Mike's Memo

Welcome to a new year of "Mike's Memo," an update on what's happening in the 48th Legislative District, the State Capitol, and the progress on my "Promise to Pennsylvania," a pledge to advance government reforms, enact meaningful lawsuit abuse reform, eliminate wasteful state spending, and cut taxes. If you haven't done so already, please take a few moments to visit my website at www.senatorfolmer.com to learn more about issues that may affect you and your family.

Week of September 21, 2009

Budget Agreement Announced – Take 2

For the second time in as many weeks, the Governor and leaders from three legislative caucuses (Senate Republicans, Senate Democrats, and House Democrats) have announced a framework for a $27.945 billion state budget. Although specifics are still being worked out, the plan includes:

• Tapping into the Rainy Day Fund, Health Care Provider Retention Account, and MCARE;
• Enacting a tax amnesty program;
• Expanded leasing of state-owned land for Marcellus Shale drilling;
• Delay in the planned phase out of the Capital Stock – Franchise Tax;
• Expansion of the Net Operating Loss (NOL) provision of the Corporate Net Income Tax (CNI) and expansion of the Single Sales Factor of the CNI;
• Legalization of table games;
• A 25 cent increase in the Cigarette Tax, applying it to include "little cigars;"
• Tax amnesty program;
• Reduction in various tax credits by $39 million;
• Expanding the Sales Tax to include theaters, dances, music concerts and performing arts admissions, as well as museums, historical sites, zoos and parks; and
• Decreasing the share of slot revenues going to the Race Horse Development Fund from 12 percent to 10 percent for four years, with the 2 percent difference going to the General Fund.

The House-Senate Conference Committee will finalize details shortly.  I look forward to seeing more specifics prior to voting on the budget.

Senate Session Schedule

In order to move the budget process along, the full Senate is scheduled to be in Session the later part of this week and throughout the weekend.

Philadelphia Pension Plan Signed Into Law

House Bill 1828, which seeks to provide some relief to the City of Philadelphia's fiscally troubled pension plan was signed into law by the Governor as Act 44. HB 1828 passed the House 113 – 76 and the Senate 32 – 17.  I was a "no" vote on the bill.

I do not believe the legislation addresses Philadelphia's pension problems because it basically spreads the City's pension liabilities over 30 years and allows an increase in the local option Sales Tax from 7 percent to 8 percent. In my opinion, these provisions are not in the best interest of Philadelphia taxpayers.

Constitution Week

In honor of the 222nd Anniversary of the United States Constitution, we celebrate Constitution week September 17 – 23. The process of drafting the Constitution began when the Constitutional Convention began deliberations on May 25, 1787, and continued through September 17, 1787. September 17 is known as Citizenship Day.  Nine of the original 13 states were needed to enact the Constitution.  Dates when each state approved the document are:

For more information on these issues or other legislative and state topics, or if you are unable to open the bill links, visit the Pennsylvania General Assembly website at www.legis.state.pa.us. You may also want to visit "News for Constituents", a comprehensive look into various issues affecting Pennsylvanians across the Commonwealth.

Please feel free to contact me at any time on state-related issues that are of concern to you.  I may be reached through e-mail at mfolmer@pasen.gov, my website, or any one of my offices listed below.