Number 10

May 12, 2017

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LEGISLATIVE BULLETIN
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County Commissioners 
Association of Pennsylvania

 

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STATE REVENUE PICTURE CONTINUES TO BE BLEAK 
   
The Department of Revenue's May 1 report of the state's April collections shows that the shortfall for the current fiscal year is now greater than any projections. While April is typically the largest revenue collection month of any fiscal year owing to the deadline for income tax returns, the revenues for the month came in $537 million short of estimates, bringing year-to-date revenues $1.216 billion below projections. Both the Governor's office and the state's Independent Fiscal Office (IFO) had previously estimated the shortfall for the entire fiscal year would be around $1 billion.
 
The following day the IFO presented its revised FY 2016-2017 revenue estimates and initial FY 2017-2018 estimates, noting that the Office is seeing a bit of weakness across the economic forecast. Although the state's job market has performed as expected, wage growth has been weaker than expected, as have business investments. The IFO revised FY 2016-2017 estimates project revenues for the year will come up about $245 million less than projected in January, or about $695 million lower than projected last June. On top of that, the IFO is predicting that revenues in FY 2017-2018 will grow by only two percent, absent any changes in statute or other revenue transfers.
 
The FY 2017-2018 fiscal year begins on July 1, leaving lawmakers and Gov. Wolf less than two months to complete a state budget plan for the upcoming year.
GOVERNOR'S OFFICE RELEASES DETAILS OF AGENCY UNIFICATION
   
As discussions continue on the proposed unification of the departments of Aging, Drug and Alcohol Programs, Health, and Human Services into a single Department of Health and Human Services, Gov. Wolf's office has created a web page with detailed information on the initiative, available at www.governor.pa.gov/hhs. Draft legislation has been posted to the site, outlining the amendments to the Administrative Code needed to authorize the unification; Rep. Stephen Bloom (R-Cumberland) and former CCAP member Sen. Judy Schwank (D-Berks) have circulated cosponsorship memos indicating their intent to introduce the bill. The website also provides the proposed organizational structure for the Department, as well as an opportunity for public feedback.
 
CCAP provided input on the proposal before both House and Senate committees at legislative hearings in recent weeks, with the Association's comments focused on counties' unique position as key partners with the state in the delivery of human services programs at the local level. While CCAP remains neutral on the proposed consolidation, counties 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.
HOUSE PANEL HOLDS HEARING ON SHERIFF POWERS  
 
The House State Government Committee held a hearing May 8 on HB 466, sponsored by Rep. Jim Marshall (R-Beaver), which would statutorily grant sheriffs the same powers as municipal police, provided they have completed comparable training. Legislation has been introduced for several legislative sessions in an attempt to address a series of Pennsylvania Supreme Court decisions that created ambiguity relating to sheriff and deputy warrantless arrest powers and training requirements.
 
CCAP Executive Director Doug Hill testified at the hearing, explaining that the Association agrees there is need to clarify sheriff arrest powers following the Supreme Court cases and supports doing so, but also noting that HB 466 requires revision; its language is not clear whether it merely restores plain-sight arrest powers or in fact is a broad enough authorization that could make the sheriff offices an equivalent to municipal police departments. Hill told the committee that the Association has long opposed the establishment of the law enforcement model of sheriff.
 
Other stakeholders participating in the hearing included the PA Sheriffs Association and several individual sheriffs, as well as the president of the National Sheriffs Association. Warren County district attorney Rob Greene also testified, although it was noted separately that the PA District Attorneys Association opposes the bill. Comments provided by CCAP to the House committee are available at www.pacounties.org by clicking Government Relations, then Legislative Action Center and then Legislative Testimony.     
COMMITTEE ADDRESSES SPOT APPEALS

The House Commerce Committee recently reported legislation that would limit the ability of taxing districts to appeal property assessments. House Bill 1213, introduced by Rep. Warren Kampf (R-Chester), would prohibit taxing district 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. A taxing district would retain the ability to appeal a property assessment following a countywide reassessment, when a parcel is divided, or when a change has occurred in the productive use of the property. If any appeals had been previously brought that violated these conditions, an affected property owner would have the right to have the assessed value changed back to what it was prior to the taxing district appeal, although that individual would not be entitled to a refund of taxes paid in the interim.
 
Committee chair Rep. Brian Ellis (R-Butler) offered an amendment to add several definitions, including a definition of "market value or actual value" that is problematic due to its inconsistency with years of case law and with other language in the County Consolidated Assessment Law outlining how county assessment offices must arrive at actual value of a property. The amendment was adopted with one negative vote (Rep. Margo Davidson, D-Philadelphia), and the bill as amended was reported by a 19-8 vote.
 
While a companion bill, SB 586 by Sen. David Argall (R-Schuylkill), was scheduled to be considered by the Senate Urban Affairs Committee the following day, the committee meeting was canceled.
OPIOIDS IMPACTING CHILDREN, GRANDPARENTS   
 
The Center for Rural PA, chaired by former CCAP member Sen. Gene Yaw (R-Lycoming), continued a series of hearings related to opioid and heroin abuse throughout the commonwealth, this time in a May 10 meeting focusing on the challenges facing grandparents who are caring for grandchildren because of a parent's opioid abuse issues.
 
Brian Bornman, Executive Director of the Pennsylvania Children and Youth Administrators (PCYA), a CCAP affiliate, shared the impacts that opiate use has had on the child protection system at the county level, most notably an increase in the total number of cases referred to children and youth agencies due to parents' substance abuse and their resultant inability to provide for the safety and well-being of a child. In fact, Bornman told the Center's members, substance abuse accounts for 30 to 80 percent of the placements of children outside their home, although it is rarely the only factor requiring placement as co-occurring mental health issues, homelessness or other lack of support are often present as well. He further emphasized that this has exacerbated pressures on the child protection system, already dealing with the dramatic increase in caseload ratios, unrealistic demands and inadequate funding following the enactment of new laws just a few years ago.
 
Prevention of substance abuse and overdose in the commonwealth remains a CCAP priority for 2017. As substance abuse and the opioid/heroin epidemic continues to affect local communities throughout the state, counties continue to provide prevention, intervention, and treatment programs through the 47 Single County Authorities (SCAs).

 PCYA's comments to the Center for Rural PA are available online at www.pacounties.org by clicking Government Relations, then Legislative Action Center and then Legislative Testimony.   
HOUSE COMMITTEE ADVANCES COOPERATION AND TAX BILLS   
 
The House Local Government Committee has moved several bills to the full House for its consideration, including HB 479, sponsored by Rep. Paul Schemel (R-Franklin), and HB 641, sponsored by Rep. Seth Grove (R-York).
 
House Bill 479 would amend the Pennsylvania Intergovernmental Cooperation Law to allow an intergovernmental agreement to be implemented by resolution unless state law otherwise requires the enactment of an ordinance. Currently, local governments must enact an ordinance to enter into such an agreement, requiring the publication of a legal notice and entering the new ordinance into an ordinance book. The bill instead would provide more flexibility and cost savings to local governments when they want to collaborate on joint ventures, while still assuring transparency. The bill was reported unanimously by the committee.
 
House Bill 641 would establish an optional senior citizen property tax freeze program that would be available to all local governments, modeled on the existing real estate tax deferment program. The legislation would allow local governments to freeze property taxes at the present amount paid for individuals 65 years of age or older who have a household income of less than $60,000 annually and have resided in the commonwealth for more than five years. Unlike current law, under which a deferred portion of property taxes becomes a lien on the property, HB 641 allows the frozen amount of property taxes to simply be forgiven.
 
Several committee members noted the effect that property tax freezes would have on local government revenues, should a local government choose to do so, and the impact on other property taxpayers to whom the tax burden would be shifted. Others raised concerns about the implications following a countywide reassessment, or if the property owner were to make improvements that would otherwise increase the value of the property. The bill was reported as amended from the committee by a 19-6 vote. Both bills now go to the full House for further review and consideration.
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