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Legislative Update

Week Ending Nov. 7, 2008

• Pennsylvania is Obama Country
• Democrats Maintain Majority in State House
• Corbett Re-elected Attorney General
• State Senate GOP Expands Majority Control
• Voters Approve $400 Million Ballot Question
• Revenue Department Releases October Collections
  

Pennsylvania is Obama Country

U.S. Sen. Barack Obama (D-Illinois) became President-elect Barack Obama Nov. 4. Obama won 18 of Pennsylvania’s 67 counties and used a huge turnout in the southeast to bolster a big win in Pennsylvania, defeating U.S. Sen. John McCain (R-Arizona) by over 600,000 votes out of 5.8 million cast in the Commonwealth.

Obama’s margin in the five-county region of Philadelphia was 656,000— a 459,000-vote advantage in the city and a 197,000-vote edge in the suburbs. Remarkably, Obama got 1.3 million of his 3.2 million votes—41 percent—from southeastern Pennsylvania, which includes Berks county and the three counties of the Lehigh Valley.

In state Congressional races, Democrat Kathy Dahlkemper won in Erie, ousting U.S. Rep. Phil English (R-Erie), a member of the Ways and Means Committee, while the state’s two longest-serving Democratic congressmen, Jack Murtha of Johnstown and Paul Kanjorski of northeast Pennsylvania, retained their seats.

Democrats Maintain Majority in State House

For the second consecutive election, southeastern Pennsylvania has decided party control of the state House of Representatives. House Democrats are poised to return to Harrisburg in January with a 104-99 majority, up from their current 102-101.

PICPA member CPAs state Rep. John Maher (R-Allegheny) and Rep. Gordon Denlinger (R-Lancaster) both easily cruised to victory, while CPA Rep. Mike Peifer (R-Wayne) also won.

Chester County, however, was once again Election Day ground zero as Democrats wrestled away two seats currently held by Republicans. Democrat Paul Drucker defeated Republican Guy Ciarrocchi in the 157th District for the seat being vacated by Rep. Carole Rubley, and Democrat Tom Houghton gained a narrow victory over Republican John Lawrence for the seat currently held by retiring Rep. Art Hershey (R-Chester).

In the other races where a seat changed hands, both parties added four and lost four.

Democrats picked up seats in Bucks County’s 31st District, with Democrat Steve Santarsiero defeating Republican Pete Stainthorpe 53 percent to 47 percent to replace retiring GOP Rep. David Steil; in Montgomery County’s 70th District, with Democrat Matt Bradford defeating incumbent GOP Rep. Jay Moyer; in Lycoming County’s 83rd District, with Democrat Rick Mirabito defeating Republican Dave Huffman for the seat currently held by GOP Rep. Steven Cappelli; and in Philadelphia’s 170th District where Democrat Brendan Boyle defeated Republican Matt Taubenberger to replace retiring GOP Rep. George Kenney.

Republicans countered their losses with four wins in Democratic-held seats. Republican Frank Farry bested Democratic Rep. Chris King in Bucks County’s 142nd District with 52 percent of the votes; GOP candidate Matt Gabler defeated Democratic Rep. Dan Surra in Elk County’s 75th District with 53 percent of the vote; the GOP’s Tim Krieger got 52 percent of the vote to defeat Democrat John Boyle to fill Westmoreland County’s 57th District seat vacated by retiring Rep. Tom Tangretti; and in Beaver County’s 15th District, Democratic Rep. Vince Biancucci lost to Republican Jim Christianna by 854 votes, as Christianna amassed 51.5 percent of the vote.

Several veteran Democrats, especially in western Pennsylvania, hung on for close victories: House Majority Leader Bill DeWeese (D-Greene) and Reps. Frank Dermody and David Levdansky, both D-Allegheny, initially gave Republicans cause for hope of upsets.

For complete State House election results, visit the Department of State’s election information Web site.

Corbett Re-elected Attorney General

In the face of an Obama tidal wave, Tom Corbett’s re-election as attorney general is a considerable victory. In only two of the eight races in the history of the attorney general’s office as an elected position has the winning margin been wider than four points, and Corbett rang up a six-point victory, 52-46.

CPA-PAC, the political arm of PICPA, provided financial support to Mr. Corbett.

Incumbent Auditor General Jack Wagner handily cruised to a 21-point win over Republican Chet Beiler.

In the race for state Treasurer, Democrat Rob McCord won by over 675,000 votes over Republican Tom Ellis.

For complete row office election results, visit the Department of State’s election information Web site.

State Senate GOP Expands Majority Control

State Senate Republicans picked up one long-Democrat-held district in Beaver County while defended three GOP-held seats successfully to expand their majority 30-20.

The closest race of the evening was for the seat currently held by Dauphin County Republican Sen. Jeffrey Piccola. Sen. Piccola narrowly held on against Democratic challenger Judy Hirsh by 4,815 votes—63,829 votes in total compared to Hirsh's 59,014.

In Westmoreland, Republican County Commissioner Kim Ward defeated Hempfield Twp. school board member Tony Bompiani, 54 percent to 46 percent. This seat is being vacated by Sen. Bob Regola (R-Westmoreland).

In a seat that had comfortably elected Sen. Gerald LaValle (D-Beaver) for years, Republican Elder Vogel defeated Democrat Jason Petrella 57 percent to 43 percent.

In Schuylkill County, two weeks following his fatal car crash, incomplete and unofficial returns showed the late Sen. James Rhoades (R-Schuylkill) at 63 percent, Democrat P.J. Symons at 35 percent and third party candidate Dennis Baylor at 2 percent. The Rhoades victory will mean a special election will be called for that seat early next year.

For complete State Senate election results, visit the Department of State’s election information Web site.

Voters Approve $400 Million Ballot Question

Nearly 62 percent of Pennsylvania voters said “yes” to a $400 million bond issue referendum question that seeks to provide funding for improvements to the state’s drinking water and wastewater treatment systems.

According to the state Department of Environmental Protection, the $400 million would be used for grants by the Pennsylvania Infrastructure Investment Authority, or PENNVEST, to upgrade or repair drinking water systems and wastewater treatment system projects in every region of the state. Grants awarded would range from $2 million to $20 million, depending on the size of the drinking water or sewage treatment system, says the Department.

Revenue Department Releases October Collections

Secretary of Revenue Tom Wolf Oct. 31 reported that Pennsylvania collected $1.6 billion in General Fund revenue in October, $283.4 million, or 14.7 percent, less than anticipated. Fiscal year-to-date General Fund collections total $7.4 billion, which is $564.8 million, or 7.1 percent, below estimate.

“More than half of the October revenue shortfall is attributed to lower-than-expected non-tax revenues, the result of the unprecedented volatility of the equity markets in October,” Wolf said. “Just as individuals are experiencing drastically lower returns on investments in these tough economic times, so, too, is the commonwealth.

“We will continue to closely monitor the economic situation and take steps to keep the budget in balance. Meanwhile, Pennsylvania’s employment numbers remain high — 163,700 more jobs exist today than in January 2003 — and business and economic investments continue to create jobs and help grow our economy.”

Sales tax receipts totaled $734.1 million for October, $30 million below estimate. Sales tax collections, year-to-date, total $2.9 billion, which is $91.2 million, or 3 percent, less than anticipated.

Personal income tax (PIT) revenue in October was $730.2 million, $14.2 million below estimate. This brings year-to-date PIT collections to $3.1 billion, which is $72.4 million, or 2.3 percent, below estimate. 

October corporation tax revenue of $132.7 million which was $61.3 million below estimate. Year-to-date corporation tax collections total $764.1 million, which is $121.3 million, or 14 percent, below estimate.