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STATE ANTICIPATES FY 2018-2019 SURPLUS
According to the state Department of Revenue, the commonwealth collected nearly $465 million, or 11.8 percent, more than anticipated in General Fund revenue in April. That puts fiscal-year-to-date collections at $29.2 billion, about $828 million, or almost three percent, above estimate.
All of the three major sources of revenue - the personal income tax, sales tax and corporation taxes - came in above estimate in April. Year-to-date sales tax receipts alone are about $274 million above estimate, in part due to a federal court ruling and concurrent new state law requiring certain third-party online sellers to collect sales taxes and in part due to the growth of online retail.
However, there are some offsetting current year costs that will need to be addressed from these additional available funds, including an unrealized $200 million budgeted transfer from the reserves of the Pennsylvania Professional Liability Joint Underwriting Association that was blocked by the courts for the third straight year. Gov. Wolf has also requested supplemental appropriations for FY 2018-2019 of $495 million, mostly for unbudgeted human services costs. There are also still two months of collections to be realized for the current fiscal year before the full extent of the surplus is known. Looking forward, the state's Independent Fiscal Office is required to release its initial revenue estimate for the coming fiscal year by May 20.
Relatedly, the state House moved a vehicle for the FY 2019-2020 state budget, HB 790, in late April, reporting it from the Appropriations Committee and giving it two of the three required floor readings before re-committing the bill to committee. Their action was purely procedural in nature, as the bill currently contains the FY 2018-2019 budget numbers as placeholders while negotiations between the General Assembly and Governor's office continue. Similar procedural moves occurred in the Senate in March with SB 234, which has also been re-committed to the Appropriations Committee in that chamber.
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COUNTIES ACT TO SUPPORT MATP DELAY
Counties across the commonwealth are adopting resolutions opposing a move to a regional or statewide brokerage model for the Medical Assistance Transportation Program (MATP), with some of the most recent including Chester, Elk, Lackawanna, Warren and Wayne counties.
At the last minute as the FY 2018-2019 budget was being finalized last June, language was tucked into what became Act 40 of 2018 to require the Department of Human Services to seek federal approval to move nonemergency MATP services to a statewide or regional full-risk brokerage model. Counties have voiced serious concerns that the model would hinder access and flexibility, and shows a lack of understanding of local needs and resources, which could potentially increase costs long-term or hinder critical services for individuals in need.
Sen. Lisa Baker (R-Luzerne) and Rep. Jonathan Hershey (R-Juniata) have introduced SB 390 and HB 986, respectively, to delay the transition to a statewide or regional brokerage model so the Legislative Budget and Finance Committee can conduct a study on the model's impacts. Counties support efforts to assure a full review of potential impacts and how services to constituents would be affected by a potential transition in MATP.
Copies of county resolutions can be found on CCAP's website under the Legislative Action Center and will continue to be updated as they are adopted.
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SECOND PHASE OF JUSTICE REINVESTMENT INVESTMENT CONSIDERED
Legislation has been reported by the Senate Judiciary Committee that comprises the second phase of the state's Justice Reinvestment Initiative (JRI), a comprehensive effort to reduce the prison population through criminal justice reform and then redirect the resources saved by reducing prison admissions to the front end of the system where they are used to fund alternatives to incarceration that result in better outcomes and reduced recidivism.
Specifically, SB 500, introduced by Committee chair Sen. Lisa Baker (R-Luzerne) would create a County Adult Probation and Parole Advisory Committee to advise the Pennsylvania Commission on Crime and Delinquency on funding, standards and training for county adult probation and parole departments. Senate Bill 501, offered by former CCAP member Sen. Tom Killion (R-Delaware), would streamline the process for placement in the intermediate punishment program, which provides community alternatives for non-violent offenders, diverting them from jail and incorporating drug and alcohol treatment to assist in changing behaviors and reducing recidivism rates. Last, Sen. Camera Bartolotta's (R-Washington) SB 502 would amend the Crime Victims Act to provide better information and improve compensation to victims.
All three bills were unanimously reported by the Judiciary Committee on May 1 with technical amendments, and have been re-referred to the Appropriations Committee.
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HOUSE PANEL ADVANCES BILL TO ADDRESS COMMERCIAL RTK REQUESTS
One of the greatest increases in requests under the 2008 Right-to-Know Law rewrite has been for records to be used for commercial purposes, and legislation is now under consideration in the House that would assist local governments in managing the effort and cost it takes to comply with those requests.
On May 6, the House State Government Committee reported by a 24-0 vote HB 283, introduced by Rep. Justin Simmons (R-Lehigh), to amend the Right-to-Know Law by allowing agencies to require requesters to certify whether the requester intends to use the record for a commercial purpose. If a commercial purpose is intended, the agency could assess additional search and review fees, which must be reasonable and approved by the state's Office of Open Records. The Committee also adopted a technical amendment, which allows an agency and a requester to enter into an alternative fee arrangement. The bill now goes to the full House for consideration.
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ELECTION REFORM LEGISLATION MOVES FORWARD
The Senate State Government Committee unanimously reported two proposed constitutional amendments on May 7 to update election practices in the commonwealth. In order to be adopted into the state's constitution, each bill would need to be approved by the General Assembly with the same language in this and the next legislative session, and then approved by a statewide voter referendum.
Senate Bill 412, introduced by Sen. Pat Stefano (R-Fayette) would remove from the constitution the restriction preventing public employees from serving as poll workers, a prohibition that limits an already shrinking pool of available individuals to volunteer at the polls on election day. In addition to expanding the available pool, making government employees eligible for service would be an important stop-gap on election days to substitute for late cancellations by poll workers who find themselves unable to fulfill their duties; the logical choice to assist in these cases are county elections staff who are already familiar with the voting systems and elections process, but currently are constitutionally prohibited from serving in this capacity.
The committee also reported former CCAP member Sen. Scott Martin's (R-Lancaster) SB 413, which would remove language from the constitution requiring a separate ballot or column for judicial retention elections. While the provision was presumably intended to give voters special notice of that ballot position, its effect is to cause unwarranted expense in ballot preparation, as well as added steps in tabulation. Eliminating this separate ballot requirement would be significantly more cost-effective.
Both bills were the subject of a Committee hearing the prior week, as part of a legislative package to reform and update elections practices in the commonwealth. Other bills on the hearing agenda were SB 411 through SB 422 as well as SB 300, which seek to improve election administration. Among other things, the bills would allow for no-excuse absentee ballots, and update the number of votes needed to qualify a write-in winner. Another bill, SB 419, would provide administrative alternatives for precincts with 250 voters or fewer, such as mail-in ballots or consolidation with other precincts, while SB 418 would reduce the number of ballots required to be printed.
CCAP provided testimony at the hearing, along with Dauphin County election director Jerry Feaser and the Department of State, the Disability Rights Network and Pennsylvania Voice. CCAP's written comments can be found at www.pacounties.org on the Legislative Action Center by clicking Legislative Testimony.
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FEDERAL BROADBAND INITIATIVES AVAILABLE TO COUNTIES
In addition to the recent Federal Communications Commission renewal of the Rural Digital Opportunity Fund, a $2 billion broadband subsidy, the U.S. Department of Agriculture (USDA) is now accepting applications for the Rural e-Connectivity Pilot Program, otherwise known as ReConnect.
Congress provided $600 million to the USDA for ReConnect to expand broadband services and infrastructure. The USDA is making available up to $200 million in grants, $200 million in loan and grant combinations, and $200 million in low-interest loans. Counties are being encouraged to apply alongside internet service providers and telecom companies, with funds awarded to projects that have financially sustainable business models to help bring high-speed broadband to rural homes, businesses and community facilities such as first responders, health care and schools.
Applicants can visit reconnect.usda.gov to apply, with deadlines of May 31 for grants, June 21 for loan/grant applications, and July 12 for low-interest loads. The USDA is also offering technical assistance to complete applications.
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