CA P I TA LWAT C H PA . c o m
CAPITALWATCH VOL. 6 NO. 2
INSIDE Poll says Governor doesn’t deserve re-election PAGE 4 SPECIAL PULLOUT: 2012 Guidebook to New Lawmakers PAGE 7-10 Poll: Stigma dogs people with disabilities PAGE 11 EDITORIAL: A modest proposal PAGE 12 Corbett says without ‘flexibility’ state won’t expand Medicaid PAGE 13 McCord says withholding lottery payments revolves around Keno details PAGE 14
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FEBRUARY 2013
Gov. Corbett unveils
‘big change’ budget BY PETER L. DECOURSEY, CAPITOLWIRE
Gov. Tom Corbett wants to finish off a business assets tax starting next year, hike oil company tax revenues by close to $2 billion a year over five years, and also cut the state motor fuels tax, current employee benefits, and starting in 2015, the corporate net income tax. He called it a budget of “bold” change, and said in his annual Budget Address delivered on Feb. 5: “Nobody displayed a campaign bumper sticker that read: ‘Vote for me - I want to keep Harrisburg the same.’ ... Our job isn’t to explain why things can’t be better. Our obligation is to make things better.” He also proposed the biggest budget increase of his tenure, $679 million, hiking the state’s general fund to $28.4 billion, nearing the overall state spending record of former Gov. Ed Rendell’s tenure in Corbett’s third budget. About 200 protestors again shouted at the governor’s staff as they did last year, when the staff exited a morning briefing before the governor’s budget address: “Gov. Corbett, you can’t hide, we can see your greedy side!” The governor’s budget also proposes the biggest tax revenue increase of his tenure: the lifting
Corbett’s third budget proposal since taking office focuses on education spending tied to selling state liquor store system and public pension reform.
lifted over five years, and partially offset by two 1-cent per gallon reductions of the state motor fuels tax in each of the next two years. That two-cent reduction will cost about $110 million a year, officials estimated. The plan would also devote about $40 million per year in driving fees or fines to mass transit, with the bulk of those funds going to SEPTA, the transit agency in southeastern
“Now is not the time to be timid in our approach. Now is not the time to cling to old ideas and the status quo. Now is not the time to make small changes and expect big results.” - Gov. Tom Corbett of the $1.25 per gallon oil company franchise tax, so that levy will be applied to the whole price of wholesale gas, more than double the current cap. That cap will be
Pennsylvania. Starting at $40 million year one, over five years, that would rise to $250 million annually, PennDOT Secretary Barry Schoch said.
The cap-lifting is proposed to take place this year, two years from now and four years from now, in equal thirds. That plan has been attacked by Americans for Tax Reform, the group who no-new-net-tax pledge Corbett signed as a candidate for governor in 2010, as a tax hike. Corbett said: “This is not a new tax, nor am I proposing to increase the rate of the existing tax. I am simply saying the time has come to apply it to the full value of what the company is selling. It is time for oil and gas companies to pay their fair share of the cost of the infrastructure supporting their industry.” Corbett hailed his education spending as a record high, but public school advocates said they were disappointed that after two years of no increase in the nonpension basic education subsidy, that line item went up only $90 million. Early education rose by $11 million in the education bud-
get, and an almost equal sum will be needed to supplement this year’s early intervention program spending, Zogby said. The budget also contains an additional $13.5 million for the state’s Children’s Health Insurance Program (CHIP), to enroll 9,300 uninsured children and $7.1 million to add about 1,400 children to the Child Care Works program. It also marks the first time that Corbett has proposed $100 million Education Block Grant which the Legislature has wrangled him into funding the last two budgets. That program is proposed for the same funding it ultimately got the last two years. Pennsylvania Partnerships for Children President and CEO Joan Benso said: “Budgets are ultimately about priorities, and with this budget, the governor rightfully recognizes that Pennsylvania’s 2.7 million chilcontinued on page 3
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NEWS 3
FEBRUARY 2013 CAPITAL WATCH
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EDITORIAL Editor-in-chief Jacqueline G. Goodwin, Ed.D. goodwinpin@comcast.net (717) 418-3366 Contributing Writers Peter L. DeCoursey Kevin Zwick News Service Capitolwire Graphic Design Lisette Magaro Production Shawn Skvarna Capital Watch is published every month. Reproduction of this publication in whole or part is prohibited except with the written permission of the publisher. Capital Watch is non ideological and nonpartisan.
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Gov. Corbett unveils ‘big change’ budget continued from page 1
dren must be a priority,” Benso said. “He wants to invest more in programs ranging from pre-kindergarten to health coverage to K-12 education that will build our commonwealth’s human capital. When it comes to economic development, that’s the smartest investment we can make.” The bulk of the education budget increase went to pension contributions, $224 million. The governor also proposes to sell the state liquor system to provide $1 billion over several years for school districts to spend on school safety; improve kindergarten programs to promote academic achievement; individualized learning and science, technology, engineering and mathematics programming in grades 6 to 12. “That would allow local school districts to make some key investments and not have an ongoing cost,” when that money ran out in four years, Budget Secretary Charles Zogby said. Corbett said: “Selling liquor is not a core function of government. Education is.” But that would take an annual revenueproducer of $100 million-plus and turn it into a short-term gain and long-term loss, said Mike Crossey, president of the PSEA, the state’s largest teachers union. “That is not a real plan offering real education dollars the governor cut,” Crossey said. “It is a deceptive plan, and since it won’t pass, there are no dollars for educa-
tion in it. We oppose it and want the governor to restore the funds he cut from the education budget.” Not counting pension contributions, Corbett has cut education funding by more than $200 million since taking office. Counting pension contributions, he raised education funding since taking office. On the governor’s pension reform plan, state employees and public school teacher pensions are based on the employee’s highest three year average salary, and the number of years of service and a multiplier. For elected officials, that multiplier was raised more than a decade ago to 3.0 percent from 2.5 percent, and for state employees, to 2.5 percent from 2.0 percent. Judges would also see their multiplier drop by the same amount, a 0.5 percent reduction. Both of those groups would see their multiplier return to the prior level, and overtime and some other kinds of payments would not be used to calculate the “pensionable” portion of a state salary, Zogby said, including overtime. A state pension could also not exceed the cap on income taxed for Social Security, Zogby said, currently $113,700 per year. And the highest average salary would be calculated over 5 years, not the current three years. And it would cap the pensionable wage base at 110 percent of the previous four years. For an employee of 30 years with an average salary of $50,000, who retires 10 years after
this new plan takes effect, the state would pay them $34,400 a year as a pension, and $37,500 if the reforms did not take place. Zogby said the budget proposes “$175 million in pension savings. If we don’t have reform, we don’t have $175 million to spend and we’d have to find $175 million to cut, because we’re not raising taxes.” But union leaders for public school district teachers and state employees have vowed to sue the state if future benefits for current employees are impacted. Crossey said there are clear cases that do not allow the reduction of benefits for current employees. Also, the state Supreme Court has ruled in recent years that judicial pay cannot be cut, and insiders expect them to make the same ruling about their benefits. An initial administration plan to leave judges out of the multiplier reduction appears to have fallen by the wayside, sources said. Crossey said: “They cannot do this, they will lose in court.” Senate President Pro Tem Joe Scarnati, R-Jefferson, has called on the governor to negotiate for cost reduction with employees and other groups, saying he is worried about booking the $175 million and then having a long court case ensure. “We are going to have to touch current employees’ benefits if we are going to have a plan that is going to leave us better off,” Zogby said. The state is also postponing higher required contributions for years, saving more than $175 million for the state and $138 million for school districts and education agencies. That reduction comes from cutting this year’s increase in half: from 4.5 percent to 2.25 percent. It would increase that rate by 0.5 percentage points until it reaches 4.5 percent. Corbett said: “My plan also suggests some adjustment in the way future benefits are calculated for current employees in order to maintain the solvency of our pension system and guarantee all current and future employees a worry-free retirement. “The surest way to guarantee the solvency of our pensions is to make certain that our pension systems can deliver what they promise. We can do that with very little disruption, but only if we act now! “The longer we wait the more disruptive the solution will become. Let us act now. “With some imagination and some cooperation, we can find a way to preserve our existing pensions and allow the next generation of state employees and teachers a chance to shape their futures. The budget also appears to rule out Pennsylvania’s accepting the federal Medicaid expansion. That plan, accepted recently by GOP Gov. John Kasich, of Ohio, would have put billions of federal dollars into the state to provide insurance for the uninsured. But it would have cost the state an immediate “$200 million that we don’t have,” Zogby said, a figure disputed by Democrats. After five years, that cost would be $500 million a year or more to draw down $3 billion or more in federal funds. The budget will also reduce 900 positions, including 400 layoffs, which may come largely from the department of General Services and the Welfare Department, Zogby said. CW
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NEWS
FEBRUARY 2013 CAPITAL WATCH
Finally, Tinnitus Relief
At mid-term, 51-31 against Corbett re-election, new Quinnipiac poll shows BY KEVIN ZWICK, CAPITOLWIRE
Tinnitus is hearing a sound that has no external source. Some of the more common sounds are ringing, humming, buzzing or cricket-like sounds. It can be constant or intermittent, vary in intensity and can be heard in one ear, both ears or in the head. About 30 million people in the US suffer from tinnitus and for 12 million people it is severe enough to impact their daily life (such as sleeping, concentration and social activities). Although at this time there is no “cure” for tinnitus, in our office we now have available the only FDA approved tinnitus management device. There are many causes of tinnitus; it can be caused by medication side affects, head injuries or noise exposure such as shooting or machinery noise, and many times may be accompanied by hearing loss. Counseling and sound therapy can bring relief too many people that suffer from tinnitus. Our best suggestion for tinnitus sufferers is to take that first step and have your hearing tested by a hearing health care professional.
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Just over half of Pennsylvania registered voters say Gov. Tom Corbett doesn’t deserve to be re-elected in 2014, according to the latest poll from Quinnipiac University. Corbett doesn’t deserve to be re-elected voters say, 51-31 percent, including 54-24 percent among women and 48-38 percent among men, according to the poll. The poll, a snapshot of voter attitude toward Corbett at the middle of his first term, also finds Corbett receiving unenthusiastic support among Pennsylvania Republicans, with only 49 percent saying he deserves to be re-elected. Pennsylvania voters also gave Corbett a poor job approval rating, as 42 percent disapprove of his handling of the job, while 36 percent approve – a slide from November when the Quinnipiac Poll showed 38 percent disapproved and 40 percent approved. Among the job approval ratings, women disapprove 45-31 percent while men approve 41-37 percent. Republicans gave a tepid approval 52-25 percent, while disapproval is 57-24 percent among Democrats and 39-36 percent among independents. The poll contacted 1,221 registered voters Jan. 22-27, with a margin of error, plus or minus 2.8 percent.
Gov. Tom Corbett
ensuing scandal resulted in the firing of famed late head football coach Joe Paterno, while three university administrators are facing criminal charges. The state’s investigation, which began under Corbett as attorney general, was the focal point of the 2012 state attorney general election, where Corbett was criticized for slow-walking the investigation – a claim he adamantly denies. Regardless, voters disapprove 50-26 percent of the way Corbett has handled the Penn State investigation over the last few years. The number is even higher among households where someone has attended or
Corbett doesn’t deserve to be re-elected voters say, 51-31 percent, including 54-24 percent among women and 48-38 percent among men, according to the poll. Tim Malloy, assistant polling director, said there is no strong base of support for Corbett among any income or age group, or in any region of the state. “It’s halftime in Gov. Tom Corbett’s first term and if he were running a football team instead of a state, he’d fire his offensive coordinator,” said Malloy. “Gov. Corbett has hit the 50 percent approval rating only once so far, mainly because of his bad grades from women.” Speaking of football, the poll also delves into voter sentiment regarding Corbett’s handling of the Jerry Sandusky child sex abuse investigation at Penn State University, and the governor’s subsequent lawsuit against the National Collegiate Athletic Association regarding sanctions. Sandusky is serving 30-60 years in prison for sexually abusing boys while he was assistant football coach at Penn State. The
currently attends Penn State, 59-23 percent disapprove, the polls shows. Voters approve 43-37 percent of the Corbett’s federal lawsuit against the NCAA seeking to overturn the sanctions against Penn State. The sanctions include a $60 million fine, postseason bowl bans and limited athletic scholarships. “Voters disapprove of the way Gov. Corbett has handled the Jerry Sandusky scandal at Penn State over the last few years, but support Corbett’s lawsuit targeting the NCAA for what they believe are too-harsh sanctions of the University,” Malloy said. Fifty-three percent of voters say the sanctions are too severe, while 13 percent say they are not severe enough and 28 percent say they are appropriate. Sixty-four percent of Penn State households say the sanctions are too severe. CW
FEBRUARY 2013 CAPITAL WATCH
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Is Welfare Secretary Alexander stepping down? It appears Department of Welfare Secretary Gary Alexander has plans to leave the state and head back to Rhode Island. According to Angela Couloumbis at the Philadelphia Inquirer – citing “sources familiar with the decision” – Alexander will step down from his office after more than two years as Pennsylvania’s Secretary of Public Welfare. Couloumbis writes, “Gary Alexander, who oversees a department charged with helping 2.1 million elderly, poor and disabled Pennsylvanians, will be leaving his $149,000 post by the end of the month.” Alexander has been sharply criticized for a variety of things including weekly 350-mile roundtrip commutes from Rhode Island that cost taxpayer’s close to $5,000. He was also under fire for cutting several areas of public welfare spending and for a new “asset test” to determine eligibility for food stamps. A source familiar with the decision said the secretary wanted to be closer to his family in Rhode Island. It was not immediately known who will replace him. CW
Kane will investigate Corbett’s handling of Sandusky case Attorney General Kathleen Kane will investigate Gov. Tom Corbett’s handling of the Jerry Sandusky case and has named a special prosecutor to delve into the matter. On Feb. 5, Kane appointed H. Geoffrey Moulton Jr., a former Philadelphia federal prosecutor who led the inquiry into the botched 1993 raid on the Branch Davidian compound in Texas, as her special deputy to head the review. “Mr. Moulton is a highly respected former federal prosecutor who will assist us in providing a comprehensive and independent examination of the facts surrounding the handling of the Sandusky investigation,” Kane said in a statement. The investigation will look specifically at why it took the attorney general’s office three years to bring criminal charges against Sandusky while he continued to have access to children. “At the end of this investigation, we will know the answers to these questions and be able to tell the people of Pennsylvania the facts and give them answers that they deserve,” a Jan. 31 statement from Kane’s office read. CW
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6 NEWS
FEBRUARY 2013 CAPITAL WATCH
Privatizing state’s alcohol distribution risks lost revenue, higher social costs The Keystone Research Center (KRC) is calling on the General Assembly and public to encourage Governor Corbett to abandon a new proposal to dramatically increase the number of retail outlets for beer, wine and spirits in the state. “The proposal could cost the commonwealth revenue that won’t be invested in education, health services and a stronger economy,” said Stephen Herzenberg, Ph.D., an economist and executive director of KRC. “It will also radically increase alcohol accessibility and the resulting social costs.” KRC economist Mark Price, Ph. D., estimated last year that, controlling for other variables including the strength of state alcohol regulations, privatizing alcohol distribution in Pennsylvania would lead to 58 more traffic fatalities annually. Professor Karen Glanz, who heads Penn’s Center for Health Behavior Research, also
observed that “retail alcohol privatization increases the risk of excess consumption of alcohol and its associated consequences. A large body of research has also found negative social impacts from privatization of alcohol distribution.” Dr. Glanz is the George A. Weiss University Professor at the University of Pennsylvania and a member of the Community Preventive Services Task Force, a national task force of public health experts. The Task Force recommended in April 2011 against further privatization by states of retail alcohol distribution. A peerreviewed article summarizing the research that led the Task Force to its conclusion was published in the American Journal of Preventive Medicine in April 2012. “The governor’s proposal seems out of step with voters,” Herzenberg said. “While elected officials elsewhere are recognizing that voters want real solutions on jobs and
other priorities of middle-class families, the governor is trying to fix a system that isn’t broken.” Herzenberg said that the revenue implications of the governor’s proposal will deserve careful study. “The state wine and spirits system transfers about half a billion dollars to the General Fund annually, including taxes and profits. How much will be collected from the industry after privatization?” The governor’s proposal was released in conjunction with an analysis of its financial implications that builds on a 2011 study of privatization options by the consulting firm Public Finance Management (PFM). University of Michigan research scientist Roland Zullo found that the 2011 PFM study used internally inconsistent assumptions to arrive at over-optimistic conclusions about the impact of privatization on revenue and consumer prices. CW
DEP to study radioactivity in oil and gas equipment, waste Radioactivity on oil and gas industry equipment and in industry waste will be the subject of a study by the Pennsylvania Department of Environmental Protection, the agency announced Jan. 24. The study recognizes concerns that have been raised about Naturally Occurring Radioactive Materials, or NORM. Oil and gas extraction long has been known to sometimes deposit NORM on equipment and in wastes, generally at very low levels and generally unregulated and unmanaged. Parts of the Marcellus Shale have been found to result in higher levels of NORM than oil and gas activity in other areas. PADEP said it routinely reviews radioactivity data in wastes the oil and gas industry and other industries generate and
has found only very low levels. In the new study, the agency will collect samples of flowback fluid, rock cuttings, treatment solids and sediments at well pads, wastewater treatment and waste disposal facilities. It also will analyze the radioactivity levels in pipes and well casings, storage tanks, treatment systems and trucks. “This administration is undertaking what will be the most comprehensive study of its kind anywhere, and Gov. Corbett has directed us to do so in order to be proactive for the future and to continue Pennsylvania’s leadership in responsible development of domestic natural gas resources,” DEP Secretary Mike Krancer said. Drill cuttings and other materials associated with oil and gas occasionally have triggered radiation monitors at landfills, the
agency said. Data indicate that less than half a percent of all drill cuttings produced by the Marcellus Shale industry in 2012 that were disposed of in landfills triggered radiation monitors. The cuttings did not contain levels of radioactivity that would be harmful to the public, the agency said, and they were safely disposed of in the landfills. In 2011, DEP announced the results of in-stream radiation water quality monitoring for seven rivers in Pennsylvania. The monitors were placed downstream of treatment plants that had been discharging treated Marcellus Shale wastewater, a now defunct practice as a direct result of DEP’s call to industry to cease delivery of wastewater to plants that were not equipped to fully treat it. The in-stream monitoring results showed that radioactivity levels in
all seven rivers were at or below normal background levels and below federal safe drinking water standards. DEP will work on the study with PermaFix Environmental Services of Pittsburgh. The agency will consult with independent members of academia to peer review the project’s detailed study plan. Once the peer review is complete, DEP will publish the study plan on its website, where the agency’s proposal for the study is currently viewable. The study is expected to take 12 to 14 months. For information and to view the study proposal and a summary of the study, visit www.dep.state.pa.us and click the “Oil and Gas Development Radiation Study” button on the front page. CW
Parties agree on flat funding/tuition hike limits deal Gov. Tom Corbett has announced he would flat-fund higher education at $1.58 billion in exchange for a commitment to hold tuition increases “as low as possible.” Last year, a similar deal, explicitly linked to tuition increases no higher than inflation rates, resulted in the lowest tuition increases in a decade for students at Penn State and Temple universities and the University of Pittsburgh. It also led to the smallest increase in five years for State System of Higher Education students. Last year, that deal was proposed by Senate Education Committee Chairman Jake Corman, R-Centre, agreed to by the university presidents and ultimately assented to by Corbett months later, just
before the budget was finalized. This year, while not affixing a specific limit to the tuition increases until later in the year, Corbett and Corman both said they hoped the increases would be in the range of last year’s: • Temple, 0 percent; • Penn State, 2.4 percent for main campus; • Pitt, Lincoln and the state system, 3.0 percent Corman said that a tuition increase of “6 or 7” percent would show bad faith by the universities, and hoped for increases of less than half that. Corbett declined to give any prediction now. But Corman emphasized, speaking of
the university presidents: “They know the commitment they are making.” Education Secretary Ron Tomalis said that this year it was hard to nail down a level of increase right now since the boards of trustees at the universities are “about one third of the way in the process” of determining budgets and revenues and tuition increases. Last year, Corman’s proposal and Corbett’s agreement came much later during that process, Tomalis said. Corman and Corbett both praised the universities for agreeing to both limit tuition increases and to work on performance measures that would determine future state higher education increases. The accountability measures have yet to
be finalized and may vary by kind of institution, said Tomalis and Pitt Chancellor Mark Nordenberg. Both said that work still had to be done, and measures may include things like measurements of research university revenue and output, graduation rates, number of years it takes students to graduate, and other metrics. The focus on tying state aid for higher education to measured outcomes and tuition control was a major recommendation of the governor’s higher education commission, chaired by former state Sen. Rob Wonderling, now president of the Greater Philadelphia Chamber of Commerce, who also praised this year’s tuition deal. CW
FEBRUARY 2013 CAPITAL WATCH
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2012 GUIDEBOOK TO
NEW LAWMAKERS ATTORNEY GENERAL Kathleen Kane Democrat Committee to Elect Kathleen Kane P.O. Box 60230 Philadelphia, PA 19102 (570) 580-0860 info@kathleenkane.com
Family: Married to Chris, 2 Children Occupation: Former Assistant District Attorney, Lackawanna County Political Experience: No political experience information on file. Education: Graduated, Temple University School of Law, Philadelphia; Graduated, University of Scranton Community Involvement: Member, Board of Trustees, Everhart Museum of Natural History, Science and Art; Member, Board of Trustees, Friendship House; President, Board of Trustees, Hands on Hope, Lackawanna County; Co-Chair, Heart Ball, American Heart Association ; Participant, Homeless Advocacy Project; Member, Pennsylvania District Attorneys Association
AUDITOR GENERAL Eugene DePasquale Democrat DePasquale for PA PO Box 1822 York, PA 17043 717-779-4885 E_depasquale@hotmail.com
Family: Married to Tracey, 2 Children
Occupation: Representative, Pennsylvania State House of Representatives, 2007-present Political Experience: Representative, Pennsylvania State House of Representatives, 2007-present; Chair, York County Democratic Party, 1998-2002 Education: JD, Widener University School of Law, 2002; MPA, Public Administration, University of Pittsburgh, 1997; BA, Political Science, College of Wooster, 1993 Community Involvement: President, Young Democrats, 19951996; Member, Buy Local Coalition; Member, Democratic Party of York County; Member, J.D. Brown Center for Entrepreneurship; Member, Legal Alumni of Wooster; Member, MANTEC Pennsylvania
U.S. REPRESENTATIVES Keith RothfusRepublican 12th Congressional District Allegheny, Beaver, Cambria, Lawrence, Somerset and Westmoreland Counties Rothfus for Congress P.O. Box 435 Sewickley, PA 15143 www.keith4pa.com
Family: Married to Elsie, 6 Children Occupation: Attorney Political Experience: Member, Zoning Board, Edgeworth, Pennsylvania, present; Candidate, United States House of Representatives, District 4, 2010 Education: JD, University of Notre Dame School of Law, 1990 Community Involvement: Member, Board of Directors, Veterans Leadership Program (VLP), Western Pennsylvania
STATE SENATORS Rob Teplitz – Democrat 15th State Senate District Dauphin and York Counties Friends of Rob Teplitz PO Box 6007 Harrisburg, PA 17106 717-798-8338 info@robteplitz.com
Family: Married to Randi, 2 Children Occupation: Aid to Auditor General, Jack Wagner Political Experience: Policy Director, Casey for Governor, 2001-2002 Education: JD, Public Law, Cornell Law School, 1995; BA, Government, Franklin and Marshall College, 1992 Community Involvement: Board of Directors, Dauphin County Bar Association, 2010-2011; Member, Harrisburg Multiple Sclerosis Society, 2007-2008; Board of Directors, American Cancer Society, 1996-2005; Board of Directors, Jewish Federation of Greater Harrisburg, 1995-2011 Scott Hutchinson Republican 21st State Senate District Butler, Clarion, Erie, Forest, Venango and Warren Counties Committee to Elect Scott Hutchinson 302 Seneca Street Oil City, PA 16301 814-677-6363 www.votehutchinson.com
Family: Married to Mary Beth Occupation: Representative, Pennsylvania House of
Representatives, 1992-present Political Experience: Representative, Pennsylvania House of Representatives, 1992-present Education: BS, Economics, University of Pennsylvania Wharton School of Finance, 1983 Community Involvement: Member, Oil City Lions Club; Member, Oil Heritage Region Board; Member, Saint Joseph’s Church; Member, Board of Directors, Venango Video, Incorporated; Former Board Member, Venango County Association for the Blind Matt Smith Democrat 37th State Senate District Allegheny and Washington Counties Friends of Matt Smith PO Box 13445 Pittsburgh, PA 15243
Family: Married to Eileen, 3 Children Occupation: Representative, Pennsylvania House of Representatives, 2007-present Political Experience: Representative, Pennsylvania House of Representatives, 2007-present; Vice Chair, Finance Committee, Pennsylvania House of Representatives, present; Chair, Subcommittee on Economic Impact and Infrastructure, Pennsylvania House of Representatives, present; Volunteer, State, Local and National Campaigns, 19962004; Member, Transition Team, Allegheny County Chief Executive Dan Onorato, 2003 Education: JD, School of Law, Duquesne University, 1999; BA, History, Rollins College, 1995; Certification, Senior Professional in
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Human Resources (SPHR) Community Involvement: Member, Allegheny County Airport Authority; Former Board Member, Allegheny County Personnel; Former Board Member, Mount Lebanon Hospital Authority; Member, Pittsburgh Human Resources Association; Board Member, Pittsburgh Three Rivers Regatta; Trustee, Senator John Heinz History Center; Member, Society for Human Resource Management Sean Wiley Democrat 49th State Senate District Erie County Friends of Sean D. Wiley 1314 Griswold Plaza Erie, PA 16501 814-384-3250 scott@votewiley.com
Family: Married to Stacey, 3 Children Occupation: Director, Government Affairs, Saint Vincent Health Foundation, 2009-present Political Experience: Former Director of Administration, Erie County Education: Diploma, Fairview High School, 1989; Attended, DeVry University Community Involvement: Graduate, Cursillo Movement No. 195, present; Graduate, Leadership Erie, present; Associate, Sisters of Saint Joseph, present; Member, Sons of Lake Erie, present; Leadership Development Instructor, Youth Leadership Institute of Erie, present; Board President, Bradley H. Foulk Children’s Advocacy Center, 2006-2011
STATE REPRESENTATIVES Ryan Bizzarro Democrat 3rd House District Erie County Committee to Elect Ryan Bizzarro 2653 West 25th Street Erie, Pennsylvania 16506 814-580-8496 ryan@pastaterep.com
Family: Single Occupation: Erie County Convention Center Authority, Sales and Business Development Initiatives. Political Experience: Campaign Director, Representative Hornaman; Campaign Director, Erie City Councilman Bob Merski, Jr.; Vice Chair, Erie County Democratic Party Education: Masters, Public Administration, Gannon University; Bachelors, Criminal Justice, Edinboro University; Associates, Political Science, Edinboro University Community Involvement: Board
FEBRUARY 2013 CAPITAL WATCH
Member, Big Brothers Big Sisters, Northwestern Pennsylvania; Co-Chair, Civic Engagement Committee, Young Erie Professionals; Patron, Our Lady of Peace, Millcreek; Patron, St. Peter’s Cathedral, Erie Greg Lucas – Republican 5th House District Crawford and Erie Counties Friends of Greg Lucas 100 Sherrod Hill Rd. Edinboro, PA 16412 814-734-1561 lucas@velocity.net
Family: Married to Rose, 1 Child Occupation: Instructor, Construction Management, Associate Degree Program, Fortis Institute, 2010-present Political Experience: Mayor, Borough of Edinboro, 2011-present; Council Member, Borough of Edinboro, 2004-present Education: BS, Industrial Education, California University, Pennsylvania, 1978-1981 Community Involvement: Member, Republican Committee, 2003; Director, Scholastic Clay Target Program, Pennsylvania; Member, Lake Edinboro Sportsmen League; Member, National Rifle Association (NRA); President/Director, Scholastic Clay Target Educational Foundation Limited Liability Corporation (LLC), Pennsylvania; Secretary, Lake Edinboro Sportsmen League Edward Gainey Democrat
Family: Married to Sue, 2 Children Occupation: Attorney Political Experience: No political experience information on file. Education: Marine Corps from 1988-1991 Community Involvement: American Legion; Veterans of Foreign Wars – Member; Naval Academy Nominations Committee – Volunteer; Paralyzed Veterans of America, Keystone Chapter – Associate Member; U.S. Naval Academy Information Officer; USMC League, Three Rivers Leatherneck #310 – Trustee; USMC Reserves Officers Association, Pittsburgh Chapter – Past President Mindy Fee Republican 37th House District Lancaster County Friends of Fee 174 North Linden Street Manheim, PA 17545 717-664-4233
Family: Widowed, 3 Children Occupation: Employee, TransAmerican Office Furniture, Incorporated Political Experience: No political experience information on file. Education: Attended, Millersville University Community Involvement: Member, Manheim Central School District Booster Club; Member, National Rifle Association; Member, Manheim Republican Committee; Member, Manheim Downtown Development Group
Family: Married to Jack, 2 Children Occupation: Greene County Commissioner Political Experience: Senior Aide to U.S. Rep. Frank Mascara, 1994 - 2002 Education: Honorary BA, Waynesburg College R.Lee James Republican 64th House District Butler and Venango Counties The Committee to Elect R. Lee James 114 West 2nd Street Oil City, PA 16301 Elect.r.lee.james.staterep@gmail.com
Results are pending in this rematch between Rep. Saccone and former Rep. Levdansky. Keith Greiner Republican
Thomas Sankey III
43rd House District Lancaster County Friends of Keith Greiner 405 Myer Terrace Leola, PA 17540-1218 www.keithgreiner.com
74th House District Clearfield County Taxpayers for Tommy 48 Elderberry Lane Osceola, PA 16666 814-339-5133 www.tomsankey.com
39th House District Allegheny and Washington Counties
Family: Married to Michelle Occupation: Former Community Development Specialist, City of Pittsburgh Political Experience: Chairman, Pittsburgh City Democratic Committee, present; Candidate, Pennsylvania House of Representatives, District 24, 2006 Education: BS, Business Management, Morgan State University, 1994 Community Involvement: Member, Cornerstone Baptist Church; Board Member, Divine Intervention Ministries ; Member, PROMISE Organizations
30th House District Allegheny County Attorney Hal English 400 Mt. Royal Blvd. & Duncan Ave. Allison Park, PA 15101 412-486-1810 www.hal-english.com
50th House District Fayette and Green Counties Pam Snyder for State Representative 93 East High Street Waynesburg, PA 15370 724-852-5210 pamsnyder@alanticbb.net
Family: Married to Maureen, 3 Children Occupation: Local Businessman Political Experience: No political experience information on file. Education: MBA, Clarion University; B.S., Economics, Clarion University Community Involvement: Chair, Board of Trustees, Clarion University; Member, Venango Campus Advisory Board, Clarion University; Member, Congressional Military Academies Advisory Board; Former Chair, Vo-Tech Data Processing Committee; CoChair, Local United Way; Member, Friends of the Transit
24th House District Allegheny County Friends of Ed Gainey P.O. Box 5208 Pittsburgh, PA 15206 412-945-0024
Hal English Republican
Pam Snyder Democrat
Family: Single Occupation: Certified Public Accountant Political Experience: Controller, Lancaster County, present; Former Supervisor, Upper Leacock Township Education: Graduate, Penn State University Community Involvement: Treasurer, Ressler Mill Foundation, present; Vice President, American Business Club of Lancaster; Volunteer Firefighter, Upper Leacock Fire Company
Family: Single Occupation: Owner, R&G Fabrication and Crane Service Political Experience: No political experience information on file. Education: BS, St. Francis University Community Involvement: Clearfield Chamber of Commerce, the National Federation of Independent Businesses, the National Rifle Association, the Loyal Order of the Moose
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FEBRUARY 2013 CAPITAL WATCH
Patty Kim Democrat 103rd State House District Dauphin County Patty Kim for State Representative 2418 North 2nd Street Harrisburg, PA 17110-1104 717-214-6850 info@pattykim.com
Family: Married to John, 2 Children Occupation: City Council Member, Harrisburg City Council, 2005Present Political Experience: City Council Member, Harrisburg City Council, 2005- Present Education: BS, Mass Communications, Boston College Community Involvement: No organization membership information on file. Mike Regan Republican 92nd House District Cumberland and York Counties Citizens for Mike Regan 150 Orebank Rd Dillsburg, PA 17019 mike@electmikeregan.com
Family: Married to Fran, 4 Children Occupation: Member of the United States Marshals Service, U.S. Department of Justice Political Experience: Deputy Inspector General, Pennsylvania, 2011-present; United States Marshal, Middle District, Pennsylvania, United States Department of Justice, 2002-2011; Deputy United States Marshal, Middle District, Pennsylvania, United States Department of Justice, 1988-1990; Deputy United States Marshal, Southern District, Florida, United States Department of Justice, 1988-1990; Member, United States Marshals Service, United States Department of Justice, 1988 Community Involvement: Coach, Football; Coach, Soccer; Coach, Wrestling Kevin Haggerty Democrat 112th House District Lackawanna County Friends of Kevin Haggerty 846 Monroe Avenue Scranton, PA 18510 570-504-4678 Kevin@talktokevin.com
Family: Married to Jennifer, 1 Child Occupation: Program Director/ Outreach Program Organizer, DeSales University, Lehigh County Political Experience: Candidate, Pennsylvania House of Representatives, District 112, 2010 Education: Degree, Villanova
University Community Involvement: Former Member, Board of Directors, Northeastern Pennsylvania Alliance; Former Member, Board of Directors, Pennsylvania’s Northeast; Member, Saint Mary’s of Mount Carmel Parish, Dunmore Martin Flynn Democrat 113th House District Lackawanna County Marty Flynn 1633 Rear Dorothy Street Scranton, PA 18504 Martyflynn2012@yahoo.com
Family: Single Occupation: Lackawanna County Prison official Political Experience: No political experience information on file. Education: Degree, Legal Studies, Marywood University Community Involvement: No organization membership information on file. Frank Farina Democrat 115th House District Lackawanna and Wayne Counties Friends of Frank Farina 423 Main Street Eynon, PA 18403 570-876-4891 farinastaterep@live.com
Family: Married to Karla, 3 Children Occupation: Owner/President, Farina Landscaping, Incorporated, 2004-present Political Experience: No political experience information on file. Education: BS, Criminal Justice, The Pennsylvania State University, 1999 Community Involvement: Member, Christ the King Parish; Member, The Family of Saint Anthony; Member, Greater Scranton Chamber of Commerce; Member, Lions Club; Member, The Lone Pine Hunting Club Mark Rozzi Democrat 126th House District Berks County Friends of Mark Rozzi 4320 Danor Drive Reading, PA 19605 610-587-9347 mark@voterozzi.com
Family: Married to Jackie, 1 Child Occupation: Owner, Rozzi Brothers Inc. Political Experience: No political experience information on file. Education: BA, Political Science, Kutztown University Community Involvement: Coach, Muhlenberg Girls Fast Pitch Softball Team
Daniel McNeill Democrat 133rd House District Lehigh and Northampton Counties Friends of Dan McNeill PO Box 826 Whitehall, PA 18052 484-201-4511 www.mcneillforpa.com
Family: Married to Jeanne, 2 Children Occupation: Ironworkers Local 36 Political Experience: No political experience information on file. Education: Diploma, Louis E. Dieruff High School, Allentown; Army National Gaurd Community Involvement: VicePresident of the Lehigh Valley Building Trades Mark Painter Democrat 146th House District Montgomery County Friends of Mark Painter PO Box 422 Royersford, PA 19468 267-908-3782 Richardb.nort@gmail.com
Family: Married to Coleen, 4 Children Occupation: Attorney Political Experience: Tax Collector, Limerick Township, present Education: JD, University of Pennsylvania, 82; BS, Electric Engineering, University of Pennsylvania, 1979; Diploma, Pottsgrove Senior High School, 1975 Community Involvement: Member, St. James Lutheran Church; Member, Limerick Historical Society; Board Member, Royersford Free Public Library Mary Jo Daley Democrat 148th House District Montgomery County Friends of Mary Jo Daley PO Box 752 Conshohocken, PA 19428 215-908-0754 info@maryjodaley.com
Family: Married to Bob, 3 Children Occupation: Associate Director, ULAR Business Services, University of Pennsylvania, 2004-present Political Experience: Borough Councilor, Borough of Narberth, 1992-2011 Education: M.P.A., University of Pennsylvania, 2000; B.B.A., Management, GPA: Cum Laude, University of Pennsylvania, 1987; A.S., Medical Secretarial Science, Gwynedd Mercy College, 1969 Community Involvement: Board of Directors, New Horizons Senior Center, 2012; Montgomery
County Executive Transition Team, Montgomery County, 2012; Member, Green Futures Award Committee, Montgomery County Lands Trust, 2009-2011; Advisory Board, Lower Merion Public Access Television, 2009 – present; Member, State Committee, Pennsylvania Democratic State Committee, 2006-present; CoChair and Area Leader, Democratic Committee of Lower Merion and Narberth, 2006-2010 Steve McCarter Democrat 154th House District Montgomery and Philadelphia Counties Steve McCarter for State Representative PO Box 467 Glenside, PA 19038 215-884-7306 www.stevemccarter.com
Family: Married to Deborah Occupation: Adjunct Professor of Education, University of Pennsylvania, present Political Experience: No political experience information on file. Education: MEd, University of Pennsylvania, BS, Education, Temple University Community Involvement: Chair, Cheltenham School District Local Tax Study Commission; Member, Cheltenham Historical Commission; Member, Cheltenham Development Corporation; Member, Cheltenham Sustainability Committee; Board Member, Pennsylvania State Education Association ; President, Mideastern Region PSEA Becky Corbin Republican 155th House District Chester County Friends of Becky Corbin PO Box 155 Lyndell, PA 19354 610-291-8620 becky@votebecky.com
Family: Married to Michael, 2 Children Occupation: Legislative Aide, State Representative Curt Schroder, 1995-present Political Experience: Auditor, East Brandywine Township, 2011-present Education: BS, Chemistry, Chatham University Community Involvement: Member, Chester County Republican Service; Treasurer, Area 13 Republican Committee; Member, East Brandywine Township Bondsville Mill Committee; Trustee, Downingtown Education Foundation, 1998-2001; Member, Downingtown Keystone Opportunity Zone (KOZ) Committee; Member, Operation Military Christmas Committee
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10 NEWS
FEBRUARY 2013 CAPITAL WATCH
James Clay Democrat 179th House District Philadelphia County
Family: Single Occupation: No occupational information on file. Political Experience: No political experience information on file. Education: Diploma, Frankford High School Community Involvement: Coach, basketball, Northeast Boys and Girls Club, Coach, basketball, Deni Playground Brian Simms Democrat 182nd House District Philadelphia County Sims4PA 215 South Broad St, Floor 2 Philadelphia, P A 19107 484-876-1820 brian@sims4pa.com
Family: Single Occupation: Staff Counsel for Policy and Planning, Philadelphia Bar Association Political Experience: No political experience information on file. Education: BS, Bloomsburg ad-cap-watch-9.75x6.pdf
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University of Pennsylvania ; JD, International & Comparative Law, Michigan State University College of Law Community Involvement: Member, GLSEN Sports Advisory Council; Contributor, The Advocate Magazine; Former President, Equality Pennsylvania Board; Chairman, GALLOP ; Member, National Campaign Board of the Gay & Lesbian Victory Fund Jordan Harris Democrat 186th House District Philadelphia County Citizens for Jordan Harris 1433 South 17th St. Philadelphia, PA 19146 267-687-7170 info@electjordanharris.com
Family: Married to Amber Occupation: Senior Policy Advisor, Kenyatta Johnson, Campaign for State Representative, 2008 Political Experience: No political experience information on file. Education: Candidate, Doctoral, Educational Leadership, Neumann University; Masters, Education, Cabrini College; Bachelors, Government/Political Affairs,
Millersville University Community Involvement: Manager, Christian Street Young Men’s Christian Organization; Board Member, Music Department, Grace Tabernacle Outreach Ministries; Board Member, Hardy Williams Education Fund; President, Board of Directors, Lincoln Day Educational Center; Member, Nu Sigma Chapter, Phi Beta Sigma Fraternity, Incorporated; Board Member, Cephas Lodge No. 98, Prince Hall Free and Accepted Masons; Trustee, Richard Allen Preparatory Charter School Jose Miranda Democrat 197th House District Philadelphia County J. P. Miranda P.O. Box 6754 Philadelphia, PA 19132 215-939-1889 Jose.pat.miranda@gmail.com
Family: Single Occupation: Administered “Philly Counts!” for Mayor Michael A. Nutter Political Experience: No political experience information on file. Education: Attended,
Pennsylvania’s West Chester University Community Involvement: No community involvement on file. Stephen Kinsey Democrat 201st House District Philadelphia County Friends of Stephen Kinsey PO Box 27331 Philadelphia, PA 19118 267-335-4895 www.stephenkinsey.com
Family: 4 Children Occupation: No information on file. Political Experience: No political experience information on file. Education: MBA, Eastern University; Graduate, West Chester University; Graduate, Germantown High School Community Involvement: Member, Philadelphia Alumni Chapter of Kappa Alpha Psi; Member, Keeping My Vote.org; Member, Northwest Futures
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NEWS 11
FEBRUARY 2013 CAPITAL WATCH
Poll: Stigma dogs people with disabilities even though most believe they understand the issue What do you do about an issue that most Pennsylvanians believe they understand intimately but that still makes them uncomfortable when confronting it in real life? The issue is that most Pennsylvanians attach a stigma to physical, mental, emotional or intellectual disabilities even though polling shows that more than half of Keystone Staters have personally experienced a long-standing disability or have an immediate family member with a disability. “It might be that many people just can’t see beyond the disability to understand all of the individual’s actual abilities,” says Lynn Keltz, director of Project Stigma, a new, long-term effort underwritten by the Pennsylvania Developmental Disabilities Council. “Most people say they are accepting and understanding – and their poll responses underscore that to a large extent – but in the final analysis most people say they do muddle up their relationships with people with disabilities.” “It ends up being a kind of reverse bias that under-estimates what people with any kind of disability can do and what they can accomplish.” Keltz noted that almost four out of five (79%) said society tends to think of individuals with physical, mental or intellectual disabilities “with discomfort and awkwardness.” More than half (56%) said they believe society views persons with disabilities as “getting in the way.” Four out of five (82%) said society sees them “as needing to be cared for” while four out of five believe society does not see them “as the same as everyone else.” Finally, almost as many (79%) believe persons with disabilities are “not as productive as individuals without these kinds of disabilities.” Keltz said such views are “frustrating and a real barrier to unlocking the door to full achievement for individuals with a wide range of disabilities – physical, mental and intellectual.” The goal of Project Stigma is to educate and train mainstream society “to look beyond the label and let everyone in.” The research, completed late last year by two polling firms, Susquehanna Polling and Research of Harrisburg and Gravis Marketing of Winter Park, FL, shows that Pennsylvanians can differentiate when asked directly. “We asked the 600 respondents whether individuals can “lead as full a live as those without these types of disabilities all of the time, most of the time, only some of the time or never,” Keltz said. “People recognized there is a continuum of capabilities in the real world. Of those surveyed, 10 percent said people with disabilities can lead a full life 10 percent of the time; 48 percent said most of the time and 36 percent said only some of the time. Only 1 percent said a full life was never possible.” Keltz said the survey results underscored the need for a major, statewide educational
Would you be very uncomfortable, somewhat uncomfortable, or not uncomfortable if someone with a physical, mental, or intellectual disability were to marry a close friend or family member of yours, or was appointed as your boss?
Lynn Keltz
Project Stigma interviewed 577 Pennsylvanians on how they felt about people with disabilities. A total of 61 percent said they would not be uncomfortable (chart on left) having a person with a physical, mental or intellectual marry a friend or close family member. A slightly smaller majority – 55 percent – said they would not be uncomfortable having someone with a disability as a boss.
Would you be very uncomfortable, somewhat uncomfortable, or not uncomfortable if someone who is blind, deaf, with a mental health condition such as depression or personality disorder, or with a learning disability such as Down Syndrome or autism, moved in next door?
While an overwhelming majority of Pennsylvanians interviewed by Project Stigma said they would not be uncomfortable having someone with a physical or intellectual disability as a neighbor. The survey showed more than half (51 percent) said they would be very or somewhat uncomfortable having someone with a “mental health condition” as a neighbor; 42 percent said they would not be uncomfortable. By comparison, 88 percent said they would not be uncomfortable with a neighbor who was blind; 90 percent would not be uncomfortable with one who was deaf and 82 percent would not be uncomfortable if the neighbor had a learning disability.
campaign to highlight the successes of people with disabilities. “When we asked people to think about real life situations involving people with disabilities, we could see concrete evidence that attitudes have improved over the years even if we still have a way to go,” Keltz said. “For instance, 61 percent of respondents to the Gravis portion of the poll said they would not be uncomfortable if a person with a disability were to marry a close friend or family member. More than half – 55 percent – said they would not be uncomfortable if a person with a disability was appointed to be their boss.” Keltz said the poll showed more encouraging numbers for acceptance of physical or intellectual disabilities than mental disabilities. “When we asked people how they would feel if a person with a disability moved in next door, 88 percent said they would not be uncomfortable with a neighbor who is blind and 90 percent wouldn’t be uncomfortable with a neighbor who is deaf. A total of 82 percent said a neighbor with a learning disability like Down Syndrome or autism would not make them uncomfortable but only 42 percent felt the same way about a neighbor with a mental health condition such as depression or a personality disorder.” Keltz noted that the survey was conducted before the Connecticut primary school shootings in December 2012. “Even so, it’s clear that the stigma problem starts with the tendency we have to label people,” said Keltz, who also serves as Executive Director of the Pennsylvania Mental Health Consumers Association. “Oscar Pistorius, the South African sprinter, opened the eyes of the world to the realization that being a double amputee doesn’t mean you can’t be one of the fastest runners on the face of the earth,” she noted. “His participation in the 2012 Olympics was an educational experience.” CW
12 OPINION
FEBRUARY 2013 CAPITAL WATCH
Editorial
A Modest Proposal More than 270 million guns are held in private hands in the United States today. As a matter of fact, there are almost enough guns in private hands to arm every man, woman and child. (It actually works out to a gun for nine out of 10 people.) This should be of some comfort to the authors of the Second Amendment to the Bill of Rights: “A well regulated Militia, being necessary to the security of a free State, the right of the people to keep and bear Arms, shall not be infringed.” As a matter of fact, when you consider practical limitations like the inability of the average toddler to hold and aim a 10 pound rifle, we probably have enough armaments to equip every able-bodied citizen regardless of age with a gun. Already, some readers are grumbling that safety doesn’t require a rifle; frequently, a hand gun will do, and many a toddler should be able to heft the Kel-Tec-32, a tidy little .32 caliber semi-automatic weighing only 6.6 ounces – no more than a glass of milk. Valid point. Science marches on. Given statements made by some during the current debate over controlling gun violence, it would seem that at least a certain segment of the population would think universal armament is a reasonable goal. Many gun rights advocates have said that the way to make America safer is to arm more Americans. Right now, they’re advocating arming teachers and guidance counselors and janitors. What about arming mature high schoolers? You’ve got to at least consider it, right? After all, a janitor could be a high school drop out – have just as much schooling as a junior in high school.
The reality is, though, that only 32 percent of households in America today have guns – according to the National Opinion Research Center. Even more significant, 20 percent of Americans own 65 percent of all the guns. Ladies and gentlemen, no matter how you feel about gun violence, we are facing a gun access gap here in our nation. If, as some gun advocates say, the only way to curb gun violence is to meet the threat of violence with violence, we – as a state and as a nation – must be prepared to take whatever steps necessary to reach gun parity. At least one gun for every household; ideally, because we are so mobile, one gun for every American. Can this be done? Hey, this is a country where we already have 327 million cell phones and only 311 million residents. We just have to set our minds to the task. The cost to the government to offer free, universal gun ownership would be ridiculously low – even before considering the number of jobs that would be generated in the manufacture and distribution of some 50 to 75 million new guns. And, think of the universal peace of mind engendered by the realization that each and every person you passed on the street was armed and lethally dangerous. Ah, yes, it brings to mind the lyrics of that old Louis Armstrong song: I hear babies cry...... I watch them grow. They’ll learn much more.....than I’ll never know. And I think to myself .....what a wonderful world. CW
Governor’s budget relies on speculative funding BY SHARON WARD
Gov. Tom Corbett’s budget does little to reduce the trend of disinvestment in Pennsylvania schools and communities. It relies heavily on speculative and one-time sources of funding, and proposes expensive new corporate tax breaks that will continue to shift costs to local taxpayers. The budget fails to provide sustainable funding to reduce class sizes in public schools, keep college affordable for middle-class students, and ensure working families can obtain basic health care. The governor’s budget will add only 1.7 percent to the basic education subsidy, doing little to reverse $840 million in education cuts 2 years ago. The budget also commits the commonwealth to large new tax cuts for profitable corporations, which will undermine the next governor’s ability to fund education and health care. Gov. Corbett failed to even mention the tax cuts in his budget address, reflecting the unpopularity of this approach with the general public. Sharon Ward is Director of the Pennsylvania Budget and Policy, a nonpartisan policy research project.
NEWS 13
FEBRUARY 2013 CAPITAL WATCH
Corbett says without ‘flexibility,’ PA won’t expand Medicaid In his budget address, Gov. Tom Corbett made it he has no intention of expanding the Medicaid program unless the state gets far more flexibility to administer the program. Federal Patient Protection and Affordable Care Act (ACA), known as Obamacare, originally contained a requirement that states expand their Medicaid in order to provide health insurance coverage to more uninsured people. The U.S. Supreme court later invalidated that requirement, instead making it a voluntary option for states. Citing President Barack Obama’s own characterization that Medicaid is a “broken system” and “we can’t simply put more people into a broken system that doesn’t work,” Corbett said: “We cannot afford to expand a broken system. Right now, without expansion, the cost to maintain our current Department of Public Welfare
programs will increase by $400 million dollars. The main driver in that cost increase is Medicaid and long-term care.” The governor said he has sent a letter to U.S. Secretary of Health and Human Services Kathleen Sebelius indicating he wants a clear explanation of what the expansion will cost Pennsylvania and what level of flexibility the state could be afforded as part of the expansion. He said that without “clear guidance” and “reasonable assurances” of “real flexibility and innovative reforms that empower us to make the program work for Pennsylvania ... I cannot recommend a dramatic Medicaid expansion.” “It’s very frustrating. Wrong direction, wrong direction,” said state Sen. Vince Hughes, D-Philadelphia, minority chairman of the Senate Appropriations Committee.
“Quite frankly, if we put it in place, we can save $670 million of current state spending and take those extra dollars that are saved there, put it in education funding, put in job creation and do the right thing for the people of this commonwealth.” But that simplifies the situation, according to the Corbett administration. “Our estimates are that it’s going to cost over $200 million in the coming year if we were to expand,” said state Budget Secretary Charles Zogby during a Tuesday morning budget briefing, noting that it still takes some state spending in order to draw down the matching federal dollars. And there is also a “woodwork” effect where often more claimants for state-funded programs will apply, costing the state more. Senate Democrats said the savings would more than cover that
expense, but Zogby disagreed. “We have a budget that is very tight. We need pension savings to make the spending plan that we have – we need pension reform. These things are going to be difficult to achieve. “I’m not sure that we have $200 million in this budget even if we wanted to” expand. In his letter to Sebelius, Corbett wrote, “Our initial estimates show that a Medicaid expansion under the ACA would cost Pennsylvania almost $1 billion of new state taxpayer dollars through fiscal year 20152016 -- ultimately rising to a total cost of over $4.1 billion of new state taxpayer dollars by the end of fiscal year 2020-2021. Without reform, the only way to support these costs would be a large tax increase on Pennsylvania families.” CW
Corbett proposes spending $1.8 billion over five years to fund transportation plan
BY KEVIN ZWICK, CAPITOLWIRE
Gov. Tom Corbett on Tuesday proposed a long-awaited plan to spend $1.8 billion over five years on the state’s crumbling transportation infrastructure, generating a bulk of the funding through lifting a decade-plus-old cap on wholesale gasoline. Corbett’s plan would raise the current Oil Company Franchise Tax cap, which is currently set at $1.25, when the wholesale price of gas is more than double that amount. Corbett’s proposal, recognizing that the cost of uncapping the tax could be passed down to the consumer, also includes a reduction of the at-the-pump motor fuels tax by a one-cent next year and another cent the following year, to “soften” any potential cost shift, said Budget Secretary Charles Zogby. The state would lose about $55 million to $60 million for each cent reduced, Transportation Secretary Barry Schoch said. The plan calls for spending $1.2 billion on state roads and bridges and another $600 million on public transit, local roads and bridges, PA Turnpike expansion projects, and multi-modal funding. Corbett’s plan is short of the $2.7 billion recommended by his Transportation Funding Advisory Commission in July 2011, and Senate Transportation Chairman John Rafferty suggested a final plan should match the report’s funding level. “His transportation advisory group said $3 billion, so we’re looking at what their report registered,” said Rafferty, R-Montgomery. “We’re gonna build upon what the governor gave as a framework … read the governor’s transportation advisory report, it says it right there.” Corbett’s plan also calls for more funding for mass transit. “Mass transit is crucial to sparing our highways from congestion and providing a reliable environmentally friendly and affordable means of moving around a region,” Corbett said during his address.
Corbett’s proposal also calls for ending the PA Turnpike’s contribution to the General Fund of $450 million annually after 10 years. That funding stream was
established in Act 44 of 2007 as a way to fund repairs to state roads and bridges, causing the turnpike to spend more money each year than it takes in, regardless of
annual toll increases for cash-paying users. The turnpike is $7 billion in debt. The proposal wouldn’t reduce the $450 million payments over 10 years. CW
C U S TO M J E W E L RY H A N D C R A F T E D O N - S I T E 4812
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FEBRUARY 2013 CAPITAL WATCH
McCord says withholding lottery payments revolves around Keno details BY KEVIN ZWICK, CAPITOLWIRE
State Treasurer Rob McCord continued to assert his skepticism of the Corbett administration’s plan to expand lottery gaming under a pending deal to outsource management of the Pennsylvania Lottery. “One of the concerns here is to try to stop waste before it happens,” said McCord, a Democrat, who has said he might withhold payments to a lottery operator because of concerns over the legal issues surrounding the gaming expansion proposed in the contract. McCord wants a clearer description of Keno gaming to determine whether the expansion would need legislative approval, prior to the statewide expansion. He hasn’t made a final decision on whether he would definitely withhold payments, but said he would “probably err on the side of trying to act early,” he said. Corbett administration officials, testifying the past two weeks at legislative hearings, maintained the Revenue Secretary has the authority to expand lottery games without legislative oversight, and the proposed expansion of lottery games. Corbett administration officials say Keno is different from video poker or other video-based terminal games, like slot machines, which
State Treasurer Rob McCord
would require legislation. McCord said he’s in conversation with the attorney general’s office about matters regarding the lottery contract, but refused to say whether he thinks Attorney General Kathleen Kane should reject the contract. The contract with Camelot Global Services was signed by Revenue Secretary Dan Meuser last week and is under review by office of attorney general. Kane would do best to perform a standard,
ministerial review of the Lottery contract’s form and legality, not get pulled into a political fight that could disrupt functions of state government, said Ernie Preate, who was attorney general during the Casey administration. By law, the office of attorney general must review each state contract – thousands each year – for “form and legality” before it is executed. Reviewing for “form and legality is not for you to say, ‘I’d do it differently.’ You may not like the contract, but if it’s legal, it’s legal. You could call their attention to it and say this is a bad deal for the state, but it’s legal,” said Preate. He said it’s common practice for the attorney general to work out any problems with a contract with the governor’s general counsel or lawyers from the agency that issued the contract. “I can’t remember in any instance where we had a standoff where we said one thing and the general counsel said another thing,” Preate said. Ultimately, the matter could play out in Commonwealth Court, a scenario that could take months to resolve. “But you don’t wanna have that happen.
You really don’t wanna have that happen. That breeds mistrust, it stops the normal functioning that’s needed everyday for contracts to be approved. … The power’s there, but you don’t abuse the power,” said Preate, who resigned his post in 1995 and served a prison sentence for corruption. He now practices law in Scranton. Kane, the first Democrat to hold the office, has said she plans to take the full 30 days to review the contract. Legislative Democrats sent a letter to her last week asking her to reject the contract. Senate Republican leaders also expressed some skepticism in a letter to Corbett last week asking for the contract with Camelot to be rewritten to prevent any expansion of gaming beyond Keno from including interactive video games or simulated slots or table games. Corbett, a former state attorney general, said during his tenure in the office, he would work with the Rendell administration if issues with a contract arose, and he hoped Kane would do the same. “I believe that we would be able to work things out, because we feel strongly that the contract is a legal contract and that we have the authority,” Corbett said last week. CW
Corbett to push for biz loan authority again Gov. Tom Corbett’s business loan fund consolidation plan has a new name—The PA Business Development Authority, consisting of the same programs as the Liberty Financing Authority. The proposal is set to provide $1.1 billion in resources for lowinterest business loans. Programs include: • Pennsylvania Industrial Development Authority provides low-interest loan financing through Industrial Development Corporations for land and building acquisition, construction and renovation, resulting in the creation or retention of jobs. • The Small Business First Program provides low-interest loans and lines of credit to small businesses for capital development projects. The new proposal would expand this program to include non-profit entities that create jobs. It would also allow the new board to set maximum loan amounts and job creation requirements, and gives the board to leverage to adjust the job requirements and loan amounts. • The Community Economic Development Program provides loans for small businesses in distressed communities, which are involved in business-topublic service, mercantile, commercial, or point of sales. The new board would be able to set maximum loans. CW
OPINION 15
FEBRUARY 2013 CAPITAL WATCH
The American Tax Relief Act of 2012 SCOTT C. WEAVER, CFP, CFS, CAS
I know the example of Lucy holding the football in place and promising Charlie Brown “she wouldn’t pull the football away” right before he kicked it has been used hundreds of times to illustrate a promise broken. Watching Charlie Brown approach the football again is just too painful to watch. Your head is shaking in dismay as he approaches the ball. Honestly, how can this guy be so gullible and fall for it again? Well folks, we are Charlie Brown and once again, we fell for it. The Republicans broken promise to bring runaway spending under control and the Obama’s administration broken promise to raise taxes only on the wealthy and not on the middle class illustrates that neither side fulfilled campaign promises. The football has been yanked away from us again and just like it did before, it’s going to hurt when we hit the ground. Washington blows money, and we feel the pain. They even named it the Tax payer Relief Act. Are you kidding? The name itself is insulting and illustrates just how naïve and gullible Washington thinks we are. Tax relief. What relief? What really happened, and where do you as a taxpayer stand on January 1, 2013? Here goes: INCOME TAXES: New top tax rate of 39.6% (up from 35%) for individuals whose income exceeds $400,000 ($450,000 for married couples filing a joint return) Lower marginal tax rates stay the same 10, 15, 25, 28, 33 and 35 percent Not so bad. They just stuck it to the rich guys and gals as Obama promised, right? Not so fast!!! Here is where Lucy worked her magic. The deliver is in the details and here comes the details. The hidden taxes on all working class Americans. Round Two: HIDDEN TAXES: Increase of Social Security Payroll tax from 4.20% to 6.20%. On average, every working American will pay about $1,000
more per year. This is why your 2013 paycheck went down. New maximum income to pay this tax is $113,000. Limitation on itemized deductions for AGI (adjusted gross income) of $250,000 or more for single filers and $300,000 for married filers. An additional .9% Medicare Tax on incomes over $250,000. This additional tax has no limiting income threshold. Only medical costs that exceed 10% of your adjusted gross income (AGI) can be deducted. This is increased from 7.5%. An additional 3.8% tax on investment income for taxpayers with AGI over $200,000 ($250,000 for married couples filing jointly). This additional tax is all earned income, including income from interest, dividends, annuities, royalties, and rents which are not derived in the ordinary course of trade or business excluding active S corporation or partnership income. Excluded under the income tax guidelines are tax-exempt bonds and veterans benefits Capitals gains tax rate will increase from 8.8% to 23.8% if your MAGI is over the threshold amount for the 3.8% Medicare surtax as noted above. ESTATE AND GIFT TAX: The estate tax rates, estate and gift tax exemptions and reunification of the gift and estate tax system are all part of the “permanent” legislation. Estates of descendants who die during 2013 have a basic exclusion amount of $5,250,000, up from a total $5,120,000 for estates of descendants who died in 2012. This amount will continue to be indexed for inflation. The gift tax exemption mirrors the estate tax exemption. However, the tax rate above this amount has increased to 40% from 35%. The really horrible news is yet to come. The fiscal cliff as not solved, only delayed. Runaway deficits are a major threat to this country. After all, in the end, every American will be stuck holding the tab for this fiscal
train wreck. The politicians’ promises and smiles will be long gone. Taxes over the long run can only go up and it’s just a matter of time. For now, you can do the following to help reduce the tax bite: TAX PLANNING STRATEGIES: 1. Maximize your 401k, 403b, SEP IRA, IRA or any self-directed retirement plan. 2. For the higher income brackets, charitable deductions become more important. Charitable Lead or Charitable Remainder Trust should be investigated. 3. Key employees can be carved out of the group and offered non-qualified deferred compensation plans, which defer income until a later pre-determined date. 4. After-tax income can be shifted into tax deferred contracts such as life insurance and deferred annuities. Some life insurance policies can grow tax deferred. By means of a low cost loan, these contracts can give the policyholder a tax free income. 5. If you believe tax rates will be higher in the future, one of the new changes to the tax law allows 401k plans to be rolled over into Roth IRA while still employed. Prior to 2013, this was only allowed after leaving a company. To increase the U.S. Treasury revenue now, the government is allowing you to pay the tax now by rolling your 401k into the Roth IRA. Tax is due now on your portion of the rollover; however, if you wait five years, all money received from your Roth IRA including the gain will be tax free. Tax strategies are not a one size fits all proposition. The above information and strategies are for general knowledge only and not a specific recommendation. Seek out professional advice. The Kingdom needs money, and they have their crosshairs on you and I. Plan and prepare and do your homework. I believe in a simple formula, intellect over emotion. The opposite; E/I emotion over intellect will have Charlie trusting Lucy and missing the ball every time.
Scott C. Weaver, CFP, CFS, CAS Source: Personal experience and previous education as a Certified Fund Specialist, Certified Annuity Specialist and a Certified Planner has afforded Scott a lot of information and experience on investment styles. As managing money, Scott utilizes the above on a constant basis. This information is provided for informational purposes only. The information contained herein is obtained from sources believed to be reliable but its accuracy or completeness is not guaranteed. This information should not be construed as an offer to sell or a solicitation of an offer to buy any security by the Academic Wealth Strategies or NEXT Financial Group, Inc. Any opinions expressed herein are subject to change without notice. Past performance is not a guarantee of future results. Securities and investment advisory services offered through NEXT Financial Group, Inc. Member FINRA/SIPC. None of the entities named herein are affiliated with NEXT Financial Group, Inc. 1250 N MOUNTAIN RD STE 4 HARRISBURG, PA 17112 (717) 652-4965 Toll free (877) 837-3024.
Cutting future benefits of current employees seems a heavy lift to leaders BY PETER L. DECOURSEY
Gov. Tom Corbett’s proposal to cut the future benefits of current state teachers and state employees seems to have a tough road ahead. Senate Majority Dominic Pileggi, R-Delaware, said he welcomed a wideranging “serious discussion” of how to decrease state pension costs. And he praised the idea of the other half of Corbett’s pension reform plan, to change new employees to a plan where they must put 6.25 percent to 7.5 percent of their salary into an investment plan, with the state adding a 4-percent match. House Majority Leader Mike Turzai, R-Allegheny said, “For new employees
the consensus support” from lawmakers “is certainly more there,” than for current employees, Turzai said. “For existing employees, there are more hurdles. Prospective changes are more do-able.” Now I am not saying no such changes will be made. Corbett is clearly starting big and is likely willing to settle for something less than he proposed. But probably not a lot less. By cutting the state’s pension contributions this year by $175 million to make room for spending lots of lawmakers hailed today, and also save $138 million for districts, Corbett made $90 million in state funding and $138 million in local funding
available for school programs. The proposed changes are significant. Budget Secretary Charles Zogby gave the example of a state employee with 20 years in before the changes and 10 years after: the state saved 10 percent on his pension, every year, by making the administration’s planned changes. For an employee with 10 years in and 20 years after the changes in the pension, that would be more than 20 percent reduction in that annual pension. Plus it will take longer to amass a higher percentage of your salary, and the proposal would cap the maximum pension in various ways.
Could some of this pass? Possibly, although given the past two years, it is easier imagining this Legislature and governor cutting the $175 million. Or cutting half of it and getting lucky on the revenues for the other half. This will be a heavy lift and the main question is: once this proposal convinces teachers and state employees the sky is falling, what is the fallback offer? Because it is hard to imagine the future benefit reductions for existing employees passing the House and Senate now. CW Peter L. DeCoursey is Bureau Chief of Capitolwire.com.
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