Happy New Year, everyone! We hope you had wonderful holiday celebrations and are looking forward to following the ongoing saga of who’s on first and what’s on second, i.e. our attempt to follow the circuitous passage of laws, regulations and, of course, government scandals. By now you should have defined and possibly already broken your New Year’s resolutions as we begin a very politically charged year of electing a new President, new U.S. Congressmen and Senators, 203 State House members and 25 State Senators. Add a healthy dose of renewable energy and climate change bills and stir frequently for a very interesting brew! Welcome to 2008!

How the Grinch (Almost) Stole Christmas
As we neared the culmination of our frantic holiday shopping last month, we were somewhat chagrined to learn that the legislators hit pay dirt again, i.e. an automatic Cost of Living raise of 3.5% that added an average of $2,500 to base salaries. Pennsylvania’s legislators rank fourth highest in legislative salaries nationally, trailing only California, Michigan and New York. To be fair, legislators did not meet in a late night session to approve this raise – it was an automatic pay adjustment provided for in a 1995 state law. However, with all of the recent Bonusgate revelations, it doesn’t swallow as easily as egg nog does down taxpayers’ throats.

No “lust” for taxes
Taxpayers almost took another financial hit from a proposal by the state Insurance Department to add a 1¢ per gallon increase to fuel taxes to help bolster the Underground Storage Tank Indemnification Fund to clean up damages from leaking underground storage tanks (LUST). When this now cash-strapped fund was flush with dollars several years ago, the Schweiker administration borrowed $100 million from it to prop up a faltering state budget. However, when the 1¢ proposal caught the Governor’s attention, he moved quickly to direct the Insurance Department to withdraw this increase. Yes, Virginia, there is a Santa Claus!

Open Records Debate
Despite the extended debate and rhetoric on Pennsylvania’s Right-to-Know law to expand the scope of records open to public scrutiny, final consideration and passage of this law will extend into January. The House of Representatives debated and added 18 amendments to the Senate’s proposal, Senate Bill 1, and sent it back to the Senate for their concurrence just before the December holiday break. Senate leaders determined that the addition of these amendments warranted further study by the Senate before signing off. According to House leaders, the amended language accomplishes four goals: 1. instead of a petitioner having to justify his request for a record, the government would now have to prove why a document should not be released; 2. the Pennsylvania legislature will now be included in this law; 3. financial accountability will extend to all three branches of government; and, 4. the State Ethics commission will help residents obtain public records and will create a uniform appeals process for access to a public record that has been denied.

Road Block Ahead
Act 44’s provision to provide much needed funding for road and bridge construction and transit authorities by increasing turnpike tolls and adding toll charges to Interstate 80 hit a serious roadblock last month when the Federal Highway Administration rejected the joint application filed in October by PennDOT and the Turnpike Commission as a pilot project for tolling an interstate. In returning the application, the FHWA stated that Pennsylvania’s application didn’t contain all of the information required for Phase 1 provisional acceptance or even a conditional provisional approval and questioned Pennsylvania’s awarding over the years of $250 million in federal highway transportation funds for other uses including mass transit costs. Also noted as missing from the application was a sufficient description of the planned reconstruction and rehabilitation project as well as details on how the toll implementation affects the interests of local, regional and interstate travelers. The Turnpike Commission has responded that it will work with the FHWA to supply the additional information requested.

Meanwhile, there is legislation in the works to transfer the delegation of $500,000,000 that is budgeted annually from the Motor License Fund revenues for State Police operations to the General Fund, a move that the Grange supported in its resolutions passed earlier this fall. As yet the legislation hasn’t been introduced but is expected in early 2008. The transfer would be done in $50,000,000 increments over a ten-year period with responsibility for total funding coming from the General Funds by FY 2018.

Smoking Ban Stalled
A state-mandated smoking ban did not make it out of Santa’s sack but remains in the workshop for more tinkering. Both legislative bodies did, however, appoint their respective Conference Committee members who will tackle the bill and try to filter out a consensus that will leave both houses breathing easier. Look for passage of some sort of compromise early next year but don’t hold your breath.

Farm Show Festivities
Put on your wool socks and heavy jackets and head out to Pennsylvania’s 92nd Farm Show exhibition with its 8,000 animals, 10,000 exhibits, and 270 commercial exhibitors. This year’s event is scheduled for January 5th through the 12th and kicks off with opening night banquet on January 4th. Tickets and seating for the banquet are limited but can be accessed at www.farmshow.state.pa.us (click on “Forms”) or by calling 717-787-4627.

In addition to the traditional events, farmers can learn more about the Resource Enhancement and Protection tax credit program and whether or not they qualify for the tax credits at one of two informational meetings on either January 8th or 10th. The REAP program which is administered by the State Conservation Commission encourages farmers to use conservation best management practices to reduce erosion and sedimentation runoff. For more information about the program, attending one of these meetings or an application packet, contact the department at www.agriculture.state.pa.us/REAP  or call 717-787-8821.

Hazardous Sites Cleanup Act
Thwarting a possible lay-off of 146 employees in the beginning of January, legislators finally approved a funding fix for the Hazardous Sites Cleanup Act Fund which would transfer $17 million from legislative accounts to finish out the current fiscal year. The yearly $40 million needed for this fund will be earmarked for the next several years from revenues collected from the Capital Stock and Franchise Tax through 2011 but will not interfere with the scheduled phase-out of this tax.

Read the Label
Last month’s report on the labeling concerns regarding milk and other food products prompted the Pennsylvania Department of Agriculture to issue a mandate that certain dairy companies discontinue the use of labels that make what it considers false or misleading claims about their milk effective January 1. That date has since been extended to February 1 and the Department’s recently appointed Food Labeling Advisory Committee plans to delve more comprehensively into the food labeling issue for safety and accuracy considerations. There will likely be more debate on this issue in the coming months.

Energy Resolution??
Perhaps you received the notorious “clapper” for Christmas so that you can clap your lights on and off, saving some energy and a few pennies. Or maybe you’ve resolved to be more energy conscious in 2008 and have even purchased the new light bulb that lasts “for a lifetime” – depending on whose lifetime it’s measured against. Governor Rendell’s special energy session which convened last fall inspired a number of energy-saving and renewable energy bills but up to this point, few had made it past both legislative bodies for passage into law. Last month, however, the Senate did pass its Alternative Energy Investment Act aimed at boosting renewable energy development and reducing energy consumption. Sponsored by Senator Mary Jo White (R- Venango), this bill supports research and development of alternative energy technologies, helps municipalities and businesses implement clean energy projects and provides assistance of up to 25% for the cost of installing energy-saving equipment to consumers. An additional $100 million would be added to the LIHEAP (Low-Income Home Energy Assistance Program) program. The program is expected to invest a total of $650 million over the next ten years without raising taxes but by using anticipated growth from state gross receipts taxes. Governor Rendell said the Senate’s measure falls far short of his $850 million proposal, particularly with its initial investment of only $250 million and expressed his hope that the House will improve upon the Senate’s version before it comes to his attention for approval.

Odds & Ends
Good news for veterans with the passage of legislation sponsored by Senator Lisa Baker (R-Luzerne) that would provide financial assistance to Veterans Administration accredited service officer programs including the American Legion, AMVETS, Veterans of Foreign Wars of the United States, and the Disabled American Veterans. The Pennsylvania Department of Military and Veterans Affairs will coordinate the program designed to improve and better coordinate the availability of veterans’ assistance and outreach programs throughout the state.

We wish you all a healthy, happy and prosperous New Year!