House GOP: See You In September For Pensions, Philly School Cigarette Tax

Speaker of the House Sam Smith (R-Jefferson) and House Majority Leader Mike Turzai (R-Allegheny) Thursday cancelled voting session set for August 4, 5 and 6 in the House saying public pension reform and a bill dealing primarily with the Philadelphia school district will be voted in September.

They also asked Gov. Tom Corbett to advance the School District of Philadelphia education funding to allow schools to open on time.

Gov. Corbett expressed his disappointment in the lack of House action, saying, “Let me make it clear: I believe that bill ought to run and it ought to run clean. Just the tax authorization.”

Corbett also said he is planning to have a sit-down meeting with Republican legislative leaders Monday, his first since the line item veto of legislative funding initiatives in the Fiscal Code bill passed with the budget in July.

The original purpose of next week’s session was to take up the Senate-amended House Bill 1177 (Lucas-R- Crawford) which would authorize Philadelphia to adopt a $2/pack tax on cigarettes, the same Philadelphia cigarette tax the House removed from the Fiscal Code bill earlier.

The Senate amended the bill before adjourning for the summer sending it back to the House on July 8.  House Republicans had been making noises about restoring the original language.

"We were prepared to come into session next week to vote once again for the enabling legislation for the Philadelphia schools," Rep. Smith said. "We worked hard to reach consensus on the additional public policy questions presented in the Senate-passed version of House Bill 1177, namely expansion in hotel taxes and the city redevelopment program.

"We are working with the Senate and governor to ensure Philadelphia has the resources it needs to keep the schools open. As we work out details of the legislation, we have requested the governor advance the Philadelphia School District funds necessary to ensure schools open on time in the city."

The hotel tax increases and City Revitalization and Improvement Zone (CRIZ) expansions require a more in-depth policy discussion, including House committees and the entire House, Rep. Smith said. The issues have not been vetted sufficiently in the House to get just an up-or-down vote.

"After conversations with Republican and Democratic House leadership teams, we will plan on taking up legislation dealing with education in Philadelphia when we return in September," Rep. Turzai said. "We are focused on quality education for the children of Philadelphia which includes some new, dedicated funding and the charter application and appeal process reform. We are also focused on needed public pension reform, which for Philadelphia, skyrockets up to $193 million next year."

According to school district officials, the enabling legislation would generate $1.6 million per week, meaning, if the cigarette tax had passed the General Assembly, been signed by the governor and fully implemented by July 1, 2014, $20.8 million would be collected for the School District of Philadelphia by the end of September. The district's budget totals $2.8 billion, of which nearly 45 percent are state funds.

Advancing the state dollars is nothing new. In fact, the governor transferred $400 million in payments to the School District of Philadelphia earlier than scheduled from the Department of Education in the 2013-14 fiscal year.

Both Rep. Smith and Rep. Turzai noted that last year, the General Assembly acted to lift the expiration of the 1 percent Sales and Use Tax for Philadelphia to dedicate up to $120 million of proceeds to the school district. Philadelphia City Council refused to enact the needed enabling legislation for almost a year.

On pensions, Gov. Corbett has been criss-crossing the state since the Senate and House adjourned in July trying to get the public to put pressure on members to do something on “meaningful” on pension reform and “stand up to unions.”

Both the Senate and House have been working, they say, on proposals, but gathering the necessary votes has been unsuccessful so far.

Sen. Scarnati put out a statement Monday explaining the Senate unanimously passed Senate Bill 922 (Brubaker-R-Lancaster) in July which takes an important first step to move all elected officials, including members of the General Assembly, out of a defined benefit public pension plan to remove this financial burden from taxpayers.

Another effort by the House to solve the state’s pension crisis cleared a significant hurdle Wednesday when the actuarial note on an amendment by Rep. Glen Grell (R-Cumberland) to House Bill 1353 was approved by the Public Employee Retirement Commission.

NewsClips:

House GOP Cancels Next Week’s House Session

House Cancels Monday Session

Cigarette Tax For Philly Schools Officially Smoked

Philly Cigarette School Tax Hits A Legislative Roadblock

House Leadership Delays Vote On Cigarette Tax

Cigarette Tax Vote Hits PA Legislative Roadblock

Corbett, Senate, House Leaders To Meet On Cigarette Tax

Editorial: Cig Tax Imperiled Again Because House Can’t Bother

Corbett Is Not Switching Horses In Pension Debate So Far

Senate Hires Lawyer, Considers Suing Corbett

Senate GOP Looks To McCord On Corbett Vetoes


8/4/2014

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