House Votes to Remove PAT’s Regulatory Duties

When the Port Authority of Allegheny County was formed the state gave the governing board the job of signing off on the plans of any private bus operator wanting to work in Allegheny County. Pennsylvania House Majority Leader Mike Turzai (R-Allegheny) is now trying to give that oversight roll to the Public Utility Commission. His effort took a big step forward Tuesday when the House passed legislation to make the change.

Turzai believes the Port Authority has been standing in the way of private companies who want to run routes in the county but he does not think the bill would create a free-for-all situation. “They have to meet requirements with respect to rates, safety, insurance and the like,” said Turzai, “But it does allow for competition in Allegheny County with the Port Authority.”

PAT Spokesman Jim Ritchie disputes Turzai’s claim, “We receive a number of applications each year to run service each year, the most recent being the Lenzner service in the North Hills, and I think for the most part we have approved almost all of these applications, at least in the last few years.” Lenzner Coach Lines successfully petitioned to offer service from two locations in the North Hills to downtown Pittsburgh after PAT eliminated a similar run.

The Authority is officially taking a “relatively neutral” stance on the bill. “Its more of a regulatory change,” said Ritchie, “It does not effect our day-to-day operations.”

The Union has come out strong against the bill saying it is a union busting move and the next step toward fully privatizing mass transit in the county. Amalgamated Transit Union Local 85 President Pat McMahon says the private companies will come in and “cherry pick” the good routes using non-union labor. He says that will eventually lead to the end of the Port Authority and service to many communities.

Rep. Turzai says there are already under served communities and destinations. “Some people want to get to Ross Park Mall, some people want to get South Hills Village, some people want to have the opportunity to come to a place of work out in Cranberry, some people want to have a chance to get to a place of work out at the airport. The Port Authority has never been able to think entrepreneurially about where people want to get to,” said Turzai. The Republican from the north hills said he thinks PAT’s management is willing to think differently by the union is standing in its way.

Turzai sees private providers providing an “overlay” of service in the county. He said it will be up to the entrepreneurs to decided where that extra service will be offered.

House Reform Debate Shows Progress

The Pennsylvania State House is moving on, after a messy dispute over voting rules. On Monday, the House approved five reform bills, setting the measures up for final passage next week. The vast majority of the afternoon’s debate was civil and low-key – a far cry from the screaming and hyperbole that dominated Wednesday’s Rules Committee meeting. Republican leaders did not call a vote on a resolution restricting members’ ability to amend measures on the floor, and stripping a Democrat from each House committee. When asked whether Republicans will press forward with the rules change, Majority Leader Mike Turzai of McCandless was eager to shift the topic to the bills the House approved on second consideration. “Look, the package that is going to get voted on next Monday – and we’re back on course – is probably the most substantive reform package that has been put together as a group since the Thornburgh Administration,” he said. The measures increase penalties for lobbyists who break rules, expand “Right to Know” governing state contracts with private companies, and bar lawmakers from operating non-profit organizations that receive tax dollars, among other changes. A Democratic spokesman says he’s worried Republicans will keep the rules change on the table as a “potential weapon” to use against the minority party in the future, if Democrats try to slow down the legislative process.

Turzai kept shifting the topic back to the reform bills, each time reporters asked whether the rules changes – House Resolution 6 – had been tabled for good. Several times during the afternoon’s debate, Allegheny County Democrats offered amendments expanding the measures to include the domestic partners of the lobbyists or state employees impacted by the changes. Every time, Republicans voted down the proposals as not germane to the bill at hand. State Rep. Dan Frankel of Lawrenceville said the House was “burying its head in the sand.” “We live in a world where people live together in domestic partnerships,” he said. “Long-term, interdependent, financially interdependent, emotionally interdependent relationships. 270,000 Pennsylvanians live this way.” After the debate, Turzai said he’d be happy to take a look at the potential loopholes, but in separate bills. “if [Democrats] feel that it’s applicable, then you can introduce a bill and make their case,” he said, arguing language like that needed to be vetted in committee, and not offered on the floor at the last minute.

Rendell Gets Budget, Will Sign Tuesday

Pennsylvania State lawmakers used a rare Saturday session to pass a list of bills that round out the $28 billion 2010-2011 budget. The House and Senate both approved a fiscal code Saturday, allowing Governor Rendell to sign the budget into law on Tuesday. The governor had let the spending portion of the budget sit on his desk since Thursday saying he could not put his name to it until he saw the supporting bills that put a finer point on how the money is spent and how it is to be collected.

The chambers also voted on two economic development measures, which authorize borrowing for specific initiatives. House Minority Whip Mike Turzai was among the Republicans rankled by the pet projects Governor Rendell worked into the bill, including money for an “Arlen Specter Library” at Philadelphia University, and a “John Murtha Public Policy Center” in Johnstown. “It is the big pot for Walking Around Money,” says Turzai, “We need to act responsibly. We need to know where money of tax dollars is going to today, and vote accordingly. Not borrow money for projects the governor gets to pick.” In all the state will borrow $600 million for capital projects.

Senate Republicans were at least partially successful in getting their push to create a legislative fiscal office. The bills passed yesterday force lawmakers to come to an agreement on the creation of a nonpartisan panel that will function much like the Congressional Budget Office at the federal level by October 1st. Senate Majority Leader Dominic Pileggi says lawmakers differ enough when budget talks take place – and the state needs to at least agree to the same figures. “Layered on top of those honest policy disputes are disputes about basic facts that shouldn’t be in dispute. And the intent of the legislative fiscal office is to develop a body of data that can be used in common by all parties in developing a budget,” says Pileggi.

The house and senate have also placed a deadline of October 1st on their efforts to pass a Marcellus Shale gas severance tax. Lawmakers say they were unable to iron out the details in time to meet the end of the fiscal year deadline. The bill is to create a mechanism to begin collecting the tax by the first day of 2011. Not only are leaders fighting over the tax rate, but they are also fighting over how the funds will be distributed.

North Hills Republican Says .3% Tax DOA

This week, Pittsburgh Mayor Luke Ravenstahl proposed an income tax on anyone who works in the city. The.3% tax would be used to keep the city’s pension program as part of a package of options to help right the city's underfunded pension system. State Representative Mike Turzai of Bradford Woods says there is no chance the tax will ever be enacted. Before the city could collect the tax it must be approved by the state legislature and Turzai says there is no support from either side of the aisle. “It’s a non starter,” says Turzai. The Republican Lawmakers says the legislature will consider new revenues for the city but only after the pension system is reformed. Truzai says he city needs to look at the making cuts, privatization and using a more private sector type model “but a percentage tax will never be allowed,” says Turzai.

Ravenstahl says the tax is part of a larger reform effort. The tax would replace the $52 annual local services tax. The city must shore up the pension fund and find a way to sustain it by the end of the year to prevent the state from taking over the plan.

Turzai Bill Would Privatize PA Liquor Sales

“Should the government really be in the business of selling liquor?”

State Representative Mike Turzai posed that question to colleagues in the Pennsylvania House today.

“My answer is a definitive no.”

Turzai introduced legislation that would privatize the sale of wine and spirits in the Commonwealth.

The House Republican Whip says under his plan, 750 liquor licenses and 100 wholesale licenses would be auctioned off at an estimated $2 billion.

He says that money could be used to help patch a ravaged state budget.

Turzai says currently, a 30% Liquor Control Board tax, an 18% Johnstown Flood tax, and a 6% sales tax are assessed during the wholesale to retail transaction. His bill would levy the sales tax on alcohol consumers, rather than the licensees. The legislation would also mimic Florida’s tax model by converting the other taxes into a “gallonage tax” which would range from $2 to $6, based on alcohol content.

Turzai says Duquesne University studied private liquor sales versus controlled sales.

“The study showed that privatization does not lead to increased U.I. fatalities. In fact, the study indicated that licensed states actually have a lower D.U.I. fatality rate than controlled states,” says Turzai. “The study also found that there was no significant statistical difference in underage drinking or underage binge drinking in licensed versus controlled states.”

Turzai says he does not expect much support from Democratic legislators.

Bill Would Change DPW Payment System

House Minority Whip Mike Turzai of Mc Candless says a bill he’s introducing would streamline a Department of Public Welfare program’s spending, and help cut out waste. The bill comes on the heals of an August audit of DPW’s “Special Allowance Program,” which dispenses financial aid to lower income Pennsylvania residents. The audit found “lax oversight” and an “environment that encourages potential fraud.”
Turzai says his bill would help correct that. Among other things, the measure would eliminate the funding that is directly provided to welfare recipients for certain needs and programs such as schoolbooks, day care payments, and car repairs. Instead, Turzai would have DPW make those payments directly to the organizations or businesses providing the services. He says, “You don’t know what some of the folks are doing with the money, but if you have good documentation you pay it right to the end-user provider that’s providing that service. We’d require payments be made directly by DPW, no intermediaries.” Turzai and other Republicans say there are scores of examples of aid recipients using DPW grants to buy drugs and alcohol, but critics say the Republicans are drumming up anecdotal evidence, and exaggerating the amount of welfare fraud that’s taking place. Philadelphia Democrat Babette Josephs says there’s a disconnect between the Republicans’ rhetoric and actions. “On one hand, talking about dignity and preparing people for work and for a life that is an adult, responsible life. And on the other hand, taking money away from them because we’re not going to trust them to actually put it into daycare,” says Josephs. Turzai says the bill could save the state at least 100 million dollars. DPW did not return calls for comment.

Audit Shows Abuse of DPW Special Allowance Program

Auditor General Jack Wagner has uncovered what he calls the Pennsylvania Department of Public Welfare’s (DPW) mismanagement of $144 million in tax payers money. Under the “special allowance” program, DPW was handing out money to the unemployed for child care, books, clothing, tools and transportation. From July 2006 to December 2007, according to Wagner’s report, there were problems found in 45% of the cases examined.
Republican State Representative Mike Turzai of Allegheny County says this has been an issue since last session. He says “whistle-blowers” from across the state came to hearings to give examples of the abuse of the “special allowance” program, but DPW would not take proper responsibility and action. He says now that Wagner and his “professional” auditors have provided proof of the mismanagement, significant changes must be made.
Turzai says the main problem with the special allowances is the electronic cards, similar to debit cards, given out to people on welfare. Proper documentation was not being recorded, and people were using their cards for things such as drugs. His legislation would eliminate those cards from being distributed, and any money for careers will be given directly to the vendors instead of the individuals in order to assure that the money is being used correctly. The bill will also limit payments for child care, transportation, union fees, testing fees and professional fees.

PA House Republicans Beg for Budget Cuts

Republican State Representatives gathered reporters today to blast the Governor and praise the budget moved by the State Senate. The Senate proposed a spending bill that is much smaller than the one proposed by Gov. Ed Rendell. Among the biggest cuts is funding for the Department of Community and Economic Development. State Rep. Curt Schroder says the DCED is the “epicenter of pork ad waste.” He admits there are many worthwhile programs run by the DCED but he says that is also where all the so-called WAMS or discretionary funds are hidden. State Rep. Mike Turzai of the north hills says past budgets are to blame for the current budget short falls not the economic slowdown. He says if Pennsylvania lawmakers had been able hold spending increases to the rate of inflation over the last 6 years the state would have a budget surplus not a deficit. State Rep Daryl Metcalfe agrees. He says lawmakers are always looking to cut deals and can often be found walking the halls of the capitol wit their hands out looking to fund some special project. Metcalfe is sponsoring a taxpayer’s protest in Harrisburg Saturday.

Turzai: Go Deep on DCED Cuts

A group of fiscally conservative Republicans is making another case for reduced state spending beyond what the governor is calling for. Ed Rendell's spending plan would trim $291-million from the Department of Community and Economic Development's budget.
Republican House Whip Mike Turzai of McCandless wants to go deeper. He's proposing an additional 170-million dollars in DCED cuts. Turzai wants to use the savings to trim the state's personal income tax from 3.07 percent to 2.99. “The goal here is that we want to show that state government is willing to tighten its belts just like families and small businesses are. And that we're willing to help stimulate the economy by returning some of the dollars to them.” Cuts proposed by Turzai and other House Republicans include the elimination of the $28-million opportunity grant program, and $16 million allotted for community and regional development. Turzai says DCED cuts are an area Rendell and Republicans can reach common ground on, though he says he'll outline proposed spending reductions in other departments, as well, over the next few weeks.

Turzai Says No to New Shale Tax

Governor Rendell is floating the idea of new targeted taxes to help close the state's projected $2.3 billion budget gap including a tax on Marcellus Shale gas extractions. State Rep. Mike Turzai of Bradford Woods says that is a bad idea, “Here's an opportunity for a growth of an industry in Pennsylvania that benefits middle class families throughout the state. And he wants to stop its growth by taxing it? It makes no sense.” Rendell says he will not raise income taxes but wants to maintain services.

Republicans Tell Rendell to Cut, Not Tax.

Governor Rendell is preparing to deliver his annual budget address next week, but a group of House Republicans is dismissing the administration's plan for filling a $2.3 billion deficit. A group of conservative lawmakers led by Butler County Republican Daryl Metcalfe argue that excessive spending, and not the bad economy, created Pennsylvania's budget gap and Minority Whip Mike Turzai of Bradford Woods say, “The problem over the past six years is that he's [Rendell] been out of control. He's increased spending in the general fund alone by almost 40 percent, when the rate of inflation was less than 20 percent. And he's borrowed $6 billion that we're going to have to pay back to the tune of 10 billion.” Rendell spokesman Chuck Ardo disagrees with that assessment, saying the state is spending money on necessary programs. “If these folks want to see us throw seniors out of nursing homes, they're entitled to that opinion. We happen to disagree.” Says Ardo. Rendell says he's against a broad-based tax, but is open to targeted levies. Turzai and Metcalfe say they'll oppose all tax increases.

House Republicans elect Turzai to party whip

Representative Mike Turzai, of Bradford Woods, has been elected to the No. 2 GOP post as party whip. He was previously caucus policy chair. He replaces Schuylkill County's Dave Argall, who is seeking the party's nomination to run in a special election to the late state Senate.

House Republicans also have Representative Sam Smith, of Punxsutawney, returning to his post as minority leader. Former House Speaker John Perzel, of Philadelphia, lost his bid to unseat Mr. Smith.

Representative Mike Turzai introduces new gaming legislation

Representative Mike Turzai (R-Allegheny) has introduced legislation to help bring integrity, honesty and accountability to the Pennsylvania Gaming Control Board's (PGCB) awarding of gaming licenses taking over licenses, if need be.

"Whats the remedy when someone you gave a license to proves to be unsuitable?" Turzai asked a former New Jersey gaming regulator. "[He] said a trusteeship was the remedy most often used in New Jersey."

Turzai added this was something that is simply putting language into law. It has been done in the state before, but it is not a regulated law.