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Harrisburg Happenings By Senator Bob Mensch Dear Friend, What a week! For the first time in my four-year legislative career, a budget has been agreed upon by the Legislature prior to Independence Day. Even though we were on time, I voted NO. Relying on $850 million in unlikely funding from the Feds is not a viable strategy for both the short and long terms. This budget fails to focus on government priorities, such as transportation, pensions, MCare and unemployment compensation. These e-newsletters enable me to provide information about issues, events and activities in Harrisburg and around the 24th Senatorial District to you in a timely manner while saving postage costs. If you find this e-newsletter useful, I invite you to visit my website www.senatormensch.com for more information about your state government. If you do not wish to receive these e-newsletters, please click the "unsubscribe" button at the bottom of the page. Sincerely, Bob Mensch FY 2010-11 Budget Restrains Spending, Avoids Tax Increases On June 30, the Legislature approved a budget package for Fiscal Year 2010-11 that restrains state spending and maintains state services and programs without a broad-based tax increase. House Bill 2279, the General Appropriations Act of 2010, was the result of a compromise between all four caucuses of the Legislature and the Administration. In February, Governor Rendell requested a $1.155 billion – about 4.1 percent -- increase in state spending for Fiscal Year 2010-11. The final budget, which reduced spending by $1 billion from the Governor's request, appropriates $28.05 billion in spending for Fiscal Year 2010-11, a $182 million (0.6 percent) increase from $27.87 billion in Fiscal Year 2009-10. That minimal increase is particularly significant in that Pennsylvania also faces more than $1 billion in mandated increases for various programs and services in Fiscal Year 2010-11:
Senate Republicans successfully opposed the Governor's request to impose millions of dollars in new taxes. Rendell proposed to impose new taxes on "other tobacco products" – cigars and smokeless tobacco. The Governor also proposed the elimination of 74 current sales tax exemptions, which would have dramatically impacted family budgets and many small businesses that are struggling to stay in business during the current economic downturn. Senate Republicans also successfully opposed the Governor's proposed business tax proposals, such as eliminating the 1 percent fee granted to vendors for collection of Pennsylvania's sales tax and by imposing combined reporting by multistate and multinational firms of their income and expenses for tax purposes. The state simply cannot afford to impose regressive business tax policies at a time when Pennsylvania's unemployment rate is at 9.1 percent and many counties in our region are above 10 percent. Senate Bill 460 Would Regulate Tanning Salons The Senate approved Senate Bill 460, legislation intended to improve safety at tanning salons and require parental consent for minors. "Medical studies continue to show that early and excessive exposure to ultraviolent radiation, from the sun or artificial sources, greatly increases the likelihood of skin cancer in later years," Senator Browne said. "This legislation will provide greater assurance that consumers are protected and are making more informed decisions when choosing to use the services of a tanning facility." "This legislation enacts commonsense guidelines," Senator Browne continued. "It will require that these businesses operate under a licensing arrangement and that their management and staff are properly trained in the use of the equipment. It will ensure that patrons are advised of potential hazards and that minors have parental consent." Specific provisions of the Indoor Tanning Regulation Act include:
Senate Bill 460 is now before the House Health and Human Services Committee for consideration. Senate Approves Measure to Audit Methadone Treatment Costs Legislation I co-sponsored authorizing a performance audit of the state's methadone treatment and medical assistance transportation programs received final Senate approval on June 29. Senate Resolution 348 directs the Legislative Budget and Finance Committee to report on methadone treatment and transportation costs as well as average length of methadone maintenance. The LBFC will conduct a performance audit to examine the annual cost to the Commonwealth for methadone treatment and the length of treatment for each individual receiving treatment, and specifically determine whether there is a narcotic treatment plan for recovery from an individual's drug addiction rather than maintenance to methadone. The performance audit will examine the annual current cost of the medical assistance transportation program to the federal government, the Commonwealth and counties, and the savings that would result if an individual would be required to receive treatment at the facility closest to the individual's residence. The LBFC has 150 days to report the results of the audit to the Senate. Protecting Seniors' Rebates and Access to Prescriptions I recently introduced legislation that would bar Pennsylvania from claiming rebate checks that the federal government will provide to Medicare recipients. The bill protects those seniors who participate in PACE, from program restrictions on what prescription drugs they can access. Senate Bill 1437 specifically prohibits the Pennsylvania Department of Aging from recovering PACE costs by trying to capture the $250 rebate checks Medicare Part D recipients are to receive from the federal government as part of the Affordable Care Act passed by Congress. Some states, such as Vermont, are making plans to reduce state pharmacy assistance benefits for seniors who are expected to receive $250 rebate checks as part of a federal initiative to reduce gaps in coverage under Medicare Part D. The checks are intended to close the coverage gap many Medicare plans have when seniors must pay all prescription costs out-of-pocket. Senate Bill 1437 would prohibit the Department from taking or attempting to take the rebate checks from recipients. SB 1437 also would require the Department of Aging to receive legislative authorization before entering into any agreements that would create a restrictive drug list for PACE participants. The Governor recommended in his budget proposal for Fiscal Year 2010-11 that PACE to merge with the National Medicaid Pooling Initiative (NMPI). The NMPI is a multi-state drug pool that currently includes only state Medicaid programs with restrictive drug formulas or preferred drug lists. Pennsylvania’s PACE Program does not have a restricted formula, so the Administration’s proposal could end up limiting access by senior citizens to necessary medicines prescribed by their doctors.
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