[ Because In Politics Everything Is Connected To Everything Else ] The Senate and House wrapped up their agency-by-agency budget hearings last week where members each got to ask about the pet projects or issues (frequently not budget related).

Members were either critical of most everything in the budget (Republicans) or praised most everything (Democrats).

Republicans in the House professed “surprise” and “shock” medical assistance costs in the Department of Human Services were in the hole and will require a supplemental appropriation of not $500 million, but $800 million (or so).

DHS Secretary Teresa Miller said the law requires her to serve people who qualify for DHS programs and pointed out the number of people her agency has to serve increased by 11,000 over the last four years (2015-16 to 2019-20). 

In addition, the number of seniors needing services will also increase significantly.  Pennsylvania now has 3 million people over the age of 60 and in the next 20 years that number is expected to increase by one-third to 4 million.

But, it’s not like they weren’t warned.  The Independent Fiscal Office says the same thing every year about the state’s structural deficit because the money put in the budget for programs like medical assistance is always not enough.

Sen. Pat Browne (R-Lehigh), Majority Chair of the Senate Appropriations Committee, also said the state has a structural deficit again this year, as it passed years.

While the total figure for needed supplemental appropriations isn’t final, it could reach $1.4 billion, which will have to be taken care of first before even considering the new budget starts.

Of course folks said last year when they signed the FY 2019-20 budget-- we now have structural balance after years of deficit and could afford to put $325 million in the Rainy Day Fund.  Really?  How did that work out for you?

The other hot button items continue to be the proposal to take $204 million a year from horse racing subsidies (taxpayers gave them $3 billion so far) to pay scholarships to state-owned university students and the proposed fee on municipalities to help pay for the State Police-- so money isn’t taken away from roads..

Toughest issue-- what to do about PennDOT road funding needs, because, well there’s real money needed.

Governor’s wish list-- Minimum wage, $4.5 billion Restore PA Infrastructure Initiative, $1.1 billion program to address lead and asbestos.

Sen. Browne concluded the hearings saying he believes Gov. Wolf’s request for a 4.2 percent increase this year is too high.  He recommended sticking closer to the rate of inflation-- about 2 percent.  Read more here.

If you want to "Return with us now to those thrilling days of yesteryear" and relive the Senate and House budget hearings and read the testimony-- and I’m not sure anyone would want to-- visit the Senate Budget Hearings and House Budget Hearings webpages.

February Revenues Over Estimate

On March 2, the Department of Revenue announced Pennsylvania collected $2.2 billion in General Fund revenue in February, which was $90.5 million, or 4.4 percent, more than anticipated.  Fiscal year-to-date General Fund collections total $20.9 billion, which is $249.1 million, or 1.2 percent, above estimate.  Read more here.

Unemployment Up With Record Payrolls

On March 6, the Department of Labor and Industry reported January unemployment in Pennsylvania was 4.7 percent, up one-tenth of a percent from December.  The national rate was also up a tenth from December to 3.6 percent. At the same time, payrolls hit a record high with more people working (and paying taxes). Read more here.

Childcare Gaps Cost PA Economy $3.4B

A study released February 28 by the U.S. Chamber of Commerce Foundation found gaps in child care services that force parents to miss work, increase job turnover and for parents not take other jobs costs Pennsylvania’s economy $3.47 billion a year.  That figure includes $591 million in annual lost tax revenue.  Read more here.

Department of Community and Economic Development Secretary Dennis Davins underscored the issue at a House budget hearing last week saying lack of childcare presents one of the biggest obstacles to workforce participation.  Read more here.

New Voter Registration Outpacing 2018

The York Daily Record reported March 5 new voter registrations in Pennsylvania are already outpacing 2018 when 330,594 new voters joined the rolls.  In the first two months, 34,729 new voters registered.

And voters are switching parties.  Since January, 28,127 Republicans and third-party voters switched to the Democratic Party and 18,937 Democrats and third-party voters switched to be Republicans.

And generally, Steeler country is shifting more Republican and Eagles country is becoming more Democratic.

Of the 8.5 million registered voters in the state, 644,835-- 418,777 Ds and 226,058 Rs--are inactive and have not voted in five years or moved.

Remember, in 2016, it was 44,000 votes that decided the winner of the Presidential race in Pennsylvania.  Read more here.

And Then There Were 2

Just two weeks ago we were saying how all the major Democratic candidates were all in for the Pennsylvania Primary-- Joe Biden; Mike Bloomberg; Pete Buttigieg; Tulsi Gabbard (U.S. representative, Hawaii); Amy Klobuchar; Bernie Sanders; Tom Steyer; and Elizabeth Warren.

Now there are just two major candidates left-- Joe Biden and Bernie Sanders-- and endorsements are suddenly starting to pile up for Joe Biden.  Read more here.

President Trump chose to hold his first town hall meeting in Scranton last week-- Biden’s original home town.  Coincidence?  He said he was mentally prepared if Bernie Sanders won and blamed Elizabeth Warren for hurting Sanders’ chances.  Read more here. 

And then there was the intelligence report the Russians were helping Sanders to help Trump, but that’s the state of our elections these days.  Read more here.

In any case, pundits are saying Pennsylvania’s Primary may count after all and it will be easier with a much shorter list of candidates.  Read more here.

And with all the state voting law changes, it’s easier than ever to vote.  The catch?  The law made it hard to count mail-in and absentee votes right away so we may not know the results of the election for several days, according to county officials  Read more here.

Senate Scrub

Spotlight PA last week reported the Senate was busy scrubbing the details out of more records showing how lawmakers spend taxpayer money. Read more here.

Responding to the Spotlight PA’s report the previous week about using “legislative privilege” to block access to some lawmaker expense records, the House last week said they will release the spending details for all their members.  Read more here.

Still no word on whether the Senate and House will return their $172 million operating fund surplus to taxpayers to fund needed programs. Read more here.

Are Pension Funds A Worry Again?

On March 5, the PA Public School Employees’ Retirement System reported it earned 12.92 percent in net-of-fees investment returns for the 2019 calendar year. The return added $6.8 billion in net investment income to the Fund. That return pushed the Fund’s total net asset value to $60.5 billion, the highest month-end close since September 2008.

And addressing the recent historic drop in the stock market caused by the coronavirus--

“PSERS’ more balanced investing practices helped the Fund retain a positive return when equity markets tumbled in the 2018 calendar year,” said Jim Grossman, Chief Investment Officer. “With that history as a guide, he added, PSERS’ portfolio should better withstand the coronavirus fears that have whipsawed markets, curtailed travel, tamped down economic growth projections, and caused the Federal Reserve to lower interest rates.”  Read more here.

On February 26, the PA State Employees’ Retirement System reported its investments earned 18.8 percent in 2019 adding nearly $5 billion to their retirement fund.  Read more here.

A sharp drop in investment returns during the 2008 financial downturn gave us the pensions crisis Pennsylvania is still working through resulting in the significant underfunding of both pension systems and the dramatic increases in the contributions both the state and school districts are required to make.

Court To Review Child Sex Abuse Case

On March 2, the Associated Press reported the PA Supreme Court has decided to review an appeals court decision allowing some victims of child sexual abuse a way to puruse lawsuits against their violators despite statutory time limits for those actions.  The Altoona-Johnstown Roman Catholic Diocese, ground zero in the clergy child sexual abuse scandal, made the request.  Read more here.

PennDOT Work Zone Speed Cameras

Last week, PennDOT started-- for real-- to set up speed cameras designed to catch motorists and trucks in exceeding speed limits in highway work zones.  Signs must warn motorists speed cameras are present. A first offense will result in a warning letter, and the second a $75 fine. The third and all subsequent offenses will cost $150, but no violation will add points to your license. Read more here. Read more here.

Click Here to find where speed cameras will be installed in work zones.

PA Coronavirus Response

Click Here for a quick briefing about the first two cases of coronavirus in Pennsylvania and the state’s response and a week’s worth of PA NewsClips on the issue.

What’s Next?

Senate and House members have another week back in their districts before they have to come back to Harrisburg for voting session on March 16.

NewsClips:

Click Here For A Week’s Worth Of Political NewsClips

Click Here For A Week’s Worth Of PA Coronavirus NewsClips

Click Here For A Week’s Worth Of PA Environment & Energy NewsClips - Support Journalism

[Posted: March 7, 2020]

3/9/2020