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 May 10, 2010

High-Risk Pool Legislation Passes Senate

Last week my Senate Bill 507, legislation to establish a state High Risk Pool (HRP), passed the full Senate by a vote of 49-1. Senator Ferlo was the only "no" vote. The bill is a key component of Healthy PA, my plan to reduce health care costs and enhance the quality and access to care for Pennsylvanians. 

Many other states have some version of a high risk pool, which does not allow public funds to pay premiums. My legislation aimed to apply this provision to Pennsylvania law while establishing an independent board of directors to oversee the operations of the pool and ensure it is self-sustaining. The new federal health care law forced changes to my bill. The bill now goes to the full House for consideration. 

For more information, visit the Senate Newsroom.    

Senate Sends Bills to House

In addition to Senate Bill 507, the full Senate sent the following bills to the House. All bills passed unanimously, unless otherwise noted.

• Senate Bill 174 - establishes the Pennsylvania Center for Health Careers;
• Senate Bill 288 - establishes licensing requirements for plumbers. The bill passed by a vote of 32 - 18 (I was unable to support this measure);
• Senate Bill 383 - authorizes the establishment of problem solving courts;
• Senate Bill 629 - amends the School Code to include school social workers under the definition of "professional employee;"
• Senate Bill 928 - requires the state pension systems to divest from companies doing business in Iran and Sudan. The bill passed 42 – 7 (I was unable to support the measure);
• Senate Bill 1155 - establishes the County Officer and Employee fiscal Security Act as a part of the County Code;
• House Bill 975 - extends licensure for engineers, land surveyors, and geologists; and
• House Bill 1041 - brings the Pharmacy Act into compliance with federal law.  

Special Session on Transportation Opens

On May 4, the Governor opened the Special Legislative Session on Transportation to address Pennsylvania's many infrastructure needs.  In his remarks to a joint Session of the House and Senate, he outlined three options to address Pennsylvania's road and bridge needs:

1.  Raise the gas tax and/or increase drivers' license and vehicle registration fees

2.  Borrow $1 billion and $80 million in debt service

3.  Lease the Pennsylvania Turnpike and/or other Commonwealth assets 

Special Session History

The Governor has the power to call a special legislative session to address a timely and specific issue. Minus the special session opened last week, there have been 9 special sessions in Pennsylvania's history, which have had uneven results.

Budget Update

Even as the Governor calls for additional spending, taxing, and/or borrowing for transportation, Pennsylvania's General Fund budget suffered yet another blow. April's tax revenues were again below forecast, which brings the current budget deficit to more than $1 billion.  As in past years, the Governor predicted cuts in spending would result in employee furloughs and/or layoffs and called for new and/or higher taxes and user fees, including a severance tax on natural gas, new taxes on cigars and smokeless tobacco, vastly expanded sales tax (albeit at a lower rate), and increasing state taxes on oil companies.   

An interesting side note, the Governor has not addressed the 2012 pension spike.  

Committee News 

Education
The committee reported out Senate Bill 1248 which would require school districts to develop financial educational materials. I opposed the bill because I believe it is yet another unfunded mandate. Senate Bill 1297, legislation to require 180 school days even with cancellations due to inclement weather, was also reported out.  Senate Bill 1314, stricter accountability for charter and cyber charter schools, and Senate Bill 1318, establishing military appointments for state military colleges, also advanced through committee. The bills now go to the full Senate. 

Labor & Industry 
The committee reported out Senate Bill 1205, legislation to establish "work sharing" under Pennsylvania's unemployment compensation law.

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.