Shapiro and Turzai on PCN Call-In Show

Here are my notes from a prerecorded PCN Call-In Show. It is (or was) available on the PCN website www.pcntv.com. It is impossible to capture all the words spoken or even all the nuances of the responses, so these are rough notes. My apologies for any misinterpretations or errors.

PCN Call-In Program 11/13/06: Legislative Priorities

Guests: State Rep. Josh Shapiro (D-153) and State Rep. Mike Turzai (R-28)

The program started out with only the moderator and Rep. Shapiro. Rep. Turzai was running a little late and joined the program later.

Q: What are current legislative priorities?

JS: 1) mass transit – we need a dedicated funding stream. 2) health insurance – Cover All Kids did a great job for kids but we need all Pennsylvanian’s insured. He hopes these issues are discussed in January, and not in the lame duck session in December.

Q: The GOP still holds the majority. Will this change?

JS: He is confident that the Democrats will be in control once all the votes are counted. Some races are still undecided.

Q: State house leadership elections?

JS: There are a number of vacancies on both sides. Members are coming together to make decisions.

Q: There are 53 or 54 new state legislators. Will this new wave bring reform or will it business as usual?

JS: We will see reform. It is always good to shake things up; change can be good. The events of July, 2005 led to a need to shine a light of reform. He is confident that a mix of old and new members can make changes.

Q: Was the July, 2005 pay raise a factor in elections?

JS: The elections were localized. The pay raise was a factor but so was whether or not a representative was doing a good job.

The phones were opened to calls.

Caller: There is a distinction between the property tax exemption that peacetime veterans and wartime veterans get.

JS: That distinction should not exist.

Caller: One week after the election Gov. Rendell is talking about tax increases, especially for mass transit.

JS: The problem with mass transit funding is there is no dedicated funding stream. There is also a need for performance based budgeting.

Q: [moderator follows up with a question on the recently released report on mass transit]

JS: Why go through the same thing every year with SEPTA asking for money? Mass transit is an important environmental issue. It spurs jobs. We should all be committed to it working whether we ride it or not.

[Rep. Mike Turzai comes in]

Q: [moderator asks about mass transit funding]

MT: Mass transit has to look at its own costs. Some people can retire at 50 and get a pension. Some of them are being asked to defer their pension to keep on working. We must also look at roads and bridges along with mass transit, and perhaps some form of local matching.

Q: [moderator asks if roads and bridges are getting enough money]

MT: There has been a significant decrease in federal funding. Gov. Rendell flexed money into mass transit from roads and bridges. Should we privatize the turnpike?

JS: We need to do more with roads and bridges. Gov. Rendell flexed money when it was necessary to protect mass transit because the house and senate filed to act.

MT: The tunnel under the river for mass transit in Allegheny County is a problem. Costs keep escalating. The public is not behind it. If everything is on the table people will talk about dedicated funding.

Caller: When will there be real property tax reform?

MT: He did not like Gov. Rendell’s proposal and voted against it. We do need to get expenditures under control. Shift dollar for dollar to replace property tax money. Increase the sales tax 1%, put the money in a lock box, sent it to school districts on a per pupil basis if they will reduce property taxes. Assessments are a problem. We need statewide assessment reform.

JS: He voted for the property tax relief law. Senior citizens are suffering the most. In his district the percentage of people getting a rebate will go from 13% to 55%. Any time you increase one tax to reduce property tax his constituents will end up paying more. Fix assessments, control state budget. This was a good first step. It is hard for families to budget if they can’t plan for tax increases. Now they know the school tax can’t go up past a certain percent unless there is a referendum.

Q: [moderator asks when people will see savings and how much]

JS: www.pahouse.com/shapiro -- there is information on this on his website.

MT: Gambling is not free money. Somebody’s paying gambling costs. Forced referendum – will costs shift to earned income tax? With the sales tax, a significant amount is paid by people from outside the state.

JS: The rate of spending is capped at the rate of inflation. This is a good start.

Caller: Tax assessments are unfair.

MT: Assessments aren’t fair. In Allegheny County there was court ordered reassessment.

Caller: Mass transit, turnpike, tunnel okay, no tax money for sports stadium

MT: The tunnel has to go.

Caller: Explain the tax shift.

JS: With property tax relief there are 6 items: 1) expand the property tax rent rebate program, 2) any senior citizen paying more than 15% of their income in property tax gets relief, 3) everyone gets relief from gaming money, 4) wage taxes go down, 5) cap school board spending, and 6) have earned income tax as property tax relief

MT: The existing law says that in May there can be a local shift from property tax to earned income tax. It is a district by district decision. Gambling money is going into property tax rent rebate. It does not help the middle class, but targets a specific group.

Caller: leadership elections. Should votes be made public? Any real reform if the same leadership?

MT: He voted against the pay raise. Just before the elections the legislature did pass real gambling reform, got rid of middle man suppliers, did lobbyist disclosure, not the strongest possible, but better than before. Leadership elections are internal votes and should not be made public.

Caller: Why not exempt senior citizens and those without children from the school tax?

JS: The uniformity clause in the constitution says all taxes must be uniform. He also wants a tax credit for parents who send their kids to private and parochial schools.

MT: Everybody has to contribute to the funding of schools. PA exempts 401K and social security from the state income tax. The value of everyone’s home benefits from good schools. MT sends his kids to parochial school so he pays for that.

Caller: Schools shouldn’t be funded by property tax but by the sales tax.

JS: Skeptical of raising one tax to relieve another.

MT: Expansion of sales tax to pay for services is a killer for some businesses.

Caller: a current school board member. Property tax relief will result in higher earned income tax. On referendums school districts will raise taxes to the limit each year instead of delaying increases, to avoid going to the referendum. School administrators and legislators have large pensions and benefits.

MT: Pensions and legacy costs must be addressed across the board in the public sector.

Q: [moderator asks about vehicle emissions standards]

JS: California has put up a new set of rules and regulations on vehicle emission standards. It is very important in Southeastern Pennsylvania because of air quality. The news provides smog index numbers in summer months. Pending legislation would not adopt stricter standards. JS wants tougher standards. It won’t affect the cost of cars or the type of cards available.

Caller: Act 1. Caller is a school board member. With referendums we could end up with over 500 tax systems, with each district making its own decisions.

MT: Great point.

Caller: Why do people who will end up paying nothing have to file state tax forms? Why not do away with filing for people who won’t have to pay?

JS: This is a good idea. Please send a proposal and JS and MT will co-sponsor a bill.

MT: Yes, great idea.

Caller: How is it good for people to pay 1% in earned income tax and only get $600 back from property taxes?

JS: The issue of the earned income tax is a local decision. The 1% / $600 figure is for Abington.

Caller: Why doesn’t the state pay half of school costs as it is obligated to do?

MT: In some school districts like Duquesne and some rural districts the state pays more than half. It should be a more equitable formula. MT’s and JS’s districts get less than 50%.