Log In | About PICPA | Contact | FAQs

Legislative Update

Week Ending Oct. 24, 2008

• A Change in Leadership at DCED
• State Senator Killed in Car Crash
• Rendell Signs Energy Conservation Bill
• Property Tax Assessment Bill Vetoed
• School Property Taxes Eliminated for 113,000 Seniors Statewide
• Don’t Forget to Vote on Ballot Measures Election Day
  

A Change in Leadership at DCED

Pennsylvania Department of Community and Economic Development (DCED) Secretary Dennis Yablonsky announced recently that he would be resigning from his post, effective Oct. 23, 2008. Gov. Ed Rendell has named DCED executive deputy secretary John Blake as acting secretary.

“It’s been an honor and privilege to work for Governor Rendell in advancing his community and economic development agenda,” Yablonsky said.  “We are at the very beginning of seeing the full impact of the governor’s economic stimulus package.”
 
Since January 2003, Yablonsky has led DCED in its efforts to improve economic competitiveness in the Commonwealth. Most recently, PICPA worked hand-in-hand with Sec. Yablonsky and DCED to secure passage of Senate Bill 1063—now Act 32 of 2008—which provides for earned income tax (EIT) reforms and consolidation on a countywide level. Sec. Yablonsky’s strong advocacy was a key component to realizing the passage of this important piece of legislation.

“It is hard to imagine any secretary of DCED or Commerce had a greater impact in creating a stronger Pennsylvania economy than Dennis Yablonsky,” said Gov. Rendell.  “He was at the forefront in attracting billions in new capital investments that have enabled us to create thousands of new jobs, revitalize our communities, diversify our economy, and put Pennsylvania in a better position than most states.“

Blake, the governor’s replacement for Yablonsky, has more than 25 years of experience in housing, community, and economic development in both the public and private sectors. He has been responsible for overseeing the daily administration of the Department since February 2007. Prior to this, Blake worked as vice president and senior development advisor for PNC Banks’ northeast and central Pennsylvania markets.

PICPA looks forward to continuing its solid working relationship with the Department under its new leadership.

State Senator Killed in Car Crash

On Saturday, Oct. 19, 2008, state Sen. James Rhoades (R-Schuylkill) died from injuries suffered in a Friday night car accident in Monroe County. Having served the Commonwealth for seven terms in the state Senate at the time of his tragic death, Sen. Rhoades was also long-time chairman of the Senate Education Committee.

"Jim's passing is a tremendous loss for Pennsylvania," said Gov. Ed Rendell. "He was a great person and a tremendous fighter for schoolchildren in the Commonwealth."

Prior to his election into the Senate in 1980, Sen. Rhoades taught and coached at high schools in Pottsville and Mahanoy City before acting as principal of Mahanoy Area Junior High School.

"It is impossible to properly express how much we will miss him personally, and how much the Senate of Pennsylvania will miss his presence," said Senate President Pro Tempore Joe Scarnati (R-Jefferson) and Senate Majority Leader Dominic Pileggi (R-Delaware) in a written statement following the announcement.

Among Sen. Rhoades’ accomplishments within the legislature include the state’s safe schools initiative, professional development for teachers, and obtaining federal dollars for Pennsylvania’s Head Start programs.

Funeral services for Sen. Rhoades will take place within the school district he served with such dedication, at Mahanoy Area High School, on Saturday, Oct. 25.

Rendell Signs Energy Conservation Bill

On Wednesday, Oct. 15, Gov. Ed Rendell signed House Bill 2200—now Act 129 of 2008—into law. This act addresses the increasing anxiety over rising electricity prices by placing certain obligations on utility companies to offer incentives to customers to conserve energy.

In fact, utilities will not only be mandated to prevent electricity usage from rising, they will now have to find ways to ensure usage is cut beginning in 2011. The new law requires them to reduce annual electricity usage by at least one percent by May 31, 2011—three percent by May 31, 2013—and ensure that usage is reduced by four and a half percent during the 100 highest-use hours of the year. Failure to reach these goals will result in steep financial penalties.

 “This bill marks a great step forward in our efforts to help electricity consumers save on their energy bills by reducing consumption and it establishes Pennsylvania as a leader among states working to encourage conservation,” said Gov. Rendell, noting that the Commonwealth’s energy conservation mandates are now stronger than 44 other states. “While this measure will help save the average household more than 20 percent on their electricity bill—savings that will add up to $500 million by 2013 for all consumers—work remains to avoid the punishing blow our families and businesses are facing once rate caps expire.”

For example, new pricing plans will go into place that reward customers who shift heavy use to off-peak hours. Several rate plan options will be available to consumers, including continuing to use a traditional plan, or switching to an alternate plan that provides savings for making smart energy choices.  To help make those choices, the legislation also calls for the installation of “smart meters” in every home and business in the state within 15 years. A smart meter gives consumers information they need to better control and monitor energy consumption, such as the current cost of power or whether they are in a peak rate period.
  
For larger businesses, this bill permits them to enter into long-term contracts with utilities and give the state’s largest energy users predictability in their energy purchases.

Of note is the fact that the legislation does not include a rate mitigation component—something advocated strongly by the administration, but on which the House and Senate failed to come into agreement.

Property Tax Assessment Bill Vetoed

Gov. Ed Rendell has once again vetoed a bill that would have prohibited some school districts and municipalities from appealing "dramatically under-assessed properties."

"If signed into law, this legislation would result in higher property taxes for Pennsylvania's homeowners, small business owners, and farmers," Rendell said in a statement explaining his rejection of Senate Bill 1258.

The bill would have eliminated the right of school districts and municipalities to challenge assessments when a property is dramatically under-assessed through a process known as "reverse appeals," according to the governor.

The measure would have exempted Allegheny and Westmoreland counties, but applied to all counties with populations under 210,000, including Armstrong, Beaver, Butler, Fayette, Greene, Lawrence, Somerset, and Washington. All told, 51 of the state's 67 counties would have been covered under the bill. Appeals only would have been allowed in cases involving new construction, change in use of a property, and any additions to property.

Rendell vetoed similar legislation in July. He said he agrees with proponents of the bill that spot reassessments are often unfair and arbitrary. The governor says he would support a compromise bill that would limit the situations under which property assessment appeals can be filed.

School Property Taxes Eliminated for 113,000 Seniors Statewide

Gov. Ed Rendell this week announced that an estimated 113,000 senior homeowners statewide have had school property taxes completely eliminated as a result of Pennsylvania's property tax relief law.

Pennsylvania is providing a total of $786 million in property tax relief this year, including expanded rebates from the state's senior citizen Property Tax/Rent Rebate program and first-ever general property tax relief for all homeowners that was distributed through school districts this past summer. As a result, an estimated 113,000 seniors had their entire school property tax bill eliminated.

About 600,000 seniors are expected to benefit from rebates this year, compared to 314,000 before the program's expansion in 2006. Last year, 564,000 seniors received more than $240 million in rebates. So far this year, more than 580,000 people have applied for a rebate and, as of Oct. 10, rebates totaling nearly $254 million have been sent to more than 529,000 homeowners and renters.

"More than half a million seniors already received rebates this year, but we know there are about 140,000 more people who qualify but haven't applied yet, including more than 31,000 seniors here in southeastern Pennsylvania," the governor said. "I encourage everyone who thinks they may be eligible for a rebate to get their application in by the Dec. 31 deadline. I don't want one senior to miss out on receiving the help they need in paying their school property taxes."

Act 1 of Special Session 2006 delivered the largest property tax cut in Pennsylvania history, using proceeds from slots gaming. In addition to the expanded rebate program, the law provides state-funded tax relief through reductions in the tax bills that school districts send out each summer. The broad-based property tax relief started this year at an average of nearly $200 per household across the state.

The rebate program benefits eligible Pennsylvanians who are 65 and older; widows and widowers age 50 and older; and people with disabilities age 18 and older. The program expansion increased the income limit from $15,000 to $35,000 (which excludes half of Social Security income) for homeowners, and raises the maximum rebate for both homeowners and renters from $500 to $650.

The deadline to apply for Pennsylvania's Property Tax/Rent Rebate program was extended from June 30 to Dec. 31.

Don’t Forget to Vote on Ballot Measures Election Day

On Nov. 4, Pennsylvania voters will be asked to approve a $400 million bond for water and sewer system upgrades and repairs. The question on your Nov. 4 General Election Day ballot looks like this:

“Do you favor the incurring of indebtedness by the Commonwealth in the amount of $400,000,000 for the acquisition, repair, construction, reconstruction, rehabilitation, extension, expansion, and improvement of water supply and sewage treatment systems; and providing for the powers and duties of the Pennsylvania Infrastructure Investment Authority?”

Remember the polls are open from 7 a.m. to 8 p.m. so you can cast your vote on this issue and the candidates of your choice!