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| MORE DETAILS EMERGE IN FEDERAL BUDGET PROPOSAL
Two months after releasing his proposed $4.1 trillion budget outline for FY 2018, the Trump administration rolled out additional details on May 23 for his first budget, which includes significant reductions in discretionary funding while boosting funding for military and defense programs. In general, the proposal is built around reforms in health care, taxes, immigration, welfare, education and regulations, and prioritizes reductions in federal spending.
The President's budget would lift the defense spending level cap and increasing funding by $54 billion, increase funding for border security measures by $2.6 billion, and provide an increase of $4.3 billion for the Department of Veterans Affairs. The proposal also includes changes to requirements for tax credit eligibility such as the Earned Income Tax Credit and the Child Tax Credit and provides for paid parental leave. Further, the President has suggested $200 billion for a $1 trillion transportation and infrastructure package, largely supported by public-private partnerships.
However, other non-defense, discretionary programs would be poised for substantial cuts, built around a "2-penny plan" to reduce non-defense budget authority by two percent each year. This would include a $610 billion decrease to grants to states for Medicaid over ten years, with reforms proposed to give states the choice between a per capita cap and a block grant, and to give states more flexibility to control costs and design state-based solutions for Medicaid recipients. Cuts are also proposed for other safety net programs such as the Supplemental Nutrition Assistance Program, with reforms to tighten eligibility and encourage work, the Temporary Assistance for Needy Families block grant and Social Security disability insurance benefits. Some 66 programs are targeted for complete elimination, among them the Community Services Block Grant, the Low Income Home Energy Assistance Program, the Flood Hazard Mapping and Risk Analysis Program, the Community Development Block Grant, the HOME Investment Partnerships Program and TIGER grants.
More information on the proposal 2018 federal budget proposal can be found at www.whitehouse.gov.
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EFFORTS TO REDUCE COMMERCIAL PROPERTY ASSESSMENTS HALTED
Legislative language that would have allowed commercial properties to engage in a practice known as the "dark store" method of assessment has been removed from consideration.
House Bill 1213, introduced by Rep. Warren Kampf (R-Chester), was originally introduced to limit taxing district appeals, by prohibiting such appeals on the basis of purchase or sale of a property, financing or refinancing the property, or due to investments that affect either the safety elements of the property or are required by fair housing or disability laws. However, the House Commerce Committee on May 9 amended several definitions into the bill, including a definition of "market value or actual value," that would have required a property to be valued "as if unencumbered," meaning that big stores that are open for business would be valued as though they were vacant and closed (or "dark"). In other states where businesses have challenged their assessments using this "dark store" method, their property values have decreased at least 50 to 60 percent, reducing property tax revenues to local governments by millions of dollars and shifting the property tax burden onto residential and agricultural property taxpayers as local governments struggle to make up the difference.
During House floor activity the week of May 22, the bill's sponsor offered a motion to revert to the prior printer's number, which was unanimously approved, effectively removing the problematic definitions that would have allowed for this "dark store" assessment method. The bill remains before the House for consideration.
A companion bill, SB 586 by Sen. David Argall (R-Schuylkill), was brought up by the Senate Urban Affairs Committee on May 24. It was reported without amendment, maintaining the bill's focus on limiting taxing district appeal, by a 9-3 vote. It now goes to the full Senate for further review.
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| LOCAL SHARE ASSESSMENT REAUTHORIZATION MOVES FORWARD
The Senate approved an amended version of HB 271, providing for expanded gambling in the commonwealth and offering a legislative fix for the local share assessment, by a 38-12 vote, sending the measure back to the House for concurrence.
The local share assessment paid by casinos to their host municipalities, was struck down by the state Supreme Court in 2016 as a non-uniform tax prohibited under Pennsylvania's constitution, which also affected the county shares. However, recognizing the significant fiscal impact to affected local governments, the Court originally stayed its decision for 120 days to give time for the General Assembly to craft a solution, then extended that original deadline to May 26.
The amendments adopted to HB 271 in committee would reinstate the local share assessment, providing that Category 1 and Category 2 casinos would pay an annual flat assessment of $10 million. In addition, if signed into law in the current fiscal year, the assessment would be retroactive to assure localities receive those funds despite the deadline established by the Court.
The bill requires the concurrence of the House, which separately advanced additional bills from committee (HB 1301, sponsored by Rep. Patrick Harkins, D-Erie, and HB 1342, sponsored by Rep. James Santora, R-Delaware) with language that would also restore the local share assessment.
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GOVERNOR RECOMMENDS INSURANCE COMMISSIONER TO LEAD UNIFIED AGENCY
As discussions about the Governor's proposal to merge the state's Aging, Health, Human Services and Drug and Alcohol Programs agencies continue, Gov. Wolf recently announced that he would nominate current state Insurance Commissioner Teresa Miller to head a unified Department of Health and Human Services. No further staffing decisions have been announced to date, although Gov. Wolf's office has created a web page with detailed information on the initiative, available at www.governor.pa.gov/hhs, that provides the proposed organizational structure for the Department, as well as an opportunity for public feedback.
Both the House and Senate continue to review the proposed agency unification. The Senate Health and Human Services Committee, in conjunction with the Senate Aging and Youth and Intergovernmental Operations committees and the Appropriations subcommittee on Health and Human Services, held the third of a series of hearings with stakeholders in mid-May in Philadelphia. The House Democratic Policy Committee, meanwhile, is scheduled to hold a hearing with the current secretaries of the four agencies on June 5 at the Capitol.
Counties have a unique position as key partners with the state in the delivery of human services programs at the local level, and have identified components they believe must be adopted as part of a unified model, as well as opportunities to enhance partnership and cooperation with the state. Full comments are available at
www.pacounties.org
by clicking Government Relations, then Legislative Action Center and then Legislative Testimony.
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| MCDONNELL CONFIRMED AS DEP SECRETARY
The state Senate has unanimously approved the nomination of Patrick McDonnell to serve as secretary of the Department of Environmental Protection.
McDonnell has served as acting secretary since May 2016, following the resignation of former secretary John Quigley.
His approval by the full Senate comes just weeks after the Senate Environmental Resources and Energy Committee also voted unanimously to recommend his appointment.
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SPEAKER RYAN ANNOUNCES TASK FORCE ON INTERGOVERNMENTAL AFFAIRS
Recently, U.S. Speaker of the House Paul Ryan (R-Wis.), along with Democratic Leader Nancy Pelosi (D-Calif.) announced the creation of a bipartisan Task Force on Intergovernmental Affairs that will work to address the needs and interests of federal, state and local governments.
The National Association of Counties (NACo) will serve with six other organizations representing state and local government as advisory council to the Task Force. The Task Force will comprise 12 members, six Republicans and six Democrats, and will be chaired by Rep. Rob Bishop (R-Utah).
The Task Force has been charged with five missions - partnering with all levels of government to balance their interests; providing a forum for states, cities and counties to showcase their innovation in solving public policy problems; examining the effect of federal regulations on state and local partners; developing proposals to partner with and empower state and local government; and examining how the burdens shared among levels of government may be reallocated. In a statement, the Speaker noted that the intent of the Task Force is to eliminate unnecessary regulatory burdens facing communities while studying ways to restore the proper balance of power between the federal government and states, tribes and local governments.
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CHILD WELFARE CASEWORKERS HONORED
The state House of Representatives has unanimously adopted a resolution designating June 1, 2017, as Child Welfare Caseworker Appreciate Day in Pennsylvania.
House Resolution 334, sponsored by House Children and Youth Committee chair Rep. Kathy Watson (R-Bucks), recognizes the difficult task of investigating child abuse and providing services to families, and highlights the skills and selflessness of caseworkers who work to protect children, often with tremendous demands, low pay and long hours. In speaking on the House floor, Watson outlined the challenges caseworkers face, and said that they deserve respect and admiration for what they do to help families throughout the commonwealth.
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