April 19, 2018
House Moves Budget Bills Closer to Final Passage
This week, the House of Representatives moved several preferred and non-preferred appropriations bills closer to the final passage mark. This action included HB 2244, the non-preferred appropriations bill for Temple University. On March 13, the general appropriations bill, HB 2121, received its second consideration in the House and was re-referred to the Appropriations Committee. In this posture, the budget will be up for final passage upon a motion to move the bill from committee.
So far, this group of budget bills is considered to be made up of “placeholders,” and these actions are all procedural in nature, meant to position the budget legislation as close to a final passage vote as possible when House leadership presents amendments to the bills to enact the actual budget for 2018-19. It still remains to be seen how the House’s proposal will be different from the Governor’s proposal, which he made in February. Governor Wolf’s budget proposal was contingent upon an increase in the minimum wage and a severance/shale tax. Neither one of those measures has moved in the Legislature this year. Stay tuned for developments.
House Education Moves Bills on Career and Technical Education
On Monday, the House Education committee considered several bills containing the recommendations of the Select Committee on Technical Education and Career Readiness. All bills were reported to the House floor for further action:
· HB 2155 by Rep. Bloom, et. al. This bill amends requirements for vocation education certificates. It prohibits the State Board of Education from requiring Vocational Instructional I certification candidates from requiring the completion of more than 18 credit hours in an approved program of vocational teacher education (or more than 60 hours for Vocational Instructional II). It requires the State Board of Education to require certification candidates to have a least four years of wage-earning experience in the occupation to be taught.
· HB 2156 by Rep. Tobash, et. al. This bill creates the Career and Technical Education Partnership Tax Credit Program. This program authorizes tax credits for business firms which donate to “career and technical partnership organizations.” Under the bill, these organizations offer scholarships to students who are enrolled in public and charter high schools and in institutions of higher education.
· HB 2157 by Rep. Grove, et. al. This bill sets forth a standard method to identify and classify public school vocational programs throughout the Commonwealth.
· HB 2158 by Rep. Make, et. al. This bill sets forth requirements for all school districts in their consideration of “career presenters.”
· HB 2159 by Rep. Staats, et. al. This bill addresses articulation agreements. The bill seeks to include public schools into requirements for higher education institutions, as those requirements relate to industry-recognized credentials.
· HB 2203 by Rep. Harkins, et. al. This bill requires the PDE to establish and maintain an “Online Career Resource Center.”
· HB 2204 by Rep. Mullery, et. al. This bill requires the PDE to establish and maintain a “Workforce Development Program Clearninghouse.”
· HB 2205 by Rep. Roebuck, et al. This bill requires school districts and area vo-techs to establish an “occupational advisory committee.” The bill further sets forth the composition of the committee and functions of the committee.
· HB 2206 by Rep. Roebuck, et. al. This bill requires a least one local administrator of a career and technical center to be included on Workforce Investment Boards.
Senate Education Committee to Hold Public Hearing on Act 88
On Wednesday, the Senate Education Committee will hold a hearing on Act 88, the act addressing school employee bargaining, impasse and strike. The public hearing notice simply states the following: “Public hearing on issues and potential alternatives to the current Act 88 collective bargaining process and teacher strikes.” The committee has also scheduled the same hearing at the Bedford County Courthouse on April 20.
These are simply hearings, with no actual legislation attached. AFTPA will watch this issue closely.
February 8, 2018
Governor Wolf Delivers Budget Address on Tuesday
Earlier this week, the Governor delivered the annual budget address, detailing his spending proposals for the 2018-2019 fiscal year. Click here for Governor's remarks and the press release from the Governor's Office.
Several education line-items were increased, while some line-items were flat-funded in Tuesday’s proposal. For example, state-related universities, community colleges, libraries, the PA Historical and Museum Commission all received appropriations levels the same as in the current year’s budget. The Governor’s budget creates a re-vamped initiative on Career and Technical Education which includes $50 million in additional funding from last year; however, it is too early to determine if the $50 million increase in that specific line-item is due to shifting funding from programs in other areas of the budget.
Notable increases in the Governor’s proposed line-items over this year’s actual budget:
- Basic Education: $100 million increase
- Special Education (private and public schools): $23 million increase
- Pre-K Counts: $30 million increase
- Head Start: $10 million increase
- Early Intervention: $11 million increase
- School Construction Funds: $111.2 million increase
- PA Schools for Deaf and Blind: $2 million increase
- PSERS Payments for School District Employees: $263 million increase
- Transfer to Community College Capital Fund: $18 million increase
- State System of Higher Education: $15 million increase
Beginning on February 20, both the House and Senate will begin budget hearings, covering every area of the current budget, covering the Governor’s proposed budget, and covering any legislative priorities not in the Governor’s proposal. Here are notable hearings:
February 20
Senate : Approved Private Schools and the Charter Schools for the Deaf and Blind
Senate, : PA Intermediate Units
February 26
House, : Career & Technical Education (Thaddeus Stevens College of Technology, Lancaster County Career & Technology Center,
Pennsylvania Association of Career & Technical Administrators, Community Colleges)
February 27
Senate, : State Related Universities
March 5
House, : PA Department of Education (all day)
March 6
Senate, : PA Department of Education (all day)
Redistricting Stalls in Legislature
Tomorrow marks the deadline imposed by the Pennsylvania Supreme Court for passage of new Congressional maps; however, the Legislature has yet to act on any new maps. Both chambers are currently recessed until the call of their respective chairs. Last week, the Senate did pass SB 1034, a redistricting vehicle which simply deletes the current districts. The bill did receive a committee vote in the House, but it was simply moved to the floor for consideration with no amendment.
It remains to be seen how the House and Senate will address the Pennsylvania Supreme Court’s order. The Court did indicate that they would redraw Congressional districts themselves if the Legislature failed to adopt new ones. Stay tuned to your inbox for details.
January 26, 2018
Supreme Court’s Redistricting Decision Dominates Session Week
This week marked the first voting session week of the new year for both the House and the Senate. Much of the chatter in the Capitol centered on the Pennsylvania Supreme Court’s decision that the Commonwealth’s congressional districts must be redrawn. The Supreme Court found that “as a matter of law that the Congressional Redistricting Act of 2011 clearly, plainly and palpably violates the Constitution of the Commonwealth of
Pennsylvania.” The PA League of Women Voters was the petitioner in the case, and AFTPA filed an amicus brief with the Supreme Court on the side of the petitioners.
The Supreme Court has given the Legislature until February 9 to submit a plan to the Governor, and the Court has given the Governor until February 15 to submit the plan to the Supreme Court. If those deadlines are missed, the Supreme Court “shall proceed expeditiously to adopt a plan based on the evidentiary record developed in the Commonwealth Court.” The Court’s reasoning for this timeline was their commitment to not disrupt the primary election on May 15.
Both the Speaker of the House and the President Pro-Tempore of the Senate have asked the state Supreme Court to reconsider its own decision, and yesterday, the Court denied their request. An emergency application for a stay has also been filed with the US Supreme Court.
Redrawing the state’s congressional maps is sure to be a contentious issue in the legislature. Six legislators are running for US Congressional seats, including the House Majority Leader Dave Reed. With the Governor’s Budget address set for February 6, and the House not scheduled to return until that session week, the Legislature is sure to have a busy agenda if the Court’s deadline stands on February 9. Please stay tuned to your inbox for details.
Governor to Deliver Budget Recommendation on February 6
On February 6, the Governor will present his budget recommendation to the full House and Senate. Soon after, the House and Senate Appropriations committees will begin their detailed look at the state budget and the Governor’s budget recommendation for next fiscal year. Here is a list of notable hearings:
February 20
- Senate, 3pm: Approved Private Schools and the Charter Schools for the Deaf and Blind
- Senate, 4pm: PA Intermediate Units
February 26
- House, 1pm: Career & Technical Education (Thaddeus Stevens College of Technology, Lancaster County Career & Technology Center, Pennsylvania Association of Career & Technical Administrators, Community Colleges)
February 27
- Senate, 10am: State Related Universities
March 5
- House, 10am: PA Department of Education (all day)
March 6
- Senate, 10am: PA Department of Education (all day)
Senate Education Committee to Move Bills Next Week
The Senate Education committee has scheduled a voting meeting on Monday for the following bills:
- SB 660 by Senator Killion. This bill expands the exceptions for the Keystone Exam proficiency requirement for graduation. Click here for information on the bill.
- SB 776 by Senator Tomlinson. This bill expands the authorization from three years to five years of the current Dyslexia and Early Literacy Intervention Pilot Program pilot. It also redefines dyslexia in the context of the pilot. Click here for information on the bill.
- HB 1653 by Representative Quigley. This bill address PHEAA Grants and online courses of study. Click here for information on the bill.
· HB 1305 by Representative Rapp. This bill addresses professional development for secondary transition services. Click here for information on the bill.
December 21, 2017
Legislature Adjourned until after the New Year; Movement on SB 2 Anticipated
Both the House and the Senate are scheduled to return to Harrisburg for a voting session the week of January 22. We anticipate action in the Senate on SB 2, legislation creating an “education savings account” program for parents choosing to enroll their children in non-public schools and educational programs. In October, SB 2 received a tie vote in the Senate Education committee, so the bill could not be advanced for further action. However, late last week, Senator Rich Alloway was appointed to the committee to replace Senator Dan Laughlin. Senator Laughlin had been a vote against SB 2, and we anticipate Senator Alloway to be a vote in favor.
AFTPA is opposed to SB 2. Please stay tuned to your inbox in January for more details about contacting your Senator on this legislation.
Big Victory on SB 166; AFTPA Remains Vigilant
While the defeat of SB 166 in the House is a big win for workers throughout Pennsylvania, AFTPA remains watchful for the bill, or others like it, to reemerge. SB 166 limited union payroll deductions for all state and local public employees in the Commonwealth. A broad coalition of public employees, including educators, firefighters, police officers, state employees, etc., worked to defeat the bill. Click here for the House record vote on SB 166.
Upon the defeat of SB 166 last week, several legislators who supported the bill did make a motion to reconsider the bill at a later date. Technically, SB 166 could come up any time in the House next year for a reconsideration vote. In addition, a similar bill, HB 1174, would limit union deductions to fair share fees for any public employee union which bargains under Act 195. The bill specifically exempts those who bargain under Act 111 from the deduction limitations. Municipal police and firefighters bargain under Act 111.
We anticipate that the broad coalition working to defeat SB 166 will continue to work to defeat HB 1174. While the bill exempts Act 111 employees, the unions which represent Act 111 employees also represent workers who bargain under Act 195. Furthermore, it is widely acknowledged that if the legislature is successful in limiting deductions for Act 195 employees, they will quickly turn to limiting deductions for Act 111 employees.
AFTPA is opposed to both SB 166 and HB 1174. Please stay tuned to your inbox in the coming year for updates on these bills.
Next Fiscal Year Already in the Spotlight
On December 14, the Governor’s office issued its required mid-year budget briefing (Click here for the Governor's Office presentation.). The briefing acknowledged the one-time funding sources enacted in the fall to balance this year’s budget, like fund transfers and borrowing against the state’s Tobacco Settlement. In looking ahead to the 2018-19 budget, the Governor’s office reiterated that they will “continue to work to restrain or reduce state spending to balance the 2018-19 budget without increasing broad-based taxes.”
The Governor’s office is estimating a slight budget surplus for this fiscal year; however, this surplus assumes that new revenues collected from the recent gaming expansion will be collected as initially estimated. Time will tell if the surplus is actually realized.
In November, the Independent Fiscal Office (IFO) published a report that brings next fiscal year’s budget debate into sharper focus. Click here to download the IFO report. The IFO is estimating that the 2018-19 budget debate will start with a $988 million budget deficit. When asked about the IFO’s projections, Budget Secretary Randy Albright questioned the IFO’s assumptions when determining the state revenues and expenditures that led to the deficit projection. Secretary Albright further stated that the Governor will have more information about his plans to balance next year’s budget when he delivers his budget address on February 6.
Stay tuned to your inbox for developments.
IFO Releases School Property Tax Data by Age Group
Earlier this month, the Independent Fiscal Office published data relating to school property tax burden by age group. The data, issued in a memo to Rep. Cox, is attached for your information.
The IFO focused on groups of homeowners, in ranges aged sixty and older. The share of households owned by these age-groups were then compared to the share of school property taxes paid by those age groups. The age groups were as follows: Age 60 and over, age 65 and older, age 70 and older.
The IFO concluded that homeowners in these age ranges paid slightly less in school property taxes than their percentage share of households (See Table 1 of the attachment). This new information is sure to be brought to light in the General Assembly as legislators continue to debate property tax reform.
Please let me know if you have any questions, or need any further information.
House and Senate Release 2018 Session Schedule
The House and Senate have published their 2018 session schedule, and you will find it below. The session schedule will indicate when legislators are expected to be in Harrisburg; therefore, legislators are expected to be in their district offices on dates not on the session schedule.
If you and your local leaders would like to schedule meetings with legislators on the days they are in their district offices, please let me know. I am happy to assist you with scheduling and preparing for meetings with your legislative delegation.
2018 SENATE SESSION SCHEDULE
January 2, 22, 23, 24, 29, 30, 31
February 5, 6, 7
March 19, 20, 21, 26, 27, 28
April 16, 17, 18, 23, 24, 25, 30
May 1, 2, 21, 22, 23
June 4, 5, 6, 11, 12, 13, 18, 19, 20, 25, 26, 27, 28, 29
2018 HOUSE SESSION SCHEDULE
January 2 (non-voting), 22, 23, 24
February 5, 6, 7
March 12, 13, 14
April 9, 10, 11, 16, 17, 18, 30
May 1, 2, 22, 23
June 4, 5, 6, 11, 12, 13, 18, 19, 20, 21, 25, 26, 27, 28, 29, 30
December 13, 2017
SB 2 Stays in Senate Committee; SB 166 on House Final Passage Schedule
The Education Savings Account Program bill, SB 2, was passed over in committee this morning. The committee makeup had not changed, and it was stated that there were a few more details to be worked out before the bill would receive another committee vote. Since the bill received no official action in committee, it will remain in the committee. We do not anticipate any floor action on the bill as long as the bill remains in the committee. AFTPA is opposed to SB 2.
SB 166, however, has been scheduled for floor debate today. SB 166 limits public employee union dues deduction, and AFTPA is opposed to SB 166. The House has several other issues to debate as well, including further amendment debate on shale tax legislation. We are hearing that the House will be in session throughout the evening.
Please keep up the calls and emails to members of the House of Representatives asking them to vote NO on SB 166.
Your Work Paid Off. Big Victory Today.
SB 166 Fails House Final Passage
SB 166 resoundingly failed House final passage earlier tonight by a vote of 90 to 102. Final passage in the House currently requires 101 votes since there are two vacant House seats. All Democrats voted against the bill. Twenty-six Republicans voted against the bill. Eight members were on leave, and one member was an unexcused absence.
Today’s defeat of SB 166 is a great win for public employees and for all workers’ rights. While we anticipate a motion to reconsider this vote, it is still doubtful that proponents of SB 166 will be successful. Further, if a reconsideration vote fails on a bill, the subject matter can never be considered again until the next legislative session, which begins in January 2019. We will watch any attempts for reconsideration very closely.
Great work everyone! The calls and emails paid off!
Republicans Voting Against SB 166 (with the AFTPA position)
Barrar
Rosemary Brown
Charlton
Corbin
Corr
DiGirolamo
Farry
Godshall
Harper
Lewis
Marshall
Mehaffie
Miccarelli
Millard
Milne
Murt
O’Neill
Petri
Quigley
Christopher Quinn
Santora
Stephens
Taylor
Toohil
Watson
White
December 12, 2017
House and Senate Back in Session; SB 166 Stalled in the House
This week, both the House and Senate are in session for the last scheduled voting week of the year. Late last week, SB 166 stalled in the House for lack of enough votes for final passage. The bill limits union payroll deductions for all public employees. AFTPA is opposed to SB 166. The bill was not scheduled for action today, but could possibly see action tomorrow. Keep up the calls and emails to Representatives; it is working!!
Education Savings Accounts Bill Scheduled for Committee Tomorrow
SB 2 is scheduled for a vote tomorrow in Senate Education Committee. SB 2 creates “education savings accounts” for parents to pay tuition and other expenses for their child’s education at private elementary or secondary schools which choose to participate in the program. The accounts are made up of funds from the school district of residence. AFTPA is opposed to the legislation.
In October and with a tied vote, SB 2 failed to pass in the Senate Education committee. However, we are hearing that the makeup of the committee may have changed, and the bill will most likely pass from the committee tomorrow. It is unclear whether or not the committee will attempt to amend the bill tomorrow, but amendments are likely since there were attempts to amend the bill back in October.
After the committee hearing, I will update everyone as to how the bill will be debated by the full Senate, if it does, in fact, pass the committee.
November 21, 2017
Dues Deduction Bill to Move from House Committee Today
The House is back in session this week, and they are off to a quick start with advancing legislation to limit or prohibit union deduction for public employee unions. Later today, the House State Government committee is scheduled to meet, and we have heard that they will move legislation prohibiting union payroll deductions for dues, fees, and/or contributions. Representative Metcalfe, the Republican Chair of the committee, has not posted which bill will be considered, and we anticipate that he will announce the legislation after the House convenes at 11 am.
AFTPA is opposed to legislation prohibiting or limiting payroll deductions for public employee union dues, fees and contributions. We have communicated that opposition to the committee; however, it is still unclear which legislation will be brought before the committee. Once we have a better understanding of which legislation will move, we can alert everyone as to calling your representatives. Stay tuned to your inbox for details.
Shale Tax Vote This Week
Later today, the House is scheduled to continue amendment debate on HB 1401, legislation enacting a shale severance tax. Several amendments were adopted yesterday which add regulatory language to the bill, most notably, an amendment to set a specific time frame for permits to be “deemed approved” if not acted on by the Commonwealth. Debate will continue today on “second consideration,” the place on the calendar where bills are debated for amendments. If the tax is brought to a final passage vote, we anticipate that to be in December.
Please let me know if you have any questions or concerns.
Union Deduction Bills Move from House Committee; House Votes to Adjourn During Shale Tax Debate
Today by a party-line vote, the House State Government committee voted to move two bills limiting union payroll deductions to the full House for consideration. AFTPA is opposed to the legislation. These bills have been placed on the tabled calendar for the House’s next voting session scheduled on December 4; therefore, we do not anticipate any further consideration until December 5.
The first bill considered was HB 1174 by Rep. Cutler. This bill amends Act 195 by prohibiting a public employer from allowing payroll deduction to collect union dues amounts above fair share fees and to collect voluntary political contributions (COPE/CSPE). Employees who bargain under Act 111 are not included in the bill (fire/police). HB 1174 received its first committee hearing today.
Second, the House committee considered SB 166, which passed the full Senate on February 8, 2017. The bill was amended in committee to prohibit public employers from allowing payroll deduction for any voluntary political contribution (COPE/CSPE). The bill applies to any public employer, specifically “the Commonwealth, a political subdivision, a school district and any officer, board, commission, agency, authority or other instrumentality thereof.”
After the House State Government committee considered HB 1174 and SB 166, the House resumed in full session to continue consideration of amendments to HB 1401, a bill enacting a shale severance tax. Earlier in the evening, the Speaker announced his intent to debate amendments until 11 pm; however, one member of the House made a motion to adjourn until 1:00 pm on December 4. The motion passed, and the House adjourned. When they return, the House still have numerous amendments to consider on HB 1401.
If you have any questions or concerns, please let me know at your earliest convenience. Please stay tuned to your inbox for materials on HB 1174 and SB 166. The House and Senate are not in session next week, so we will need action after the Thanksgiving holiday.
November 6, 2017
Governor Allows HB 178 Become Law without Signature
Both the AFTPA and the Pennsylvania AFL-CIO asked the Governor to veto the bill.
HB 178 has become law without the Governor’s signature. The bill is now Act 55 of 2017. The provisions allowing economic furloughs and changing educator seniority will take effect immediately. Attached, you will find materials detailing how the new language authorizes "economic furloughs," how the language requires furlough decisions to be based on Act 82 performance, and how the new language limits bargaining on these issues.
Act 55 details the process by which educators who are assigned to provide direct instruction to students can be furloughed based on "economic reasons;" however, it does authorize these provisions to be waived upon approval of the State Board of Education.
Here is the order for how educators are furloughed for any reason under the school code (all levels based on Act 82 performance). Within each level, seniority will dictate the order of furlough.
- Those educators with two consecutive unsatisfactory evaluations.
- Those educators with an unsatisfactory and satisfactory evaluation in the last two school years.
- Those educators with two consecutive proficient, one distinguished and one needs improvement, or one proficient and one needs improvement evaluations in the last two school years.
- Those educators with two distinguished or one distinguished and one proficient evaluations in the last two school years.
In addition to changes to educator furlough, the bill also makes many other changes to the school code. Please see the attached "fiscal note" for a full list of provisions changed by the bill. These provisions include:
- Allowing a new type of merger of charter schools, called "multiple charter school organizations."
- Delaying Keystone graduation requirements
- Requiring training for school board members
- Requiring greater scrutiny of school districts which receive payments under the Education Access Program Grant, funds available to districts with financial distress--currently only Erie City School District has received an allocation of these funds
- Changing requirements for school district superintendent employment contracts
With the completion of the budget, the House has cancelled their voting session days on November 13-15. They are currently scheduled to meet in voting session on November 20-21. The Senate is scheduled for voting session on November 13-15.
http://foscep.pa.aft.org/sites/default/files/article_pdf_files/2017-11/hb_178_fiscal_note.pdf
October 28, 2017
Legislature Sends Package of Bills to Governor to End Impasse
By Thursday afternoon, the House and Senate sent all of their budget-related proposals to the Governor. On Friday, the Governor signed the five non-preferred appropriations bills for the four state-related universities and the University of Pennsylvania Veterinary School. Click here to read the Governor's statement. These universities had not received any state funding since their appropriations are authorized by separate legislation, each needing a two-thirds vote.
The funding package sent to the Governor includes $1.5 billion in borrowing against the state’s Tobacco Settlement, some tax increases, and a large expansion of gambling. The gambling expansion did not include authorizing gaming devices or terminals in bars and taverns. For more information on the specifics of the proposal, use the following links: Click here for the fiscal note on the gambling expansion, HB 271. Click here for the fiscal note on the tax bill, HB 542.
Legislation changing educator furlough and seniority was also sent to the Governor. HB 178 also increased state tax credits for private school tuition and authorized the creation of charter school districts, or “multiple charter school organizations.” AFTPA is opposed to HB 178. On Wednesday, the bill passed the Senate by a vote of 35 to 15. Click here for the Senate roll call vote. The bill is now in the hands of the Governor with all other budget-related legislation. We have been in contact with the Governor’s office to communicate our opposition to HB 178, and we have learned that the Governor will be weighing all legislation in the week to come. He has until November 5 to take action on the bill before it would become law without his signature.
October 26, 2017
Senate sends furlough, seniority and charter expansion bill to Gov. Wolf
The Pennsylvania Senate voted on Wednesday on a 35-15 vote to concur on House Bill 178, the omnibus school code bill. Among many other provisions, the amended bill authorizes economic furloughs of educators and requires furlough and reinstatement decisions to be based on Act 82 performance levels. HB 178 also includes provisions to create "multiple charter school organizations," which permit charter schools to create charter "districts" across geographical and political boundaries. It also increases by $10 million available tax credits under the state's Education Investment Tax Credit (EITC) program. AFTPA opposed all of these provisions. Democratic Senators Jay Costa, Andrew Dinniman and Anthony Williams voted with the GOP majority, and Republican Senators Stewart Greenleaf and Mario Scavello voted against the the bill.
Temple University appropriation approved
The House approved on a 180-6 vote 2017-2018 funding for Temple University and other state and state-related universities. The Senate approved the bill unanimously on June 30, and the governor announced previously that he would sign the higher education appropriations when they reached his desk. Temple University will receive $150 million. The package of bills provide $600 million in state support for Temple, Pitt, Lincoln and Penn State universities and the University of Pennsylvania veterinary school.
More borrowing, gaming expansion breaks the budget impasse
The House approved a budget deal that ends the legislature's nearly four-month-old budget impasse by borrowing more, expanding gambling in the state and increasing some taxes. The gambling portion legalizes online gambling, 10 new "mini-casinos" and video-gaming terminals at truck stops. The revenue bill includes $1.5 billion in borrowing against the state's tobacco settlement. Legislators also approved applying the state sales tax, which is set at 6 percent, to more goods sold online.
More details to come.
The governor said he would consider all of the bills sent to his desk.
The House and Senate recessed until November 13.
October 19, 2017
House Moves Another Revenue/Borrowing Measure; Seniority Roll-Back and Charter School Expansion Passes
Late last night in a surprise move, the House passed a new revenue/borrowing measure in their latest effort to bring the budget impasse to a close. HB 542 passed the House on a concurrence motion by a vote of 102 to 88, only garnering the minimum amount of votes required for passage. Today, the Senate moved the bill to their Rules committee, as required by their operating rules, and had no further action on the measure. The Senate is adjourned until Monday.
As the bill passed the House, this new revenue/borrowing plan is a hybrid of various plans that have bounced back and forth between the two chambers. The amount of money borrowed was increased by $250 million to $1.5 billion, with the Tobacco Settlement set as the vehicle for the one-time payment. Under the bill, the Governor’s Administration would have the discretion to securitize the settlement or to sell the settlement, whichever was most cost-effective. The Senate had passed a plan to securitize (or bond) the settlement; the House favored a plan to sell the settlement. The increase in borrowing meant that the House could reduce the amount of taxes in the bill. The formerl proposed hotel/motel occupancy tax was eliminated by the House plan passed last night. This new occupancy tax would have ranked Philadelphia and Pittsburgh first and second in the nation in that type of tax. The new House plan also changed the method by which the proposed fireworks tax would be implemented and changed the effective date of the “online marketplace tax.” Examples of online marketplaces are Amazon and Ebay. Please see the attached for more detailed information about what was included in the House’s new revenue/borrowing plan. Click here for the record vote on HB 542.
Earlier this evening, the House closely passed HB 178, their newest version of the omnibus school code bill. This bill allows educator furloughs for “economic reasons” and further requires educators to be furloughed based on Act 82 performance levels, with seniority determining how furloughs are implemented within certain performance levels. In committee earlier today, the bill was amended to add provisions increasing EITC tax credits for private school tuition voucher organizations and to add provisions allowing for “multiple charter school organizations.” These organizations are essentially “charter districts” with no geographical boundaries. AFTPA is opposed to HB 178. Earlier this evening, the House suspended rules which required a six-house waiting period for final passage on a bill that was amended and passed the bill by four votes. Click here for today's record vote on HB 178. HB 178 now awaits Senate action and, and when the Senate returns on Monday, we anticipate the bill to be referred to the Senate Rules committee under the Senate’s rules.
Please call your Senators and ask them to vote NO on HB 178. If you have any questions or concerns, please let me know at your earliest convenience.
PHEAA Grant Funding for Online Courses of Study Moving in Both Chambers
This week, the Senate passed SB 53 by Senator Greenleaf. The bill sets rules for how PHEAA grants will be awarded to students who are enrolled in online courses of study, depending on whether or not the institution offering the courses is headquartered and domiciled in the Commonwealth. Click here for more detailed information on SB 53.
A similar bill, HB 1653, was reported out of House Education committee on Monday, and received “Second Consideration” earlier today. No amendments were adopted, and it awaits final consideration. Please let me know if you have any questions or concerns.
Other Bills Moving This Week
In addition to HB 1653, the House Education committee considered HBs 429 and 1386. Both bills were reported favorably from committee, and we anticipate a final passage vote next week.
HB 429 addresses personal financial literacy courses in secondary schools. The bill authorizes school boards to allow a course in personal financial literacy to be applied to social studies; family and consumer science; or mathematics coursework requirements for graduation. An amendment on the floor today added “business education” to the list of coursework to be satisfied. Click here for the latest version of HB 429.
HB 1386 addresses educator certification. It requires the PDE to issue certifications based on grade levels prescribed in the bill. Ciick here for the latest version of HB 1386. The new requirement would affect certificates issued on or after January 1, 2022. The bill prescribes the certifications to be issued according to the following grade levels and age ranges:
(1) Early childhood - prekindergarten, kindergarten, grades 1-4 or ages three through nine.
(2) Elementary - kindergarten, grades 1-6 or ages four through eleven.
(3) Middle - grades 6-9 or ages eleven through fifteen.
(4) Secondary - grades 7-12 or ages eleven through twenty-one.
(5) Specialized areas – prekindergarten- grade 12 or up to age twenty-one.
(6) Special education – prekindergarten-grade 12 or up to age twenty-one. An additional content area shall not be required for a special education certificate issued in accordance with this section.
Testimony revealed that the author’s intent was to address teacher shortages in the middle grades. One Representative voted against the bill, Democrat Mark Longietti. He stated that he was concerned about implementation of these new requirements with particular focus on those students already enrolled in teacher preparation programs who will graduate after 2020. He also expressed concerns that the bill’s proposed certification grade levels will decrease emphasis on early childhood learning. We anticipate the bill to come up for final passage next week.
In addition to the Education Committee, the House State Government Committee earlier today held two separate meetings to hear from the PA Historical and Museum Commission and consider HB 1460. HB 1460 requires both state pension funds to report additional information on their financial statements, including fees paid to investment managers. The bill received a unanimous vote to advance the measure to the full House for consideration, and was subsequently placed on the House Tabled Calendar.
If you have any questions or concerns about any of these bills, please let me know at your earliest convenience.
October 5, 2017
House and Senate Adjourn with No Movement on Latest Budget Proposal; Governor Announces His Own Plan
Yesterday, the House and Senate both adjourned without considering the latest revenue proposal, which included the 5% hotel/motel occupancy tax. Since the revenue proposal was not considered, the school code bill did not move as well.
The House did hold a vote, however, to force a shale tax bill from committee. In its current form, HB 113 renames the current “unconventional gas well fee” to the “unconventional gas well severance tax.” The bill does not have any effect on the state budget, but some believed that pulling the bill from the committee would have allowed a floor debate at some time in the future for imposing a state shale tax. The vote on HB 113 was unsuccessful in forcing the bill to the floor. Click here for the record vote.
With the failure of the latest revenue proposal, the Governor held a press conference to announce his own measures to ensure state payments for services. Click here for the Governor's statement from yesterday. Most notably, the Governor announced that he will seek to securitize the future profits of the PA Liquor Control Board for an up-front payment of $1.25 billion. This plan closely mirrors the Senate’s proposal for securitizing the Tobacco Settlement.
The House and Senate are not expected to return to session this week, as the House adjourned officially until October 16. The Senate remains adjourned until the call of the President Pro-Tempore; however, they are not expected to return until October 16 as well. Please stay tuned to your inbox for details.
School Code Bill Stalls in House; Welfare Code Bill Is Sent to Governor
HB 178 did not move in the House. Once the latest tax proposal stalled, the school code bill stalled as well. AFTPA is opposed to HB 178 as it contains language allowing school districts to implement “economic furloughs” and requires Act 82 performance levels to dictate the order of furlough and reinstatement.
HB 59 was sent to the Governor yesterday; click here for the record vote. HB 59 is the welfare code bill passed by the Senate in July. In July, the Governor’s Office was very public regarding their opposition to proposals in the bill. HB 59 requires drastic changes to the state’s Medicaid and other medical assistance programs. In addition, the bill limits Act 534 disability benefits for Commonwealth employees who are injured by those confined or imprisoned in Commonwealth facilities.
October 4, 2017
New Revenue Plan Brought to Legislators; School Code Bill Scheduled to Run
Last night, House Majority and Minority Leadership brought a new revenue plan to their caucuses for discussion. While House and Senate leadership experienced much opposition to the plan last night, early reports this morning indicate that the plan may be close to needing the required number of votes in the House of Representatives to pass.
HB 542, the tax code bill, was amended with the latest revenue plan last night in the House Rules committee. The main change in this plan was a new, 5% state tax on hotel/motel occupancy. Other parts of previous plans were also included: sale of the Tobacco Settlement, some fund transfers, sales taxes on fireworks, sales/use taxes on online marketplaces, and a modified expansion of gambling. This latest plan does not include a shale tax.
Both the Philadelphia and Pittsburgh delegations have grave concerns about the new hotel/motel occupancy tax since it would rank those cities as first and second in the nation for highest occupancy tax.
In addition to moving HB 542, the House has indicated that they will move HB 178, the Senate’s school code bill passed in July. This bill includes language allowing school districts to furlough educators for economic reasons and requires Act 82 performance levels to be the main criteria for furlough and reinstatement. AFTPA is opposed to this language. Please call your Representatives and ask them to non-concur in HB 178.
September 28, 2017
No Movement on Budget This Week
This legislative week ended earlier than usual today, without any movement on legislation to resolve the state budget impasse. Several legislators of both caucuses attempted to force a procedural floor vote on a shale tax bill; however, the necessary 102-vote majority remained elusive.
The House returns to session on Monday, while the Senate remains on a 6-hour call, with their next scheduled session day on October 16. Last week, the Senate refused to concur in HB 453, the House’s plan to balance the budget with fund transfers and the sale of the Commonwealth’s Tobacco Settlement. By a 43 to 7 vote, the Senate non-concurred in HB 453, and moved to appoint a conference committee to resolve the differences between the House and the Senate. The Speaker of the House has yet to appoint the House’s members to a conference committee on the bill.
While an agreement on HB 453 is necessary to end the budget impasse, there are still several other pieces of legislation that need to move in order bring the impasse to closure. Bills addressing the tax code, state-related university appropriations, the school code, the public welfare code, and many other areas are all expected to move in tandem with the any resolution on HB 453. There has been no movement on any of these code and appropriations bills since July.
If both House caucuses, both Senate caucuses and the Governor reach an agreement that satisfies all parties next week, we anticipate that the Senate will return to session to pass the final agreement. Please stay tuned to your inbox for developments.
September 22, 2017
Budget Impasse Lingers; PA Credit Rating Downgraded
As the state budget impasse is on the cusp of entering its thirteenth week, Standard and Poor’s has downgraded the Commonwealth’s credit rating due to the Legislature’s inability to resolve the budget deficit. Both the Governor and Senate Majority Leadership expressed the need to swiftly resolve the budget impasse. Click here to read the Governor's statement on the downgrade. Click here to read Senator Majority Leadership's statement on the downgrade. House Majority Leadership released a statement questioning the validity of the downgrade and expressing the need to reducing state spending on Medicaid and other safety-net programs; click here for the House Majority Leadership statement.
All eyes are on the House now that the Senate, on Wednesday, overwhelmingly rejected the House funding plan which relied mostly of special fund transfers and the sale of the Commonwealth’s Tobacco Settlement. Seven Republican Senators voted against their caucus leadership to approve the House plan; click here for the record vote. Senate leadership expressed the intention of appointing a conference committee to resolve the differences between the House and the Senate. However, a conference committee cannot officially conduct its business until the House appoints a committee as well. The House did not meet this week for voting session and is scheduled to return on Monday, September 25.
With the Governor’s and Senate’s spending plans relying heavily on borrowing, the Standard and Poor’s downgrade may prove to be even more costly for the Commonwealth. The House proposal to end the impasse did not include any borrowing; however, neither the Senate nor the Governor support that plan. It remains to be seen how the House and the Senate will resolve their differences. Stay tuned to your inbox for developments.
PDE Submits State ESSA Plan to USDOE
This week, the Pennsylvania Department of Education submitted the PA State ESSA Plan to the US Department of Education for approval. Click here for the PDE's ESSA webpage. On the right side of the webpage, you will find links to more pages covering each section of the State Plan, including an analysis of how the final submitted plan differs from the draft plan released over the summer.
September 20, 2017
House Budget Plan Stalled in Senate
Since convening session on Monday, the Senate has yet to take up the House spending plan passed in that chamber last week. In order for the plan to pass the Senate, twenty-six members of the Senate would have to vote yes, and there is wide-spread opposition to the plan at this time. The Senate Majority leader was very clear that he does not anticipate the support necessary in his caucus to pass the House plan, and he further indicated that a budget funding plan “is yet to be seen” which will garner the necessary support of the General Assembly and of the Governor.
Many organizations, including AFT Pennsylvania, were critical of the House plan for several reasons. The plan provided one-time funding for recurring budget expenses, like basic education, community college and university funding. The plan also was seen as illegal by many since the plan took funds from special taxes and fees to deposit in the general fund to pay for general fund services. Some special funds are created by law to pay for specific services for specific areas or industries. The revenue deposited in those funds are raised from special fees and assessments applied to specific types of transactions.
We are hearing that a compromise plan would most likely fall somewhere in between what the Senate passed in July and what the House passed last week. The Senate passed a funding plan which would had almost $600 billion in recurring revenue increases and $1.8 billion in borrowing against the state’s Tobacco Settlement. The House’s funding plan had no borrowing, a large amount of fund transfers from special funds, and sold the state’s Tobacco Settlement for a one-time, $1 billion payment.
With the House not in session this week, the funding plan is not likely to be sent to the Governor this week. The House returns to session on Monday.
September 14, 2017
House Passes Controversial Funding Plan
By a slim 103 to 91 vote, the House passed a funding plan last night and sent it to the Senate for concurrence. The Senate is not scheduled to return to session until Monday, September 18.
The plan, HB 453, represents the fund transfer component of the “Taxpayer’s Budget” proposal. The final version passed last night includes less in fund transfers than the original proposal, but also includes a new plan to sell the state’s Tobacco Settlement for $1 billion. Proponents of the plan stated that these provisions would not require any new tax increases.
Fifteen Republican House members voted with all Democrats against the bill; click here for the record vote. The plan is considered very controversial, and some consider the plan illegal. Opponents of the plan are concerned that the services and programs funded through the special funds and Tobacco Settlement will be reduced or eliminated at the expense of programs and services funded through the state General Fund. In addition, some of these special funds are made up of assessments to businesses and other organizations, not tax dollars. Lastly, sweeping funds and selling Pennsylvania’s Tobacco Settlement results in one-time funds, which will only lead to more budget deficits in ensuing fiscal years.
It is unclear how the Senate will receive this plan. When the House adopted the amendment to HB 453 last night, they deleted all provisions of the funding plan passed by the Senate in HB 453. Stay tuned to your inbox for details. We will know more when the Senate returns to session next week.
No Movement on School Code Bill
The House has cancelled session for today and tomorrow, signaling that there would be no movement on HB 178 or SB 227, the school code bills. These bills contain many provisions, including allowing “economic” furloughs of educators and replacing seniority with Act 82 evaluation results to determine who is furloughed. AFTPA is opposed to this language.
If the House and Senate reach agreement next week on the budget, we anticipate some movement on the code bills. Please keep up the pressure on HB 178 and SB 227. Ask your Representatives and Senators to vote NO on any bill including furlough and seniority language.
September 11, 2017
House Returns to Session to Debate Revenue; September 15 Deadline Looms
Today, the House returned to session with the goal of staying in session until the budget impasse is resolved. The House Majority Caucus has continued to remain oppositional to the revenue plan passed by the Senate in July. State Treasurer Joe Torsella has publicly stated that his office will not continue to release funds for state services without a revenue plan in place. Click here for his August statement. September 15 is viewed as an important date since that day is a payday for Commonwealth employees. If the House fails to pass legislation to end the impasse, the Treasurer’s office could decide to withhold funds for paying Commonwealth employees, funds for K-12 education, and funds for community colleges. For your information, I have attached the PDE Payment Cycle, which details payments by subsidy and by month. Look for the monthly list to see which payments could be withheld in September.
This afternoon, both the Republican and Democrat caucuses will have closed-door discussions on a plan developed by a several members of the Republican caucus. The Taxpayers’ Budget, as it was named by the group, depends on various avenues for revenue, including $2 billion in fund transfers and other one-time revenue. The plan includes around $70 million in increased taxes.
The most controversial part of the plan relies on sweeping more than $1 billion from special funds in the state treasury. Most state services are provided with appropriations from the General Fund. For example, Basic Education funding and state appropriations to colleges and universities are provided from the state General Fund. However, there are other funds in the state treasury, as well. Some of these funds contain revenue from taxes, while other funds contain revenue from fees. For example, when Pennsylvania residents renew their driver’s licenses, the fee that is paid is deposited into a special fund, not the General Fund. Another example would be fees paid for educator certifications and professional licenses. Those fees are deposited into special funds, not the General Fund. I have attached a list of the funds which are part of their proposal. The list indicates which funds are to be swept and how much will be transferred to the state general fund.
Many state services are funded through these special funds. Transportation funds are cut drastically in the proposal. The plan calls for sweeping $357 million from the Public Transportation Trust Fund and $120 million from the Multimodal Transportation Fund. Various environmental, recycling and conservation services funds also sustain a cut in the proposal—more than $200 million.
The Governor has already expressed his opposition to this plan. Not only does the plan raid funding for essential state services, it also does not contain enough recurring revenue increases to retain the Commonwealth’s bond rating. It remains to be seen how this plan will move through the House. If the plan fails, most believe that the House will move a modified version of the Senate proposal from July—less borrowing, different tax revenue options, decreases in tax credits, and some fund transfers. No matter what new House proposal moves to final passage, it still must be considered by the Senate for final approval.
AFTPA is working to end the impasse as quickly as possible with a solution that works. Stay tuned to your inbox for details.
Seniority and Furlough Language Waiting in School Code Bills
Both school code proposals, HB 178 and SB 227, contain language allowing economic furloughs of educators and linking Act 82 evaluations to furlough decisions. AFTPA has communicated to all members of the House of Representatives and the Governor that these provisions should be removed from the school code proposals.
Attached you will find our letter to the House. The bills could come up as early as tomorrow for final passage. Please call your Representatives and ask them to oppose any school code bill which contains furlough and seniority language.
PDE Payment Cycle
Taxpayers Budget Spreadsheet
Please Vote NO HB 178 and SB 227
August 2, 2017
AFTPA Bill Chart Attached
Attached, you will find a bill chart detailing all AFTPA-tracked legislation which has moved in the legislature since January. Each bill number in the chart is a hyperlink to complete information on the legislation. If you have any questions or concerns, please let know.
PDE Publishes Draft ESSA Plan
Today, the Pennsylvania Department of Education published the draft state accountability plan required by the federal Every Student Succeeds Act (ESSA). Click here for PDE webpage on the ESSA state plan. The page contains a link to an online survey which will be open until August 31. Please let me know if you have any questions or concerns.
State Senate and House Publish Fall Session Calendar
Both the House and the Senate have published their fall calendars. Click here for Senate fall schedule. Click here for House fall schedule.
Now that the schedule is published, we know when state senators and representatives will be in their district offices. Please contact me at your earliest convenience if you would like to scheduled meetings with your legislators. It is important that they hear from us on our issues!
July 31, 2017
House Slow in Taking Up Senate Budget Proposal
Last week, the Senate passed several bills allowing for the enactment of the 2017-18 state budget, including a revenue package containing $571.5 million in new revenue and $1.8 billion in borrowing against the Commonwealth’s tobacco settlement. To date, House leadership has not announced any plans to reconvene the full House to consider the Senate’s proposal.
The bulk of the new revenue is achieved through an increase in the state’s gross receipts tax on natural gas, telecommunications, and electricity. These three increases are estimated to raise $405.8 million. The Senate’s revenue proposal also establishes a new unconventional gas well tax [shale tax] ranging from 1.5% to 3.5% of production volume. The proposal sets a 2% rate for the 2017-18 fiscal year, and the total revenue estimate for the state treasury is $80 million. Additionally, the state sales tax will be imposed on online marketplace sales, netting $43.5 million for the state. Other revenue proposals include a new consumer fireworks tax, a new electric grid virtual financial transactions tax, and state tax appeals reform.
This tax package passed the Senate with the minimum amount of required votes. Click here for the record vote on HB 542, the Senate's tax code bill. HB 542 now goes to the House of Representatives for concurrence, where its future is uncertain. House majority leadership has pushed back to tax increases, especially a shale tax, and they have consistently called on the Senate to consider House-passed legislation to further privatize wine and spirits sales and to further expand gambling.
Coupled with contentious policies passed in other code bills in the Senate, the House is sure to have much to debate when they return. Stay tuned to your inbox.
Educator Furlough Changes Move with Budget
Along with the tax code bill, the Senate also passed HB 178, the omnibus school code bill. I have attached the Senate fiscal note which contains descriptions of all changes in HB 178. Please let me know if you have any questions.
HB 178 contains several changes to the public school code, most notably, allowing for economic furlough of educators and requiring Act 82 evaluation results to determine the order of furlough and reinstatement. The language added to HB 178 also removes economic furloughs and the order of furlough from the collective bargaining process. For more details, please see the attached AFTPA document on the language.
AFTPA is opposed to HB 178. The bill passed the Senate by a vote of 34 to 16; click here for the record vote. It’s future remains uncertain in the House. Please call your Representatives, and ask them to vote NO on HB 178 or any other bill that allows economic furloughs and ties furlough decisions to Act 82.
July 27, 2017
Senate in Session; Teacher Furlough Bill Moving
The Senate convened late yesterday to move funding proposals for HB 218, the state budget enacted earlier this month. The Senate convenes today at 9:30 am, and they are anticipated to pass several code bills enacting budgetary language for HB 218. Late last night, these code bills were amended and moved out of the Senate Appropriations committee.
The omnibus school code bill, HB 178, was amended to include language allowing economic furloughs of educators and requiring Act 82 ratings to determine the order of furlough and reinstatement. Please see the attached document for specifics. AFTPA is opposed to the language in HB 178. Please call your senators and ask them to vote no on HB 178.
In addition, the Appropriations committee amended and moved HB 542, the vehicle including the Senate’s tax proposals. The revenue included in the bill will not be enough to address the entire budget deficit, so the Senate plan does include borrowing over $1 billion. The Senate tax plan also includes a modest shale extraction tax, coupled with decreased regulation. Please see the attached document for more details on the Senate’s tax proposals.
After passage in the Senate, HB 178, HB 542, and the rest of the code bills will go to the House for concurrence votes. As of this morning, the House has not scheduled a return to session. They did meet this past weekend, but moved no legislation.
Here's a good article on the status of the state budget: Senate sets sea-change revenue proposal, budget implementation bills
July 19, 2017
Change in Course of State Budget Negotiations; No Set Date for Return to Session
In a change of course, Senate Republican leadership has agreed to poll their members on a House-leadership-developed proposal for funding the state budget, instead of focusing on a proposal considered mostly “agreed-to” among four out of the five parties negotiating the budget. As we understand it, the House developed-proposal includes borrowing, fund transfers, further liquor privatization and a wide expansion of gaming. The proposal agreed to among most of the parties includes some tax increases, borrowing, some expansion of gaming, and no changes to liquor sales.
The Senate returned to session on Monday, only to leave Harrisburg yesterday when House leadership refused to accept any increases in taxes. The House has yet to return to session since July 11.
To date, Senate leadership has consistently rejected the wide expansion of gaming and liquor sales proposed by the House. The House has already passed several proposals which further privatize liquor sales. The House has also passed legislation expanding gaming, including allowing video gaming terminals (VGTs) in licensed establishments, which can include bars and taverns. To date, the Senate has refused to consider these expansions.
As for return to session, both chambers remain adjourned until the “call of the chair.” Senate leaders were quoted as saying they will use the next few days to determine if there is support in their caucuses for the House proposal, with an expectation to return by Monday. Stay tuned to your inbox for details.
Omnibus School Code Bill Caught in Budget Shuffle
To date, the only omnibus school code bill to move is SB 227. The bill awaits final passage by the House when they return to session. In the Senate, a code vehicle, HB 178, had been scheduled for several committee hearings, but on every day the bill was scheduled, the Senate adjourned without moving any code bills. Code bills refer to the bills that move along with the budget and address budget enactment for various state agencies, including the Department of Education.
As it awaits full House consideration, SB 227 includes the annual language necessary for the PDE to allocate funding to various education entities. The House Appropriations committee also amended the bill to authorize economic furloughs for educators; require Act 82 evaluations to determine who is furloughed and reinstated; require the appointment of financial administrators in districts which receive funds from the Educational Access Program designed for districts in financial difficulty; increase EITC/OSTC credits by $20 million; and limit state payments owed to the School District of Philadelphia under the basic education funding formula.
It is still unclear if the Senate will entertain these provisions, and AFTPA is communicating to all legislators that an omnibus school code bill should advance without these troubling provisions. Stay tuned to your inbox for details.
Independent PASSHE System Review Made Public
On July 12, the National Center for Higher Education Management Systems released their findings and recommendations pursuant to their review of the PA State System of Higher Education (PASSHE). To date, PASSHE has only released an MS PowerPoint presentation, which is attached (recommendations begin on page 41). Click here to read PASSHE's statement on the release.
APSCUF President Ken Mash said in a statement that he awaits further details on the report’s recommendations, which is scheduled to be released next week. Click here for APSCUF's full statement. If you have any questions or concerns, please contact me at your earliest convenience.
Release Time and Assessment/Evaluation Bills Removed from Calendar for Lack of Action
SB 494 and SB 756 were removed from the Senate Calendar due to lack of action. SB 494 limited collective bargaining of release time for union leaders in school districts. SB 756 changed student assessments and educator evaluation. AFTPA was opposed to both bills. Thanks to everyone for your emails and calls on the bills!!
July 17, 2017
Senate in Session Today; No Clear Path Yet to Revenue
Today, the Senate reconvened for session, with leadership alerting Senators that they should expect to remain in session for three days. The House of Representatives remains on a “six-hour call” with no indication of a date to return. We are hearing that House Leaders, Senate Leaders and the Governor, have all agreed on the amount of revenue to be raised. We are also hearing that they are close to an agreement on how the revenue will be raised—i.e., which taxes will be increased and which taxes will be created. Several taxes are not on the table for discussion as sources of revenue, including personal income tax, sales/use tax, and a natural gas extraction tax.
We are watching closely to see if the Senate moves code bills that are similar to what the House moved last week (details below). Stay tuned to your inbox for details.
With Budget in Place, State-Related Universities Still Left Empty Handed
Even though HB 218 has become law, some authorized appropriations will not be allocated. The state-related universities’ appropriations must be authorized by separate pieces of legislation in addition to HB 218, and those bills are stuck on the House calendar for consideration. The bills are:
- SB 326—Pennsylvania State University
- SB 327—University of Pittsburgh
- SB 328—Temple University
- SB 329—Lincoln University
These bills await House action, as they have already passed the Senate. Stay tuned to your inbox for details.
House Moves Language Affecting Workers
Last week, instead of concentrating on the budget stalemate, the House decided to move legislation affecting public employees. The House Rules and Appropriations committees both moved “code” bills with troubling language. Code bills are bills that move along with the general appropriations bill that set forth how agencies are to allocate the money appropriated under the general appropriations bill. Here is a run-down:
- HB 59—Human Services code bill. This bill makes sweeping changes to Medical Assistance (Medicaid) and several other areas in human services. The bill also limits a current benefit for injured workers in state and county facilities. The injuries must have been the result of an act of a patient or resident. Currently, employees who are injured are paid their salary and receive benefits until they return to work. HB 59 places a three-year limit on salary, medical and hospital benefits—and includes those employees who have already sustained injuries and are receiving these benefit. AFTPA is opposed to this language, as it affects members of FOSCEP, AFT Local 2382. This bill narrowly passed the House by a vote of 102 to 91 [102 votes are the minimum amount for passage]. Click here for the record vote. The bill awaits concurrence in the Senate.
- SB 227—School code bill. This bill enacts several funding formulae for various levels of education throughout the Commonwealth. The language adopted by the House also allows for economic furloughs of educators and requires Act 82 ratings to determine who is furloughed and reinstated. AFTPA is opposed to these provisions. SB 227 also affects school districts which are in financial watch status due to accessing funds from the “Educational Access Program.” (to date, the only district which has accessed these funds is City of Erie). SB 227 sets forth language which requires the Governor to appoint a financial administrator. The bill requires the financial administrator to issue recommendations on a district’s finances, including “consolidation of existing school buildings, existing non-instructional programs or other school district services.” AFTPA is concerned with this language as it has not had any public hearings to date. We ask that this language is stripped from the bill so that the legislature can hold further hearings and debate.
School Code Bill Short-Changes the Philadelphia School District; Increases EITC/OSTC Tax Credits
As if the changes detailed above were not enough, the House also added language to SB 227 that increased EITC/OSTC tax credits by $20 million, at the same time as denying $9 million owed to the School District of Philadelphia.
On October 1, 2014, the city of Philadelphia started to collect a new cigarette tax, with the revenue earmarked for the school district. Under the funding formula, the state incentivizes school districts to raise local revenue by increasing their state subsidy. SB 227 limits the inclusion of Philadelphia cigarette tax revenue to the 2016-17 school year and beyond. If the formula recognized this cigarette tax revenue at the time it was collected in 2014, the School District of Philadelphia would receive $9 million more from the Commonwealth.
The School District of Philadelphia is only asking that the formula apply to them as it applies to all other districts. Stay tuned to your inbox for details.
July 11, 2017
State Budget Becomes Law without Governor’s Signature
HB 218, the general appropriations bill, became law last night without the Governor’s signature. Click here for the Governor's statement. The legislature still needs to enact legislation to fund the entire budget, and the Governor asserted his willingness to continue to work to pass a revenue package that eliminates the budget deficit.
House Committee Advances Omnibus School Code Bill; Seniority Changes and EITC Expansion Included
Last night, the House Appropriations committee amended and passed SB 227. The bill passed by a party-line vote, with all Republicans voting for the bill and all Democrats voting against.
Attached, you will find the updated fiscal note which provides a description of all sections added to SB 227. The committee added language allowing economic furloughs of educators and requiring Act 82 ratings to determine which educators are furloughed. In addition, the bill now contains language requiring financial administrators to be appointed to oversee the finances of any school district which receives educational access program funding, which is a pool of money set aside for districts in financial watch status. The bill also increases the total available tax credits under EITC/OSTC by $20 million. Not included in the bill is language correcting an error in last year’s school funding allocation for the Philadelphia School District; the district is owed $9 million.
SB 227, along with other code bills moved last night in the House, are not “agreed to,” and we anticipate that these code bills will continue to be amended. AFTPA is working to strip language enacting significant policy changes regarding seniority and financial watch status. Stay tuned to your inbox for details.
http://foscep.pa.aft.org/sites/default/files/house_school_code_bill_fiscal_note.july102017.pdf
July 10, 2017
Charter School Bill Narrowly Passes Senate
HB 97 passed the Senate last night by a vote of 26 to 23. Senator Langerholc was on leave, so there were only 49 total votes cast. Click here for the record vote.
The bill now heads back to the House of Representatives for concurrence in Senate amendments. The Senate removed language reducing school district payments to cyber charter schools, in addition to replacing the House’s proposed funding study group with a legislative commission. The Senate adopted other amendments as well. It is unlikely that the House will concur with the removal of cyber charter payment reductions.
AFTPA is opposed to HB 97, whether or not it includes cyber charter savings. It remains to be seen how the House will act on the bill with such a focus in the Capitol on the budget debate. Stay tuned to your inbox.
Today Is Wolf’s Last Day to Act on Budget
Today is the last day for Governor’s action on the budget, and the legislature has yet to pass a bill to pay for it. The Governor has four options: let it become law without his signature, sign it, veto it, or line-item veto it. Governor Wolf has been quiet about his intentions, however, most believe that he will line-item veto the bill until expenditures meet the amount of revenue that the treasury is estimated to collect under current conditions. I will update everyone later in the day as to how things are developing. Stay tuned to your inbox.
AFTPA Watching School Code Discussions Closely
Since no revenue bills are moving, the legislature is beginning to move the code bills which move in tandem with the budget, namely the omnibus school code bill. This bill includes funding formula language for various levels of public education, and it is used sometimes to enact language with a more substantive effect. We are watching closely to make sure that language changing educator seniority or the charter school law are not included in the bill.
We are hearing that the House and the Senate have disagreements about the various code bills, so it is still unclear what will actually be included in the final version of the omnibus school code bill. Stay tuned for details.
JULY 8, 2017
HB 97 May Be Up for Final Passage in Senate
The Senate has scheduled HB 97 for an Appropriations committee hearing tomorrow, with final passage potentially later in the day. The Senate returns to session at 1:00, with the committee meeting to be held sometime after they convene. AFTPA is oppose to HB 97 for several reasons.
HB 97 passed the House by a close vote, 108 to 84; click here for the House record vote. The bill proposes sweeping changes to the charter school law. As it passed the House, the bill also reduced the amount of money school districts were required to send to cyber charter schools; however, Senate amendments adopted by the Education committee in June removed the cyber charter savings language. Other amendments drastically changed the funding advisory council created by the bill. As it now stands, the bill creates a legislative commission on charter school funding, and the commission is limited to addressing charter school funding on various levels.
If the bill is taken up in committee tomorrow, we anticipate that it will be voted out of committee for floor action. Please call your Senators and ask them to vote NO on HB 97.
Slow Day at the Capitol; Still Watching Troublesome Legislation
Today was a slow day in the House, with the non-preferred appropriations bills for state-related universities moving from the Appropriations committee. The bills still need at least two more legislative days to move to final passage. The House returns to session tomorrow morning at 10 am.
AFTPA is still monitoring legislation not related to the budget which may move in the next several days. HB 1213 still remains on the House calendar; however, it has yet to be called for a vote. HB 1213 limits school districts’ and other taxing authorities’ abilities to re-assess property on an interim basis. In addition, HB 1495 awaits a vote in the House Rules committee, but has not been scheduled. The bill allows for “economic furlough” of educators and requires school districts to use Act 82 ratings to determine the order in which educators are furloughed and reinstated.
Please stay tuned to your inbox for details.
JULY 6, 2017
Here's the latest from our AFTPA Government Relations Director, Alison Ocmand
Six Days in and No Budget in Place
Today marks Day 6 of the new fiscal year, and Pennsylvania still does not have an enacted budget. On June 30, the legislature did finally pass a general appropriations bill, HB 218; however, it has yet to be signed by the Governor. Before signing HB 218, the Governor has to certify that revenues are sufficient to meet expenditures, and revenue estimates do not indicate that the state treasury will have enough money to pay for the budget.
The deadline for the Governor to act on the budget is midnight on June 10, and technically, the legislature has until then to enact legislation providing for the revenue to fund HB 218. If the legislature does not provide for the revenue, the Governor can either veto the entire budget, or line-item veto the budget to the point that expenditures meet expected revenue.
The House is scheduled to return to session tomorrow. They still have ancillary and non-preferred budget bills to consider, namely SB 328, the appropriations bill for Temple University. The Senate is not scheduled to return until Saturday at 1pm. Please stay tuned to your inbox for details. Once a budget is fully enacted, I will forward on details to what was funded; what was cut; etc. Until then, everything is fluid.
Gambling, Liquor, and Borrowing; Oh, My!
Three avenues for state revenue have emerged as possibilities, but each avenue is very divisive. The House has already passed legislation expanding the places for consumers to access gambling and to purchase wine and spirits. Those measures have yet to receive action in the Senate. On the other hand, Senate leadership has been publicly supportive of borrowing $1.5 billion to more than $2 billion to balance the budget. While House leadership has not been vocal about the borrowing, they consistently focus revenue discussions on the legislation they have already passed regarding gaming and liquor expansion.
It remains to be seen how the House and Senate will iron out their differences. The deadline looms.
CORRECTION: The Governor has until July 10, to act on the budget—not June 10. I apologize for any confusion!
I also wanted to send a link to an Associated Press piece in US News and World Report, detailing Standard & Poor’s statement on Pennsylvania’s precarious budget situation. [Standard and Poor’s statements are not available to the general public.] Click here for the article.