Mike's Memo

Infrastructure Bills Approved

The Governor signed a number of bills designed to address Pennsylvania’s infrastructure needs.  I supported two (SB 2 and SB 1341) of the five initiatives.

Senate Bill 2 - establishes the “H2O” plan that uses $800 million in gaming revenue (from the Pennsylvania Gaming Economic Development and Tourism Fund, not to be confused with the Property Tax Relief Fund, which provides money for property tax relief) for critical water and sewer projects and other infrastructure needs;

• Senate Bill 1341 - authorizes $400 million in borrowing upon voter approval for water and sewer repairs;
• House Bill 1589 - enacts the Capital Budget, which authorizes nearly $13 billion in various projects across the state; most of the projects will be funded through borrowing (I was the only no vote on this bill);
• House Bill 2231 - increases the Commonwealth’s debt ceiling by $800 million (from $2.65 billion to $3.45 billion) over four years ($200 million per year) to pay for items in the Capital Budget (I was the only no vote); and
• House Bill 2522 - authorizes $1.225 billion in additional Commonwealth debt for various public improvement projects (I was the only no vote).

Energy Package Signed Into Law

Governor Rendell signed into law a three-bill package relating to energy issues.  I was unable to support these bills:

• Special Session House Bill 1 - the Alternative Energy Investment Act, which borrows $500 million for energy projects and alternative fuels.  Passed Senate 47 – 3.  Click here to see how other Senators voted;
• Special Session Senate Bill 22 - provides $9.45 million in subsidies for alternative fuels.  Passed Senate 46 – 4.   Click here to see how other Senators voted;
• House Bill 1202 - establishes biodiesel and cellulosic ethanol mandates.  Passed Senate 47 – 3.  Click here to see how other Senators voted.

Insurance Changes

The full House and Senate overwhelmingly approved a number of important Insurance Law changes as part of House Bill 1150.  I voted for this bill. The measure provides:

• Stronger oversight for the proposed merger between Highmark and Independence Blue Cross;
• Coverage for autism services; and
• Mandated coverage for colorectal cancer screening.

The Senate also unanimously confirmed Joel Ario as the new Insurance Commissioner.

Mine Safety Update Now Law

The Governor also signed Senate Bill 949 into law.  This legislation, which passed both the House and Senate unanimously, provides the first update to Pennsylvania’s mining laws in nearly 50 years.

SB 1063 Now Act 32

The Governor also signed Senate Bill 1063 into law as Act 32.  This measure, which I cosponsored, will reduce the number of local tax collectors from 560 local tax collectors to 69 by 2012 and bring other important changes to Pennsylvania’s system of local earned income tax collection.  It has been estimated that the current tax collection system has been costing taxpayers $237 million a year in lost tax revenues.

HC4 Reauthorization Falls Short

Bills (House Bill 2648 and Senate Bill 1372) to reauthorize the Pennsylvania Health Care Cost Containment Council (HC4) were overwhelmingly approved by the full Senate, but not acted on by the House – mainly due to the Governor’s insistence that reauthorization not include an extension of the MCARE) program (a program that helps physicians with medical malpractice insurance costs).

These measures would have reauthorized HC4 until 2013 and authorized MCARE abatement for two years retroactive to January 1, 2008.  This abatement is paid for with cigarette tax revenues, which the Governor wants to use for either his “Prescription for Pennsylvania” or the House-passed health insurance plan, “Access to Basic Care” (ABC).  HC4 will continue operations by Executive Order until November 30th in the hope that a reauthorization bill can be enacted.