2007 Budget Hearing Summary

2007 Budget Hearings
Highlights and Summaries

Senate Appropriations Monthly Report
Budget Recap
Week 1 - (PDF)

Week 2 - (PDF)

Attorney General

Senator Pat Vance (R-31) asks Attorney General Tom Corbett about the dangers involved with methamphetamine lab cleanup.

Summary

Appropriations Committee members questioned Attorney General Tom Corbett on the Commonwealth's efforts to crack down on illegal drug use and sales.

Senator Greenleaf said drugs are being smuggled in from out-of-state by gangs and the problem is getting increasingly more serious.

Noting that drug enforcement is crucial to public safety, Senator Rafferty said he was "baffled" by an Administration plan to cut 21 drug enforcement officers.

Senator Pat Vance said she is especially concerned about meth labs, which are extremely dangerous and costly to clean up when they are discovered. She wanted to know who is responsibly for detoxifying labs so they are not a threat to individuals.

Members also raised concern about the growing use of the Internet by sexual predators. Senator Greenleaf said that computers have made it much easier for predators to prey on children, and urged the Attorney General to crack down on those who do so.

Auditor General

Senator Mary Jo White (R-21) questions Auditor General Jack Wagner about the need for performance audits.

Senator Stewart Greenleaf (R-12) expresses concern about the accuracy of gas pumps to Auditor General Jack Wagner.

Summary

Senator Pat Vance, 31st District, and Appropriations Committee Chairman Gib Armstrong, 13th District, questioned Auditor General Jack Wagner about the health of government pensions across Pennsylvania. Wagner said many municipal and related pensions are not stable and suggested a need for consolidation. The Chairman noted that many government entities are not matching the pension contributions of their employees.

Senator Vance asked if the Auditor General planned an audit of Pennsylvania's welfare-to-work program, noting the state could lose federal funds if it underperforms. Auditor General Wagner said he is considering it.

Senator White and Senator Gordner questioned the office's authority and qualifications to conduct "performance audits" that go beyond financial data. The Auditor General said he would provide citation of the legislative authority for the audits. Senator White and Senator Armstrong questioned the need for the office to conduct checks of octane levels at gas stations if no evidence of discrepancy exists.

Senator Gordner asked which of the Auditor General's audits were required by law and which were optional. Auditor General Wagner said the vast majority are required, but conceded that audits of state and school employee retirement systems, and Megan's Law procedures, were optional.

Senator Greenleaf said he supported octane audits because gas prices are high and customers need to know they are getting what they paid for. Noting that the Corrections Department is growing in size and cost, the Senator asked if the Auditor General plans to audit the Department. Auditor General Wagner cited an audit conducted 18 months ago, which uncovered a $32 million fund in Corrections that could not be accessed. The Legislature subsequently changed the law to allow the money to be used for operating expenses.

Senator James Rhoades, 29th District, thanked the Auditor General for the audit of the Shared Ride program for persons with disabilities and asked who would perform performance audits if his office did not. Auditor General Wagner said they would not be done. He also told the Senator that a budget item for technology upgrades would be used for new hardware, laptops, training and technical consultants.

Senator Pat Browne, 16th District, thanked the Auditor General for helping to pass the Uniformed Procedures Act for tax compliance. The Senator asked how the Act's allowance for more self-auditing would affect the office and the Auditor General said it should free up auditors for other work.

Budget Secretary

Senator Gib Armstrong (R-13), Chair of the Senate Appropriations Committee, expresses serious concerns with the Governor's proposed spending plan, and the way it was crafted, to Michael Masch, Secretary of the Governor's Budget Office.

Senator Jake Corman (R-34) questions Budget Secretary Michael Masch about the Governor's reasoning behind the recently renegotiated AFSCME contract during a difficult budget year.

Senator John Rafferty (R-44) asks Budget Secretary Michael Masch about the Governor's annual budget cuts to, or elimination of, established and successful programs.

Senator Pat Vance (R-31) urges Budget Secretary Michael Masch and the Governor to hold the line on spending.

Summary

Appropriations Committee Chairman Armstrong opened the budget hearing on the Office of the Budget with a blistering rebuke of the Administration for failing to acknowledge a letter from the Senate's top leadership asking for a change in the Governor's on-going practice of cutting funding for programs and services of interest to the Legislature.

In the letter, the leaders asked for a "realistic budget," but did not receive a response and, instead, were presented with a budget for Fiscal Year 2007-08 that included $1 billion in funding cuts to programs and services of interest to legislators, Senator Armstrong said.

"That means I personally was insulted. I hoped you would call us in and say we could do this together," Senator Armstrong said.

Senator Rafferty also criticized the Administration for cutting those programs. He specifically cited the elimination of state support for Centers for Independent Living. Senator Rafferty asked whether the Administration believed those programs are not worthwhile. "Those individuals who rely on the Centers would be hard-pressed to understand why those services aren't worth funding," Senator Rafferty said.

Chairman Armstrong said the Governor's proposed Oil Company Gross Profits Tax was as likely to come to fruition as the hopes of a family looking for a big, unexpected gift from a "long, lost uncle." He asked Secretary Masch who came up with the idea of imposing the tax whether it had undergone independent legal review. He said the Administration should instead come up with a realistic and pragmatic way to raise the needed revenues for mass transit.

Chairman Armstrong asked if the Administration considered levying a local gas tax to support mass transit, since the majority of those funds currently go to Philadelphia and Pittsburgh. He noted that only 4.7 percent of the state money goes to support mass transit in all other communities across the Commonwealth.

Senator Mary Jo White asked whether the Oil Company Gross Profits Tax would impact oil and gas production in Northwest Pennsylvania. Secretary Masch said he was "not qualified" to answer the question, but would look into it.

Senator Corman asked Secretary Masch about the Administration's efforts to prepare for cutbacks in federal funding. Senator Corman said the Administration should have better recognized the impact of those reductions in federal money and therefore used restraint in spending, particularly in regard to the recent labor contract with state employees.

Senate Majority Leader Dominic Pileggi, 9th District, Senator Gordner and Senator Waugh quizzed Secretary Masch about the $840 million budget deficit that would be covered by part of the revenues generated by the Governor's proposed 16.7 percent increase in Pennsylvania's sales tax.

Senator Gordner said the Governor never mentioned in his presentation of the 2007-08 budget that $840 million of the money raised from the sales tax increase would go toward a structural deficit. Responding to another question from Senator Gordner, Secretary Masch admitted that the proposed 8-cent sales tax in Philadelphia and Pittsburgh would be higher than rates imposed by Pennsylvania's neighboring states.

Citing the variety of tax increases being proposed by the Administration, Senator Waugh questioned the impact the levies would have on Pennsylvania businesses, particularly small businesses.

Senator Roger Madigan, 23rd District, asked whether the Governor's budget included six or seven tax increases. Secretary Masch did not directly answer Senator Madigan's question, but conceded that the "typical Pennsylvania family" would see increased tax costs of $180 per year, mostly from the sales tax increase.

Senator Regola said taxpayers are "fed up" with increased taxes and state spending. He asked if the Administration considered the guidelines of the proposed Taxpayer Protection Act when it developed the budget. Senator Regola said the Administration must do a better job of working in a cooperative manner with the Legislature in developing the budget.

Several Senators questioned Secretary Masch about the Governor's health care coverage proposals.

Senator Pileggi said he reviewed the impact of Massachusetts' health care program and found that the estimate of the costs to that state's government was off by 50 percent and the costs to individuals were off by a "large factor" as well. He said he wanted definite reassurances that the estimates of the costs for Governor Rendell's health care proposals were not as far off as those in Massachusetts.

Senator Pileggi said he was informed by staff that the Administration is already planning for a 17 percent increase in the 3 percent payroll tax for the Governor's health care programs – even before the tax has been approved. He wanted to know when the decision was made to increase the proposed tax to 3.5 percent in its third year.

Senator Vance asked Secretary Masch to clarify whether or not employers who already provide health care coverage would be subject to the 3 percent payroll tax. She said a draft copy of legislation would force those employers to pay the tax.

Noting an estimate of 750,000 Pennsylvanians without healthcare insurance, Senator Waugh said he was surprised that the Cover All Pennsylvanians would only include 150,000 in the first year and a total of 450,000 by 2012. He asked what would happen with the remaining 300,000 people and whether calling the program Cover All Pennsylvanians was a misnomer.

Senator Don White, Chairman of the Senate Banking and Insurance Committee, said he had major concerns about the revenue sources identified by the Administration to cover the costs of the health care proposals.

On the issue of the Governor's proposed $2.75 per-ton tipping fee increase, Senator Mary Jo White said the proposal was in direct violation of an agreement between the Administration and the Legislature reached when the General Assembly approved the $625 million bond issue for Growing Greener programs.

She added that the Administration is also violating the state statute authorizing the bond, which required an annual allocation plan in the budget specifically detailing proposed Growing Greener spending.

Appropriations Committee Vice Chairman Tomlinson again (as he did during the Department of Revenue hearing on Monday) raised concerns about the municipal waste fees. Hauling companies already under long-term contracts outside of Pennsylvania may end up imposing a disproportionate amount of the tipping fee increase on Pennsylvania municipalities without long-term contracts.

Senator Rafferty raised questions about proposed funding for the Pennsylvania State Police. He asked whether a proposal to send 70 troopers to the Philadelphia area would incur costs for new cars and possibly a new barracks. Senator Rafferty also criticized a proposal to curtail evening operations at "60 some" State Police barracks, saying the Administration must look beyond profit and loss when it comes to public safety.

Senator Browne asked Secretary Masch about the costs of retirement and other post employment benefits and the Administration's procedures for setting and reviewing performance goals for state Departments and Agencies.

Community Colleges

Senator Gib Armstrong (R-13), Chair of the Senate Appropriations Committee, commends the Community College system for their adaptability and affordability during the Community Colleges budget hearing.

Summary

The Senate Appropriations Committee wrapped up its first week of budget hearings by reviewing state support for Pennsylvania's community colleges.

Representing Pennsylvania's community colleges at the hearing were: Dr. Karen Stout, President of Montgomery County Community College and President of the Pennsylvania Commission for Community Colleges; Dr. Steven C. Ender, President of Westmoreland County Community College; Dr. Jerome S. Parker, President of Delaware County Community College; and, Dr. Art Scott, President of Northampton Community College.

Appropriations Committee Chairman Senator Armstrong asked about the workload and starting salaries of community college professors. He applauded community colleges for their ability to quickly change and adapt to meet the needs of the Commonwealth. "You are one of the best bargains we have out there to invest in," Senator Armstrong said.

Senator Rafferty also applauded community colleges for their quick response to the needs of their communities and for their work with local non-profit organizations.

Senator Regola asked if the colleges expected to increase tuition. The Presidents all said they expected to have modest increases at their schools.

Senator Gordner discussed state funding for capital improvement projects at community colleges. He then asked if the Governor's proposed "flat lining" of state funding for PHEAA would impact community colleges. Senator Gordner also asked if community schools receive support from alumni.

Several members, including Senator Vance and Senator Waugh, asked about the progress being made to implement the provisions of Act 114 to better facilitate the transfer of credits from community colleges to other institutes of higher education.

Department of Aging

Senator John Gordner (R-27) stresses the importance of local Area Agencies on Aging (AAA's) to Secretary of Aging Nora Dowd Eisenhower.

Summary

A number of Senators raised concerns during the Appropriations Committee budget hearing on the Department of Aging about a proposed plan to privatize the Area Agencies on Aging through a "centralization" plan.

Senator Vance said she had heard informally of plans to put out a request for proposals (RFP) for long-term care that would "push out" the AAAs. "I don't see it as a conflict of interest for Triple A's to offer long term care assessments. I would hate to fix what is not broken," Senator Vance said.

Senator Gordner also made a pitch for his Area Agencies on Aging, saying they provide a valuable service to seniors. Senator Gordner expressed concern that AAAs are hearing about an Administration plan, but legislators "have not had one minute of input" from the Department. "Are you planning on having this program in place by January 2008," Senator Gordner asked Department of Aging Secretary Nora Dowd Eisenhower, who said she could not provide a timeframe.

"You want better efficiencies and you want to remove conflicts of interests. Having a one-stop shop is important and our seniors have that with the Triple As. So I don't understand the issues of efficiencies and conflicts of interests," Senator Gordner said.

Senator Rhoades echoed those concerns and said he is concerned that jobs and good services might be lost.

Senator Greenleaf centered his questioning on the issue of elder abuse – a crime that is growing through benign neglect and outright criminal activity. "We have lots of good laws and they are very impressive, but they don't seem to have helped," Senator Greenleaf said. "Do we need more inspectors and better screening of individuals who work with the elderly?"

Senator Rafferty also focused on elder abuse. He referenced a series of articles titled "Shame of the State," from the Philadelphia Inquirer. "What was uncovered in these articles, in these assisted living facilities, was unacceptable," Senator Rafferty said. "We need to put these creeps behind bars."

Senator Vance also raised concerns about Lottery Fund revenues. She said that gaming might impact the Lottery Fund. "This is the goose that laid the golden egg," she said, noting that the Lottery Fund supports a wide range of programs and services for seniors.

Department of Agriculture

Senator Mary Jo White (R-21) expresses concern about proposed changes to Pennsylvania's dog laws to Secretary of Agriculture Dennis Wolff.

Senator Jake Corman (R-34) remarks on the Governor's cuts to the Agriculture budget to Secretary of Agriculture Dennis Wolff.

Senator Gib Armstrong (R-12), Chair of the Senate Appropriations Committee, questions Secretary of Agriculture Dennis Wolff about the Department of Agriculture's inspection of gas pumps across Pennsylvania.

Senator Mike Brubaker (R-36), Chair of the Senate Agriculture and Rural Affairs Committee, comments on new environmental restrictions imposed by the Chesapeake Bay Commission to Secretary of Agriculture Dennis Wolff.

Summary

Appropriations Committee members focused on funding cuts that could affect Pennsylvania's agricultural community during a budget hearing with Department of Agriculture Secretary Dennis Wolff.

Senator Jake Corman, 34th District, asked Secretary Wolff how proposed cuts in agriculture research funding would affect current projects. Senator Pat Vance, 31st District, and Senator Mike Waugh, 28th District, stressed the importance of the state's Conservation Districts and urged a restoration of funding that the Governor is proposing to cut.

Senator Waugh also criticized reductions in funding for agriculture research and the state's crop insurance program. Senator Vance expressed concerns that the reduction in funding for Plum Pox eradication could have a negative impact on the Commonwealth.

Agriculture and Rural Affairs Committee Chairman Senator Mike Brubaker, 36th District, urged Secretary Wolff to take a closer look at the Federal farm bill to ensure that the state gets its fair share of funding.

Several Senators addressed proposed changes to the state's Dog Law. Senator Mary Jo White, 21st District, criticized the proposed changes because of the cost of compliance for breeders. Senator Stewart Greenleaf, 12th District, expressed concerns that the proposed regulations would affect legitimate breeders more than the "puppy mills" that the Legislature is targeting. Senator White and Senator Corman encouraged Secretary Wolff to carefully consider suggestions offered during the public comment period.

Senate Appropriations Committee Chairman Senator Gib Armstrong, 13th District, also encouraged the Department to consider a requirement that any dog sold in the Commonwealth include a dog license.

Senator Armstrong urged the Department to improve the inspection process for gas pumps. Senator White asked what the most effective method would be for checking pumps to ensure they are distributing the correct amount of gasoline. Senator John Pippy, 37th District, suggested spot inspections of gas pumps and octane checks to further protect consumers.

Senator Brubaker asked how the Department was promoting alternative energy and Senator Waugh asked how much money is allocated in the Governor's budget proposal for promoting alternative energy. Senator White asked about the cost of building and operating a proposed cellulosic ethanol plant in Pennsylvania.

Senator Bob Regola, 39th District, asked if there were any roadblocks facing agricultural businesses that want to move into Pennsylvania and asked how the state can further promote Pennsylvania farms. Senator John Rafferty, 44th District, asked what steps the Commonwealth could take to protect more farmland from development.

Department of Conservation and Economic Development

Senator Mary Jo White (R-21) raises concerns about state borrowing for the proposed Jonas Salk Legacy research fund to Secretary of Community and Economic Development Dennis Yablonsky.

Senator Mike Waugh (R-28) questions Secretary of Community and Economic Development Dennis Yablonsky about the Governor's elimination of Emergency Responder training and Municipal Code training.

Senator John Gordner (R-27) asks Secretary of Community and Economic Development Dennis Yablonsky about the Governor's cuts to the Small Business Development Centers.

Senator Pat Browne

Senator Pat Browne (R-16) comments on the importance of state investment in business to Secretary of Community and Economic Development Dennis Yablonsky.

Summary

Several Senators voiced their disapproval with the Governor's proposed cuts to economic development programs during the Appropriations Committee's budget hearing with Department of Community and Economic Development Secretary Dennis Yablonsky.

Senator Gordner criticized the Administration for claiming that the Governor's proposed cuts to Small Business Development Centers and Local Development Districts were based on an historical precedent set by the previous Administration, when funding added by the Legislature had not been cut for either program in several years by the Ridge Administration. Senator Bob Regola, 39th District, expressed disappointment at the Administration's refusal to submit an honest budget proposal that included funding for important existing programs.

Senator Mike Waugh, 28th District, questioned the elimination of funding for emergency responders' training and municipal code training.

Senator White criticized the Governor for emphasizing a "pay as you go" strategy, while proposing more borrowing, particularly the Governor's Jonas Salk Legacy Fund proposal. Senator Browne expressed concerns about the risks involved with using tobacco settlement funds for the Jonas Salk proposal. Senate Appropriations Committee Chairman Senator Armstrong suggested investing a portion of the tobacco settlement funds elsewhere to protect that funding.

Senator Rafferty asked if the Commonwealth had realized the benefits expected from the economic stimulus program. Senator Pippy, 37th District, asked for more information on the economic development projects that have not been successful as a way to ensure that funding is invested more wisely.

Senator Stewart Greenleaf, 12th District, asked it the World Trade Pennsylvania initiative had increased the state's exports. Secretary Yablonsky said it has increased Pennsylvania's ranking in comparison to other states.

Senator Vance pointed out the perception of favoritism in the Educational Improvement Tax Credit Program and suggested awarding funding on a first-come, first-served basis. Senator Roger Madigan, 23rd District, asked if the current funding level was adequate to meet the demands of the Educational Improvement Tax Credit Program. Secretary Yablonsky said that the demand is still very high for the program.

Department of Conservation & Natural Resources

Senator Mary Jo White (R-21) comments on environmentally responsible drilling for oil and natural gas in PA State Parks to the Secretary of Conservation and Natural Resources, Michael DiBerardinis.

Summary

Several members of the Senate Appropriations Committee questioned proposed increases in Department of Conservation and Natural Resources' operations costs during a budget hearing with DCNR Secretary Michael DiBerardinis.

Senator Bob Regola, 39th District, pointed out that many proposed increases in DCNR's operational costs were for services that the Department was already providing. Senator John Gordner, 27th District, questioned 12-percent and 18-percent increases for personnel costs.

Senator Pat Vance, 31st District, asked why the Department requested a supplemental appropriation of more than $2 million for pest control and requested additional information on the wages and benefits of seasonal staff working in State Parks.

Senator Jake Corman, 34th District, asked how the reduction in Heritage Parks grants would affect the Department and urged Secretary DiBerardinis to identify cost savings items that would not have a negative impact on the Department's top priorities.

Senator Mary Jo White, 21st District, asked what impact the additional funding for Growing Greener II would have on maintenance backlogs and services available in the Commonwealth's State Parks and State Forests. Senator White also urged Secretary DiBerardinis to provide more information on the possibility of using oil reserves in state parks and forests to increase Pennsylvania's energy independence and provide more funding for State Parks and State Forests.

Senator James Rhoades, 29th District, asked if the state could expect to meet the Department's projections for timber sales to ensure that more state funding would not be required later in the year.

Several Appropriations Committee members addressed the recreational activities available in state parks and forests. Senator John Pippy, 37th District, urged Secretary DiBerardinis to continue pursuing public-private partnerships for recreational programs and Senator Regola asked about the Department's efforts to encourage recreational activities such as snowmobile and ATV riding. Senator Gordner also questioned Secretary DiBerardinis about license reciprocity with other states for snowmobile riders.

Senator Pippy also requested an update on the Department's integration strategy for digital mapping and urged the Department to maximize the potential of this technology.

Senator John Rafferty, 44th District, requested more information about the Department's savings through the Strategic Sourcing Initiative.

Department of Corrections

Senator Stewart Greenleaf (R-12) comments on the rapid growth of the Department of Corrections budget to Secretary of Corrections, Dr. Jeffrey Beard.

Growing inmate populations in State Correctional Institutions and increased costs were the primary issues explored by the Senate Appropriations Committee during a budget hearing on the state Department of Corrections.

In his opening statement, Secretary of Corrections Jeffrey A. Beard said the Department's budget includes a proposed $185 million increase for Fiscal Year 2007-08. He added that even though the Department is pursuing an aggressive building program (using $672 million in capital budget money), the rate of population growth in state prisons is such that Pennsylvania is projected to be "out of beds" by December 2012.

Senate Judiciary Committee Chairman Senator Greenleaf noted that the Commonwealth has repeatedly heard the concerns about the growth in prison population and the associated costs. He added that Pennsylvania doesn't have the "interest or will" to take steps to pursue alternatives that would curb the growth in inmate populations.

Senator Greenleaf asked whether Community Corrections Centers (CCC) and halfway houses could help Pennsylvania address the concerns about the population problems in traditional facilities.

Secretary Beard said the average prisoner spends 3.3 years in a State Correctional Institution at an average cost of $31,000 per year, which means Pennsylvania spends about $100,000 per inmate during the course of a prison term.

Senator White asked about drug and alcohol treatment programs conducted by the Department. She also inquired about referrals to intermediate punishment programs and whether counties were being cooperative in those efforts. Senator White also raised concerns about the impact of health care costs on the Department's budget, since inmates are not eligible for Medicaid.

Senator Vance asked what percentage of the prison populations is considered elderly. Secretary Beard said 14 percent of the population is age 50 or older (up from 5 percent in 1980). He said the Department uses age 50 as the benchmark because those inmates tend to "age five- to 10-years faster" than the general public as a result of their lifestyles.

Senator Vance also asked about the nurses used by the Department and the efforts being undertaken to prevent the transmission of communicable diseases in its facilities.

Senator Rafferty asked if the Department dedicates a special wing for older inmates, as a way to save costs and provide appropriate access to health care and other professional services. Responding to a question from Senator Rafferty, Secretary Beard said Pennsylvania's male prison population grew by 5 percent last year, while the female population grew by 10 percent.

Senator Pat Browne, 16th District, applauded the Department for undertaking changes to make more efficient use of its resources, especially when dealing with non-violent offenders.

Senator Rhoades asked if the Department receives sufficient funding for education and training programs. In response to a question from Senator Rhoades, Secretary Beard said the median education of the inmate population would be at about the 8th grade level.

Appropriations Committee Vice Chairman Senator Tomlinson asked about the housing of state prison inmates in county jails. Secretary Beard said the state does not pay the counties for those prisoners.

Department of Education

Senator Jim Rhoades (R-29) expresses concern to Secretary of Education, Dr. Gerald Zahorchak about the Governor's cuts to supplemental funding for growing school districts.

Senator John Rafferty (R-44) questions Secretary of Education, Dr. Gerald Zahorchak about the Governor's funding for libraries.

Senator Stewart Greenleaf (R-12) asks Secretary of Education, Dr. Gerald Zahorchak about the inequity in school funding across the Commonwealth.

Senator Roger Madigan (R-23) raises concerns to Secretary of Education, Dr. Gerald Zahorchak about the cost of cyber schools for taxpayers.

Senator Tommy Tomlinson (R-6) asks Secretary of Education, Dr. Gerald Zahorchak to reconsider the way Special Education funding is allocated.

Senator Gib Armstrong (R-13), Chair of the Senate Appropriations Committee, comments on the amount of money already spent on education to Secretary of Education, Dr. Gerald Zahorchak.

Senator Jim Rhoades (R-29) compares last year's education budget to this year's education budget proposed by the Governor.

Summary

Senate Appropriations Committee Chairman Armstrong opened the public hearing on the Department of Education by welcoming Secretary of Education Dr. Gerald L. Zahorchak.

Senator James Rhoades, 29th District and Chairman of the Senate Education Committee, asked several questions regarding state basic education funding and the accuracy of poverty-level statistics. He said he believes those statistics are skewed because they are derived from the free- and reduced-lunch program numbers rather than from household income figures.

Senator Rhoades asked if audits have been completed for Approved Private Schools. Senator Rhoades added that he believes it is a mistake to add $2 million into the budget for new technical schools instead of directing those funds to existing technical schools and community colleges.

Senator Rafferty said there are a number of growing school districts in his Senatorial District. He asked Dr. Zahorchak to review the formula used to distribute additional funding to those districts. Senator Rafferty questioned the insufficient library funding increase when compared to previous years. He also asked for updates and information regarding Approved Private School payments.

Senator Stewart Greenleaf, 12th District, echoed the concerns of Senators Rhoades and Rafferty regarding the accuracy of the formula used to distribute funding to growing school districts. He also expressed concerns regarding library funding. Senator Greenleaf concluded by thanking Dr. Zahorchak for agreeing to expand the definition of "bullying" to include "cyber-bullying."

Senator Vance asked for a clarification regarding library funding and how it impacts contributions from municipal governments. She asked why the Classroom Plus program disappeared from this year's proposed budget. Senator Vance concluded by asking for information on community colleges that are sponsored by their local school districts.

Senate Majority Leader Senator Dominic Pileggi, 9th District, echoed Senator Vance's concerns regarding funding for community colleges and asked about the financial crisis facing the Philadelphia School District. He then asked about other financially distressed schools across the state. Senator Pileggi concluded by requesting additional information on technical college funding.

Senator Roger Madigan, 23rd District, said he supports the Classrooms for the Future program and wanted to know when the balance of Pennsylvania's school districts will have this program in place. He asked what schools are doing to fight childhood obesity and expressed concerns about the costs of cyber-schools.

Senator Bob Regola, 39th District, said he feels the Administration is being "disingenuous" by proposing lofty budget requests when the Legislature has clearly stated this will be a tough budget year. He asked about the use of Accountability Block Grants for science programs.

Senator Pippy said he appreciates the Department's work with Approved Private Schools. He then expressed concerns regarding the inequity of payments for cyber-charter schools from school district to school district. He asked what steps the legislature needs to take to standardize payments for cyber-schools. Senator Pippy also asked Dr. Zahorchak to reevaluate the formula used to disperse funding to growing school districts.

Senator Pat Browne, 16th District, expressed concerns about funding to address school safety issues. Senator Browne requested a clarification regarding the amount of money spent on remedial education programs by community colleges. He also asked about the percentage of "proficient" students who are receiving money for tutoring.

Appropriations Committee Vice Chairman Senator Robert Tomlinson, 6th District, asked several questions regarding special education funding. He asked Dr. Zahorchak to provide specific reports on funds spent on special education. Senator Tomlinson stressed that he wants special education funding to be used exclusively for special education services provided by school districts.

Senator Armstrong expressed concerns regarding a nearly 20-percent cut in funding for the Stevens College of Technology, which is a highly successful technical college located in his district. He asked Dr. Zahorchak to work with the Legislature to maximize the use of state funding during a difficult budget year.

Department of Environmental Protection

Senator Mary Jo White

Senator Mary Jo White (R-21) questions Secretary of Environmental Protection Kathleen McGinty about the source of funding for the Hazardous Sites Cleanup Fund and the increase on tipping fees for waste disposal.

Summary

Senate Environmental Resources and Energy Committee Chair Senator Mary Jo White said the Administration's proposed surcharges on electricity use would be sizeable for industrial and commercial users and feared it would hurt employers who are competing with businesses in other states where electricity costs are already cheaper.

Senator White also said that savings projected to offset the new charge for residential users would be realized only if households purchase new, energy-efficient appliances, which are too expensive for many families.

She asked Department of Environmental Resources Secretary Kathleen McGinty for clarification on a promise that no commercial customer would pay more than $10,000 "per facility." The Secretary acknowledged the wording should be "per company" and will make the change in the proposed legislation.

Senator White pointed out that when the Governor originally proposed Growing Greener II, he pledged no new taxes or fees would be used to pay for the bond's debt service, but now he is seeking to raise tipping fees for just that purpose.

Secretary McGinty acknowledged the change and said it was necessary to avoid draining the Environmental Stewardship Fund. Noting that additional tipping fee increases are sought for the Hazardous Site Cleanup Fund, the Senator asked why General Fund dollars were not considered. The Secretary said she is not sure where the $50 million to $60 million would come from. The Senator also noted that while DEP cut positions, actual personnel costs rose. The Secretary blamed it in part on new union benefit costs.

Senator Rafferty noted $300,000 was set aside for a new executive position in flood mitigation and prevention. Secretary McGinty said the cost was not entirely salary, adding that the cost was spread among DEP, DCNR and PEMA.

Senator Rafferty said he was concerned about Trichloroethylene (TCE) levels in the Collegeville section of his district and suggested a written agreement with stringent criteria for the producer of the TCE to meet, or be closed. He also criticized the Department for adding a political statement regarding Hazardous Site Cleanup funding in the news release announcing the TCE findings.

Senator Regola asked if the awarding of long-term electricity contracts to suppliers would discourage new suppliers from competing. Secretary McGinty said they are needed because the current Pennsylvania electricity market is distorted. The Senator asked if the Alternative Energy Investment Portfolio plan would increase the cost of electricity. The Secretary said it would ultimately lower costs because diversification guards against cost spikes.

Responding to Senator Pippy, Secretary McGinty said "smart meters," which help adjust energy use for the best savings, are currently available. He said there is no mechanism in place to ensure that savings are passed on from utilities to customers. Senator Pippy asked if DEP ended its "money-back guarantee" to businesses if it delays in processing permits. The Secretary said it has been improved by eliminating the ability for the Department to "stop the clock." There is now an 18-month limit to process permits.

Senator Pippy noted a landslide in his senatorial district that closed roads and an interstate rail line. He said there was a need for greater oversight of development in risk areas. Secretary McGinty said it has to be determined if the role is best suited for state or local governments.

Senator Vance said that many wastewater plants need upgrading to meet state standards. She suggested the cost for upgrades be spread throughout the state, similar to the reasoning the Administration is proposing to fund mass transit programs that benefit limited regions of the state.

Senator Corman asked if customers will actually see the savings promised to offset the proposed Systems Benefits Charge on electric bills. The Secretary said the savings were based on data supplied by PJM, the regional electric grid operator. Secretary McGinty said the savings should begin after Fiscal Year 2009-10, when the current rate caps are lifted and if customers purchase energy efficient appliances and new meters.

Secretary McGinty said the proposed tipping fee increase will cover $11 million of Growing Greener II debt service, with the remaining $30 million coming from the Environmental Stewardship Fund.

Secretary McGinty told Senator Waugh that elimination of funds for water contamination remediation and alternative energy reflect only limited projects, which have been completed.

Asked about a reduction in funding for Conservation Districts, McGinty said funding has remained relatively level at $1.9 million to districts and $1.1 million for district projects and that any reduction reflects the $500,000 that the Legislature adds every year.

Regarding tipping fees, Appropriations Committee Vice Chairman Senator Tomlinson said DEP must make sure that it can be collected from out-of-state trash haulers. The Senator said the state should invest in soybean bio-diesel production. Secretary McGinty said Pennsylvania is among the leaders in production, with a projected annual output of 60 million to 70 million gallons and more facilities are planned.

Asked about how the cleanup of energy plants will affect consumers, Secretary McGinty noted that it depends on the issue. Plants producing acid rain compounds are very costly to upgrade, while scrubbers for mercury are less expensive. She added that new federal regulations should reduce emissions from out-of-state plants, upwind from Pennsylvania.

Senator Browne said a backlog in pending soil disturbance permits creates a lot of work for his district offices. The Secretary said that as of March 10, applicants will get a response on their permits within 32 calendar days. The Senator suggested that tax credits would be a better incentive for alternative energy use than the Administration's use of grants. The Secretary said credits would create a hole in the budget that would have to be filled. Asked about global warming, Secretary McGinty said the Governor would be announcing a comprehensive plan in coming months.

Appropriations Committee Chairman Senator Armstrong asked whether "smart meters" would be partially funded by a new surcharge on electric bills. Secretary McGinty said they would be made available to all ratepayers within six years after rate caps expire in 2009-2010. Senator Armstrong said the benefits of smart meters are intriguing, but added that the costs of acquiring them and the appliances necessary to realize full savings are a concern.

Department of General Services

Senator Pat Browne (R-16) questions Secretary of General Services James Creedon about Budget Performance Measures established by the Governor's Administration.

Summary

Senate Appropriations Committee Chairman Gib Armstrong, 13th District, began the hearing by commending Department of General Services Secretary James Creedon for holding down spending increases and for working to locate state offices in downtown areas to spark revitalization. He also questioned the Secretary about the level of savings realized with the elimination of 300 department jobs since 2003 and received updates on the sale of state office buildings in Philadelphia and Pittsburgh.

Senator John Rafferty, 44th District, was one of several members to seek information on the estimated $300 million the department claims it has saved in recent years. Secretary Creedon said the savings were generated mainly through Strategic Sourcing purchasing and reduction in fleet vehicles. Senator Rafferty noted that the State Police only had one SUV available during the snow storm that shut down Interstate 78. The Secretary said it is unlikely more SUVs would have improved storm response.

Senator Pat Vance, 31st District, asked whether DGS budgets funds for preventive maintenance on the Capitol Complex or just pays for as-needed repairs. Secretary Creedon said the department uses surplus funds for preventive maintenance where possible. He noted that the Complex buildings are very old and that a total overhaul would cost up to $200 million, which is what the Department spends on building maintenance statewide. The Senator also expressed concern with several long-term leases DGS signed in past years, which are now costing substantial tax dollars.

DGS has done a good job with the Rockview State Correctional Facility in the 34th Senatorial District, according to Senator Jake Corman, 34th District. The Senator also questioned estimated Strategic Sourcing savings and wondered if fewer Pennsylvania suppliers were being used. Secretary Creedon said the initiative has saved $200 million and that there has been no reduction in the number of Commonwealth businesses participating.

Senator Pat Browne, 16th District, asked if estimated Strategic Sourcing savings considered only purchasing savings and not the overall effect, such as receiving fewer payroll taxes from new suppliers with smaller payrolls. Secretary Creedon said the savings estimates were mainly based on purchasing costs. The Senator noted that DGS sets performance goals and conducts internal performance audits and asked that the information be shared with the committee.

The process for various departments to purchase supplies was the focus of questions from Senator Stewart Greenleaf, 12th District, who asked if DGS oversaw the process throughout state agencies. The Secretary said a centralized procurement process is in place in which DGS directs up to 95 percent of all purchases. He told the Senator that the Department counsels other offices on cost-saving measures, particularly on ways to reduce energy costs.

Department of Health

Senator Bob Regola (R-39), speaks to the Secretary of Health, Dr. Calvin Johnson, right, before the secretary testifies during the Senate Appropriations Committee budget hearing.

Senator Mike Waugh (R-28) expresses concern to Dr. Calvin Johnson, Secretary of Health, about cross-boundary and interstate certification of Emergency Medical Services personnel.

Summary

Several Senators questioned state Secretary of Health Dr. Calvin B. Johnson about the Department of Health's planning and funding to counter the impact of viral pandemics and bioterrorism.

Senator Gordner said he is concerned about Pennsylvania's stockpile of anti-viral medications, noting that they have a shelf life ranging from three- to five-years. He asked if there is an alternative use for anti-influenza vaccine.

Senator Vance expressed concerns over Pennsylvania's last-place national ranking in the distribution of anti-bioterrorist funding. She said the situation jeopardizes preparedness.

Senator Madigan asked about the potential impact of avian influenza in Pennsylvania. Secretary Johnson said the Department of Health is working very closely with Agriculture on bird flu preparedness.

Senator Waugh addressed bioterrorism preparedness and wanted assurances that the $34 million set aside for that purpose is safeguarded and will be spent only for its intended use.

Senator Rafferty wanted to know if the Department of Health was adequately prepared in the event of a bioterrorism emergency.

Several members raised questions regarding the Governor's proposed universal health care plan.

Senator Browne questioned whether the proposed program would be redundant. In regard to acute care hospital standardization, Senator Browne said that the bottom line is whether or not the new standards would work best for the patients. He also noted the decline and disappearance of many obstetric facilities in Pennsylvania, especially in the Philadelphia region, and called the situation a crisis.

Senator Waugh noted that acute care facilities are already overburdened with regulations and non-compensated services. He raised concerns that imposing further "standards" would increase high costs.

Senator Vance asked whether new hires at acute-care hospitals and nursing homes were being appropriately screened through thorough background checks. The Senator reminded Secretary Johnson that the state law ordering such scrutiny had been "knocked down by the court."

Senator Vance also asked how the Administration could impose further costs, expenses, and regulations on an already financially strapped hospital system.

Senator Rafferty expressed concerns about the spread of AIDS among women and the crisis of prescription drug abuse.

Senator Waugh appealed to the Secretary for interstate EMS license certification, specifically for those serving in the Pennsylvania/Maryland border area.

Appropriations Committee Vice Chairman Senator Tomlinson asked about a statewide ban on indoor smoking. He suggested that any ban on public smoking be done in increments.

Department of Labor and Industry

Senator John Gordner (R-27) expresses concern to Secretary of Labor and Industry Stephen Schmerin about the Governor's proposed elimination of the Self Employment Assistance Program.

Senator John Pippy (R-37) asks Secretary of Labor and Industry Stephen Schmerin about the Governor's proposed elimination of Centers for Independent Living (CILs).

Summary

Senator Gordner, Chairman of the Senate Labor and Industry Committee, asked state Department of Labor and Industry Secretary Stephen Schmerin for an update on the "stay" issued by the Administration last year over a prevailing wage rule for municipal road projects. Secretary Schmerin said the confusion over prevailing rules was the result of a PENNDOT memo and that the stay does not affect PENNDOT projects.

Senator Mike Waugh, 28th District, also focused on prevailing wage, noting that while the state struggles provide property tax relief, prevailing wage adds a 10- to 30-percent surcharge on school construction projects. The Senator asked if the law should be amended to allow for opt-outs or an increase in the threshold for projects covered by prevailing wage. Secretary Schmerin replied that if the law is amended, the entire legislation should be reviewed and not just two provisions.

Senator Pippy, Senator Rafferty, and Senator Corman said the Administration had again proposed a state budget designed to appear smaller by cutting funding for essential programs and expecting the Legislature to restore them. Senator Pippy noted that the cuts were not made across the board and that lawmakers deserve to know how cuts were chosen. Senator Corman said such political gamesmanship has been played for years and leads to bloated budgets.

Senator Vance was one of several members to call for full funding of Centers for Independent Living. Senator Rhoades said the proposed cuts to the Centers for Independent Living come after three years without a cost-of-living increase. He said the Governor must justify the morality of the cut.

Senator Gordner was one of several Appropriations Committee members to question proposed cuts to the Office of Vocational Rehabilitation and the Self-Employment Assistance Program. In the case of the latter, Secretary Schmerin said it was the result of declining participation.

Senator Gordner also relayed frustrations over the fees municipalities and third parties are charging for Uniform Construction Code inspections. The Secretary said he would support a legislative review of the problem and would consider Senator Waugh's suggestion to let property owners hire third-party inspectors to avoid the hefty costs currently being charged.

Senator Vance asked the Secretary to clarify when the 3-percent tax to fund Cover All Pennsylvanians would be levied on employers. Secretary Schmerin said the tax would only apply to businesses not offering adequate health insurance, as determined by the state Insurance Department. She also noted that part of the solution to Pennsylvania's nursing shortage is producing more nursing instructors, but added that there are not enough clinical sites for students to get hands-on experience.

Responding to Senator Greenleaf, Secretary Schmerin said his $157 million budget request represents a significant cut, one that he hopes to cover through savings. The Senator asked for an update on the success of Workplace Safety Committees, which was established in 1996 as part of Workers' Compensation Reform. The Secretary said the committees lower premiums, reduce injuries and increase productivity. Appropriations Committee Chairman Senator Armstrong noted that some in the insurance industry doubted that the committees would be beneficial.

Senator Rhoades asked where savings from bulk purchasing/Strategic Sourcing go to, and the secretary said the money is returned to the General Fund.

Noting that the gaming industry will grow in Pennsylvania, Senator White asked what is being done to prepare for the demand for workers. The Secretary said his Department is working with the industry to supply workers, with the industry providing the training.

Senator White noted that a 0.4 percent reduction in the Unemployment Compensation tax seems small compared with the overall drop in unemployment. Secretary Schmerin said the cut is significant, and is coupled with the waiving of a 2.3 percent fee against claimants. He said the Unemployment Compensation Trust Fund has gone from a deficit to a $1.2 billion positive balance.

Senator Browne also questioned cuts to the Self-Employment Assistance Program and asked what accountability measures are in place for Workforce Investment Boards. The Secretary said the state sets standards and helps WIBs meet them and that those lagging behind have been identified for help.

Department of Public Welfare

Senator Pat Vance (R-31) urges Secretary of Public Welfare Estelle Richman to correct a lag in license renewals for personal care homes.

Senator Ted Erickson

Senator Ted Erickson (R-26), Chair of the Senate Public Health & Welfare Committee, expresses serious concern about the Governor's elimination of Acute Care Hospital funding to Secretary of Public Welfare Estelle Richman.

Senator Jake Corman (R-34) calls on the Department of Public Welfare to support Long Term Care Insurance legislation.

Summary

Senate Appropriations Committee Chairman Senator Gib Armstrong, 13th District, called the meeting to order and welcomed Estelle Richman, Secretary of the Department of Public Welfare (DPW).

Senator Ted Erickson, 26th District, Chairman of the Senate Public Health and Welfare Committee, said he is pleased with the level of funding for autism and requested an update on the Mental Retardation (MR) waiting list. Senator Erickson then asked Secretary Richman to explain DPW's role in the Governor's universal health care plan. Senator Erickson expressed concerns about the Acute Care Hospital appropriation being cut from the budget.

Senator John Rafferty, 44th District, asked Secretary Richman to respond to an article in the Philadelphia Inquirer regarding abuse problems in Pennsylvania's Assisted Living Facilities. He then asked about state hospital closings across the Commonwealth, specifically the Norristown State Hospital.

Senator Bob Regola, 39th District, requested information on Family Planning and the Alternatives to Abortion programs. He asked if any of the Family Planning funding is used to pay for abortions. Senator Regola then asked about the Department's role in the creation of the Office of Long-Term Living.

Senator Pat Vance, 31st District, asked for a clarification regarding the Governor's Cover All Pennsylvanians program and asked about costs associated with hospital-acquired infections. Senator Vance expressed concerns about personal care homes with expired licenses that are not receiving proper inspections. She also asked about a disproportionate allocation of funds to four domestic violence agencies in Philadelphia. Senator Vance concluded by asking for more information regarding the Welfare-to-Work program.

Senator Mary Jo White, 21st District, expressed concerns regarding the lack of federal reimbursements to counties for child welfare expenditures. She also wanted to know the projected long-term results of the elimination of the Voluntary Managed Care program.

Senator John Gordner, 27th District, asked about funding for Youth Development Institutions and inquired about the Department's commitment to existing institutions. He then asked for additional information on the Welfare-to-Work program. Senator Gordner asked Secretary Richman if there is money budgeted to cover additional expenses in the event that a mandatory overtime bill is enacted this year.

Senator Pat Browne, 16th District, asked for a clarification regarding the Medical Assistance Program. Senator Browne said he wanted to see the number of Commonwealth citizens on cash assistance continue to decline every year, but DPW's projections are showing a leveling-off. He wanted to know why those numbers are not declining.

Senator Jake Corman, 34th District, expressed concerns regarding an application for long-term care partnership insurance. Senator Corman had introduced a bill last session (Senate Bill 1300) to address the issue, but DPW does not support the measure.

Appropriations Committee Vice Chairman Senator Robert Tomlinson, 6th District, expressed concerns regarding the amount of funding Bucks County receives for mental health and mental retardation programs. He said that Bucks County receives significantly less per-capita dollars than other counties in Southeast Pennsylvania. Senator Tomlinson said he is concerned about the impact on local communities when mental health hospitals close and cautioned Secretary Richman to weigh that burden carefully against any cost savings achieved by closing those facilities.

Senator Stewart Greenleaf, 12th District, asked for information about the MR waiting list. He said he is concerned about mentally retarded young adults who graduate high school, but do not receive the support they need afterwards. Senator Greenleaf also expressed concerns about abuse in personal care homes and asked about DPW's plans to hire more staff.

Senator Armstrong wanted to know how many dollars are being spent in Philadelphia and how many of DPW's employees work in that city. He explained to Secretary Richman that the state is facing a tough budget year and there is no support in the Legislature for tax increases. Therefore, he cautioned that DPW's budget must be closely examined and prioritized to maximize the use of available funds.

Department of Revenue

Senator John Rafferty (R-44) expresses concern to Revenue Secretary-Designee Thomas Wolf that the proposed Oil Company Gross Profits Tax would be passed on to consumers.

Senator Mary Jo White (R-21) voices concern about the impact the proposed Energy Use Tax would have on employers to Revenue Secretary-Designee Thomas Wolf.

Summary

The Governor's proposed tax increases faced tough scrutiny from members of the Senate Appropriations Committee during its public hearing with the state Department of Revenue.

Several members questioned Acting Revenue Secretary Tom Wolf about the Governor's proposed Oil Company Gross Profits Tax.

Appropriations Committee Chairman Senator Armstrong questioned why other similar business, such as tire companies and airlines weren't included in the tax. He also questioned that Governor's statement that oil companies would be barred from passing the tax on to consumers.

"If we put a tax on your business, I m sure you'd find a way pass it along," Senator Armstrong said.

Senator Rafferty said other sectors already paying gross profits taxes, such as banks, insurance and utility companies, pass the charges on to consumers. He also expressed concerns that the Administration was proposing to move forward with the oil company tax without first receiving a legal opinion on whether it could be imposed.

Senator Roger Madigan, 23rd District and Chairman of the Senate Transportation Committee, requested an update on the Administration's efforts to "insulate consumers" from the impact of the tax. "Do you have any idea what it would take in the drafting of the legislation to ensure it is not passed on?" Senator Madigan asked.

Senator James Rhoades, 29th District, also requested a legal opinion on the tax and the ability to preclude it from being passed on to consumers, especially considering the fluctuations in retail pricing. Senator Rhoades noted that the price-per-gallon of oil went down last week, even as retail prices at the pump were increasing.

Responding to a question from Senator Mike Waugh, 28th District, Acting Secretary Wolf admitted that homeowners would see increased costs in their electric bills and garbage fees due to the Governor's proposed increased municipal waste disposal (tipping) fee and the new energy use tax.

Appropriations Committee Vice Chairman Robert Tomlinson also raised concerns about the municipal waste fees. Hauling companies already under long-term contracts outside of Pennsylvania may end up imposing a disproportionate amount of the tipping fee increase on Pennsylvania municipalities without long-term contracts.

Senator Mary Jo White, 21st District, said that tipping fees, historically, have been used for Growing Greener and recycling programs. She added that revenues from the Capital Stock and Franchise Tax were used for hazardous site clean up programs. Senator White, noting that the largest industry in her district was an electric arc furnace steel manufacturer, said even a slight increase in electric costs – such as the proposed energy use tax -- could have a devastating impact on jobs.

Senator Waugh also requested addition information about the Governor's proposed sales tax increase. "I would like to hear an evaluation of how the Department feels the border regions (of the state) would be affected by this increase."

Noting Acting Secretary Wolf's comment that the projected $1.4 billion in additional revenue from a sales tax increase would be split one-third for property tax relief and two-thirds for the General Fund, Senator Corman said he'd like to see all of that money go to help property owners.

"I would think you would do far better if it was dollar-for-dollar, instead of looking like a bail out of the General Fund for the mismanagement of the past," Senator Corman said.

Senator Vance questioned the long-term viability of the Lottery Fund, especially with gaming venues starting to open. She noted that growth is slowing and the Department of Aging is transferring $20 million to bolster the Lottery Fund. Acting Secretary Wolf said the most significant impact on the Lottery Fund balance was the changes to the Property Tax/Rent Rebate Program.

Senator Greenleaf questioned Acting Secretary Wolf about the efforts the Department is undertaking to notify senior citizens about the new income limits for the Property Tax/Rent Rebate program, which is projected to provide benefits to an additional 420,000 beneficiaries under the revised guidelines.

Senator Browne, Chairman of the Senate Finance Committee, questioned Acting Secretary of Revenue Tom Wolf about the results of reforms made to the tax appeals settlement process. He also asked how $392.9 million in delinquent tax collections made in 2006 matched what department expected to receive during that year.

Senator Bob Regola, 39th District and Chairman of the Senate Local Government Committee, asked whether the Department has considered the consolidation of EIT collection at the county level.

Department of State

Senator John Pippy (R-37) remarks on how difficult it is for military personnel overseas to get absentee ballots to Secretary of the Commonwealth Pedro Cortes.

Summary

Senator Mary Jo White, 21st District, asked Department of State Secretary Pedro A. Cortes to explain what percentage of the Department's $92 million appropriation is offset by local/state fees paid the Commonwealth and expressed concerns over the possibility of unilateral fee increases. The Secretary said any future increases would require legislative approval.

Senator Bob Regola, 39th District, addressed the state's poor performance in processing military absentee-ballots. Senator Regola said he was concerned that 17 percent of those votes were missed. Senator John Pippy, 37th District, also stated that denying 17 percent of Pennsylvanians on active duty military service access to a ballot is an unacceptable number.

Senator Regola also asked the Secretary about electronic ballot computer snafus during the last election, particularly in Westmoreland County. The Secretary said that the problems were caused by human error and assured the Senator that such glitches are not anticipated in the future and that his Department is prepared to train local poll workers when requested.

Senator Jake Corman, 34th District, wondered if the Secretary knew of any time limitation preceding a Primary Election that might impact implementing an earlier primary date. The Secretary responded, "The sooner, the better." Regarding campaign finance reform, Senator Corman appealed for a speedier process which would enable members to file their financial data more expeditiously.

Senator John Gordner, 27th District, was critical of the time it takes to produce bureau regulations after a law is enacted – in some cases, up to three years.

Senator Pippy asked Secretary Cortes about the Department's plans for unspent HAVA funding. The Secretary informed Senator Pippy that county election districts would receive what is left for the 2008 election.

Senator John Rafferty, 44th District, expressed concern over inadequate staffing of the Elections Bureau, and Senator Stewart Greenleaf, 12th District, appealed to the Secretary for faster county election returns.

Department of Transportation

Senator John Gordner (R-27) comments on the state's high level of funding for mass transit to Secretary of Transportation Allen Biehler.

Senator Mary Jo White (R-21) remarks to Secretary of Transportation Allen Biehler that it is highly unlikely that the Governor's oil company gross profits tax will actually generate revenue.

Senator Tommy Tomlinson (R-6) raises concerns about the Administration's plans for funding mass transit to Secretary of Transportation Allen Biehler.

Senator Gib Armstrong (R-13), Chair of the Senate Appropriations Committee, reviews the major concerns and issues with the transportation budget with Secretary of Transportation Allen Biehler.

Summary

Several members of the Senate Appropriations Committee voiced serious concerns about mass transit funding during a budget hearing with Department of Transportation Secretary Allen Biehler.

Responding to a question from Senate Majority Leader Dominic Pileggi, 9th District, Secretary Biehler said that the Department does not have an alternative plan to fund mass transit if the Governor's proposal is not approved by the General Assembly.

Appropriations Committee Vice Chairman Senator Robert Tomlinson, 6th District, asked what options the state has to fund SEPTA in the event that there is not a budget agreement by June 30. He also urged the Department to prepare an alternative plan.

Senator Stewart Greenleaf, 12th District, noted the need to provide more funding for SEPTA.

Senate Transportation Committee Chairman Senator Roger Madigan, 23rd District, questioned the level of support for public transportation systems at the local level. Senator John Gordner, 27th District, pointed out that the local share of funding for mass transit in the state is below the national average and urged the Department to consider increasing the local funding component.

Senator John Rafferty, 44th District, suggested taking a closer look at the viability of privatizing mass transit as a way to save public dollars. Senator Pat Vance, 31st District, expressed concerns about the use of Lottery funds to fund mass transit operations.

Several Senators also questioned the revenue sources included in the Governor's budget proposal. Senate Appropriations Committee Chairman Senator Gib Armstrong, 13th District, voiced concerns that the lease of the Turnpike and the gross profits tax on oil companies would both have a negative impact on consumers.

Senator Bob Regola, 39th District, expressed concerns about leasing the Turnpike and asked for the Department's position on the possibility of adding tolls to Interstate 80. Senator Pileggi asked if any other state had successfully enacted a gross profits tax on oil companies without that tax increase being passed on to consumers. Secretary Biehler said that no state had ever been successful with a proposal similar to the Governor's plan.

Senator Mary Jo White, 21st District, criticized the Governor's transportation funding plan because many of the proposed revenue sources would not be fully available during the upcoming fiscal year.

Senator James Rhoades, 29th District, pointed out that much of the important data on PENNDOT's response to the Valentine's Day storm is still not available. Secretary Biehler agreed to provide the information as soon as the Department is finished compiling it.

Gaming Control Board

Senator Tommy Tomlinson (R-6) comments about the need for gaming facilities to remain competitive with neighboring states to Tad Decker, Chair of the Gaming Control Board.

Senator Jane Earll (R-49), converses with Tad Decker, Chairman of the Gaming Control Board, before he gave testimony during the Senate Appropriations Committee budget hearing. Senator Tommy Tomlinson (R-6) is second from the right.

Summary

Appropriations Committee Vice Chairman Senator Robert Tomlinson, 6th District, welcomed the members of the Pennsylvania Gaming Control Board and asked Chairman Tad Decker to provide opening remarks.

Senator Jane Earll, 49th District and Chair of the Community, Economic and Recreational Development Committee which oversees the operations of the Gaming Control Board, asked Chairman Decker when Pennsylvania taxpayers would begin to see property tax relief from gaming revenues.

Chairman Decker said Pennsylvania has four licensed venues up and running. He said the Budget Secretary may certify the $500 million by the end of the fiscal year needed to provide tax relief to the Commonwealth's taxpayers. Chairman Decker also said that the state has realized an additional $50 million in revenues by being nearly one year ahead of the schedule to bring gaming to Pennsylvania.

Senator Tomlinson asked how Pennsylvania's enforcement stacks up when compared to other gaming states. He also asked how many of those gaming states have a central control system as Pennsylvania does. Senator Tomlinson concluded by expressing concerns regarding Pennsylvania's ability to remain competitive in the gaming industry because the state imposes "high taxes" on operators.

Appropriations Committee Chairman Senator Gib Armstrong, 13th District, and Senator John Gordner, 27th District, inquired about the salaries of Gaming Control Board personnel. Senator Armstrong asked how many of the employees make over $100,000 per year.

Senator Bob Regola, 39th District, asked how many people are currently employed by the Gaming Control Board and how many additional people the board anticipates hiring. Senator Regola then asked why the board budgets $1,500 for each employee's criminal background check. He asked Chairman Decker to submit a list of personnel benefits and perks in addition to salaries.

Senator Gordner and Senator Roger Madigan, 23rd District, both asked when money borrowed by the Gaming Control Board would be repaid.

Senator John Rafferty, 44th District, asked Chairman Decker what types of problems have been encountered since the opening of Pennsylvania's gaming venues. Senator Rafferty then asked for the Chairman's input regarding budget funds designated for enforcement. He concluded by asking Chairman Decker what additional resources are needed to continue strict enforcement within the gaming venues.

Senator Pat Vance, 31st District, said she is concerned about the effect gaming will have on the Lottery Fund. She asked for a breakdown of leased vehicles given to Gaming Control Board members. Senator