What's New 
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Stimulus Oversight Commission Holds Final Meeting
On September 22, 2011, the Pennsylvania Stimulus Oversight Commission held its twenty-second and final meeting in Harrisburg. Eileen McNulty, Deputy Director of the Stimulus Accountability Office, provided members with an overview of ARRA activities in the Commonwealth since the beginning of the initiative, including cumulative spending to date. As of August 31, 2011, a total of $17.5 billion had been committed and $16.98 billion had actually been spent. In addition, Robert Torres, State Health Information Technology Coordinator, provided members of the commission with an update on how Pennsylvania intends to deal with the issue of E-Health, the electronic sharing of medical health records and e-prescribing by pharmacies. For a summary of the September 22nd meeting, click here. Information on this meeting and past meetings of the Commission can be found here.
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Transportation Funding Advisory Commission Delivers Report to Governor Corbett
On August 1, 2011, the Transportation Funding Advisory Commission appointed by Governor Corbett in April 2011 released its final report on long-term transportation funding options. The Transportation Funding Advisory Commission was formed to identify an additional $2 billion to $2.5 billion annually for the state’s transportation funding shortfall. In addition to a recommended funding package, the Commission also made numerous suggestions for modernizing transportation processes, operations, infrastructure and technology in the Commonwealth. With regard to funding, the report recommends capping and moving a portion of State Police costs from the Motor License Fund to the General Fund; indexing vehicle and driver fees to the Consumer Price Index; uncapping the average wholesale price of gas and diesel fuel for purposes of the Oil Company Franchise Tax; and, redirecting Act 44 contributions from the Pennsylvania Turnpike currently used for highways and bridges to transit purposes. A copy of the Advisory Commission’s report can be found here.
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Governor’s Marcellus Shale Advisory Commission Releases Final Report
On July 22, 2011, the 30-member Marcellus Shale Advisory Commission released its final report with 96 policy recommendations. Governor Corbett appointed the Commission in March to develop recommendations on all aspects of natural gas drilling. The Commission held 20 public meetings where the body heard from 60 experts and 100 citizens. In addition, the Commission received more than 650 e-mails and letters from the public and visited well sites and related-businesses in formulating its recommendations. The 96 recommendations include tougher regulations for drilling, creating jobs in related industries and promoting the use of natural gas. To view a copy of the Commission’s final report, click here. A summary of the report can be found here.
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FY 2011-2012 Budget Signed into Law
On June 30, 2011, Governor Cornett signed House Bill 1485 containing the 2011-2012 proposed state budget into law as Act 1A of 2011. The measure sets general fund spending at $27.149 billion – a figure that represents a $1.1 billion reduction in spending from the 2010-2011 Budget. The new budget successfully reduces state spending, while maintaining state services and programs without any tax increases. A companion measure, Act 26 of 2011, amends the Fiscal Code to provide for budget implementation language. For a comparison of the new spending plan, the Governor’s original proposal, and last year’s budget prepared by the Senate Appropriations Committee, click here.
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LB&FC Releases Report on Pennsylvania’s System for Real Property Valuation and Reassessment
Recently, the Legislative Budget and Finance Committee released its report entitled Pennsylvania’s System for Property Valuation and Reassessment. The report was prepared in response to House Resolution 334 of 2009 which directed the agency to study the systems of real property valuation and assessment in place in Pennsylvania and other states, in particular Maryland and California, and to provide possible options to improve the system of property valuation, assessment, and reassessment in Pennsylvania. The report outlines some of the advantages and disadvantages of the various options available to change Pennsylvania’s current system based on systems in other states.
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Governor Rendell Releases Proposal to Finance PA’s Transportation Funding Shortfall
On August 23, 2010, Governor Rendell and Transportation Secretary Allen Biehler presented the Administration’s proposal to finance the Commonwealth’s transportation infrastructure needs to a joint, bipartisan meeting of legislators. The proposed plan is estimated to generate $1 billion in its first full fiscal year. Among other provisions, the proposal calls for an eight percent tax on the gross profits of oil companies doing business in Pennsylvania and an increase in a variety of license, registration and vehicle registration fees. To view a copy of the Administration’s presentation, click here. Additional information about Pennsylvania’s transportation infrastructure and its funding needs, can be found here.
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Status Reports on Stimulus Funds Now Available
Recently, the Commonwealth of Pennsylvania posted its fourth quarter 2009 status reports to the federal government on its usage of federal stimulus funds. Under Section 1512 of the American Recovery and Reinvestment Act (ARRA) legislation, each recipient of ARRA funds is required to file cumulative quarterly reports within 10 days of the close of the quarter. The key contents of the Section 1512 reports are: amount of funds received; description of the project or activity; an evaluation of completion status; an estimate of employment impact; information on grantees/sub-recipients; and additional detail for infrastructure work. The official report comprises 348 separate reports on funds that flow through Commonwealth agencies and departments. The reports on the individual projects and programs, as well as a fact sheet on the impact of stimulus funds in the Commonwealth and previous status reports, can be viewed here. Comprehensive information on Pennsylvania’s activities involving the stimulus program, including the work of the Pennsylvania Stimulus Oversight Commission, can be found at recovery.pa.gov.
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State of the Commonwealth: 2010 Released by the Pennsylvania State Data Center
The State of the Commonwealth: 2010 recently released by the Pennsylvania State Date Center provides an overview of the statistics that describe the important trends, unique characteristics, and areas of concern for Pennsylvania now and in the future. The publication is divided into seven sections, each of which provide a snapshot of some of the most important issues facing the Commonwealth. The Pennsylvania State Data Center is the Commonwealth’s official source for population and socio-economic statistics. The Center, which was established by executive order of the Governor in 1981, provides improved access to statistics available from the U.S. Census Bureau. To find out what’s new from the Data Center and to see what other products and services it has available, click here.
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L&I Releases Green Jobs Report
The Pennsylvania Department of Labor and Industry recently released Pennsylvania's Green Jobs Report—Part 1 detailing the outlook for green-industry careers and Pennsylvania's investments in developing a green economy in the coming years. The report indicates that the investment of $10 billion in public and private funds, over the next three years, is expected to generate 115,000 green-industry jobs in the Commonwealth. The Pennsylvania Green Jobs Report identifies careers in five statewide, green industry sectors: Energy Efficiency, Renewable Energy, Clean Transportation, Pollution Prevention & Environmental Cleanup and Agriculture & Resource Conservation. The report details occupations in each sector, provides employment projections, salary information, training requirements and outlines the skills necessary to compete and succeed in the green economy. Additionally, the report outlines current and forthcoming public and private investments in green industries, and their expected contribution to the Commonwealth's economic recovery.
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Health Care Organizations Establish Quality Measurement Website
The Pennsylvania Health Care Quality Alliance has established a website to provide free, detailed reports of hospital performance based on widely-recognized and established quality measures designed to be accessible to everyone. Users can find data on up to 39 different health care quality and experience measures, as reported by general acute care hospitals throughout Pennsylvania, and determine how hospitals compare with another and against state and national averages. The Pennsylvania Health Care Quality Alliance is a voluntary group of health care organizations with the goal of developing a state-wide approach to hospital quality measurement supported by quality-of-care data from a variety of public sources.
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Two New Reports Estimate Economic Impact of Marcellus Shale Natural Gas
In May 2010, the Marcellus Shale Coalition announced an update of a study originally released in 2009 on the economic impact of the Marcellus Shale natural gas play in Pennsylvania. The industry-funded study, The Economic Impacts of the Pennsylvania Marcellus Shale Natural Gas Play: An Update, indicates that natural gas formation could help create an additional 212,000 new jobs over the next 10 years and generate $1.8 billion in state and local tax revenue over the next 18 months. In July 2010, the American Petroleum Institute released a study it financed concluding that industry activity in Pennsylvania and West Virginia could generate $1 billion a year in taxes and indirectly support 100,000 jobs during the next decade as investments filter through the economy. For a copy of the American Petroleum Institute Study, click here.
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The Pennsylvania Environmental Council Releases Report on Marcellus Shale Drilling
In July 2010, the Pennsylvania Environmental Council released a report calling for swift action in new regulations and greater oversight of drilling and extraction of natural gas from the Marcellus Shale Formation. The report entitled, Developing the Marcellus Shale, includes a number of specific legislative and regulatory changes the group believes should be made to minimize the risk of accidents, environmental damage, and public health hazards stemming from drilling operations.
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Legislative Budget and Finance Committee Undertakes Review of State Tax Credits
Senate Resolution 20 of 2009 and House Resolution 127 of 2009 both directed the Legislative Budget and Finance Committee to undertake a review of 18 of the Commonwealth’s tax credit programs. In June 2009, the first of these reports, Pennsylvania’s Film Production Tax Credit and Industry Analysis, was released. Among other findings, the report concluded that the total industry produces fiscal benefits to the Commonwealth of $62.7 million. While some of this activity would occur without the benefit of the tax credit, a significant proportion of this activity would be at risk without such a tax credit program. Thus, on the whole, the industry could be said to produce a net fiscal gain in state and local taxes of $4.5 million ($62.7 million minus the $58.2 million cost of the tax credits). An LB&FC Fact Sheet with report highlights can be found here.
Preliminary reports on the Educational Improvement Tax Credit and Research and Development Tax Credit programs have also been released. The preliminary information on the EITC indicates that DECD has approved 239 scholarship organizations and 136 pre-K scholarship organizations for participation under the program. Together, these organizations awarded $50.3 million in scholarships in FY 2008-09. This $50.3 million came from contributions made by 3,190 businesses, which, in turn, received $44.8 million in tax credits. The study of the R&D program indicates that the Commonwealth receives more applications for credits than are available. In 2008, 554 businesses received R&D tax credits, 240 of which were small businesses. Applications from these 554 businesses totaled $82.7 million. Because the program is capped at $40 million, the tax credits were prorated among eligible applicants as provided for in the program’s enabling legislation.
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Existing Hunger Research and Resources Likely to Become More Critical During Economic Downturn
In January 2007, the Pennsylvania Inter-Agency Council on Food and Nutrition convened a Hunger Summit to hear testimony and conduct discussions on ways to address hunger and food insecurity in the state. The result of the summit was A Blueprint for a Hunger-Free Pennsylvania intended as a roadmap with the goal of eliminating chronic hunger in the Commonwealth by 2020. A brochure prepared by the Greater Pittsburgh Community Food Bank provides highlights of the Blueprint. The Inter-Agency Council on Food and Nutrition is composed of representatives from six state agencies (Aging, Agriculture, Community and Economic Development, Education, Health, and Public Welfare), as well as hunger and nutrition advocates and food providers for the hungry. The U. S. Department of Agriculture Economic Research Service, the Food Research and Action Center, the Pennsylvania Department of Agriculture, the Pennsylvania Association of Regional Food Banks, the Pennsylvania Hunger Action Center, the Greater Philadelphia Coalition Against Hunger, and the Food Trust all provide additional information on the scope of hunger in Pennsylvania and other states, as well as food assistance programs and resources.
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Latest Statistics Show Stable Decline in Medical Malpractice Cases and Verdicts
On April 19, 2010, the Pennsylvania Supreme Court released state court system data on medical malpractice case filings and verdicts for 2009 that show the declines of previous years in the number of lawsuits filed statewide are stable. In 2009, there were 1,533 filings, representing a 43.9 percent decline from the “base years” 2000-2002. In Philadelphia, the decline was nearly 60 percent during the same period. The base years are the period just prior to two significant rule changes made by the Supreme Court. The first change required attorneys to obtain from a medical professional a certificate of merit that establishes that the medical procedures in a case fell below applicable standards of care. A second change required medical malpractice actions to be brought only in the county where the cause of action took place in an attempt to eliminate so-called “venue shopping.” In addition to the press release and the 2009 data, data for prior years can be found here.
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Penn State’s College of Agricultural Sciences Releases Study Looking Beyond Current Recession
Pennsylvania: Road to Growth – 2001-07 and Beyond (The Economy: Jobs, Unemployment, Population and Forecasts) was recently produced by Penn State’s College of Agricultural Sciences. The study looks forward to the post recession period by providing a review of the track records of Pennsylvania industries and counties from 2001 to 2007 with regard to employment, unemployment and population. The report also includes a brief appraisal of the impact of the 2001 recession and statewide forecasts of key economic indicators. The report was prepared at Penn State’s Center for Economic and Community Development by Theodore R. Alter, professor of agricultural, environmental, and regional economics; Theodore E. Fuller, development economist; and Stephen M. Smith, professor of agricultural and regional economics.
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Latest LB&FC Assessment Finds that Lottery Sales and Net Revenues are Remaining Stable Despite Competition from Slots
In its latest annual report on the impact of slots on Pennsylvania Lottery sales, the Legislative Budget and Finance Committee found that the operation of slots facilities does not appear to have negatively impacted, at least in any significant manner, Pennsylvania Lottery sales or net revenues. In its more-detailed 2009 assessment, the LB&FC arrived at a similar conclusion. The annual assessment of the impact of slots on the Lottery is required by Act 71 of 2004, the Pennsylvania Race Horse Development and Gaming Act.
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Citizens Advisory Council to DEP Releases its 2009 Annual Report
The Citizens Advisory Council to the Department of Environmental Protection recently published its 2009 Annual Report detailing its activities during the past year. The Citizens Advisory Council was legislatively created in 1971 to review the environmental laws of the Commonwealth, to monitor and make recommendations for the improvement of the Department of Environmental Protection and to report annually to the Governor and the General Assembly.
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Report Provides Information on Pennsylvanians Earning the Minimum Wage
The Analysis of the Pennsylvania Minimum Wage in 2008 report recently released by the Minimum Wage Advisory Board provides statistical information on Pennsylvanians who earn at or below the minimum wage; analyzes the demographic characteristics of these hourly workers; and, details the industry characteristics of those making at or near the minimum wage. Act 112 of 2006, which provided two incremental increases in the state’s minimum wage in 2007, also mandated that the Department of Labor and Industry prepare this report by March 1st of each year to provide date on the previous calendar year’s demographics and any other relevant factors of those workers who are paid the minimum wage or below.
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School Choice Yearbook: 2009-10 Released
The School Choice Yearbook: 2009-10 prepared by the Alliance for School Choice provides up-to-date information on school voucher and scholarship tax credit programs across the country. During 2009, Indiana became the newest state to create a school choice program. In addition, student enrollment continued its steady growth—to 179,721, a nearly 5 percent increase over 2008–09 and an 86 percent increase over five years ago (2004-05). There are now 18 publicly funded private school choice programs operating in 11 states and the District of Columbia. These programs are evenly divided between school voucher programs (9) and scholarship tax credit programs (9). Of the 18 programs in existence, five are specifically designed to assist children with special needs. In 2009, Florida eclipsed Pennsylvania to become the state with the most students enrolled in school choice programs. Arizona and Ohio are now tied (with three programs each) as the states with the highest number of school choice programs.
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Two State Agencies Release Information on Healthcare-Associated Infections
In June 2010, the Pennsylvania Department of Health released its report on Healthcare-Associated Infections for 2009. The report shows that, from 2008 to 2009, there was a 12.5 percent decrease in healthcare-associated infections (HAIs), which are infections that patients acquired while in a healthcare setting and were not present when they were admitted for care. A total of 25,914 HAIs was reported by the 250 hospitals that were in continuous operation during 2009. This translates to an overall statewide rate of 2.37 HAIs per 1,000 patient days of hospitalization. The report includes HAIs for each hospital, with an emphasis on two specific infection types: urinary tract infections associated with the use of a catheter and bloodstream infections associated with the use of a central line. The report shows that 16 hospitals, or 6 percent of all hospitals in Pennsylvania, had better-than-expected performance measures in both of the infection categories highlighted in the report. In April 2010, the Pennsylvania Patient Safety Authority released its 2009 Annual Report which provides similar information, including data on HAI’s in long-term care facilities.
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The Governor’s Report on State Performance
Intended to increase state government’s accountability to those who live and work in the Commonwealth, the Governor’s Report on State Performance provides the citizens of Pennsylvania information on the objectives, strategies and accomplishments of 31 state agencies from July 2008 through June 2009.
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The National Report Card on
Higher Education
Measuring Up 2008: The National Report Card on Higher
Education is the fifth in a series of biennial report
cards prepared by the National Center for Public Policy
and Higher Education that provide the general public and
policymakers with information they can use to assess and
improve postsecondary education in each state. The
findings this year reveal that the nation and most of the
50 states are making some advances in preparing students
for college and providing them with access to higher
education. However, other nations are advancing more
quickly than the United States. The report can be accessed
on line at
http://measuringup2008.highereducation.org/index.php,
or access Pennsylvania’s State Report Card directly here
http://measuringup2008.highereducation.org/print/state_reports/long/PA.pdf.
- Senate Appropriations Committee Newsletters/Budget Information
- Senate Republican News Brief
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