With only a few short months remaining in the2009-10 legislative session, there is still much workto be done, but I want to take a moment to reviewwhat has happened this year and the challenges westill face.I am pleased to say that for the first time in eightyears, Pennsylvania’s spending plan was approved by the Legislature on time. On June 30,the House and Senate approved the $28 billion spending plan. I voted “NO” on the budgetlegislation, and you can find out more about the reasons behind my vote on page 2.Pennsylvania commenced a Special Session on Transportation this spring, with thegoal of finding a $3 billion annual funding stream to cover the Commonwealth’s road andbridge maintenance projects. Gov. Ed Rendell had pushed for tolling on Interstate 80, butwhen the federal government rejected his request twice, it left our state without a largeenough funding source to repair our aging infrastructure. Keep in mind this $3 billionwill only cover upkeep and would not extend to new construction. To date, the specialsession has produced no significant progress, but the governor is calling for at least a 3-cent increase per gallon on the gas tax and would like to see fees for driver’s licenses andvehicle registrations increased. He is also seeking federal permission to sell advertisingon the state’s electronic travel advisory signs.Our Commonwealth continues to seek a solution to funding public pensions for stateand school employees. These pensions are funded by a combination of investmentincome, a set employee contribution and employer contributions. In years past, when theeconomy was booming, employer contributions were lowered because the state could relyon investment returns. When the economic downturn hit, the pension systems lost money.Public employees are part of a defined benefit plan – meaning the state is contractuallybound to pay each retiree a certain amount of money regardless of what is available in thefund. When the investment income goes down, it is up to the employer (the taxpayers)to make up the difference. In 2012, the employer contribution will see a significant spike.Legislation has passed the House to change the way retirement benefits are handled for new employees, but the court has decided three times that the Legislature cannot alter thebenefit structure for existing employees. I will keep you updated as we continue to worktoward a solution that honors our contracts, but also shields the taxpayers. It is clear thatPennsylvania needs pension reform.With Pennsylvania’s unemployment rate hovering at around 9 percent for morethan a year, getting people back to work is an issue that must be tackled. Not only isunemployment a concern because of its impact on our economy, families and society, butthe Commonwealth has also borrowed $3 billion from the federal government to supportunemployment compensation. This is unsustainable and with the many other financialissues we are facing, this is yet another multi-billion dollar problem. We will have to startpaying this money back beginning next year, and the federal government has the right toincrease the federal unemployment tax on all Commonwealth businesses until the debt isrepaid.As you can see, many challenges lay before us, which is why the effort to reform andstreamline government is more important now than ever. As you read this newsletter, if you have any questions or suggestions, feel free to contact my office. Also, do not forgetto complete and return to my office the 10-question survey on page 4. I look forward toreading your opinions on these legislative issues.Sincerely,Bryan Cutler State Representative, 100th DistrictIn late June, the House unanimously approvedlegislation to define agricultural biosecurity areasand outline criminal penalties for trespassing intosuch zones.This legislation is about protecting our farm-ers, their livestock, and our food supply. We haveseen the devastating effects of fast-spreading dis-eases among farm animals, such as the avian fluoutbreaks of past decades, and we must work toprevent future occurrences. People can inadver-tently spread such illnesses by not following simplepreventive measures, so posted warnings must beobserved.House Bill 511 specifically addresses ecoterror-ism, which is trespassing into agriculture biosecurityareas with intent to release a dangerous transmis-sible disease or hazardous substance. It also stipu-lates that a person commits a third-degree misde-meanor if he or she enters an agriculture biosecurityarea without authorization. Entering such an areawithout first performing biosecurity measures wouldbe classified as a summary offense. If either actionresults in damage to or death of an animal or plantwithin an agricultural biosecurity area, then the pen-alty is a first-degree misdemeanor.The legislation does offer a defense to prosecu-tion if a person or law enforcement officer enters anagricultural biosecurity area under exigent circum-stances and fails to perform the posted biosecuritymeasures. Such circumstances include enteringin response to a serious threat to human or animalhealth, such as a fire, or if law enforcement is inpursuit of a suspected criminal.I was proud to have House Bill 511 supportedby the Farm Bureau, PennAg Industries, the AgCoalition and the Pennsylvania Department of Agri-culture. The legislation is now awaiting the consid-eration of the Senate Agriculture and Rural AffairsCommittee, chaired by Sen. Mike Brubaker.

Biosecurity BillClears the House

Dear Neighbor,

Summer/Fall 2010

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State Representative

Bryan Cutler

Serving the people of the 100th Legislative District

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Crafting a budget for the past few years inPennsylvania has not been easy, but budgeting never is when your resources are scarce. Last year’s 101-day budget impasse was inexcusable and legislatorsdid everything possible to get this year’s budget doneon time. Though the budget was passed by the June 30deadline, there were too many aspects of it with whichI do not agree. In short, it spends too much, ignoresimpending fiscal challenges, and relies on money wemay never receive from Congress. For these reasons,I voted against the budget.Following is a summary of the 2010-11 budget. If you have any questionsor comments regarding this information,feel free to contact my district office:Taxes:Probably the brightest spot of thisbudget is that it does not contain any newor increased taxes, such as a personalincome tax or business tax increase. Youmay remember the governor’s calls for an expansion of the state sales tax onmany goods and services currently nottaxed – this plan was not included in thebudget. What is included is an agreementto consider a natural gas severance taxbefore Oct. 1.Cost-Saving Measures:Another encouraging aspect of this budget is itsinclusion of cost-saving measures tocut down on government waste. The use of purchasecards (P-Cards) will save the state $10 million and therecovery of tax refund errors will garner $35 million.Pennsylvania needs to seek more of these creativesolutions to reducing government expenses.Spending:One of my biggest concerns with thisbudget is its unsustainable spending – $28.04 billionfor 2010-11, which represents a $207 million increase.Though the governor requested $1 billion more and wewere able to hold down spending, this spend number is still unsound. Keep in mind Pennsylvania has beensupplementing spending over the past two years withbillions of dollars in federal stimulus money which willexpire after the 2010-11 budget cycle. We also endedthe last fiscal year with a $1 billion deficit. I believe thisbudget sets the stage for at least a $4 billion structuraldeficit next year. I am also skeptical of the projected3 percent increase in revenue on which our spendingnumbers are based. I believe this is an overly optimisticestimation of revenue growth for the next year Unapproved Federal Money:This budget appropriates $850million in federal medical assistance funds (FMAP), whichstill has not been approved by both chambers in Congress.What happens if this money doesn’t come through or if weare allocated less than was expected? The governor willhave the sole authority to make budget cuts, although he hasindicated he will work with the Legislature. The bottom lineis, such cuts would not be necessary if we had not includedFMAP funds in the budget.Education*:Basic education, the second largest area of state spending behind welfare programs, will see a $250million increase in this budget. School districts shouldbe wary of banking on this increase until the FMAP fundsare secured. Public school districts in the 100th Districtare expected to receive increases as follows:

Lampeter-Strasburg – 8.71 percent or $312,184Octorara Area – 4.43 percent or $261,746Penn Manor – 6.18 percent or $672,756Pequea Valley – 2.44 percent or $62,112Solanco – 4.06 percent or $392,445

Economic Development:Though cuts were seen tomany other departments and programs,including the Department of Health,agriculture programs and even the statepolice, the Department of Communityand Economic Development will actuallysee an increase in funding of $59.3million. While I see the need to spur economic development, I believe thereis a better way to encourage job growththan handing out cardboard checks toa chosen few businesses. If we trulywant to encourage business expansion,we should make Pennsylvania amore business-friendly state to helpcompanies across the board, not just ahandpicked few.If you are looking for more speciﬁcinformation about the budget, you canvisit my website,

RepCutler.com

,for a line-by-line breakdown of statespending.

*Information available as of print date - subject to change.

The 2010-11 Budget: The Facts and My Opinions

Bill to StrengthenLobbyist Disclosure ActMoves to Senate

The Lobbyist Disclosure Act was a good first step to makestate government in Pennsylvania more accountable andtransparent. It has allowed the average citizen access toinformation about those individuals who make a career outof influencing the General Assembly and governor’s office.Though it was a step in the right direction, I believe we muststrengthen the law by increasing penalties for those whoinadvertently break it, or worse – blatantly ignore it.After several high-profile cases were uncovered, includingone lobbyist who was discovered to be advocating for themillion-dollar Film Tax Credit without first registering, I knewwe had to do something to give this law some teeth, so Iintroduced House Bill 1434. I am happy to say this bill haspassed the House with unanimous support.This legislation would increase the maximum administrativepenalty that may be imposed by the State Ethics Commissionfor violations from $2,000 to $10,000 and the maximumlobbying prohibition from five to 10 years. In cases of negligentfailure to register or report, the penalty would jump from $50per day to $250 per day.Additionally, the legislation upgrades the offense of intentionally failing to register or report or for filing a falsereport from a second-degree misdemeanor to a first-degreemisdemeanor. Lobbyists and principals intentionally violatingthe act could be charged with a second-degree misdemeanor and face fines of up to $100,000, with a 10-year lobbyingprohibition.This legislation is about continuing the reform movementthat was started last session. It was a victory when theLobbyist Disclosure Law was passed, but we have seen casesof lobbyists ignoring the law, failing to register and writing off the fine as the cost of doing business. House Bill 1434 willreinforce the law so it will not be overlooked, and help to ensureyou will continue to have access to accurate information aboutthe individuals who are not elected by the people, but have anundeniable influence on state government.Since taking the oath of office, one of my main priorities hasbeen to make government more efficient and more accountable.To that end, I have fought for the passage of two bills, House Bills1637 and 1638. I authored these bills to increase oversight intothe Weatherization Assistance Program and the Low-IncomeHome Energy Assistance Program (LIHEAP) because, sadly,there is a documented existence of fraud in both.House Bill 1637 would require the Department of Communityand Economic Development (DCED) to issue photo identificationcards to individuals who receive weatherization assistance, tocollect and maintain the Social Security numbers of applicantsand members of that individual’s household, and to establish acomputerized income eligibility verification system.The income eligibility verification system would comprehensivelycross-check income information with other agencies anddepartments at both the state and federal level, such as the:• Internal Revenue Service.• Social Security Administration.• Bureau of Citizenship and Immigration Services.• Department of Housing and Urban Development.• Federal Bureau of Investigation.• State new hire database maintained by theCommonwealth.• National new hire database maintained by the federalgovernment.• Department of Veterans Affairs.• Database of Commonwealth day care subsidy payments.The legislation would also require the department toestablish the Office of Program Compliance for Weatherizationto monitor the administration of the program and performanceof local agencies.House Bill 1638 would address fraud in the LIHEAPprogram and provide oversight similar to that of House Bill1637, but LIHEAP is under the discretion of the Department of Public Welfare.The goal of these bills is to ensure that we are usingPennsylvania’s limited resources as wisely as possible andserving Pennsylvania’s neediest citizens – for whom theassistance programs are intended. Just as a home that isnot weatherized allows energy to seep out and be wasted,an assistance program without the proper oversight allowstaxpayer dollars to be used inefficiently. We must work toeliminate all kinds of waste – energy and public funds.In May, while testifying before the House CommerceCommittee, Auditor General Jack Wagner endorsedthis legislation as necessary to serve applicants of theweatherization program and to reduce waste and potentialfraud. Wagner, as auditor general, would be required by thelegislation to conduct a performance audit of the programand the newly created Office of Program Compliance for Weatherization.House Bill 1637 is still awaiting the consideration of theHouse Commerce Committee, while House Bill 1638 is beforethe House Health and Human Services Committee.

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Fire, Ambulance ServicesEligible for Grant FundingImprovements to Weatherization Assistanceand LIHEAP Receive Nod from Auditor General

Volunteer fire and ambulance services are once againeligible to apply for funding through the Volunteer Fire Companyand Volunteer Ambulance Services Grant Program.First established in 2000, the program provides grantsto support construction or renovation of a unit’s station, thepurchase or repair of equipment, training or debt reduction.Maximum grants are $15,000 for volunteer fire companiesand $10,000 for volunteer ambulance services.Applications will become available no later than Sept. 7,and must be submitted by 4 p.m. on Oct. 22, to the Office of the State Fire Commissioner. You can find more information at