Tartaglione Joins Bankers, Homeowners in Support of HEMAP

Philadelphia,  June 17, 2011 – State Sen. Christine M. Tartaglione joined local bank executives, homeowners and consumer advocates in support of restored funding for Pennsylvania’s emergency mortgage assistance program.

At a news conference at City Hall, Tartaglione said preventing foreclosures is a key component of economic recovery.

“Over the next two weeks, I will be urging my colleagues to remember that keeping a family in their home is more than just good will.  It’s good policy,” she said.

“It holds families together, which holds neighborhoods together, which holds communities together.”

Funding for Pennsylvania’s Homeowner Emergency Mortgage Assistance Program was eliminated in Gov. Tom Corbett’s budget proposal, announced in March.

Tartgaglione said a projected state budget surplus should prevent cuts that would put homes and neighborhoods at risk.

“Restoring our commitment to HEMAP is an investment in people, neighborhoods, small businesses and big banks. It floats all boats,” she said. “Taking away the help when it is needed the most is bad public policy that will create more budget problems than it solves.”

Local banking officials agreed and joined Tartaglione to urge lawmakers to restore the funding in the final budget.

“We unequivocally support funding for HEMAP,” said Bill Smith, vice president for community banking at Citizen’s Bank. “HEMAP has been there to save the day.”

Supporter also heard from Sharon Greene, a Philadelphia homeowner who is working with the Philadelphia Unemployment Project to acquire HEMAP funding to prevent the foreclosure of her home.

“It’s not like you just stop working and stop paying the bills,” she said. “Things happen. And keeping your home means keeping families together.”

HEMAP was created by the legislature in 1983, and has distributed $211 and recouped $238 million in re-payments.  More than 20,000 loans have been repaid with HEMAP support.

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Tartaglione Praises Passage of Compromise on Unemployment

HARRISBURG,  May 24, 2011 – State Sen. Christine M. Tartaglione today praised Senate passage of a compromise bill that extends unemployment benefits and makes changes that will help shore up the Unemployment Compensation Trust Fund.

“It has taken considerable effort and an honest look at our priorities to strike a balance between what is best for those who are laid off and those who are still working and paying the taxes,” Tartaglione said. “I am grateful that my colleagues have seen the wisdom of preserving and extending benefits during the worst days of the economic decline. Senate Bill 1030 recognizes the continued effects of the recession as well as the continued deficit in the trust fund.”

Thousands of unemployed Pennsylvanians will lose their extended federal benefits on June 11 unless the state makes changes to its unemployment law required for a federal extension.  The Senate Labor and Industry Committee took language from Tartaglione’s bill (Senate Bill 994), and amended it to Senate Bill 1030.  Federally subsidized extended benefits are triggered by a state’s unemployment rate over a defined period of time, called a “look-back” period.  Using a two-year look-back, Pennsylvania will not qualify after May 21, and 45,000 Pennsylvanians would lose benefits on June 11.  An estimated 90,000 more would lose regular benefits and not qualify for extended benefits through the end of the year.

The provisions of Tartaglione’s bill became part of a comprehensive unemployment reform that will save money for the beleaguered Unemployment Compensation Trust Fund and require anyone collecting unemployment to actively look for work.

“I believe we all realize that unemployment compensation is not just a lifeline for laid-off workers and their families.Unemployment compensation has also been critical in shoring up the economy, preserving small businesses and the communities they serve,” Tartaglione said. “During the recession, more than $15 billion in benefits were spent on food, mortgages, utilities and doctor bills.  Without that economic impact, we would have seen higher unemployment, more foreclosures and a deeper hole for families to climb out of.”

The bill also includes a Tartaglione proposal authorizing “shared-work” programs, through which employers would be able to reduce work hours of employees as an alternative to layoffs and allow affected employees to receive prorated unemployment compensation for lost wages.

The bill now goes to the House.

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Tartaglione Praises Action on Unemployment Extension

HARRISBURG,  May 10, 2011 –  State Sen. Christine M. Tartaglione today praised colleagues for including provisions from her unemployment reforms in legislation that was unanimously reported out of a key Senate committee.

Thousands of unemployed Pennsylvanians will lose their extended federal benefits on June 11 unless the state makes changes to its unemployment law required for a federal extension.  The Senate Labor and Industry Committee took language from Tartaglione’s bill (Senate Bill 994), and amended it to Senate Bill 1030, before voting unanimously to send the measure to the full Senate.

  “We all understand the urgency of keeping families afloat as the job market very slowly recovers,” Tartaglione said. “I commend my colleagues for the compromise that will move this legislation quickly enough to send to the Governor’s desk before the deadline.”

Federally subsidized extended benefits are triggered by a state’s unemployment rate over a defined period of time, called a “look-back” period.  Using a two-year look-back, Pennsylvania will not qualify after May 21, and 45,000 Pennsylvanians would lose benefits on June 11.  An estimated 90,000 more would lose regular benefits and not qualify for extended benefits through the end of the year.

Three weeks ago, Tartaglione introduced Senate Bill 994 to make the technical change to Pennsylvania’s unemployment law to allow for the extension.  Pennsylvania would join more than a dozen other states in extending the look-back period to three years, allowing thousands to keep their benefits as the job market begins to slowly recover.   About 97 percent of the cost would be paid for by the federal government.

 The provisions of Tartaglione’s bill were amended into Senate Bill 1030, as part of a comprehensive unemployment reform that will save money for the beleaguered Unemployment Compensation Trust Fund and require anyone collecting unemployment to actively look for work.

The bill also includes a Tartaglione proposal authorizing “shared-work” programs, through which employers would be able to reduce work hours of employees as an alternative to layoffs and allow affected employees to receive prorated unemployment compensation for lost wages.

 “Unemployment benefits not only help families through the Great Recession, but they also help local businesses and other service providers by putting cash into the local economy when it needs it most.”

Tartaglione, the Democratic Chair of the Senate Labor and Industry Committee, said she hopes the Senate will quickly consider the bill.

Tartaglione Urges Close Scrutiny of Drilling Company Taxes

HARRISBURG,  May 2, 2011 –  State Sen. Christine M. Tartaglione, along with Democratic colleagues, today urged the state Department of Revenue to aggressively audit the tax filings of Marcellus Shale drilling companies in light of proliferation of Delaware subsidiaries.

“The boom in natural gas drilling in Pennsylvania has been mirrored by a similar rise in the number Delaware subsidiaries registered by Marcellus Shale energy companies,” Tartaglione said. “All Pennsylvania taxpayers should question the reason for these numerous affiliates and seek assurance that energy companies are paying their share of state taxes.”

(CLICK HERE for detailed information)

Tartaglione is the prime sponsor of Senate Bill 679, which would require “combined reporting” for businesses in Pennsylvania and close the “Delaware Loophole.” 

“Nearly three quarters of Pennsylvania companies pay no income tax and 80 percent pay less than the average family of four,” Tartaglione said. “At the same time, the number of business entities registered in Delaware over the past 20 years has jumped from 6,000 to more than 115,000.  Pennsylvania’s revenue department should closely monitor this activity.”

Tartaglione noted that hundreds of Delaware business entities have been registered in the names of Marcellus Shale drilling companies in the past five years even though Delaware doesn’t have a single gas well.

“Instead of making egregious cuts to education and social services, Pennsylvania should do everything in its power to make sure its tax rates are enforced and that no person or company can play accounting games to escape their share,” said Senate Democratic Leader Jay Costa. “Businesses who fairly account for their income are paying the highest corporate income tax rate in the nation because we let the largest companies off the hook.”

Several years ago, the revenue department estimated that $400 million in corporate taxes could be recouped by adopting a combined reporting standard, as 23 states have already done.  

Facing drastic cuts in education outlined in Gov. Corbetts’s budget address, proponents of Tartaglione’s legislation said preserving tax loopholes is unconscionable.

“It’s simply wrong to slash funding for college kids, teachers and seniors – to cut more jobs rather than going after tax-dodging corporations hiding out in Delaware, or out of state drilling companies removing our resources,”  Pennsylvania AFL-CIO President Rick Bloomingdale said.

Tartaglione is asking the revenue department to issue a new, good-faith estimate based on the proliferation of Delaware business entities and the expansion of gas exploration in Pennsylvania.

“I ask that your department aggressively audit the returns of gas industry entities, especially as they relate to expenses and deductions claimed for Delaware companies,” Tartaglione wrote in a letter to acting Revenue Secretary Dan Meuser.

Last week the department rebutted findings by the Pennsylvania Budget and Policy Center that 85 percent of Marcellus-related companies paid no income tax over the past two years.

“We need an accurate assessment of the problem, not defense of one industry over another,” Tartaglione said.

The Energy Boom and the Delaware Loophole

Delaware Loophole – Background

Delaware has no corporate tax on income from “non-tangible assets,” such as leases, trademarks, royalties and copyrights.

Large corporations form Delaware subsidiaries and transfer ownership of such assets, then makes steep payments for the use of the assets, making them deductible expenses in Pennsylvania.

The toy store ToysRUs owns a Delaware company called Geoffrey Inc. that collects royalties from local stores for using its giraffe logo.

Most of the Delaware subsidiaries have no employees, and simply exist to collect revenue and redistribute it.

On building at 1209 N. Orange St. in Wilmington, is headquarters for 6,500 registered companies but  has only 35 parking spaces.

More than 700 corporations are headquartered in five floors of a downtown Wilmington high rise.

WalMart and Home Depot have real estate investment trusts in Delaware that collect lease payments from local stores.

Delaware’s corporate registry skyrocketed in the early 1990s when corporate accountants began to catch on to using the loophole, peaking two years ago when the state registered 121,000 new corporations – or one per minute of the business day.

With a population one-twelfth the size of Pennsylvania’s, Delaware collects half as much corporate tax revenue, simply from the small fee to register corporations.

Nearly three quarters of Pennsylvania corporations pay no income tax.

Pennsylvania’s revenue department estimated several years ago that combined reporting could bring more than $400 million in tax revenue back to the state.

That loss of revenue contributes to Pennsylvania having the highest corporate net income tax in the nation, an unfair burden to businesses that don’t use Delaware subsidiaries.

The Marcellus Shale/Delaware Boom  

 According to the Pennsylvania Budget and Policy Center, only 15 percent of 783 Marcellus exploration companies paid Corporate Net Income taxes in 2008.

A significantly larger number of drillers — including nine of the top 10 permit holders in the Marcellus Shale — structure their businesses as limited liability companies (LLCs) or limited partnerships (LPs).  This allows them to avoid the corporate net income tax altogether and pay the much lower personal income tax on company profits. 

Using the Delaware Division of Corporations on-line database, the Communications and Issues Development Office has identified more than 400 Delaware subsidiaries linked to Marcellus Shale gas exploration.

Nearly half of these companies have been incorporated in the past four years when gas exploration in Pennsylvania began to take off.

According to the Center for Budget and Policy Priorities, there are numerous ways that the Delaware subsidiaries can be used to shift income to tax-free companies in Delaware.  They include:

  • Royalty payments
  • Technology and formula trademarks
  • Land leases

Nearly every company drilling, processing or transporting gas in Pennsylvania has at least one, and usually several, Delaware subsidiaries.

One of the largest, Anadarko, has 89 corporations registered in Delaware.

The entities found through the database search represent only companies that can be identified as having the same name as the parent.  Perhaps hundreds more exist through other entities, partnerships, mergers and investments.

It is also plausible that the mystery surrounding the actual ingredients and ratios of the fracking fluid are due to corporate trademarks on the formula that are the property of Delaware passive investment companies.

The Pipeline: Examples

Blowout sends frack fluid, stock price soaring — On the day after (April 20) the blowout of a Chesapeake Energy gas well in Bradford County, Reuters reported a multi-national buyout of Frac Tech a fracking company owned partially (25 percent) by Chesapeake.   The reported deal would pay Chesapeake cash and increase its stake in Frac Tech to 30 percent.  Despite the blown-out well, Chesapeake stock rose nearly 3 percent that day.   Nine days earlier, on April 11, a new company appeared at 1209 N. Orange Street in Wilmington – Frac Tech International LLC.  It joined siblings Frac Tech Services (9/29/10) and  Frac Tech Horizons (12/29/06) at that location.

A birth in the family – In January of 2009MarkWest Energy Partners, L.P. and NGP Midstream & Resources, L.P., announced the formation of a new company to build a gas processing plant in Southwestern Pa.   The first work was done in Delaware, where the new venture — MarkWest Liberty Midstream & Resources, LLC – was incorporated at 1209 N. Orange St. on Jan. 20. 2009.   Four months later, the facility opened in Washington County, PA.    MarkWest has 17 entities registered in Delaware; NGP has as many as 100.

Too  much paperwork — While the drilling companies have been aggressive at keeping up with the paperwork for hundreds of corporate subsidiaries, they have not been so productive with state regulators.

In 2010, 41 of 74 companies missed the August 15 deadline for filing production reports with the state Department of Environmental Protection. 

Two of those companies was Carrizo (Marcellus) LLC and Carrizo Oil and Gas, according to DEP.  Carizzo was busy giving birth to a new Delaware subsidiary (Carrizo Marcellus WV LLC) on August 18, 2010. Nine days after the deadline, Carrizo still had not filed its production report in Pennsylvania.

It’s the same story for Atlas Resources which skipped the DEP deadline, but filed a new subsidiary in Delaware, Atlas Resources Series 29-2010 LP, on August 17, according to the Delaware Division of Corporations.

EXCO Holding PA Inc. is registered in Delaware….Penn Virginia has 14 Delaware entities, all at 1209 N. Orange St…..PVR Radnor is not in Radnor.  It’s in Delaware at 1209 N. Orange, but so is PVR North Texas and PVR Lexington and PVR Savannah….Range Resources is perhaps the granddaddy of them all, having been registered in Delaware for more than 30 years, but there have been lots of new kids on the block at 2711 Centerville Road.

Taking Action

Sen. Tartaglione is asking  the Department of Revenue to audit the general activity of companies listed on the latest Department of Environmental Protection Marcellus Production Report as they relate to expenses charged to Delaware corporations.

In the fall of 2010, there were 74 companies listed on the report.

In a letter to acting Secretary of Revenue Dan Meuser, senators will seek a report on corporate net income taxes paid for 2010 by these companies, including:

  • Total deductions taken for expenses to out of state companies
  • Total deductions taken for expenses to Delaware companies
  • A good-faith estimate of revenue that could be recovered by requiring combined reporting

Sen. Tartaglione is calling for immediate consideration of Senate Bill 679, requiring “combined reporting” to close the loophole.

Five years ago only 16 states, representing 29 percent of the U.S. economy used combined reporting. Now 23 states have adopted the practice – representing nearly two-thirds of of the economy.

Combined reporting would add little to corporate accounting because three quarters of companies that would be affected already do business in states that require combined reporting.

Between 1990 and 2007, of the eight states that saw manufacturing job gains, seven required combined reporting.

Most of the large corporations that would be affected by reform in Pennsylvania maintain facilities and workers in numerous combined-reporting states year-in and year-out.

Tartaglione on House GOP Budget: Same Song, Different Arrangement

HARRISBURG,  May 2, 2011 – The budget plan offered by House Republicans yesterday ignores obvious remedies for Pennsylvania’s budget problems and lopsided business –tax system,  State Sen. Christine M. Tartaglione said today.

“It’s better than what Governor Corbett proposed, but barely,” Tartaglione said. “It’s the same song with a new arrangement: Cut the needy; save the greedy.”

The House GOP proposal fails to address the growing game of corporate tax-ducking, even as 85 percent of companies involved in the rapidly expanding Marcellus Shale gas industry pay no corporate income taxes.

“The insistence on preserving loopholes for big drillers and big retailers while cutting education and family programs is not just fundamentally wrong,” Tartaglione said. “It’s short-sighted economic policy that darkens the future in favor of hit-and-run energy profits.”

Tartaglione, who recently revealed the existence of hundreds of newly formed Delaware subsidiaries related to the gas industry, is the prime sponsor of Senate Bill 679, which would require “combined reporting” for businesses in Pennsylvania and close the “Delaware Loophole.” 

“The combined reporting requirement simply targets corporations that are avoiding their tax obligation by using out-of-state mailboxes,” Tartaglione said. “We all want businesses to be successful and the economy to grow.  The best way to get there is to create a business tax system that is fair to all businesses, big and small.”

Several years ago, the state Department of Revenue estimated that $400 million in corporate taxes could be recouped by adopting a combined reporting standard, as 23 states have already done.   With the formation of hundreds of new Delaware subsidiaries, the revenue lost through the loophole could be dramatically rising, Tartaglione said.

Tartaglione Introduces Legislation to Protect Unemployed

HARRISBURG,  April 26, 2011 –  Sen. Christine M. Tartaglione today announced the introduction of legislation intended to prevent as many as 135,000 laid-off  workers from losing unemployment benefits.

“The economic recovery has been strong on Wall Street, but slow on Main Street,” Tartaglione said. “Banks and large corporations are making money, but hiring hasn’t caught up. Protecting benefits for workers means protecting homes, families and entire communities.”

 Federally subsidized extended benefits are triggered by a state’s unemployment rate over a defined period of time, called a “look-back” period.  Using a two-year look-back, Pennsylvania will not qualify after May 21, and 45,000 Pennsylvanians would lose benefits on June 11.  An estimated 90,000 more would lose regular benefits and not qualify for extended benefits through the end of the year.

 Tartaglione’s bill, Senate Bill 994, would make the technical change to Pennsylvania’s unemployment law to allow for the extension.  If passed, Pennsylvania would join more than a dozen other states in extending the look-back period to three years, allowing thousands to keep their benefits as the job market begins to slowly recover.   About 97 percent of the cost would be paid for by the federal government.

Tartaglione, the Democratic Chair of the Senate Labor and Industry Committee,  said she hopes the committee and the full Senate will move it quickly.

“It’s important to remember that unemployment benefits don’t  just provide income for jobless workers,” Tartaglione said. “The benefits sustain local businesses and local communities by keeping families solvent and in their homes.  This bill would help ensure continued progress in the economic recovery.”

Los demócratas del Senado recogen ideas para mejorar los programas de formación para el empleo

Filadelfia - 15 de abril de 2011 -La presidenta del Comité de Política Demócrata del Senado, Lisa Boscola (D-Northampton/Lehigh/Monroe), dijo que los demócratas perfeccionarán su plan de empleo y desarrollo económico PA Works con muchas de las ideas ofrecidas en la mesa redonda de ayer en Filadelfia.

"Pensé que los expertos laborales, empresariales, gubernamentales y de formación de la región que participaron en el debate de ayer tenían algunas grandes ideas para conseguir que la gente vuelva a trabajar", dijo Boscola. "Mi comité seguirá buscando aportes locales a medida que visitamos diferentes regiones del estado y discutimos aspectos de nuestro paquete legislativo "PA Works"."

Mark Boyd, presidente y director general de Goodwill Industries, habló de la necesidad de consolidar y hacer más eficientes y eficaces los programas de formación para el empleo. Pidió que se simplifiquen los sistemas de contratos y se haga más hincapié en la búsqueda de oportunidades laborales para discapacitados, personas sin estudios y ex delincuentes.

"Ofrecería cero impuestos a las empresas que trajeran a Pensilvania empleos manufactureros bien remunerados", añadió Boyd.

Everett Gillison, teniente de alcalde de Seguridad Pública de Filadelfia, se mostró de acuerdo, sugiriendo que el desarrollo de la mano de obra es un componente importante de la seguridad pública y de la atracción de empresas a una comunidad. Ryan Boyer, director comercial del Laborers District Council, añadió: "El mejor programa social es un empleo".

Patrick Eiding, presidente del Consejo de la AFL-CIO de Filadelfia, afirmó que es necesaria una mayor coordinación entre los empresarios y los formadores laborales para garantizar que las personas reciben formación para los puestos de trabajo existentes a largo plazo. También sugirió hacer mayor hincapié en la oferta de incentivos para atraer a más empresarios a Pensilvania.

"El 90% o más de los componentes de calefacción solar se fabrican en China", dijo Eiding. "¿Por qué no darles unas viejas instalaciones en Kensington, darles el edificio, cualquier crédito fiscal disponible y ayudarles a empezar?".

Todos los participantes en la mesa redonda elogiaron el paquete PA Works de los demócratas del Senado. Dijeron que ayudaría a que más gente trabajara y a que el Estado saliera de la recesión.

Boscola dijo que PA Works crearía más de 28.000 puestos de trabajo, mientras que en realidad ahorraría dólares de los contribuyentes estatales. Dijo que el plan demócrata movilizaría 2.000 millones de dólares en inversión privada para ayudar a poner a la gente a trabajar, recortar los impuestos a las empresas y ayudar a las pequeñas empresas a ser más competitivas, reconstruir la envejecida infraestructura del estado, fomentar el crecimiento de nuevas y prometedoras industrias de energía limpia y verde y reajustar los programas de formación de trabajadores.

Además de Eiding, Boyd, Boyer y Gillison estuvieron: Pat Merk, director de Salud y Seguridad del Finishing Trades Institute; Stacy E. Holland, copresidenta de la Philadelphia Youth Network; Liz Robinson, directora ejecutiva de programas de la Energy Coordinating Agency; y Gary Masino, presidente de la Sheet Metal Workers Local 19.

Los senadores que se unieron a Boscola fueron el líder demócrata del Senado Jay Costa (D-Allegheny), Shirley Kitchen (D-Phila.), Mike Stack (D-Phila.), Christine Tartaglione (D-Phila.), LeAnna Washington (D-Phila./Montgomery), Larry Farnese (D-Phila.), Vince Hughes (D-Phila./Montgomery), y John Blake (D-Lackawanna/Luzerne/Monroe).

Tartaglione Backs Budget Alternative to Save $1.1 Billion

Philadelphia April 14, 2011 –State Sen. Christine M. Tartaglione joined Democratic colleagues today to announce a budget plan that underscores their budget priorities and includes $1.14 billion in total savings, new revenues and efficiencies.

At a news conference today at Temple University, Democrats offered the budget plan in response to Governor Tom Corbett’s proposal to make deep cuts in basic and higher education, social service funding, hospital funds, health care, job creation and county programs.

“This plan gives the legislature a viable choice to grow jobs as a way out of the recession, rather than cutting the lifeline to vulnerable Pennsylvanians and halting the progress we’ve made in education,” Tartaglione said. “It should be the start of a dialogue that will move us forward.”

The Democratic plan uses the funding generated from the cost savings, revenues and innovations to restore critical funding for basic and higher education, safety net programs, mortgage assistance and other vital programs.   

The Senate Democratic plan includes savings, revenues and efficiencies of $1.14 billion:

  • $750 million in savings from fiscal responsibility initiatives in Public Welfare, Corrections, procurement and maximizing revenues;
  • $290 million in savings generated through a tax fairness plan that includes a Marcellus Shale tax levy but eliminates other tax breaks suggested by the governor;  
  • $100 million from higher state stores revenues.

Senate Democrats said the new revenue and savings can be used to restore key funding lines that were slashed in the Corbett budget plan.  Senate Democrats would use the funds to:

  • Restore basic and higher education funding to fiscal 2010-11 levels;
  • Restore critical county programs such as the Human Services Development Fund;
  • Save the HEMAP (Homeowners’ Emergency Mortgage Assistance Program) and mortgage foreclosure assistance programs;
  • Ensure that the Tobacco Settlement funds are used for healthcare;
  • Fund the adultBasic program with tobacco settlement dollars;
  • Maintain core programs that create jobs and provide training. 

Senate Democrats also pointed out that the revenue estimates included in the governor’s proposed budget were significantly under Senate Democratic estimates.  The governor’s budget indicates that revenue surplus would be $78 million while Senate Democrats estimate year-end revenues at $300 million. 

Democratic leaders also said state revenues would increase if more jobs were created.  As a result, Senate Democrats have proposed a sweeping jobs plan called “PA Works” that would create jobs, leverage private funds and generate economic investment.

The news conference announcing the plan was immediately followed by a Senate Democratic Policy Committee roundtable discussion on job training legislation, a key component of PA

Proposal Would Modernize PA Wine and Spirit Store Operations

Harrisburg, April 14, 2011 – In response to yesterday’s Senate Law and Justice Committee hearing on the modernization of the Liquor Control Board operations and in conjunction with the Senate Democrats “Budget Savings Plan,” three Democratic senators are unveiling legislation aimed at modernizing Pennsylvania’s wine and spirit store operations.

 “We must continue to find ways to improve the efficiency and flexibility of the Liquor Control Board (LCB) and the wine and spirit stores across Pennsylvania,” said Sen. Jim Ferlo (D-Allegheny).  “We can continue to improve the customer experience at the stores while generating millions in new revenue.  By modernizing the way the LCB does business, we enable it to operate more effectively and tap into the full potential of the agency — so that Pennsylvania’s economy can reap the benefits.”

 The legislation, proposed by Ferlo, Sen. Vincent Hughes (D-Philadelphia/Montgomery) and Sen. Christine Tartaglione (D-Philadelphia) would be centered on the “3 P’s” – Procurement, Pricing and Personnel.

 “PLCB modernization is an integral part of the Senate Democrats’ $1.1 billion budget savings plan announced today,” Hughes said. “It’s a win-win for Pennsylvania. Not only will modernization generate substantial new revenue to help offset some of the governor’s most egregious budget cuts, it will also improve the customer’s experience and protect thousands of good-paying jobs.”

 Specifically, the Liquor Control Board modernization proposal would:

  • Allow the LCB greater flexibility from the Department of General Services and the state Procurement Code to purchase goods and services outside of the code’s parameters and market its services out of state. This would provide savings and additional new revenue streams for Pennsylvania.

 

  • Allow the LCB to alter markup and proportional pricing to better reflect market conditions.  This portion of the proposal includes offering a customer relations marketing program to improve the buying experience. This could generate new revenue between $20 and $70 million.

 

  •  Allow the LCB to hire outside of Civil Service requirements.  The LCB is a retail operation unlike any other within state government. The senators said civil service tests and requirements often do not accurately reflect the skills needed to be an effective wine & spirit store or warehouse employee.     This and a few other personnel proposals could result in significant savings, according to the senators.

“By ensuring collective bargaining rights for liquor store employees, we preserve the family sustaining jobs our economy needs,” Tartaglione said. “And continued support of hiring veterans should remain a priority in Pennsylvania.”

The senators said they are encouraged by Senate Law and Justice Committee chairman Sen. John Pippy’s (R-Allegheny) willingness to have open dialogue on the future of the state wine

Tartagione Praises Committee Approval of Firefighter Cancer Bill

HARRISBURG,  April 11, 2011 –  The state Senate Appropriations committee today approved a measure that will ensure firefighters that they and their families will be protected financially if they contract cancer on the job, state Sen. Christine M. Tartaglione announced.

“We’ve made terrific progress in recognizing the risk for firefighters and acknowledging the responsibilities of their communities,” Tartaglione said. “I’m gratified that we were able to bring everyone together to get this far.”

Last year, Tartaglione ushered House Bill 1231 through the Senate but it was vetoed by Gov. Rendell after municipalities expressed concerns about the cost.

A new bill, Senate Bill 654, passed the Appropriations Committee today with some minor changes to accommodate local concerns.  It cleared the Senate Labor and Industry Committee last week.

The bill specifically adds cancer to the Workers’ Compensation Act as a work-related illness if no other obvious cause for the disease is present and amends the law to include cancer suffered by firefighters and caused a group of known carcinogens recognized by the International Agency for Research on Cancer.  

The measure covers professional and volunteer firefighters in Pennsylvania that have been on the job for more than four years and have been exposed to known carcinogens.  There are provisions in the bill that allow the presumption of job-related cancer to be rebutted by evidence of cancer-causing activity – such as smoking —  during a firefighter’s non-duty hours.

There are more than 3,500 professional and 60,000 volunteer firefighters in Pennsylvania.

Los demócratas del Senado celebrarán una audiencia en Filadelfia sobre propuestas de formación para el empleo

Harrisburg - 7 de abril de 2011 - La Comisión de Política Demócrata del Senado celebrará la próxima semana una mesa redonda sobre temas de formación laboral en el Temple Corporate Learning Center de Filadelfia.

"Cualquier esfuerzo legislativo para avivar nuestra economía y crear puestos de trabajo debe incluir un plan agresivo de formación para el empleo", dijo la senadora Lisa Boscola (D-Northampton), que preside el comité. "Mientras que los demócratas del Senado ya han introducido proyectos de ley de formación para el empleo, estoy ansioso por obtener información de los empresarios de la región de Filadelfia, representantes sindicales y trabajadores sobre la mejor manera de capacitar a nuestros trabajadores para los buenos empleos de hoy - y mañana."

Boscola dijo que la creación de empleo y el fortalecimiento de la economía del estado debe ser la principal prioridad legislativa de este año. Dijo que conseguir que la gente vuelva a trabajar es la clave para recuperarse de la recesión.

"Tenemos que determinar lo que funciona y lo que no, y cómo podemos avanzar en esta cuestión tan importante para las personas a las que representamos", declaró Boscola. 

La mesa redonda se celebrará en Filadelfia a petición de miembros de la Delegación Legislativa del Senado de Filadelfia. Tendrá lugar el jueves 14 de abril a las 11.00 horas en el Temple Corporate and Learning Center, 2450 W. Hunting Park Avenue, Filadelfia. Se invita al público a asistir.

En febrero, los demócratas del Senado presentaron un plan legislativo de seis puntos, denominado PA Works, cuyo objetivo es dinamizar la economía de Pensilvania y crear empleo.

"Lo bueno del paquete legislativo demócrata es que crearía más de 28.000 puestos de trabajo, al tiempo que ahorraría dinero a los contribuyentes", afirmó Boscola.

Dijo que el plan demócrata movilizaría 2.000 millones de dólares en inversión privada para ayudar a poner a la gente a trabajar, recortar los impuestos a las empresas y ayudar a las pequeñas empresas a ser más competitivas, reconstruir la envejecida infraestructura del estado, fomentar el crecimiento de nuevas y prometedoras industrias de energía limpia y verde y reajustar los programas de formación de trabajadores.

MÁS

Para la audiencia de Filadelfia, Boscola dijo que el comité se centrará en la formación laboral. Los demócratas han introducido estos proyectos de ley de formación laboral PA Works hasta la fecha:

  • Consolidar los programas de formación laboral bajo una única agencia estatal mediante la creación de un sistema integrado de "ventanilla única" de inversión en mano de obra y servicios educativos (Yudichak);
  • Redirigir los recursos federales para crear un programa de formación en el puesto de trabajo, siguiendo el modelo de Georgia Works (Tartaglione);
  • Establecer un programa de Trabajo Compar tido para aliviar la presión sobre la compensación por desempleo (UC), siguiendo el modelo del programa de Trabajo Compartido de Missouri (Tartaglione); y
  • Proporcionar becas de formación "Green Workforce". (Cocina)

Además de los miembros del comité, se espera que participen en la mesa redonda informal: Patrick Eiding, presidente del Philadelphia Council AFL-CIO; Pat Merk, del Finishing Trades Institute; Laura Shubilla, presidenta y directora general de la Philadelphia Youth Network; Mark Boyd, presidente y director general de Goodwill Industries; Everett Gillison, teniente de alcalde de Seguridad Pública; Ryan Boyer, director comercial del Laborers District Council; Liz Robinson, directora ejecutiva de programas de la Energy Coordinating Agency; y Gary Masino, presidente del Sheet Metal Workers Local 19 de Filadelfia.

Tartaglione Opposes Changes to Construction-Code Process

HARRISBURG, April 6, 2011 – State Sen. Christine M. Tartaglione today fought changes in Pennsylvania’s construction code process that she said are intended to favor special interests over consumer protection.

            “It took seven years and the effort of thousands of people to create Pennsylvania’s Uniform Construction Code,” she said. “We knew that we weren’t going to make all the people happy all the time. But we also knew that the importance of leaving safety to the experts and taking politics out of the process outweighed the special interests.”

            At a Senate Labor and Industry Committee meeting today, Tartaglione voted and spoke out against a House bill waiving Pennsylvania’s sprinkler requirement, and amendments that would stall future modernization of the state construction code.

            In 1999, Pennsylvania passed a Uniform Construction Code that corresponded with updates from national and international building codes.  In 2008, the legislature created a 19-member Review and Advisory Committee (RAC) to recommend which changes in the international code should be omitted from the state code.

            The RAC drew the ire of state builders’ groups when it voted to approve the national code requirement of automatic sprinkler systems in single family homes and duplexes. 

            Amendments that passed the Labor and Industry Committee today call for a two-thirds vote of the RAC to approve any changes in the statewide construction code.

            “It’s hard to believe that members of the Senate would suggest that a majority vote isn’t enough,” Tartaglione said. “The amendments are intended to kill modernization of the building code and put the politics back into the process.”

            Tartaglione has been a supporter of the sprinkler requirement because new, lightweight building materials burn and collapse much faster than traditional lumber construction, putting firefighters at greater risk than ever.   Two independent studies have shown that the time firefighters have from the time a fire starts to the time when a building becomes too dangerous to be in has dropped from 17 minutes to four minutes over the past 30 years.

            “Money-saving materials make sprinklers a necessity in modern construction,” Tartaglione said. “I don’t see how we can ask our firefighters to put themselves at risk without updating the building codes to minimize it.”

            Despite Tartaglione’s opposition, and her request for a hearing on the RAC changes, the Senate Labor and Industry Committee reported House Bill 377 to the full Senate for a vote.

Phila. Senators, City Officials Discuss State Budget Impact

Philadelphia, March 18, 2011 — The Philadelphia Senate Delegation today held a discussion on the impact of the governor’s proposed 2011-12 budget plan on the Philadelphia region.

The senators, along with representatives from the mayor’s office, School District of Philadelphia, Temple and Cheney universities, and the Delaware Valley Healthcare Council of the Hospital and Healthsystem Association of Pennsylvania (HAP), talked about the consequences of the proposed budget cuts during a roundtable discussion at Temple University, which is slated to receive a 52 percent cut in state funding under the governor’s plan.

“We knew the governor would make cuts, but I think we were all surprised how deep the cuts were, especially to education,” said Kitchen (D-3rd dist.). “Although we are still in trying times, this budget is unfairly balanced on the backs of our most vulnerable citizens and our students, from pre-kindergarten through college.

“We have gathered together to have a serious talk about the fallout from the governor’s proposal so that we as legislators can bring suggestions and alternatives back to Harrisburg,” she said. “This will have a big impact on many people, so we need to find any way to ease the pain.”

“It makes cuts to the most vulnerable and needy citizens among us,” added Sen. Larry Farnese (D-1st dist.). “This budget does not share the pain, and we are leaving money on the table.”

Sen. Tina Tartaglione said the governor’s plan to ask union employees to make sacrifices while cutting programs and services that employ these workers is detrimental to the health of the state’s recovering economy.

“At a time when our economy is still fragile, we depend on our workforce to help move us forward. Many of them are already working under tight budgets and juggling more responsibilities,” said Tartaglione (D-2nd dist.). “I don’t understand why hard-working union employees are being asked to make more sacrifices, while large corporations are spared any ounce of fiscal pain. The governor said his budget was all about ‘jobs, jobs, jobs’ but all the union workers hear are ‘cuts, cuts, cuts.’”

Sen. LeAnna Washington also questioned the governor’s priorities. Corbett’s budget plan does not call for a severance tax on Marcellus Shale natural gas drillers.

“The governor does not have a moral right to give away our natural resources, then turn around and cut education and healthcare,” said Washington (D-4th dist.). “The people of Pennsylvania don’t understand, and don’t agree with these misplaced priorities.”

Sen. Vince Hughes said Pennsylvania’s ongoing successful education track record would be halted under the governor’s proposed cuts, including $550 million to basic education and $260 million to the Accountability Block Grant program, which funds all-day kindergarten in many school districts, including Philadelphia.

“We cannot retreat on Pennsylvania’s record of education success,” said Hughes (D-7th dist.), who is the Democratic chairman of the Senate Appropriations Committee. “Investments during the past decade have transformed Pennsylvania into a national education leader. We are here today to learn from these leaders firsthand the full impact of the proposed cuts.”

Sen. Mike Stack added that the 10 percent in cuts to community colleges hurt Pennsylvania’s improving but still shaky economic climate.

“Our community colleges are offering students an opportunity to get a quality and affordable education. Many of them are working adults who are unemployed or looking to boost their job skills,” said Stack (D-5th dist.). “Cutting community college funding during such difficult economic times only hinders the state’s chance to boost our workforce. We should invest in our educational institutions, not punish them.”

Hughes also assailed the deep cuts to hospitals, which are already feeling fiscal pain as they try to heal those in physical pain.

“Hospitals are already struggling with decreased revenues and increased numbers of uninsured patients,” he said. “I don’t know how we can responsibly pass a state budget that eliminates their supplemental funding and still expect them to provide quality services to the people they serve.”

Tartaglione Bill Alters Local Share of State Police Fines

HARRISBURG, March 1, 2011 – A bill designed to boost State Police training efforts while creating a fairer funding system passed a key Senate committee today, said state Sen. Christine M. Tartaglione.

Senate Bill 237 will redirect millions of dollars collected in fines toward cadet training efforts, while municipalities that provide less than 40 hours of local police coverage would lose their share of fines collected through State Police traffic stops.

“Police coverage is increasingly complex and expensive,” Tartaglione said. “This bill will  help ease the coverage complications and financial pressure on the State Police while creating a fairer funding system for all Pennsylvania taxpayers.”

Under current law, half of the traffic-enforcement fines collected through state police patrols in a local municipality are returned to the municipality through a Motor License Fund formula – even if the municipality relies only on the state for police protection.

“Taxpayers in hundreds of cities foot the bill for most police services through local property taxes, while more than 1,500 municipalities pay nothing, and get money back,” Tartaglione said. “This puts strain on our most vulnerable communities and tough economic times make it worse.”

Senate Bill 237 would deny distribution of traffic-fine revenue from the Motor License Fund to any municipality that does not provide locally for at least 40 hours of coverage per week through its own force or a regional contract.  An amendment inserted today exempts municipalities with fewer than 3,000 residents. It passed the Senate Transportation Committee today unanimously. The bill is expected to affect about 1,200 municipalities across Pennsylvania and steer more than $4 million toward State Police cadet training.

Tartaglione Again Takes Aim at ‘Delaware Loophole’

State Sen. Christine M. Tartaglione talks about closing the "Delaware Loophole" as part of a Senate Democatic plan to improve Pennsylvania's job climate.

HARRISBURG, February 23, 2011 – State Sen. Christine M. Tartaglione today molded her years-long effort to close the “Delaware Loophole” into a wider Senate Democratic plan to help small businesses compete, reduce corporate tax rates and get Pennsylvanians back to work.

“Over the years we have seen small neighborhood businesses replaced by mega-corporations that answer only to stockholders,” Tartaglione said. “While Wall St. has already recovered from the recession, the streets of Northeast Philadelphia have not. By reforming the tax system, training workers and giving small businesses a boost, we intend to make sure the recovery reaches every working family.”

At a news conference in Harrisburg today, Senate Democrats outlined a six-point plan intended to spur creation of thousands of jobs, trim millions in state spending, and create a workforce ready to thrive in the new economy.

The plan, called PA Works, focuses on six key areas: small business, workforce training, critical state investments, clean energy, infrastructure investment, and tax reform.

Tartaglione said she will focus on what has become an eight-year effort to close the “Delaware Loophole” and lower the state’s corporate net income tax to allow small businesses to prosper and grow. Nearly three quarters of Pennsylvania corporations pay no corporate income tax, partly because they can set up Delaware subsidiaries that license logos, trademarks, copyrights and other “non-tangible” – and therefore not taxable – assets.

“Pennsylvania is years behind in updating tax laws to keep up with corporate accounting tricks,” she said. “These big chains have been killing our mom-and-pop stores for years and we’ve been helping them do it. If there were ever a time to summon the political courage to take on corporate lobbyists, now is the time.”

In addition to closing the tax loophole, PA Works uses innovative ideas that will spur job creation, promote a business-friendly environment, and expand business opportunity.

The PA Works plan includes:

Putting Small Business First:

  • Increase flexibility under Small Business First Fund
  • Encourage financial institutions to be more aggressive small business lenders
  • Regulatory relief to promote expansion
  • Expand tax credit incentives

Real Training for Real Jobs

  • Consolidate job training programs under single state agency by creating an integrated “one-stop” system of workforce investment and education services
  • Redirect federal resources to create on-the-job training program modeled after Georgia Works
  • Shared Work program to relieve the stress on UC (Model Missouri’s Shared Work)
  • Provide “Green Workforce” training grants

 

Funding What Works, Fix What Doesn’t:

  • Recapitalize Business In Our Sites to create new shovel-ready sites for development
  • Create a new dedicated fund for key investment programs
  • Refocus job creation tax credit program
  • Prioritize MBE and WBE incentives
  • Give taxpayers a return on successful investments

Clean Energy:

  • Expand green building investment programs
  • Enact Marcellus Shale Drilling Plan
  • Strengthen synergy between universities and private energy investments
  • Encourage smaller municipalities and rural communities to make energy efficiency investments
  • Guarantee more contracts for PA supplier companies

Business Tax Reform

  • Reduce CNI to 7.5% by closing DE Loophole
  • Increase single sales factor and NOL Ceiling for home-based PA firms
  • Explore other tax options to create a modern and fair business tax system

 

Infrastructure Investment:

  • Find Transportation alternatives such as public private partnerships, new tolling options and bonds as short term solutions
  • Water and Sewer investments such as finished CFA H2O and new Marcellus alternatives
  • PUC oversight new-investment plans

Sen. Christine Tartaglione helped unveil the AFL-CIO legislative agenda

At today’s Capitol news conference, state Sen. Christine Tartaglione joined union leaders and state legislators to unveil the AFL-CIO legislative agenda and discuss how to protect and create jobs in Pennsylvania.

Tartaglione, a member of the UFCW union, said that it is time for the legislature to push back against growing corporate influence and find ways to protect and grow the middle class. She said she introduced legislation in the Senate to close the Delaware Loophole because it is outrageous that the average working family in Pennsylvania pays more in state taxes than corporations doing business in the state.

Senate Democrats Fight to Save Essential, Cost-Saving Health Care Program

 

HARRISBURG, January 24, 2011 – – Members of the Senate Democratic Caucus joined House Democrats in the Capitol Rotunda today to stress the urgency of extending the state’s adultBasic health care program.

The adultBasic program currently provides benefits to more than 40,000 low-income, working Pennsylvanians.   These individuals will lose their insurance and access to quality health care at the end of February if a new funding source is not implemented.

AdultBasic was created by the legislature in 2001 with funding received through the National Tobacco Settlement Agreement.  The program provides coverage for the basic health care needs of individuals between 19 and 64 years of age who do not have health insurance and meet certain eligibility and income requirements.

Tartaglione Sworn In for Fifth Term in Senate

HARRISBURG, JAN. 6, 2011 — At a noontime ceremony in the state Capitol, State Sen. Christine M. Tartaglione took the oath of office for her fifth term in the Pennsylvania Senate.

“I’m grateful to the people in my district who continue to put their trust in me as families face difficult times and look toward state leaders to work together for solutions,” she said. “It’s a challenge I’m ready to accept.”

Tartaglione, who was elected to Senate leadership in November, said a looming budget deficit tops the list of tasks facing a new governor and a legislature with many new faces.

“Experience and the ability to work with colleagues across the aisle will be critical in the next few months and years,” Tartaglione said. “The budget deficit we face will require sacrifice and careful, strategic restructuring of fiscal policy. The government should be lean, but not mean.”

As the legislature begins the new session, Tartaglione said she is planning to reintroduce legislation to close the Delaware Loophole, a now infamous corporate tax flaw that allows large corporations to shift tax burden to small businesses and individuals.

“Families and small businesses are stressed in this economy, while some large, multi-state retailers are able to take advantage of a loophole in Pennsylvania law not available to them in other states,” she said. “It’s not fair at any time, but in this economy it’s unthinkable.”