On July 22, 2010, the Pennsylvania Stimulus Oversight Commission held its fifteenth meeting at the University of Pittsburgh.  Commission Chairman Ron Naples provided members with an update on ARRA activities in the Commonwealth, including cumulative investment and spending to date.  As of June 30, 2010, a total of $10.081 billion had been committed and $8.387 billion had actually been spent.  Secretary of General Services James Creedon provided an implementation report on transportation, clean water, and energy.  The Commission then heard presentations from representatives of area universities regarding their usage of stimulus funds especially in the area of academic research grants.  These institutions included the University of Pittsburgh, Carnegie Mellon University and Duquesne University.  Members of the Commission also heard from the City of Pittsburgh, the Pittsburgh School District, the Pittsburgh Port Authority about their usage of ARRA funds for various improvement projects and programs.  In addition to these presentations, a deputy district engineer from the U.S. Army Corps of Engineers’ Pittsburgh District provided the Commission with information on stimulus funds being used in the Pittsburgh area for construction and maintenance projects.  Finally, a representative of the Three Rivers Workforce Investment Board provided members with information on their usage of workforce development funds to support and augment existing workforce development funding streams.  For a summary of the July 22nd meeting, click here.  Information on this meeting and past meetings of the Commission can be found here.

FY 2010-2011 Budget Signed into Law

On July 6, 2010, Governor Rendell signed House Bill 2279 containing the 2010-2011 proposed state budget into law as Act 1A of 2010.  The measure sets general fund spending at $28.04 billion – a figure that represents a 0.7 percent increase over last year’s budget and $1 billion less than originally requested by the Governor.  The new budget successfully restrains state spending, while maintaining state services and programs without a broad-based tax increase.  Among other highlights, the spending plan includes a $250 million increase for basic education, an additional $8 million for the Educational Improvement Tax Credit program, and the restoration of funding for such popular initiatives as the Science in Motion program.  The budget anticipates $850 million in federal FMAP (federal medical assistance percentage) funds, as well as the creation of a $121 million hospital assessment plan.  A companion measure, Act 46 of 2010, amends the Fiscal Code to provide for budget implementation language, including the parameters for the distribution of education funds for the 2010-2011 Fiscal Year.  This legislation also establishes the intent of the legislature to create a natural gas severance tax and an independent fiscal office in the future.  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.  Talking points on the 2010-2011 Budget package can also be found here.

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. 

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.

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. 

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.