PRSRT STDU.S. POSTAGE

PAID

HARRISBURG, PAPERMIT NO. 529

State Representative

Sue Helm

PO Box 202104Harrisburg, PA 17120-2104

SueHelm.net

Dear Neighbor:

The past year has presented manychallenges locally, statewide and acrossthe country, but Americans continue tostand together through these difficulttimes. With a national recessionstill gripping our economy, stategovernment must continue to reinin spending and use your tax dollarsefficiently and effectively.The ensuing months ahead will,no doubt, be just as challenging asthe General Assembly begins thebudgeting process for the 2010-11fiscal year, which begins on July 1.My colleagues and I in Harrisburgmust look further ahead than justnext year and adequately prepare ourCommonwealth to successfully rise outof this economic downturn. It will notbe easy; however, I believe the bestapproach is for Harrisburg to adopta fiscally conservative mentality andleave the taxpayers out of the equationfor additional funding for stategovernment operations.It’s important to me to hear frommy constituents on issues and policiesunder consideration in Harrisburg. Iencourage you to call, write, or visitmy office to share your opinions andthoughts on what state governmentcan do differently yet still meet theneeds of Pennsylvania residents.If you have any questions orconcerns, please do not hesitate tocontact me.Sincerely,

Sue Helm104th Legislative District

Spring 2010

Governor Proposes More Spending inEconomic Downturn

When the governor presented his final state budget to the General Assembly on Feb. 9, my initial reaction was concern over how much hisbudget relies on federal stimulus funding. As the recession continuesto impact states across the country, the federal government instituted afederal stimulus plan to provide financial assistance to the states, includingPennsylvania.This additional revenue has been a blessing and a curse on theCommonwealth’s finances. It has helped in areas where revenues aredeclining; however, the federal stimulus program is not permanent. In alittle more than a year, Pennsylvania will lose nearly $3 billion as the stimulusfunds run out. This will leave a serious deficit in state revenues. Lastyear’s budget relied heavily on stimulus funding in addition to completelydraining the Commonwealth’s reserve accounts. This year, the governor hasintroduced his budget, which is predicated on the Commonwealth receivingan additional $800 million in federal stimulus funds. It’s important to notethat Congress has yet to pass legislation in Washington, D.C., that wouldprovide this revenue stream. I believe it is unwise for Pennsylvania todepend on money it does not have, or may not receive.What state government must do is take a step back and analyze actualrevenues and design a budget based on these numbers. If the federalstimulus funding comes through, great, but if it doesn’t, we will be facinga gaping deficit for taxpayers to fill. State spending should only matchrevenues and not a penny more. We must break the mindset that taxpayersare an endless supply of cash and operate in a framework to use the moneywe currently have.Including stimulus money, the governor proposes to spend $29 billionnext fiscal year, which equates to a $1.2 billion, or a 4 percent, increasein spending. If the governor’s budget is enacted as presented, the totalspending increase over the past eight years would equal $8.6 billion, or42 percent. In comparison, since the founding of the Commonwealth in1682 through 2002, statespending totaled $20 billion.This level of spending isunsustainable on the back of the hard-working menand women throughoutPennsylvania.State government needsto control its spendingappetite in order to preventfurther financial harm to ourfamilies and businesses.

Governor’s Sales TaxProposal Will CostTaxpayers More

A key proposal included in the governor’sbudget would significantly alter the state sales tax. As presented, the rate would drop from the current6 percent to 4 percent, while broadening it to 74items that are currently exempt. The more than$530 million in anticipated revenue would be usedto fund state government operations. Since theunveiling of his plan, the governor has stated thatthis change would result in savings to taxpayers. Iquestion this since many of the 74 items that wouldbe subject to the sales tax are used and purchasedby the majority of taxpayers.Under his plan, sales tax would be charged onresidential electric bills. This would be in additionto the rate caps that were lifted at the end of 2009for PPL customers. While ratepayers were neversubjected to sales tax in the past, they would be if the governor’s proposal is enacted. Depending on afamily’s electric use, this could result in a significantadded cost.The governor also proposes applying the salestax to sewer and water services that nearly everyhome in Pennsylvania utilizes. Citizens already paya hefty price to maintain water and sewage servicein their homes, and the sales tax would increasethese costs.In addition, the governor’s plan proposes toadd sales tax on basic television services; candy;gum; dry cleaning; non-prescription medications;veterinary fees; amusement and recreationadmissions; coal; firewood; residential oil and gasfuel; and telephone service.Some argue that the sales tax is avoidable. Ibeg to differ; if citizens are charged sales tax ontheir electric, sewer and water bills, I’m curious howthey can avoid paying the sales tax on these items.In virtually all situations, people need sewer, waterand electric services to keep their home functioning.In fact, I believe the governor’s proposal wouldactually cost taxpayers more over the long term.I understand and recognize the Commonwealthis facing revenue shortfalls; however, I believe themore prudent action would be for state governmentto reassess its spending priorities to ensure they arein line with what the people of Pennsylvania need.It’s time for elected officials in Harrisburg tostop reaching into the taxpayers’ pockets andtaking more of their hard-earned money. Like alllevels of government, the citizens of Pennsylvaniaare also bearing the burden of the downturn inthe economy. Many have lost their jobs, had theirwages frozen or have realized a decrease in take-home pay. Based on the tax burden placed oncitizens by the federal, state and local governments,now is not the time to think of taxpayers as a blank check.

Applications Now Availablefor Property Tax/Rent RebateProgram

Applications for the Pennsylvania 2009 Property Tax/RentRebate program are now available.Eligible participants can receive a rebate of up to $650based on their rent or property taxes paid in 2009. The programbenefits eligible Pennsylvanians who are 65 years or older,widows and widowers 50 years or older, and those 18 years orolder with disabilities.Eligibility income limits for homeowners are set at thefollowing levels, excluding 50 percent of Social Security,Supplemental Security Income, and Railroad Retirement Tier 1benefits:• $0 to $8,000, maximum $650 rebate(Homeowners and renters)• $8,001 to $15,000, maximum $500 rebate(Homeowners and renters)• $15,001 to $18,000, maximum $300 rebate(Homeowners only)• $18,001 to $35,000, maximum $250 rebate(Homeowners only)The Property Tax/Rent Rebate program is one of manyinitiatives supported by the Pennsylvania Lottery, whichdedicates its proceeds to support programs for olderPennsylvanians. Since the program began in 1971, more than $4billion has been paid to qualified applicants.Residents are reminded to provide all the necessary income,property tax or rental information required to process claimsquickly and accurately. Applications are due by June 30.Property Tax/Rent Rebate claim forms are available bycontacting my office, or by visiting my Web site at

SueHelm.net.

As a way to reduce costs and to continue providing information to the residents of the 104th LegislativeDistrict, I send out periodic e-mail updates about news and legislation under consideration in Harrisburg and eventsthroughout the local area. If you would like to receive e-mail updates from my ofﬁce, visit

SueHelm.net

andlocate the “Get E-Mail Updates” section.

You Can Help Find a Cure forBreast and Cervical Cancer

With more than 10,000 Pennsylvania women diagnosed withbreast or cervical cancer each year, Pennsylvania residents cantake part in helping to ﬁnd a cure. In 1997, Gov. Tom Ridge signedthe Pennsylvania Breast Cancer Coalition’s (PBCC) income taxcheck-off legislation into law, which allows citizens to donate theirstate tax refund to breast and cervical cancer research. So far, theprogram has raised more than $2.5 million. One hundred percentof donations are distributed as grants to outstanding researchersacross the Commonwealth.The income tax check-off for breast and cervical cancerresearch continues to be a favorite among state taxpayers. Eachyear, thousands of Pennsylvanians donate their state tax refundto breast and cervical cancer research, which averages $8 perdonor. Although this may seem minimal, any amount is greatlyappreciated.To donate your tax refund to the PBCC’s breast and cervicalcancer research fund, be sure to complete line 35 on the tax formPA 40. For additional information, visit my Web site at

SueHelm.net.

Residents Encouraged to Use Road-Damage Hotline toReport Poor Road Conditions

Motorists are encouraged to contact the Pennsylvania Department of Transportation(PennDOT) to report potholes and other problems with state roads.Based on the caller’s phone number, calls are directed to local PennDOT maintenancefacilities, where problems can receive the appropriate attention. The following information ishelpful when calling in a report:• The county and municipality where the problem is located.• The state route number, which can be found on the small white-and-black signs postedalong state roads, where the problem is located.• Describe familiar landmarks nearby in order to help PennDOT crews locate the problem.The toll-free maintenance hotline can be reached at 1-800-FIX-ROAD (1-800-349-7623).In addition to reporting potholes, motorists may also report missing highway signs, shoulderdrop-offs, roadway washouts and other potential hazards.Spring weather is much more difﬁcult on roads because water can seep below the roadthrough small cracks in the pavement surface. As the water freezes and thaws in the spring,a cavity can form below the road, undermining the strength of the pavement and causing apothole. During winter, road damage is most likely to only be temporarily repaired so thatstronger materials can be used in the spring and summer.

Applications for StateEducation Assistance GrantsNow Available

Students seeking state higher education assistancegrants for the 2010-11 academic year may now beginsubmitting applications.Need-based Pennsylvania State Grants are provided toqualiﬁed Pennsylvania residents through the PennsylvaniaHigher Education Assistance Agency (PHEAA) and do nothave to be repaid. Students must complete and submitthe Free Application for Federal Student Aid (FAFSA) to beconsidered.Individuals with Internet access may ﬁle their FAFSA electronically at

www.PHEAA.org/FAFSA

or at

fafsa.ed.gov.

Completing the FAFSA online reduceserrors and speeds up the processing time.

May 1 is the deadline for the PennsylvaniaState Grant,

but families should contact the schools theirstudent is interested in attending, as many have earlierﬁnancial aid deadlines.Federal, state and institutional student aid programshave varying deadlines. Be sure to submit a completedFAFSA prior to the earliest deadline for awards for whichthe student may be eligible.The PHEAA Web site offers services to managestudent accounts successfully and obtain informationabout Pennsylvania State Grants or special programsthat would be relevant to secondary education students,including account summaries, free online applications,online payment options, and additional forms of ﬁnancialassistance such as work-study programs, special grants orscholarships and loan forgiveness programs for those whoqualify.For more information on FAFSA Workshops, PHEAA grants or for an application, visit my Web site at

SueHelm.net

, or contact my district ofﬁce.

Families Should Be Waryof SuspiciousStudent Financial AidOffers

The Pennsylvania Higher Education Assistance Agency (PHEAA) is alerting families to becautious when looking at offers of assistance forsecuring funds for their college-bound students.Several individuals and organizations maycharge a fee in exchange for assistance inﬁnding scholarship money or in completingthe Free Application for Federal Student Aid(FAFSA). However, there are many FREEresources available to provide families with all theassistance they need.The Federal Trade Commission warnsthat unscrupulous companies “guarantee” or “promise” scholarships for students. Such claimsshould be a warning sign. Families can avoidscholarship scams by looking for these types of misleading sales pitches:• For a fee, the company or organization willprovide a list of scholarship opportunities. If astudent does not receive a reward and seeks arefund, they soon ﬁnd that conditions have beenattached to the agreement to make it impossibleto get the refund. A request for a refund isdenied and the student is out the money.

• Companies may claim that theirinformation is simply not available anywhereelse. However, much of the informationthey use can be accessed for free. PHEAA’s

EducationPlanner.org

offers a freescholarship database.

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