The Senate and House convened Tuesday to formally open the 2017-18 legislative session, to swear-in new members, name standing committee chairs and outline, in broad terms, their priorities for the new year.

Meanwhile Gov. Tom Wolf took another step to reduce budget costs by saying he will be consolidating state agency personnel and information technology functions, closing two state prisons and putting leases for new state office buildings on hold.

New Legislative Session

At the top of everyone’s list of priorities in the new legislative session is the state budget and the potential to have to make up for a $2.2 billion deficit between the current fiscal year and the next.

The budget bad news became more credible when the Department of Revenue reported Tuesday December state revenues were off by $105.2 million bringing the FY 2016-17 deficit to $367 million.

In December, the Governor’s Budget Office projected a $600+ million deficit for the current year.  In November Independent Fiscal Office projected a $1.7 billion deficit for next fiscal year.

President Pro Tempore Joe Scarnati (R-Jefferson) did something out of character in opening the new session-- he extended a specific invitation to Senators to introduce their ideas “today” on ways to solve the state’s budget issues.

“It is no secret that this year’s budget will prove challenging.  Taxpayers expect us to have results and results require legislation,” said Sen. Scarnati.

Senate Majority Leader Jake Corman (R-Centre) outlined his priorities for the new session in a op-ed piece published before Christmas.  His priorities are dealing with the three main cost drivers in the state budget-- pensions and the budgets for the departments of Human Services and Corrections.

Senate Minority Leader Jay Costa (D-Allegheny) said in recent interviews his Caucus will be fighting for an increase in the minimum wage, charter school reform, greater investment in job creation initiatives and community human services programs.

House Majority Leader Dave Reed (R-Indiana) spoke of the opportunity to restructure government and changing how it operates and delivers services, saying  “It’s time to take a hard look at wants versus needs, and we need to ensure our government protects our families from crime, educates our kids for today’s world, and fosters economic activity for everyone.”

House Minority Leader Frank Dermody (D-Allegheny) said House Democrats will make family-friendly policies a priority this year, including retirement security for private-sector workers; paid leave so parents don't have to choose between their family's health and their paycheck; expanded access to quality, affordable early education and child care; and equal pay and workplace fairness for women, those with disabilities and others.

Gov. Wolf’s Cost Cutting Actions

Gov. Wolf apparently took Rep. Reed’s suggestion on restructuring state government to heart by announcing Wednesday he is taking steps to consolidate state agency personnel and information technology functions in order to save money.

On Friday, Gov. Wolf announced he was taking steps to close two state prisons in 2017 as an additional cost cutting move that would affect 800 Department of Corrections staff and several thousand inmates.  The two prisons have not yet been named.

Senate Majority Leader Jake Corman (R-Centre) said closing two state prisons was a good thing, “If we are in a position in Pennsylvania that the prison population has decreased so that facilities can be closed, then this is a good day. This is exactly what we envisioned when, in 2012 under Gov. Corbett, we began passing the Justice Reinvestment Initiatives.

“It signals the success of these ongoing initiatives that were designed to address prison overcrowding and reduce costs. It also is an indicator that we have less crime and need less money from taxpayers to support the prison system.

“The job of the legislature is to provide oversight if this is the right decision at the right time. We are eager to see the Wolf Administration’s justifications for the closures and of how the administration will choose which two of the five prisons to close.

“We expect that any decision will first be based upon safety and security. We also hope the determination takes economics into consideration – not only as the closing affects the Department of Corrections but the communities in which the prison is located.”

This follows Wolf Administration actions on December 16 to eliminate all unfilled state job vacancies and lock existing state staffing levels at what they were on December 2.  This action is estimated to save about $100 million in the current fiscal year.

Gov. Wolf has pledged to submit a proposed FY 2017-18 state budget on February 7 that does not include general tax increases, but makes cuts in spending to make up for the budget deficit.  He did say he may propose additional taxes on the Marcellus Shale natural gas industry.

What’s Next

The Senate and House return to voting session for real the week of January 23.  To actually begin work, both chambers must still appoint members of each standing committee to follow up the announcement of chairmen this week.

And, of course, everyone is looking forward to the 101st Pennsylvania Farm Show and getting their Farm Show milkshakes.  The Farm Show runs from January 7 to 14.

NewsClips:

Wolf To Consolidate IT, HR Offices, Holds New Building Leases

McKelvey: Budget Woes Will Force Closure Of 2 State Prisons

Wolf Says He’s Ready For Fiscal, Political Challenges

Wolf Says He Can Still Implement Agenda, With GOP Control Of House, Senate

AP: Lawmakers Begin New Session With Old Leaders

Swift: Lawmakers Start New Session In Harrisburg

New Legislature To Consider Bills On Gambling, Property Taxes, Pensions

Legislative Democrats Outline Priorities

Jobs, Improving Schools, Restructuring Government Top House Agenda

Murphy: Freshmen Lawmakers Have Ambitious Goals, Optimism

Harrisburg Pols Pledge To Mend Budget Without Tax Hikes

With New Session, Lawmakers Turn To Budget Deficit

PA Faces A Difficult Budget Year

PA Think Tanks Battle Over Remedies For $1.7B State Budget Deficit

Esack: Drop In Population, Employment, Sales Add To Budget Woes

Op-Ed: Stark Choices For The State Budget, Sen. Corman

Op-Ed: A New Year, New Budget Challenges, How Will HBG Respond?

Swift: Wolf: Property Tax Relief Part Of Approach To Aiding Distressed Cities

AP: Drive To Kill School Property Tax Headed Back To Legislature

Drive To Kill School Property Tax Headed Back To Legislature

State Task Force Working To Change PA’s Property Assessment Rules

Op-Ed: Why We Need To Eliminate School Property Taxes, Sen. Folmer

Editorial: Another Attempt To Eliminate Property Taxes? Show The Math

PA Drivers Face Highest Gasoline Tax In U.S.

PA Gasoline Tax The Gift That Keeps On Giving

Editorial: Why Gasoline Tax Increase Isn’t So Bad

Swift: Lawmakers Seek To Extend Gambling Money Deadline

Editorial: Keystone Opportunity Zone: Insipid Tax Incentives

40% Tax Puts 2nd Vape Shop In Lancaster Out Of Business

Allegheny County To Consider E-Cigarette Ban

Philly Asks PA Supreme Court To Hear Soda Tax Lawsuit

Philly Soda Tax Costing More Than Some Products Themselves

Don’t Like The Philly Soda Tax? Drink Water!

Soda Prices On Rise In Philadelphia, Some Flatly Refuse To Pay

Philly Soda Tax Went Into Effect, People Are Freaking Out

Philly Soda Tax Still Catches Shoppers By Surprise

Philly Finds New Soda Tax Not So Sweet

Experts: Could Soda Tax Make Your Grocery Bill Rise?

1/9/2017