REPRESENTATIVE
PAUL CLYMER
SPRING 2010
House Advances Bill Banning
Texting, Hand-Held Cell Phones
Legislation I co-sponsored that
will ban the use of hand-held cell
phones while driving in Pennsylvania
passed the House of Representa-
tives and is now in the state Senate
for consideration.
House Bill 2070 overwhelmingly
passed the House in late January. The legislation originally included
a ban on all texting behind the wheel and a prohibition of cell phones
for drivers ages 16 and 17. However, an amendment was added to
the bill to expand the ban to include all hand-held cell phones for
drivers of all ages.
Much of the outcry for a ban on hand-held cell phones comes
from the motoring public themselves who see such distractions
causing crashes and endangering people’s lives. We all know that
texting while driving is dangerous and cell phone use hinders one’s
ability to pay full attention to the road ahead.
The ban includes any interactive wireless communication device.
Exceptions will apply to operators of emergency vehicles and volun-
teer emergency responders who are responding to an emergency
and are engaged in the performance of their official duties.
According to Pennsylvania Department of Transportation statis-
tics, since 2003, 397 crashes in Pennsylvania have been recorded
where hands-free phones were a contributing factor, while 6,877
crashes listed hand-held phones as a contributing factor. According
to a 2009 poll, 85 percent of Pennsylvanians favor a ban on the use
of hand-held cell phones while driving.
A number of states have already enacted cell phone while driving
bans, and I am pleased that Pennsylvania is one step closer to
joining that list.
Those who are found in violation of the legislation will face a
fine of $50. Fines would double to $100 if the offense occurs in a
school zone, active work zone, highway safety corridor or emergency
response area. A portion of the fines will be used for public awareness
and education programs for distracted driving.
Cell phones with hands-free devices will still be permitted to be
used by drivers.
PRSRT STD
U.S. POSTAGE
PAID
HARRISBURG, PA
PERMIT NO. 529
Table Games
As you are probably aware, Pennsylvania recently adopted
a law to allow table games at slots parlors. I voted against
this expansion of gambling for several reasons, one of which
is the lack of a significant revenue commitment to property tax
relief for Pennsylvania’s struggling homeowners.
When slots parlors were legalized in 2004, it was with
the promise of property tax relief. In fact, Gov. Ed Rendell’s
campaign to legalize slot machines was based on using the
revenue to reduce school property taxes by 30 percent to
35 percent. Fast forward to today, and property taxes have
been reduced only an average of 5 percent to 7 percent. The
promises made were overinflated and misleading and now
many Pennsylvanians are wondering what happened.
On top of that, the expanded gaming legislation that
includes table games does not allocate a dime of table games
money to the Property Tax Relief Fund until the Rainy Day
Fund reaches a threshold of $750 million. As our Rainy Day
Fund has a zero balance today, it will likely be a decade or
more until homeowners see any benefit from table games.
Along with my disappointment over the disregard for prop-
erty tax relief, I was also concerned by the lack of important
and necessary gaming reforms in the legislation. Some of the
issues needing to be addressed include political contributions
to public officials from gaming interests, allocation of the local
share of revenue, licensing standards and the relationship
between the Gaming Control Board and casino interests.
I was also concerned about the low price the state is selling
table game licenses for when the governor claims to want to
use table games to increase state revenue. That is why I am
introducing legislation to put Pennsylvania in line with other
gaming states by appropriately increasing the 12 percent and
14 percent tax rates on revenue established under the new
table games bill to a tax rate of 25 percent and 27 percent,
respectively. The tax rate will be at 27 percent until July 1,
2011, after which the rate will drop to 25 percent.
We will see in time how much revenue this gaming expan-
sion brings into the Commonwealth, but with surrounding
states moving to legalize gaming, I do not think the results
will be as favorable as the governor has presented.
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Pennsylvania’s Financial Difficulties
Continue in 2010
It is hard to believe, but Pennsylvania lawmakers are already
starting to work on the 2010-11 fiscal year budget. From the looks
of things, we are in for another extremely difficult year. As of the end
of January, Pennsylvania was $374 million behind projections for
revenue collections, and January marks the 21st consecutive month
the state has failed to meet these revenue projections.
Compounding our economic troubles are empty state savings
accounts, like the Rainy Day Fund, federal stimulus funds that are
set to expire at the end of next year, a looming spike in the employer
contribution of the public pension system, and the governor’s indica-
tion the state will end the fiscal year with a significant budget gap.
I stood with the majority of my Republican colleagues in the House
to oppose the 2009-10 budget because we believed it outspent our
available resources.
Now, even with all the financial problems our Commonwealth
faces, the governor is requesting an increase in state spending by
4 percent. I believe it is fiscally irresponsible to further increase
spending when we will end the current year with a deficit.
Following is a breakdown of the priorities the governor outlined
during his budget address in early February:
Spending: The governor has proposed a $1.2 billion increase
in spending using $26.27 billion in state dollars and an additional
$2.76 billion in federal stimulus funds. It is important to note that
$800 million of these federal funds have not yet been approved, so
there is no guarantee we will actually receive these dollars.
Sales Tax Expansion: The governor is proposing a reduction
of the sales tax rate from 6 percent to 4 percent, but would expand
the tax to cover 74 items and services that are currently exempt
– food, clothing and prescription medicines would still be tax exempt.
He would place the extra revenue raised from this tax in a reserve
account called the Stimulus Transition Reserve Fund to help offset
the future termination of stimulus funds. It is important to note that
many property tax reduction or elimination plans rely on a similar tax
shift, making the future of property tax relief not connected to gaming
questionable.
Basic Education: The governor is calling for 7.28 percent
increase in basic education funding.
Budget Cuts: The governor is calling for reductions to the
budgets of the Department of Environmental Protection ($3.8 million
cut), the Department of Health ($7 million cut), the Department of
Agriculture ($5.4 million cut), the Department of Labor and Industry
($3.1 million cut) and the Department of Conservation and Natural
Resources ($1 million cut).
Budget Increases: The governor would increase funding for
basic education, county child welfare programs, mental retardation
services, services to senior citizens, the state police, the Department
of Corrections, the Department of Community and Economic Develop-
ment, and the Department of Military and Veterans Affairs.
Although we are facing difficult economic times, I would personally
like to have public libraries level funded this year, instead of being
hit with another decrease. I think funding for such important budget
items as public libraries can be achieved if we are more aggressive
with cutting government waste in many of our state agencies, along
with increasing the price of licenses for table games and increasing
the tax on the revenue generated by these games.
Of course, I will continue to bring you the latest budget news, and
I would be happy to answer any questions you might have. Feel free
to contact my office.
Pension Crisis
In just a few short years, it is estimated that as much as $5.9
billion will be needed to cover the unfunded pension liabilities
of the Pennsylvania School Employees Retirement System
(PSERS) and the State Employees Retirement System (SERS),
potentially translating into higher taxes for Pennsylvanians in
order to cover the payout to retirees.
This pension crisis is expected to hit in 2012, and reach
a historical high employer contribution rate of 33.71 percent
by 2015, due in part because it is a defined “benefit” pension
plan offered for both public school and state employees. A
defined benefit pension plan means school districts and the
state are contractually bound to pay a certain amount every
month to school and state retirees. This differs from many
other defined “contribution” pensions, such as a 401(k), in the
private sector.
The defined benefit pension plan is funded through em-
ployer contributions (i.e. public school districts and/or the state),
employee contributions and investments, with investment
earnings being the primary source of funding for benefits. In
fact, according to PSERS, from 2000-09 investment earnings
accounted for 59 percent of funding, while member contribu-
tions accounted for 26 percent and employer contributions
accounted for 15 percent.
However, like many investment funds, the recession has
greatly reduced the value of investments in both PSERS
and SERS. Stock market downturns, inconsistent employer
contribution levels and changes to the pension system benefit
structure in 2002 have led to predicted double-digit percentage
increases in the employer contribution rate in 2012.
It may seem that the simplest way to avoid such pension
spikes is to reduce or withhold pension payments. However, the
state Supreme Court has ruled three times in the last 20 years
that the government cannot legally alter or terminate pension
benefits. We are contractually bound to make these payments
to all current retirees or employees.
This is a difficult situation and we are currently researching
the best method of addressing this impending pension spike.
However, we must also look to the future to make sure this
situation doesn’t arise again.
Several options I am interested in further investigating are
as follows:
● Using the five highest grossing years, instead of
the three highest, to calculate retirement benefits.
● Return to the 10-year vesting provision, instead of
the current five-year provision.
● Increase the state retirement age.
● Consider changes to a hybrid structure of
defined benefit pension plan and a defined contribution
pension plan.
These are just a few ideas that would help offset future
spikes in the state’s public pension systems. Of course, I will
continue to keep you informed as we move forward and am
always happy to hear any of your ideas or concerns on this or
any other state-related matter.
For more infor m
 Pennsylvania to Benefit from
From Harrisburg to the Marcellus Shale Exploration
145th District... In a report unveiled last year by Penn State University,
Pennsylvania is poised to benefit from several aspects
of the continued exploration of natural gas drilling in the
Rep. Clymer presents Marcellus Shale formation.
a House citation to
The Marcellus Shale is a rock formation that underlies
John and Susan
Dale in honor of the much of Pennsylvania and portions of New York and
50th anniversary West Virginia at a depth of 5,000 to 8,000 feet and is
of the Dale family’s believed to hold trillions of cubic feet of natural gas.
ownership of the This formation has long been considered prohibitively
Spinnerstown Hotel expensive to access but recent advances in drilling
in Milford Township. technology and rising natural gas prices have attracted
new interest in this previously untapped formation.
In 2008, the industry generated $2.3 billion in
total added value, more than 29,000 jobs and $240
million in state and local taxes. With the potential for
Rep. Clymer (second significant growth in the near future, this industry has
from right) joined a the ability to provide a solid revenue source for the
rally supporting Health Commonwealth.
Care Freedom Choice
The study indicated a consistent increase in annual
legislation, which would
preserve individual drilling that would create up to 175,000 jobs in 2020.
rights to not take part The study indicated that for every $1 million spent
in a government-run on natural gas production in the Pennsylvania Marcellus
health care system. Shale formation, seven jobs are created. This can have a
significant positive impact on our state’s unemployment
picture.
The Penn State study estimates that the Marcellus
Rep. Clymer held a press Shale formation may contain 2,445 trillion cubic feet of
conference in Harrisburg natural gas reserves – enough to provide the country
to reintroduce legislation with natural gas for more than 20 years.
requiring ignition The governor has suggested a tax on the extraction
interlocks on vehicles of of natural gas. I do not want to hinder the growth of an
first-time DUI offenders. industry still in its infancy; however, I would support a
Bradley Vassallo (right), a
reasonable tax rate that would be in keeping with how
Quakertown High School
student, presented the other businesses are taxed.
idea for the legislation to As a long-time supporter for doing what is necessary
Clymer three years ago. to decrease our reliance on foreign oil, I think the drilling
of natural gas here in Pennsylvania is something we
definitely should continue to explore.

What My Office Can Do For You

Please do not hesitate to contact the district office for assistance with any state-related matter.
General Services:
 Obtaining PA birth and death certificates.
 Providing copies of PA legislation and laws.
 Senior citizen program information and application forms.
 Information on veterans’ outreach services.
 Serving as a liaison between local and state officials.
 Obtaining higher education grant/loan applications.
 Quick access to state tax forms.
 State pamphlets, brochures and publications.
 Streamlining consumer complaints to the proper agencies.
 General assistance in cutting through red tape.
Transportation Services:
 Zeroing in on “pothole” problems for repair.
 Processing permit and license applications and renewals.
 Assistance in replacing lost licenses and registrations.
 Making changes in license classifications.
District Office:
311 North 7th Street, Perkasie, PA 18944
Phone: (215) 257-0279
Web site: PaulClymer.com
Email: Pclymer@pahousegop.com

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 Local Students Visit the Capitol…

2010 Spring Survey

In order to serve you better, I am always
seeking input on legislative issues currently Students from Guth
before the General Assembly. This survey is Elementary School
designed for two members of each household
to participate. Please take the time to fill out the
attached survey, refold it so my office address
is showing and return it to my district office in
Perkasie. You can also fill out the survey online
through my Web site at PaulClymer.com.
As always, I welcome your input and am
available to help with any state government-
related questions or concerns. Please call my
office at (215) 257-0279 for assistance. I can also
be reached via e-mail at pclymer@pahousegop.
com or through my Web site.

1. Government is once again attempting

to promote the selling of beer (six-packs) in
supermarkets and convenience stores. Do you
support or oppose this policy? Students from Deibler
Elementary School
____Support ____Oppose
____Support ____Oppose

2. A casino license could be offered to

a group of investors a few miles from historic
Gettysburg National Park in Adams County. Do
you support or oppose a referendum allowing
the citizens of Adams County to vote on this
issue?
____Support ____Oppose
____Support ____Oppose

3. Gov. Ed Rendell’s campaign to legalize

slot machines was based on using the revenue
to reduce school property taxes by 30 percent
to 35 percent? Five years since slots were
legalized and property taxes have been reduced Students from
only an average of 5 percent to 7 percent. Are Sellersville Elementary
you satisfied or dissatisfied with these results? School
____Satisfied ____Dissatisfied
____Satisfied ____Dissatisfied

4. Ultimate fighting is now legal in

Pennsylvania. Some citizens indicate it too
violent, others claim it is an exciting sport. Do
you support or oppose using this type of physical
sport as an entertainment venue?
____Support ____Oppose
____Support ____Oppose

5. Do you support or oppose lowering the

state sales tax from 6 percent to 4 percent and
removing the 74 exceptions (to include profes-
sional services, propane, electricity, magazines,
newspapers, etc.) in order make up a shortfall
in funding when federal stimulus funds expire in
2011? German foreign exchange students from
____Support ____Oppose Pennridge High School
____Support ____Oppose

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