March 2010
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House Appropriations Budget Hearing with Office of the Budget, The Department of Revenue, and The Office of Administration

The House Appropriations Committee concluded its scheduled budget hearings a day early with a late-afternoon hearing with the Governor’s Office, Office of the Budget, and Department of Revenue. The often times controversial hearing focused on all aspects of the budget and many members raised concerns about increasing spending in a recession and the Governor’s plan for the Stimulus Transition Reserve Fund. Budget Secretary Mary Soderberg calmly and methodically answered the questions of the members. The full story will be available as soon as possible in the Capitol Toolbox.


Coalition of State Social Service Providers Demand a Fair Budget Now

Led by Sharon Ward, Director of the Pennsylvania Budget and Policy Center a coalition of state social service providers rallied on the steps of the Main Rotunda in the Capitol Building to demand that state lawmakers pass a fair budget now.  Ward and others sported Band-Aids to illustrate the pain that is being caused by delayed payments to social service providers. Speakers at the event expressed first-hand knowledge of the type of hardships that citizens are being forced to endure while state lawmakers remain locked in a budget stalemate. Ward warned that if a solution to the budget impasse is not found soon, providers around the state will be forced to close their doors and turn away some of Pennsylvania’s most vulnerable citizens. Check the Capitol Tool Box later for more information.

Representative McCall and Rep. Eachus: Senate Republican Negotiations Have Not Been in Good Faith

Speaker of the House Keith McCall (D-Carbon) and House Majority Leader Todd Eachus (D-Luzerne) held a press conference this afternoon to express their anger and disappointment that the Senate Republican leadership has once again lowered its proposed spend number from $27.5 billion to $27.1 billion. Rep. McCall said that the proposal by Senate Republican leadership yesterday proves that previous discussions have not been “genuine talks,” and that he was insulted by Senate Republican leadership insinuating that the new proposal was the “first step” towards a budget agreement. Rep. McCall and Rep. Eachus also discussed sources of sustainable-recurring revenue, HB 1828, and how the two leaders would now proceed to call back the conference committee on HB 1416 next week.

Check the Capitol Toolbox later for more information.

Administration releases latest $500m round of budget cuts

At a press conference this morning, Governor Rendell announced his latest round of budget cuts, reducing state expenditures by a further $500 million. Among the most painful to him, the governor said, is the 100% cut to Classrooms of the Future, a pet project of his. A full spreadsheet of the cuts is available now on the Capitol Toolbox, while the full story will be posted later in the day.

Advocates call on General Assembly to take balanced approach to budget funding

The Pennsylvania Budget and Policy Center was joined by several other organizations in a rally to call on the General Assembly to take a balanced approach to funding the budget for the next fiscal year.  Advocates claimed that a budget balanced by cuts alone, or with cuts too deep in certain areas, would leave Pennsylvania’s future generations vulnerable.  Check the Capitol Toolbox later for the full story.

Senate Democratic Policy Committee – 9:00 a.m.

The Senate Democratic Policy Committee held a public hearing to review the Medicaid base rate and to discuss the financial situation of the commonwealth’s hospitals.  DPW Secretary Estelle Richman discussed the efforts of DPW to formulate a new rate system in the face of budget cuts.  Carolyn Scanlan of the Hospital and Healthsystem Association of Pennsylvania discussed the current state of Medicaid reimbursement as well as the harm that would be caused by further budget cuts.  Check the Capitol Toolbox later today for the full story.

Senate Finance – Off the Floor

The committee met to consider three bills. SB 165, SB 207 and SB 601 were reported as committed. Check the Capitol Toolbox later for the full story.

PLS obtains list of proposed 101 line item budget cuts

The Rendell administration has released a list of the 101 programs it has proposed to eliminate as part of the 2009-10 budget.

Community and Economic Development stands to be the hardest hit, with nearly $136 million on the block in proposed cuts of 25 programs. Coming in second is education, with 20 programs totaling $86.675 million. Other areas that will feel the pinch include:

Executive Agencies
(5 programs, $21.78 million)

Auditor General
(1 program, $400,000)

Agriculture
(10 programs, $7.2 million)

Conservation and Natural Resources
(2 programs, $10.6 million)

Environmental Protection
(4 programs, $19.5 million)

General Services
(1 program, $159,000)

Health
(12 programs, $25.5 million)

Insurance
(1 program, $133,000)

Labor & Industry
(4 programs, $13.35 million)

Military & Veterans Affairs
(4 programs, $12.4 million)

Public Welfare
(6 programs, $46.78 million)

Historical and Museum Commission
(3 programs, $5.24 million)

Public Television
(2 programs, $583,000)

Housing Finance Agency
(1 program, $1.23 million)

PLS subscribers can view and download the complete list from the Budget Box in Capitol Toolbox.