Report to the 86

Legislative District

Rep. Mark Keller’s

Spring 2010

Governor’s Final BudgetDepends on FederalIntervention

The governor’s 2010-11 budgetproposal, his eighth and final oneof his tenure, is a far-reaching planthat would have serious negativeeffects on the Commonwealth’sfiscal stability. After last year’sbudget debacle, which led to acomplete elimination of the state’sreserve accounts, there is no sourceof emergency funding to tap thisyear due to the economic situationthat has not improved and continuesto result in reduced revenues. Asof the end of February, revenueprojections were off by $476 million,which is expected to climb to $525million by the end of June.In his $29 billion proposal, thegovernor would increase spendingby $1.2 billion, or 4 percent. Toput this into perspective, sincehe has taken office in 2003, statespending has ballooned from $20billion to $29 billion. This resultsin an increase of 42 percent eventhough the rate of inflation has onlyincreased 20 percent during thesame time period. Most importantly,there is no excuse for the spendingspree of the past eight years and itmust come to an end.The governor’s plan wouldincrease taxes by $1 billion bylowering the sales tax from 6percent to 4 percent and expandingit to 74 items that are currently nottaxed. Although there arediffering opinions, I believe thiswould result in an increasedtax burden on Pennsylvaniaresidents.Some of the items thatwould be taxed include basictelevision, electric, sewer,and water services; fees for residential electric, plumbingand heating repair services; drycleaning and laundry services;non-prescription medications;veterinary fees; amusementand recreation admissions;home heating services suchas oil, gas, coal and firewood;telephone service; financialinstitution fees, such as ATMand bank charges; and funeralservices.Since the vast majority of these items are necessary tosupport basic living needs,Pennsylvania citizens do nothave the opportunity to avoidpaying the added sales tax. It’sunconscionable to me how thegovernor would propose to addsales tax to electric service whenrate caps were removed at thebeginning of the year, whichresulted in a nearly 30 percentincrease in charges.Another disturbing detail of thegovernor’s budget is that it relieson an additional $800 million of stimulus funding from the federalgovernment.

This is extremelyconcerning especially sinceCongress has yet to approve thepresident’s request to increasestimulus payments to the states.

It is irresponsible for thegovernor to craft a spending planthat relies on funding, which wedo not have, or may not receive.

We need to return tocommonsense budgeting practicesthat consider the financialdifficulties percolating throughoutthe economy, including the burdenthat is placed on the taxpayers.Until we get back to the basics, themindset of the never-ending pot of money will continue to dominate thethinking of many elected officials inHarrisburg.

RepKeller.com

Considering Taxpayers inPolicy Making

It is well known that state government wascreated to work for the people, not againstthem; however, history does not supportthis thought process. With this in mind, Iam supporting two pieces of legislation thatwould alter “business as usual” in Harrisburgand provide nearly $100 million in savings toschool property taxpayers.As a way to control excessive constructioncosts in school districts, I am also supportinglegislation drafted by Rep. Ron Marsico (R-Dauphin) that would amend the PrevailingWage Act by creating a process for voters todecide whether school districts in each countyshould be subjected to the act.The cost of labor in one region of theCommonwealth can be signiﬁcantly higher than another. As such, rural areas shouldnot be mandated to pay the same wages assuburban or urban locations, especially whenthe tax base is substantially less.The Prevailing Wage Act established“prevailing” minimum wage rates that must bepaid on public construction projects. Currently,the rates established reﬂect union wageswhich are not often representative of the actualwage rates paid in the county.This legislation would require counties toput a question on the ballot in November 2011asking county voters if they favor being subjectto paying prevailing wage rates for schooldistrict construction projects in their county.This legislation creates an “opt in” process thatallows voters to decide whether they want their schools built in accordance with the PrevailingWage Act.

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With state government spendingunder intense scrutiny, it’s importantthat agencies use taxpayer dollarsefficiently, effectively and for thosewho are in need. Without proper oversight and strict guidance toprogram rules and regulations,millions of dollars have the potentialto be misused, costing taxpayersadditional money.During the past year, Auditor General Jack Wagner has issuedreports that point to significantwaste, fraud and abuse within thePennsylvania Department of PublicWelfare (DPW).In a Nov. 18, 2008, follow-upaudit, Wagner highlighted major deficiencies that still existed inDPW’s administration of the LowIncome Home Energy AssistanceProgram (LIHEAP). More than1,000 applications were flagged for inadequate procedures, insufficientsupervision and inadequateoversight resulting in potentialapplicant and employee fraud.Applications contained invalid SocialSecurity numbers or numbers of deceased individuals, as well asapplicants filing multiple applicationswith different Social Securitynumbers and addresses. As a resultof the auditor general’s findings, inearly June 2009, the Philadelphiadistrict attorney filed charges against18 people, including 16 state andcity employees, for allegedly stealingmore than $500,000 of LIHEAPfunds.A Jan. 28, 2009, report revealedthat more than $3.3 million wasmisappropriated in MedicalAssistance payments. It wasdetermined that improper eligibilitydeterminations were a result of DPW’s failure to verify recipients’age, disability, family relationshiprequirements and to promptly reviewapplicants’ financial and other eligibility information.On Aug. 20, 2009, Wagner released a report that highlightedthe potential of fraud andmismanagement of DPW’s SpecialAllowance Program, which assistswelfare recipients in employmentand training programs withexpenses such as books, tools,clothing, transportation and childcare. It was revealed that sufficientdocumentation was missing to justify45 percent of the 3,201 SpecialAllowance payments examined.Specifically, auditors foundinsufficient documentation for 163recipients totaling $564,700. This is just a small sample of the number of Special Allowance applicationsfiled each year. Welfare offices infive counties, including Philadelphia,disbursed more than $205 million inpayments. In many instances, thefiles lacked receipts and other formsof documentation to prove that theallowances were legally issued.The auditor general’s reportsare an indication of a systemicproblem occurring within DPW.It is incumbent upon agencysecretaries and managers to ensurethat employees are following therules outlined for each program.In addition, the auditor general’speriodic oversight brings theseissues to light.Since the governor took office in2003, DPW’s budget has balloonedby $3.7 billion, or 48 percent, andnow accounts for more than one-thirdof total spending in the annual statebudget.According to the auditor general,the governor and his administrationhave been lax in ensuring thattaxpayer dollars are used wisely andefficiently. These specific audits onlyrevealed a fraction of the waste thatis taking place in state government.These instances of mismanagementmust be addressed in order for Pennsylvania to put its financialhouse back together.

Rep. Mark Keller presented a House citation to Kyle Cherry of Duncannon, son of David and Judy Cherry, for earn-ing the rank of Eagle Scout. Kyle planned and developed a driveway lighting project for the Duncannon OtterbeinUnited Methodist Church. This included refurbishing thelight poles, installing the lights, digging a ditch and burying the wire.Rep. Mark Keller presented a House citation toGeoffrey Cooper of Chambersburg, son of Mike and Kathy Cooper, for earning the rank of Eagle Scout. Geoffrey built two sets of block and wood bleachersat Edenville Community Center.

Rendell Administration Ignores Calls byAuditor General to Clean Up DPW

According to the Pennsylvania School Boards Association, school districts could save up to 15 percent on constructionprojects if they were not subject to the Prevailing Wage Act.Additional reform is needed to streamline the process of adopting the annual state budget. After the 2009-10 state budgetextended 101 days beyond the June 30 deadline, it became clear to me and many of my colleagues that changes werenecessary for the General Assembly to fulﬁll its responsibility of enacting the annual spending plan on time. As a result, I amsupporting legislation authored by Rep. Glen Grell (R-Cumberland) to create a bipartisan Commission on Budgetary Reformthat would include members of the state House and the state Senate.This commission would study the numerous reform proposals offered by legislators and provide suggestions to the GeneralAssembly to signiﬁcantly change the current budget procedures. Some of these changes could include, establishing timelinesin the budget process, adopting performance-based budgeting, providing each member greater involvement in the budgetingprocess and implementing continuity provisions for state government in the event of a budget impasse.To date, legislative leaders have been slow to respond; however, I am hopeful they will soon realize the importance of thisissue and how protracted budget negotiations not only affect state employees, but how it affects those who fund government – the taxpayers.

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During Rep. Mark Keller’s 4th Annual Farmer’s Breakfast on March 5, members of the Greenwood and West Perry school districts Future Farmers of America (FFA) are pictured with Keller, Department of Agriculture Secretary Russell Redding, Greenwood FFA Advisor Michael Clark and West Perry FFA Advisor John Hines.

ApplicationsNow Availablefor PropertyTax/Rent RebateProgram

Forms for the state’s 2009Property Tax/Rent Rebateprogram are now available.Eligible participants canreceive a rebate of up to$650 based on their rent or property taxes paid in 2009.The program beneﬁts eligiblePennsylvanians who are 65years or older, widows andwidowers 50 years or older, andthose 18 years or older withdisabilities.Eligibility income limits for homeowners are set at thefollowing levels, excluding 50percent of Social Security,Supplemental Security Income,and Railroad Retirement Tier 1beneﬁts:

• $0 to $8,000, maximum$650 rebate (Homeownersand renters)• $8,001 to $15,000,maximum $500rebate (Homeownersand renters)• $15,001 to $18,000,maximum $300rebate (Homeowners only)• $18,001 to $35,000,maximum $250rebate (Homeowners only)

The Property Tax/RentRebate program is one of many initiatives supportedby the Pennsylvania Lottery,which dedicates its proceedsto support programs for older Pennsylvanians. Since theprogram began in 1971, morethan $4 billion has been paid toqualiﬁed applicants.Residents are remindedto provide all the necessaryincome, property tax or rentalinformation required to processclaims quickly and accurately.Applications are due by June30.Property Tax/Rent Rebateclaim forms are available bycontacting my ofﬁce at1-800-959-8119, or by visitingmy Web site at

RepKeller.com.

New Transportation Regulations Affect Local Farms

After an audit of Pennsylvania’s motor carrier regulations, the United States Department of Transportation’s Federal Motor Carrier Safety Administration found deﬁciencies and requiredthe Commonwealth to make changes by March 2010.There has been concern raised in the agricultural community that these changes willimpose signiﬁcant burdens on farmers. Much of these concerns are a result of confusionaround what new regulations will be imposed on farmers. In some instances, regulations thatfarmers currently are required to follow are being attributed to these changes.Below is a listing of the regulations and how they impact farmers:

Farmer Requirements Unchanged by the New Regulations

• Farms tractors and other farm implements are currently exempt from the motor safetyrequirements.• There are no changes to the current farmer exemptions contained with the PennsylvaniaVehicle Code as they relate to CDL licensing.• Licensed drivers age 16 and 17 are currently permitted to operate a farm truck pulling atrailer with a combined weight of 17,000 pounds or less.• Licensed drivers age 16 are currently permitted to operate a straight farm truck (non-towing) over 17,000 pounds.• A pre- and post-trip inspection must currently be completed for registered farm trucks andfarm truck trailer combinations greater than 17,000 pounds.• Operators of a farm truck pulling a trailer greater than 17,000 pounds in combination mustcurrently possess a medical certification in accordance with the Federal Motor Carrier Safety Administration standards.• Operators of a straight farm truck with 150 miles of the farm are currently exempt frompossessing a medical certification.• A record of vehicle maintenance must currently be kept for farm trucks and trailer combinations greater than 17,000 pounds.• Farm truck trailer combinations greater than 17,000 pounds are currently subject to hoursof service requirement, the keeping of logs and other records as well as driver qualificationrequirements.

Requirements for Farmers Under the New Regulations

• No one under the age of 18 will be permitted to operate a farm truck trailer combinationover 17,000 pounds on public road ways.• A pre- and post-trip inspection must now be completed for a registration exempt farmtrucks and farm truck trailer combinations greater than 17,000 pounds.• Operators of single unit farm truck greater than 150 miles from the farm must possessa medical certiﬁcation in accordance with the Federal Motor Carrier Safety Administrationstandards.• A record of vehicle maintenance must be kept for a single unit farm vehicle greater than17,000 pounds.• A pre- and post- trip inspection must be completed for a farm truck (non-towing) greater than 17,000 pounds.• Drivers of a farm truck trailer combination greater than 17,000 pounds must be at least 18,speak and read English and have a valid medical card.• Drivers of farm trucks including farm truck trailer combinations greater than 17,000 poundsoperated within a 100 air mile radius will have limits on hours of work and will require thecarrier/farmer to maintain time records that include start time, end time and total hoursworked.

Exemptions for Farmers Under the New Regulations

• The keeping of logs and time records are waived during the harvesting season, whichoccurs from March 1 through Nov. 30. This would apply to any vehicle operator transporting agricultural products, not just those operating farm trucks.• From Dec. 1 through Feb. 28, drivers of farm trucks, including truck trailer combinationsgreater than 17,000 pounds and operated within a 100 air mile radius of their normalwork reporting location will not be required to keep driver logs, but will be subject to hour limitations and time keeping requirements.• The keeping of logs and time records are waived year round for vehicles operating within100 miles of the farm, which transport livestock feed.• During the planting and harvesting seasons, non CDL farm truck drivers who operatewithin a 150 mile radius of their normal work location will not be required to keep driver logs but will be subject to hour limitations and time keeping requirements.• A custom harvest operator who operates a vehicle to transport farm machinery, supplies,or both, to or from a farm for custom-harvesting would be exempt from all driver qualiﬁcation requirements.• A driver who is operating a commercial motor vehicle controlled and operated by abeekeeper engaged in the seasonal transportation of bees would be exempt from alldriver qualiﬁcation requirements.