Mixed Results For Pa. Officials ; Success And Failure Went Hand In Hand For Legislators In 2013. The Successes The Failures

Staff Writer

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It was supposed to be a year filled with legislation tackling the tough issues - transportation funding, liquor privatization and pension reform.

But in the end, state lawmakers fell short of those promises.

So, what worked and what didn't?

The biggest accomplishments of the year include a transportation plan, a balanced state budget plan passed on time, the approval of a 10-bill package of child protection laws and the announcement of a Corbett-approved health plan that would extend coverage to about 500,000 struggling residents.

Among the failures are pension reform legislation, the pitch to sell off the state's liquor stores, privatizing the Pennsylvania Lottery and passing property tax reform.

Local lawmakers said they finished up just half of their agenda during 2013 and hope to complete action on the other issues in 2014 - even in the midst of re-election campaigns for many members.

1. Bipartisan transportation bill

The Legislature came together in November to pass a transportation package with bipartisan support that pumps $2.3 billion into roads, bridges and mass transit systems.

Lancaster County's state lawmakers from both sides of the aisle, and in both chambers, stood united in support of the bill.

They said it will modernize the way the state collects revenue by eliminating the 12-cent-a-gallon liquid fuels tax and lifting the cap paid by wholesale gasoline dealers.

The money will be divided, with $1.3 billion devoted to state roads and bridges, nearly $500 million for public transit, $237 million to local governments for road maintenance and $86 million to the turnpike.

Supporters have acknowledged the bill most likely will raise prices at the pump. Studies have shown that the price could possibly increase by 28 cents a gallon when the plan is fully implemented over five years.

2. New child protection laws

In the wake of the Jerry Sandusky scandal, the Pennsylvania Task Force on Child Protection worked to overhaul the state's child- protection laws.

The result is a comprehensive 10-bill package signed into law this month.

The bills, taken together, will require more people to submit to clearance checks before working with children and require more people to report suspected abuse to authorities.

Other changes expand the state's definition of child abuse and lower the threshold of injury required to make a case.

While all of Lancaster County's lawmakers have supported the two- year effort, Sen Lloyd Smucker and Rep. Ryan Aument played a key role - crafting bills that would prevent child abuse and help identify what abuse is.

3. Corbett's health insurance plan

Corbett is seeking formal approval for his plan to use billions of federal Medicaid expansion dollars to buy private health insurance for more than 500,000 uninsured Pennsylvania adults.

Under Corbett's proposal, those who qualify would be given subsidies to buy private-market insurance. He also wants to charge premiums to people at the higher end of the income scale and impose job-search requirements on people who work fewer than 20 hours per week.

The plan would apply to people earning up to 138 percent of the federal poverty level, which is nearly $16,000 for a single person and $32,000 for a family of four.

People at the higher end of the poverty level will pay up to $25 for an individual and $35 for a family plan, but completion of a wellness program and work requirement can reduce the premium by half.

Members will be asked to pay $10 when they use the emergency room for a nonemergency.

If approved, the federal government will pay 100 percent of the costs for the newly eligible Medicaid recipients. After three years, the support gradually falls to 90 percent by 2020.

4. Balanced budget passed on time

Corbett kept alive his streak of delivering a state budget on time.

With about three hours to spare before the midnight deadline, Pennsylvania lawmakers approved a $28.4 billion spending plan.

The plan increased funding for public schools by $267 million, though about 60 percent of the increase will be devoted to the state's pension obligation for retired teachers.

Among other highlights of the plan were commitments to fund the training and enlistment of 290 new recruits to the Pennsylvania State Police; an increase in spending for the Attorney General's child predator unit; $320 million more for the Department of Public Welfare, which provides social service programs to low-income families and seniors; about $7 million more for economic development; and $10 million for the Children's Health Insurance Program.

1. Pension reform

State Budget Secretary Charles Zogby called 2013 The Year of Pension Reform. But it didn't happen.

Lawmakers failed to incorporate pension reform in the budget, causing the momentum to die out this fall.

But legislators are starting to look ahead to addressing the $47 billion unfunded liability from the state's two public pension systems.

Helping to lead the charge is Lancaster County'sMike Brubaker, a Republican state senator from Warwick Township.

"It will certainly be the top priority heading into the next year because every lawmaker knows that the system we have in place is broken," he said, adding that the only debate is over the language and timeline.

Brubaker's bill focuses on shifting most future employees into a defined-contribution retirement plan.

There are a few pension-reform bills floating around in the lower chamber.

There is a plan by Chris Ross, a Republican from Chester County, that mirrors Brubaker's plan in the Senate.

Then there's a proposal by Cumberland County Republican Glenn Grell that would move all future hires into a new defined-benefit system and authorize the state to borrow up to $9 billion over the next three years to help pay down the unfunded liability.

The plan that has gained the most ground, however, is from Chester County Republican Warren Kampf. His proposal sets up a defined-contribution system for new hires and gives current enrollees the option of moving over.

2. Liquor privatization

The effort to get the state out of the booze business went flat.

That was made clear in June when top Republicans in the Senate unveiled a long-awaited plan to privatize liquor sales that looked nothing like the proposal passed in the Republican-controlled House.

The plan didn't include a call to close the state wine and liquor stores or get the state out of the wholesale operation.

While the plan may not embrace privatization as much as House Republicans may have liked, it would spur competition by allowing the 14,000 establishments currently licensed to sell alcohol the opportunity to buy expanded permits to sell spirits.

The 18 percent Johnstown Flood Tax would be lifted on wholesale wine and spirit purchases by licensed establishments, giving them an edge over the state stores by allowing them to sell those products at a lower price.

The move would expand sales at first, but then the Liquor Control Board would begin to close unprofitable state stores. There's no timetable for that, however.

3. Pennsylvnia Lottery management

State Attorney General Kathleen Kane reshuffled the deck in February when she announced she was rejecting Corbett's deal to let a British firm take over the management of the lottery.

Kane, a Democrat, said Corbett, a Republican, overstepped his authority when he signed the 20-year contract with Camelot Global Services.

Under the proposed deal with Camelot, which runs the national lottery in the United Kingdom, profits totaling $34 billion are guaranteed over the life of the 20-year contract - an average of $1.7 billion per year. Officials promised state leaders they would deliver higher profits by reaching new audiences.

On Monday, Corbett anounced that he is ending his pursuit of hiring Camelot to run the state lottery.

4. Property tax reform

Every year lawmakers introduce proposals to eliminate property taxes and replace them with higher sales and income taxes.

The plans always seem to run out of steam when debate turns to the financial and logistical implications of the legislation.

But with a record number of supporters, including five state representatives and two senators from Lancaster County, the School Property Tax Elimination Act has wide bipartisan backing.

Under the proposal, the personal income tax would increase by 1.27 percent to 4.34 percent. The sales tax would be raised to 7 percent from 6 percent and would be charged on more goods and services.

The biggest sticking point, however, is how much the new tax structure would raise compared to what districts would lose by removing property taxes.

A report released in October by the Pennsylvania Budget and Policy Center put collections coming up about $2.6 billion short of what is needed in the next five years to fund the state's 500 school districts.