|
|
|
|
| FY 2017-2018 BUDGET BECOMES LAW; REVENUES STILL NEEDED
On July 10, Gov. Wolf allowed the FY 2017-2018 appropriations bill, HB 218, to become law without his signature. The bill, which was passed by the General Assembly on June 30, spends about $31.9 billion in state funds, representing an increase of about $300 million over FY 2016-2017. It also restores crucial funding, previously proposed to be cut, to core government services such as criminal justice, human services and court systems that counties provide in partnership with the state. Counties have expressed their appreciation to the four legislative caucuses and to the administration for the restoration. Additional details can be found on CCAP's Budget News and Updates web page.
However, the measure requires new revenues to balance the spending plan, which remain under consideration by the General Assembly. While leadership meetings are ongoing, there is not yet word of an agreement, but the House has scheduled a weekend session for July 22 and 23, and the Senate is at the call of the President Pro Tempore. An increase in the state's personal income or sales tax are not on the table, but options such as gaming expansion and borrowing remain part of the ongoing negotiations.
Days after the Governor's decision, State Treasurer Joe Torsella warned that Pennsylvania could run out of revenues to pay its bills by the end of August, unless the legislature acts quickly to pass a revenue package that will balance the budget. Without new revenues, Torsella predicted the general fund would need to borrow as much as $3 billion this fiscal year; although the Treasury typically provides short-term loans to the state to address cash flow issue throughout the year, he noted that in recent years the loan amounts and time periods for those loans have increased. Adding to the state's difficulties, credit rating agency S&P has also indicated that it would likely lower the commonwealth's AA- rating if the final FY 2017-2018 budget is overly optimistic or relies too much on one-time revenues, citing a pattern of chronic problems in budgeting.
In addition, work remains on Fiscal Code, Tax Reform Code and Human Services Code amendments needed to implement the FY 2017-2018 budget. On July 10, the House did amend several measures of importance to counties into an Administrative Code bill, SB 446. First, the amendments would reauthorize senior judge reimbursement grants to help counties offset the costs associated with facilities and staff; while level funding was provided in the budget, the authorizing statute expired on June 30. Second, the amendments would provide a three-year extension of the statewide tip fee, which provides grants through the state's Recycling Fund to local governments with recycling programs. Senate Bill 446 still requires the approval of the full House as well as Senate concurrence.
|
|
PA COUNTIES GO TO WASHINGTON
County officials from across the state were invited to Washington, D.C., on July 13 to attend the Keystone State County Commissioners' White House Conference for a discussion with senior White House and federal agency staff. While there, county officials had the opportunity to interface with individuals from the Office of Management and Budget, the Environmental Protection Agency, the Department of Health and Human Services and many others in a six-hour discussion.
The counties also heard a presentation from Kellyanne Conway, counselor to President Trump, on the opioid epidemic, and discussed key issues such as health care, the reauthorization of the National Flood Insurance Program and impacts on flood insurance premiums, and the importance of federal programs such as the Community Development Block Grant and those offered by the U.S. Economic Development Administration and the Appalachian Regional Commission, which are proposed to be cut in the president's budget for FY 2018. Other topics highlighted included water and transportation infrastructure, and preserving the tax-exempt status of municipal bonds. Finally, the Conference concluded with a mutual desire to maintain open lines of communication between federal and local government.
|
HOMESTEAD EXCLUSION AMENDMENT HEADS TO BALLOT
A constitutional amendment to change how local governments may implement the homestead exclusion is headed to voter referendum this fall. Currently, the state's constitution, as implemented by statute, allows taxing districts, including counties, municipalities and school districts, to exclude from taxation up to one-half of the median assessed value of all homestead properties within its jurisdiction. Under the proposed amendment, outlined in
HB 1285
(sponsored by Rep. David Maloney, R-Berks), taxing districts would be permitted to provide an exclusion of up to 100 percent of the assessed value of each homestead property within its jurisdiction. The change could allow a taxing district to eliminate property taxes for qualified residential properties, provided that an alternate revenue source is available to fund the exclusion - the constitution also prohibits increasing millage rates in order to pay for the exclusions. House Bill 1285 was unanimously approved by the House in June, and approved by a 46-2 vote of the Senate on July 11.
A constitutional amendment must be approved by the General Assembly in the same form in two subsequent sessions (this measure was previously approved as
HB 147
in the 2015-2016 session), and by the voters by referendum, in order to be adopted. Should the referendum vote be successful in November, additional work will be needed to update the state's statutes implementing the homestead exclusion.
|
|
AG MAKES DRUG DISPOSAL POUCHES AVAILABLE
State Attorney General and former Montgomery County commissioner Josh Shapiro announced recently that his office will be providing a tool to assist in the safe disposal of unwanted and unused prescription drugs - drug deactivation pouches that can break down up to 45 pills when warm water is added, and then be safely disposed in the trash.
The drug deactivation and disposal pouches will be supplied to 12 counties (Blair, Butler, Cambria, Erie, Fayette, Indiana, Lackawanna, Lawrence, Lehigh, Luzerne, Mercer and Montour) that have been hit hardest by the opioid epidemic and have poor access to drug take-back boxes, as indicated by data from the state's Department of Drug and Alcohol Program and the state's prescription drug monitoring program. Specifically, in those counties, everyone receiving a schedule II narcotic such as oxycodone, fentanyl or Percocet, from 278 pharmacies will be offered a pouch, and others may also obtain them on request. Participating pharmacies can be found at
www.attorneygeneral.gov/Drug_Deactivation
.
Preventing substance abuse and drug overdose is a 2017 county priority. More information on this important issue can be found at
www.pacounties.org
by clicking Priorities under the Government Relations tab.
|
|
WOTUS RULE TO BE RESCINDED
On June 27, the Environmental Protection Agency (EPA) and the Army Corps of Engineers (Corps) signed a notice initiating the first step of a two-step process to review and rewrite the Waters of the U.S. (WOTUS) rule that was finalized in 2015, withdrawing the 2015 rule and reinstituting regulations that were previously in place. Once the notice is published in the Federal Register, the EPA and Corps will accept public comment on the proposal for 30 days. The agencies are expected to release a revised WOTUS proposed rule in the fall for step two of the process.
The agencies' action follows President Trump's Feb. 28 executive order requiring the agencies to review and reconsider the rule. According to that order, the agencies must seek a balance between keeping the nation's navigable waters free from pollution while at the same time promoting economic growth, minimizing regulatory uncertainty and showing due regard for the roles of Congress and the states. The agencies are further to rely on a 2006 U.S. Supreme Court opinion for guidance to determine which waterways fall under the federal Clean Water Act.
Relatedly, the Energy and Water Appropriations Subcommittee released a draft spending bill for FY18 containing a policy rider that would limit public involvement in the EPA and the Corps efforts to withdraw the 2015 WOTUS rule. The policy rider would allow the EPA and Corps to "withdraw from the Waters of the United States rule without regard to any provision of statute or regulation that establishes a requirement for such withdrawal." The bill advanced out of the subcommittee on June 28. Under the rider, the EPA and the Corps would not be required to meet APA rulemaking requirements in order to withdraw the rule. The impact on counties' ability to comment on WOTUS rulemaking efforts is unclear at this time.
|
|
DOL WILL NOT DEFEND OVERTIME RULE
The U.S. Department of Labor (DOL) has indicated through legal briefs filed on June 30 that it will not defend a rule proposed by the Obama administration related to overtime pay. The proposed rule would have increased the salary threshold for overtime pay for professional employees from $23,660 to $47,476, and was scheduled to take effect last December. However, 21 states and dozens of business groups filed suit in the Eastern District Court of Texas to stop DOL from implementing the rule, arguing it would substantially increase employment costs; that court issued a nationwide temporary stay on Nov. 22, 2016, to block implementation.
DOL is expected to shortly publish a request for information for public comment to aid in its development of a future overtime pay proposal. According to NACo, Labor Secretary Alexander Acosta has previously stated that he would not be opposed to raising the salary threshold, although not as high as $47,000.
|
|
VOTING MATTERS
On July 18, each CCAP member was emailed a voting matters packet with items to be considered at the Tuesday business meeting of the upcoming CCAP Annual Conference at the Bayfront Convention Center in Erie County. The agenda packet includes proposed policy resolutions, along with officer elections and site selection for the 2022 Annual Conference. The resolutions will be deliberated during the conference and then submitted by electronic ballot to the full CCAP membership within 10 days of the conclusion of the Conference for final adoption.
|
|
| |
|
