of Judicial Conduct and the Pennsylvania Constitution.
The 52-page report posted by the Board said pornographic emails were sent and received by Eakin at a “John Smith” email address he accessed in part using Commonwealth-provided computer equipment giving the appearance of impropriety in violation of the Code of Conduct.
His conduct was so extreme, it brought the judicial office into disrepute.
Under the Pennsylvania Constitution, Justice Eakin, as the subject of the charges is presumed innocent in all proceedings before the Court of Judicial Discipline.  The Board has the burden of proving the charges filed in the Court of Judicial Discipline by clear and convincing evidence.
In accordance with the rules which govern proceedings before the Court of Judicial Discipline, Justice Eakin has the right to respond to the charges, to obtain and inspect the evidence which forms the basis of the allegations, and to a public trial before the Court of Judicial Discipline.
Upon completion of the trial, if the court determines that the charges have been proven by clear and convincing evidence, it will schedule a Sanctions Hearing to determine what sanction should be imposed.  Possible sanctions include reprimand, suspension or removal from office.
Justice Eakin responded to the charges in a short statement, "Consideration of the ramifications of my private emails by the Court of Judicial Discipline, as indicated in my previous offer to expedite such consideration, brings the opportunity for transparency of process, based on the actual facts and not speculation and mischaracterization.
"As such, I welcome it. I have cooperated with candor and openness, and will continue to do so as the Constitutional process goes forward."
A copy of the report is available online.
NewsClips:
PA Supreme Court Justice Charged In Email Scandal
Judicial Misconduct Charges Filed Against Eakin In Porn Email Scandal
PA High Court Justice Hit With Ethics Charges
PA Supreme Court Justice Charged With Receiving Porn
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