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HOUSE, SENATE SELECT 2017-2018 LEADERSHIP
The House and Senate convened the week of Nov. 14 to choose their leadership for the 2017-2018 session. Formal elections for Speaker of the House and Senate President Pro Tempore will be held by their respective bodies on Jan. 3 when the General Assembly returns to swear in new legislators.
On the House side, Rep. Mike Turzai (R-Allegheny), was selected to continue as Speaker of the House, while Rep. Dave Reed (R-Indiana) was re-elected as majority leader. Rep. Stan Saylor (R-York) will become the new majority chair of the House Appropriations Committee, following the retirement of Rep. Bill Adolph (R-Delaware), and Rep. Marcy Toepel (R-Montgomery) will replace retiring Rep. Sandy Major (R-Susquehanna) as majority caucus chair. Rep. Bryan Cutler (R-Lancaster) and Rep. Kerry Benninghoff (R-Centre) were elected to their second terms as majority whip and majority Policy Committee chair, respectively. Former CCAP member Rep. Donna Oberlander (R-Clarion) also remains caucus secretary, while former Northumberland County commissioner Kurt Masser joins the House Republican leadership team as caucus administrator.
In the Democratic caucus, many of the current leadership will remain in their current positions next session, including minority leader Rep. Frank Dermody (D-Allegheny), Appropriations Committee chair Rep. Joe Markosek (D-Allegheny), caucus chair Dan Frankel (D-Allegheny) and policy committee chair Mike Sturla (D-Lancaster).
In the Senate, the leadership teams of both caucuses remain largely unchanged. On the Republican side, Sen. Jake Corman (R-Centre) was elected to a second term as majority leader, with Sen. Joe Scarnati (R-Jefferson) chosen to continue as President Pro Tempore and Sen. Pat Browne (R-Lehigh) selected to continue as chair of the Appropriations Committee. Sen. Bob Mensch (R-Montgomery) will remain as majority caucus chair while Sen. John Gordner (R-Columbia) was re-elected as caucus whip and Sen. Dave Argall (R-Schuylkill) will continue as chair of the policy committee.
For the Senate Democrats, Sen. Jay Costa (D-Allegheny) will remain as Senate minority leader, and Sen. Vince Hughes (D-Philadelphia) will continue as Appropriations Committee chair. Sen. Wayne Fontana (D-Allegheny) was re-elected as caucus chairman and Sen. Lisa Boscola (D-Northampton) will remain as policy committee chair.
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IFO PRESENTS FIVE-YEAR BUDGET OUTLOOK
On Nov. 15, the state's Independent Fiscal Office (IFO) released its annual long-term economic and budget outlook for the next five years, highlighting the Commonwealth's fiscal situation based on current conditions from fiscal years 2016-2017 to 2021-2022. The report acknowledged a long-term fiscal imbalance over that time period absent any statutory changes on either the cost or revenue side. Most notably, that includes a current fiscal year deficit of about $500 million, expanding to nearly $1.75 billion in FY 2017-2018. Although a $1.5 billion revenue package was enacted concurrent with the FY 2016-2017 state budget, the IFO noted that the overall impacts of those revenues are reduced over time when concurrently considering future expenditure trends.
While not directly factored into the annual report's projections, the IFO further recognized the possibility of a higher imbalance in the current fiscal year due to the potential need for an additional $388 million in supplemental appropriations for the Department of Human Services related to Medicaid and long-term care costs.
The report shows that Pennsylvania's structural deficit is anticipated to continue to increase to total nearly $3 billion by FY 2021-2022. Over the next five fiscal years, the IFO's projections suggest revenues will increase at an average rate of 3.3 percent per year; meanwhile, expenditures will increase at an average rate of 4.6 percent per year.
The IFO's annual report follows Department of Revenue reports that the state's revenue collections are coming in lower than expected for the fiscal year to date. September collections reported by the Department showed significantly lower collection rates for major General Fund revenue sources, which rebounded moderately in the most recent collection report released by the agency. The Governor's Budget Office also traditionally delivers a mid-year budget briefing in December, but one has not yet been announced for the current year.
While not directly related, the Administration announced recently that it was drawing an additional $600 million against the $2.5 billion line of credit extended by the Pennsylvania Treasury, in order to meet short-term cash flow needs. With the commonwealth previously borrowing $1.6 billion collectively in August and September, it leaves $300 million remaining in the line of credit .
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PIPELINE SAFETY SUBJECT OF JOINT HEARING
On Nov. 16, the House and Senate Veterans Affairs and Emergency Preparedness committees held a joint hearing on natural gas and petroleum pipeline emergency preparedness and response. Barry Hutchins, Senior Public Safety GIS Program Manager in Lycoming County, testified at the hearing, discussing the need for pipeline mapping and noting that several of the work groups within the Governor's Pipeline Infrastructure Task Force submitted that recommendation in the report released earlier this year. Officials from the Public Utility Commission and the Pennsylvania One Call system also suggested that all pipeline operators be required to map their pipeline systems and participate in One Call. Hutchins further suggested that above ground features carry addresses to properly support emergency response, and advocated pipeline emergency training for all first responders, emergency planners and elected officials. His full testimony is available on CCAP's Legislative Action Center by clicking Legislative Testimony .
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GOVERNOR SIGNS CIVIL SERVICE CHANGES INTO LAW
House Bill 192, which represents another step in the process of modernizing the state's civil service system, has been signed into law by Gov. Wolf as Act 167 of 2016.
The act, sponsored by Rep. Mark Gillen (R-Berks), will expand the number of available and qualified applicants by allowing a uniform application process for both civil service and non-civil service positions, and by establishing uniform use of NEOGOV, a state of the art job application tracking system, used in many other states, that streamlines the application process. Currently, the Commission utilizes one process for civil service positions and another for non-civil service positions.
Additionally, the new law permits counties to determine the type of examination the Commission would utilize for specific positions, which enables the process to more closely reflect the skills needed by candidates. A shift toward experience and training as determinants will increase the pool of qualified candidates, and allow counties to fill open positions more efficiently. Few employers require written examinations to determine qualifications, instead seeking a combination of experience and education or training to demonstrate qualifications. By contrast the current process requires an applicant to schedule a written test at a commission location, with candidates often opting to take another position with a less complicated process and thereby reducing counties' access to qualified candidates.
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HOME RULE COUNTIES ADOPT CHARTER AMENDMENTS
Voters in two of Pennsylvania's home rule counties adopted amendments to their charters during the recent general election.
In Northampton County, two home rule charter amendments were approved, one to allow certain advertisements to be printed in one newspaper of general circulation as well as posted electronically, and to have codification, capi
tal improvements plan and budget posted on the county's website instead of being distributed to all libraries and local government offices in the county. The second amendment reduces the requirement for the county to advertise vacant positions to at least seven days, instead of at least ten days.
Five amendments were put before the voters in Luzerne County. Among those approved were amendments removing language which had prohibited county board, commission or authority members from serving as elected officials for one year after leaving office, as well as an amendment removing language that restricted appointment of individuals to Luzerne County authorities who have contracts with, or are paid consultants of, the county. Voters at the same time rejected an amendment to remove current restrictions on appointing individuals to serve on boards and commissions who contract with, or consult for, the county. They approved the addition of language requiring a majority vote of all council members to introduce an ordinance.
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GOVERNOR GIVES CHARGE TO STATE PLANNING BOARD
The State Planning Board will meet in early December with several associations, including CCAP and its affiliate the County Planning Directors Association of Pennsylvania (CPDAP), to gather input on the three-part charge issued to it by Gov. Wolf in July. The State Planning Board is an advisory board within the Governor's office entrusted with responsibilities such as studying socio-economic trends and factors, monitoring national and state-wide trends, developing plans and programs to improve the welfare of citizens and the commonwealth, and soliciting information and input from state and local government officials, as well as state citizens.
The Governor has requested the Board to provide recommendations for state policy and action to better coordinate of state and local infrastructure funding and to provide incentives for regional planning and increased efficiency, as well as ideas on how fragmentation of government at the state, county and local level affects decision-making and outcomes. Finally, the Governor's charge seeks feedback on how the state can provide more support to struggling older cities and towns. In addition to CCAP and CPDAP, key stakeholders involved in the input session will include other local government associations, as well as groups focusing on planning and smart growth, infrastructure and community revitalization.
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