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FY 2017-2018 STATE BUDGET RESOLUTION REMAINS UNCERTAIN
The House approved a revenue package on Sept. 13 to address the $2.2 billion shortfall in Commonwealth finances for the FY 2016-2017 and FY 2017-2018 budgets, but several moving pieces remain in play before the budget can be considered resolved.
House action began Sept. 5 when a group of rank and file House members announced a no-taxes funding plan relying on about $1.2 billion in one-time transfers from special funds they claimed have surpluses, including 911, farmland preservation, transportation, conservation districts, and environmental and recycling programs, as well as another $1.2 billion in other funding mechanisms. Counties objected; at least for the county-related funds, there are no surpluses - existing fund balances are allocated and delivery of those programs and projects would be disrupted or lost.
A modified version of the plan was amended in the House on Sept. 13 into HB 453 and, while it still seeks to balance the budget in part by relying on significant transfers from dedicated funding, transfers from the 911 Fund and the Farmland Preservation Fund were not included. However, a number of other funds would still be exposed to capture, including $70 million from the Recycling Fund, $50 million each from the Public Transportation Trust Fund and the Multimodal Transportation Fund, and $2.5 million from the Conservation District Fund, among others. A full list of impacted lines can be found on CCAP's Budget News and Updates web page.
Following House approval of the amended HB 453, on a 103-91 vote, the bill now moves to the Senate for concurrence. That chamber had previously sent a $1.8 billion revenue proposal
to the House for consideration, although the House has not placed it on its voting schedule
. As the Bulletin went to press, it remained uncertain if the House effort would resolve the revenue impasse; the Senate returns to session on Sept. 18, while the House returns on Sept. 25.
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BUDGET RESERVES PENDING?
State Treasurer Joe Torsella and Gov. Tom Wolf sent a letter to the General Assembly earlier this week that the state would be forced to withhold $860 million in payments to some state General Fund programs on Sept. 15, absent a legislative solution to the FY 2017-2018 revenue issue. The letter follows the Governor's late August announcement that, to make sure funding is available for a major Medicaid payment due providers on Sept. 15, he would have to move some payments into reserve to avert putting Pennsylvania more than $1 billion in the red. At press time, the Governor had not released a list of which line items might be placed in reserve or in what amounts, but given the size of the budget gap compared to the overall budget, it is highly likely that county line items could be impacted. CCAP will provide any forthcoming details to counties as soon as they are available.
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AUDITOR GENERAL REPORT ON CHILD WELFARE SYSTEM
State Auditor General Eugene DePasquale has released a report on the state's child welfare system that assesses the strengths and challenges of the system, particularly as they relate to caseworkers.
While the report shares that there are passionate, dedicated professionals doing invaluable work, it also highlights challenges that make delivery of children and youth services more difficult, including trouble finding enough qualified professionals, inadequate training, heavy caseloads and paperwork requirements, low pay and high turnover rates.
The report notes the impact of the legislative changes that took effect in 2015, which caused major increases in caseloads and added volumes of paperwork to each case. In addition, the opioid crisis has had a profound impact on families and children, and thus on children and youth services. In legislative hearings and other forums CCAP and its affiliate, Pennsylvania Children and Youth Administrators (PCYA), have recited similar impacts related to caseload ratios, unrealistic demands and inadequate funding.
Among the report's recommendations are to review the interaction with the state's Civil Service Commission related to hiring caseworkers and to evaluate salaries for caseworkers and supervisors, as well as updating current training programs and seeking ways to reduce paperwork burdens. In addition, the report suggests the creation of an independent child protection ombudsman within the Department of Human Services, who could be tasked with reviewing complaints, recommending improvements and seeking best practices from other states.
The full report can be read at www.paauditor.gov.
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HARTWICK DISCUSSES FLOOD INSURANCE IMPACTS AT NACO BRIEFING
A coalition led by the National Association of Counties (NACo) hosted a Capitol Hill briefing on Sept. 6 to discuss the importance of reauthorizing and updating the National Flood Insurance Program (NFIP).
As part of the briefing, Dauphin County Commissioner and NACo Board member George Hartwick shared that flood insurance is an issue that affects everyone. While recent hurricanes have spotlighted the impacts of flooding on coastal areas, Pennsylvania has an extensive system of waterways that also makes it prone to flood-related disasters. Hartwick recalled flooding from Hurricane Agnes in his hometown of Steelton in 1972, as well as more recent flooding in the county caused by Tropical Storm Lee in 2011. Hartwick also commented that expiration of the NFIP has the potential of reducing assessment value due to uninsurability, at a level comparable to the loss of property values following a flooding disaster itself. A recent report by the Center for Rural Pennsylvania (available at www.rural.palegislature.us) raised similar concerns about the impacts of flooding and rising insurance rates on rural communities.
Pennsylvania's acting insurance commissioner, Jessica Altman, also spoke in support of consumer education and greater growth in the private flood insurance market as a complement to the NFIP.
Relatedly, while the NFIP was originally set to expire on Sept. 30, President Trump recently signed a short-term extension of the program into law, keeping the program going through Dec. 15.
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PA CONGRESSMAN TAPPED TO LEAD NATIONAL DRUG CONTROL OFFICE
President Trump has announced plans to nominate Pennsylvania Congressman Tom Marino to head the Office of National Drug Control Policy. The Office works to reduce drug use and its consequences by leading and synchronizing the development, implementation, and assessment of U.S. drug control policies. In addition, the Office administers grants, and offers administrative and financial support to the President's Commission on Combating Drug Addiction and the Opioid Crisis, established by Executive Order in late March. The director also serves as a chief advisor to the president on drug-related policies.
Marino, who has served in Congress since 2011, is a former Lycoming County district attorney, and also served as a federal prosecutor for Pennsylvania's Middle District. In 2016, he was appointed by House Speaker Paul Ryan to serve on the Bipartisan Heroin Task Force to recommend legislation to combat the opioid epidemic. His nomination will be subject to confirmation by simple majority vote of the Senate. If confirmed, his appointment would lead to a special election for the 10th District seat, which covers multiple counties west of Harrisburg up through the most northeastern part of the state.
As a 2017 priority, counties support efforts to prevent substance abuse and drug overdose, and seek strong federal, state and local partnerships to effectively address the opioid epidemic.
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PUBLIC HEARINGS TO BE HELD ON WATERS OF THE U.S.
The Environmental Protection Agency and the Army Corps of Engineers have announced a series of 10 public hearings to gather input on their efforts to draft a new Waters of the U.S. rule. The hearings are part of a two-step process to review and rewrite the Waters of the U.S. (WOTUS) rule that was finalized in 2015, begun with withdrawal of the 2015 rule and reinstituting regulations that were previously in place.
The meetings, all to be done by teleconference, will be held on Tuesdays from 1 to 3 p.m. Eastern Time starting on Sept. 19. Nine of the teleconferences will be tailored to specific sectors or topics such as agriculture and storm water, and one will be open to the general public. Written comments may also be submitted by Nov. 28, 2017.
More information about the public input process, as well as links to register for the teleconferences, is available at www.epa.gov/wotus-rule.
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RECOVERY ADVOCACY DAY EVENTS TO BE HELD
State and county officials, community advocates and individuals in recovery gathered at the Capitol on Sept. 5 to mark the beginning of National Recovery Month, an observance held each year by the federal Substance Abuse and Mental Health Services Administration to educate Americans that substance use treatment and mental health services can enable those with a mental and/or substance use disorder to live a healthy and rewarding life.
Warren County commissioner Jeff Eggleston and Blair County Drug and Alcohol Partnerships Executive Director, and PA Association of County Drug and Alcohol Administrators (PACDAA) member, Judy Rosser, spoke at the event.
In addition, PACDAA, a CCAP affiliate, will be participating with members of the recovering community in the third annual Recovery Advocacy Day at the Capitol on Sept. 26. Recovery Advocacy Day aims to raise awareness of substance use conditions, celebrates individuals in recovery, and acknowledges the work of prevention, treatment and recovery support services. A media event will be held at 2 p.m., featuring county drug and alcohol staff as well as the Department of Drug and Alcohol Programs and members of the state legislature. More information can be found at www.pacdaa.org.
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