Tartaglione on Jobs: “We are moving backward”

In response to the unemployment figures released by the state Department of Labor and Industry, Sen. Christine M. Tartaglione released the following statement.  Tartaglione, D-Philadelphia, is the Democratic Chair of the Senate Labor and Industry Committee.

“Nearly four months after Republicans pushed through a short-sighted state budget that slashed key funds for job creation and economic development, today’s news of a rising unemployment rate is a clear sign that Pennsylvania needs bold leadership in a new direction.

“The number of unemployed Pennsylvanians has jumped by more than 50,000 since the day Gov. Corbett signed the budget and the legislative majority’s focus on fringe issues and right-wing ideology offers little hope for the coming months.

“The Corbett budget cut more than $1 billion from education programs, reducing local school district employment by more than 14,000 jobs, with more than 2,000 lost jobs in the Philadelphia School District alone.  These deep cuts were made while ignoring a state revenue surplus that grew to nearly $800 million by the close of our last fiscal year.

“The result is a stunning downturn after years of weathering the recession better than most states.  When that budget was making its way through the General Assembly, Pennsylvania’s unemployment rate was 1.7 percentage points below the national average, the best comparison to the national average in more than ten years.  Today, that gap has been cut in half, and it’s narrowing.

“Pennsylvania ranked 12th for new job creation in 2010.  Today’s announcement means we are moving backward.

“The downturn of our state economy should come as no surprise.  Last February, I joined my Senate Democratic colleagues to introduce a sensible job creation plan call PA Works, most of which is still sitting in committee.

“Last week, I voiced support for PA Works Now, our plan to put more Pennsylvanians back to work.  We repeated our earlier calls for new investment in infrastructure, job training, and business investments that have clear records of success.  The plan outlined a new set of tax credits to encourage small-business owners to make child and elder care available to their employees and to provide new training and internship opportunities for young people.

“My legislation in the package calls for Marcellus Shale drillers to directly invest in training to hire more Pennsylvania workers and create a call center for emergency services that could provide employment for the nearly 15 percent of workers with disabilities who cannot find a job.

“Lawmakers who are distracted by personal priorities and politically-motivated policies that are part of the national Republican political agenda should set aside these hobbies and focus on jobs.  Lawmakers intent on eliminating thousands of jobs in our state liquor system should be sobered by today’s announcement and understand that every family sustaining job should have our support and protection.

It is long past time to implement a responsible tax on Marcellus Shale drilling.  Also, a reasonable funding plan for transportation investment should be acted without delay.  Finally, our priorities must be redirected from risky tax giveaways that reward campaign friends and shifted back to supporting our children, our environment, our schools and our neighbors. ”

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Committee Avoids Tartaglione Minimum Wage Amendment

HARRISBURG, Oct. 18, 2011 – State Sen. Christine M. Tartaglione said today she will continue to push for an update to Pennsylvania’s minimum wage law, after a Senate committee voted to avoid a decision yesterday.

The Senate Labor and Industry committee tabled a Tartaglione amendment by that would have tied Pennsylvania’s minimum wage to the consumer price index, ensuring that thousands of working families would forever get off a see-saw of poverty.

“There is no issue that more clearly defines the line between the 99 percent and the one percent,” Tartaglione said. “Vast majorities of the public have supported inflation protections in the minimum wage despite heavy lobbying and spending by big business. It’s profit vs. poverty. It’s that simple.”

Tartaglione is the prime sponsor of Senate Bill 235, which would apply an annual cost-of-living adjustment to the minimum wage, calculated by annually applying the percentage change in the Consumer Price Index for All Urban Consumers for the Pennsylvania, New Jersey, Delaware and Maryland area for the most recent twelve month-period. The bill is stuck in the Labor and Industry Committee as majority Republicans hope to avoid a vote.

Ten states have applied COLAs to their minimum wages, with half of them doing it through overwhelming support in ballot initiatives.

“The typical gloom-and-doom predictions about the minimum wage have all been debunked and voters are tired of hearing the business lobby say they can’t pay living wages,” Tartaglione said. “A properly adjusted minimum wage will keep working families from falling into poverty and dependence on government support. This is a move toward economic justice and smaller government.”

With the bill stalled in committee, Tartaglione attempted to implement its language through an amendment to another bill poised to move from the committee. The amendment was “tabled,” meaning it did not receive an up or down vote.

“I think this is not the time to tell working families that you’re siding with the CEOs” Tartaglione said. “I think they felt a changing wind and they ducked.”

Pennsylvania last adjusted its minimum wage in steps through 2006 and 2007. Since then, even moderate inflation has pushed a single worker with a child, lifted above the federal poverty line by the 2007 increase, back below the poverty line in 2011.

Tartaglione said she will continue to push for the bill or the amendment after the number of Pennsylvanians earning the minimum wage has jumped by 50 percent in the past year and the state’s poverty rate has hit a 20-year high.

“Working families are starting to understand what they’re up against,” Tartaglione said. “And they’re starting to fight back.”

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Senate Democrats Seek to Augment ‘PA Works Now’ Plan

Day Care, Adult Care, Job Training, School-to-Work Transition, and Green Jobs are Targeted

HARRISBURG, October 18, 2011 – – Today members of the Senate Democratic caucus unveiled legislation to be introduced this week to supplement the “PA Works Now” job creation plan, which has become the centerpiece of their agenda for the fall session. Senate Democrats will continue to offer solutions to the problems that prevent Pennsylvanians from finding and maintaining jobs in hopes the dialogue in the Capitol will begin to center on this pressing issue.

 

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“We can’t drag our feet when it comes to this. Families are struggling, and with each day that goes by they lose hope in our ability to help them,” said Sen. Lisa Boscola (D-Lehigh/Monroe/Northampton), Senate Democratic Policy chair. “We visited a number of communities across the state and gathered valuable – and in many cases very moving – feedback. This is the number one issue on people’s minds. We need to keep talking until we make it the number one priority on the minds of those serving in Harrisburg.”

The plan focuses on 6 key areas:

Tax credit incentives to encourage employer supported day care alternatives

This measure would provide tax incentives to small businesses that help employees cover the costs of child care and adult day care. Working families should not be constrained because they can’t find day care services. It’s not good for their quality of life. And it’s not helpful to our economy.

Sen. Judy Schwank is the prime sponsor of this legislation. “Many of us know all too well that day care is expensive, and many families have to weigh the cost of day care verses their weekly paycheck,” said Schwank (D-Berks). “For others, there is no choice. They have to work, and the only way they can work is if they have child care or adult day care and know their loved ones are safe while they earn a day’s pay.”

Improve School-to-Work Transition

Successful careers in today’s knowledge based economy require most students to pursue some post secondary training. However, many of these experiences do not require a four-year baccalaureate degree. Community colleges, technical colleges, apprenticeship programs, direct employer sponsored programs, and the military services all have important roles in providing these education and training experiences. Unfortunately, many students fail to receive the necessary career advice and training in the final years of their high school education to properly transition into these training and education opportunities following their high school graduation.

Boscola is the prime sponsor of legislation that would require every local school district to develop an individual education plan to ensure that every student’s high school experience envisions and prepares them for a career path. “We need to do everything in our power to get kids on the right track early. Many don’t know all of the options available to them until they have already pursued another path,” said Boscola. “In this economy there isn’t time for do-overs. This legislation would give them the tools and information they need to make these decisions which may ultimately impact their entire lives.”

Youth Summer Job Program

Summer employment programs can provide a valuable public service while giving youth valuable training and career experience. This measure would focus exclusively on youth summer employment opportunities at state parks and municipal recreational facilities throughout the commonwealth. The Pennsylvania Department of Conservation and Natural Resources (DCNR) would directly administer jobs created at state parks, while local governments could apply to DCNR to receive grants, not to exceed $2,500 per job, for work experiences at local recreational facilities. An estimated 10,000 jobs could be supported annually through a $25 million transfer from the Oil and Gas Fund.

Sen. Shirley Kitchen is introducing the legislation this week. “This is a win-win situation,” said Kitchen (D-Philadelphia). “Not only will youth learn valuable job skills and gain work experience, but our state parks and other recreational areas, which were hit particularly hard by last spring’s budget battle and the harsh cuts that resulted, will benefit too.”

PA Training Program for Marcellus Shale Drilling Operations

Marcellus Shale drilling has been a major economic boost for many areas throughout our state. Unfortunately, significant numbers of currently employed workers at these job sites continue to be people from outside of Pennsylvania. When we enact a drilling fee on Marcellus Shale operators later this fall, an annual set-aside of $5 million should fund specialized training programs, administered through local organized labor groups, to give Pennsylvanians the necessary skill sets to fill these jobs. A portion of these funds should be earmarked specifically to develop and staff a call center, with preference for the disabled to fill these jobs. The unemployment rate among the disabled is nearly 50 percent higher than for the rest of the workforce.

Sen. Christine Tartaglione is the prime sponsor of this measure. “My bill would set aside a portion of the revenue from a Marcellus Shale extraction tax to develop specialized training programs for jobs in the gas industry. The recent cuts to higher education have made college less likely for thousands of people. With a dedicated training program geared toward the various parts of the extraction, storage and transport of natural gas, we can put Pennsylvanians back to work,” said Tartaglione (D-Philadelphia). “While we push for specialized training for jobs in the gas industry, we will also push to make sure that this effort involves every Pennsylvanian who wants to work. My bill calls for development and staffing of a call center to connect willing workers with the right training program and for that call center to be staffed by people with disabilities.”

Incentives to Grow Women & Minority Owned Businesses

We are making a renewed push to encourage the growth of women, minority, or veteran-owned, or other disadvantaged small businesses by providing an array of incentives. Sen. LeAnna Washington’s Senate Bill 696, which was introduced as part of our original PA Works package, calls for a statewide bonding guarantee program, mentor-protégée support, a 10 percent reserve program for state contracts and other targets and incentives to increase employment opportunities for these businesses.

“Women, minority, and veteran-owned businesses all have bring something different to the table that you might not see every day in every business,” said Washington (D-Philadelphia/Montgomery). “Women have firsthand knowledge of some of the barriers to pursuing a career and the pull of other responsibilities. Minority and veteran business owners may be a bit more sensitive to the difficulties in finding work because of the hurdles and high unemployment statistics they face.”

Green Jobs Employment & Training Program

Sen. Kitchen’s Senate Bill 687, which was also introduced as part of our original PA Works package, creates the Green Work Force Training Program. The program would provide $5 million annually for each of the next three fiscal years to the Department of Labor and Industry to provide grants to vocational technical schools, community colleges, public or private higher education institutions, labor organizations, or privately licensed schools. The grants would be used to develop training programs for careers in emerging renewable energy or energy efficiency.

“If we are going to get out of this economic slump and compete in a national and global economy, a well-trained workforce is essential,” said Kitchen. “One of the areas that has great potential for our economic outlook is the green jobs sector. It’s an emerging industry that we must invest in if we want to move Pennsylvania forward.”

Dr. Thomas Rushton, the director of the Monroe Career & Technical Institute, also shared his firsthand experiences with school-to-work transition and gave input on how a program like the one introduced by Sen. Boscola would benefit the students he deals with in Monroe County.

PennEnvironment Director David Masur participated and shared information about the potential impact of Senate Bill 687 and the Green Workforce Training Program.

For more information on the PA Works Now program go to http://www.pasenate.com.

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Policy Committee Hears Plans for Modernization of State Liquor Sales

Philadelphia, Oct. 6, 2011— The Senate Democratic Policy Committee today heard from various stakeholders in the effort to modernize Pennsylvania’s liquor sales system in a way that will keep up consumer demand while continuing prevention of abuse and underage drinking.

“Pennsylvania has a unique system that returns money to state taxpayers and curbs the profit incentive for sales,” said Sen. Lisa Boscola, who chairs the policy committee. “The committee wanted to know how we can keep the controls in place while accommodating changing consumer preferences.”

The committee convened at Congeso de Latinos Unidos, in North Philadelphia, where representatives of liquor store employees, the state Liquor Control Board, and local clergy discussed various proposals for updating the system.

The Liquor Control Board operates more than 600 retail stores in Pennsylvania, staffed by employees whose primary concerns are preventing underage drinking and alcohol abuse.  The LCB also oversees thousands of licensees, like bars, restaurants and vineyards.

“The system we have in Pennsylvania has numerous benefits to taxpayers and consumers,” Tartaglione said. “Employees of the stores make good wages, which bolsters the local economy, and they are not motivated to sell more to make that wage. That’s an important part of our goal to promote responsible, legal consumption.”

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Senator Tartaglione says modernization of state store system, not privatization, will make it more customer-friendly.

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Liquor Control Board CEO Joe Conti explained proposals for modernizing the liquor system that include giving the LCB more flexibility in purchasing and pricing that would help create more choice for consumers and return for taxpayers.

“We have a long list of ideas that could make the system more consumer friendly, efficient and profitable,” Conti said. “We need the legislature to give us the flexibility to implement them.”

Tartaglione said it was important to also hear from local religious leaders to address their concerns about the possibility that more convenience could lead to more abuse.

Rev. Bonnie Camarda, President of the Latino Clergy of Philadelphia, said religious leaders are opposed to Sunday sales, but have been able to accept it as something customers want.  But expanding Sunday hours, or turning the liquor system over to private enterprise is a major concern.

“My biggest fear is that on every corner of North Philadelphia there’s going to be a liquor store,”Camarda said. “I don’t know what would happen in this community.”

Senate Democratic Leader Jay Costa, of Allegheny County said the main reason he traveled to Philadelphia for the hearing was getting local perspective.

“With the proposals being put forth this session, it’s very important that we gather as much information as possible. We must very carefully assess the impact privatization will have on all communities,”  Sen. Jay Costa. “We’re in North Philadelphia today because the concerns here are probably not the same as they are in the suburbs or in rural counties. We want to make sure we hear as many perspectives as possible.”

Tartaglione, who hosted the hearing in her Senate district, said she invited Camarda because she knows that treating drug and alcohol addiction are a primary concern of many community groups.

“We’re all aware of the effect alcohol consumption has on our neighborhoods,” Tartaglione said. “That’s probably the most important reason to keep tight controls on sales, even if we relax rules about hours and pricing.”

Many of the liquor restrictions that consumers find inconvenient are not produced by the LCB, but are enshrined in decades-old state law, officials said.

LCB officials asked for relaxation of the liquor code to allow for more of its stores to be open on Sunday and the ability to adopt modern Consumer Relations Marketing that could be tailored toward regular customers.

The push toward privatizing the liquor system, rather than modernizing it, would cost Pennsylvania jobs at a time when unemployment is on the rise would affect thousands of workers and all taxpayers, said Wendell Young IV, President of the United Food and Commercial Workers Union.

“Privatization will result in 5,000 Pennsylvanians being fired so that a few well-connected entrepreneurs can profit,” Young said. “This makes no sense considering that the PLCB is profitable, provides good jobs and all the money stays here in Pennsylvania.”

Boscola said the hearing produced valuable information about the future direction of the state’s liquor system.

“Making the liquor stores more customer friendly will mean keeping thousands of family-sustaining jobs in local communities as the economy slowly recovers,” she said.

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Senators Call Electoral College Bill Detrimental to Urban Communities

HARRISBURG, Sept. 27, 2011 — Pennsylvania Senate Democrats representing urban communities today called the Republican plan to change the Electoral College voting process a “blatant attempt to gerrymander votes during presidential election cycles.

“We continuously tell people ‘Your vote counts,’ but the Republican leadership in the House and Senate are making a blatant attempt to discourage voting in typically Democratic urban areas,” said state Sen. Shirley Kitchen (D-Phila.), chair of the Senate Philadelphia Delegation, at a Capitol news conference. “What they are saying to my constituents and people living in cities is that their vote should not count equally.”

Pennsylvania presidential electors cast all votes for the candidate who wins the state’s popular vote, but under Senate Republican Majority Leader Dominic Pileggi’s (R-Chester) plan, presidential candidates would receive one vote for each Congressional district he or she wins.

“From the voter ID legislation to the Electoral College proposal, they are bent on putting obstacles in the way of participation,” Kitchen said. “Under this Electoral College plan, the voice of the people of Pennsylvania is not a collective one; it’s divided into blocks of communities.  If the Republicans believe the system is broken, why rush to change the process? I think we know the answer. They are concerned about the outcome of the 2012 election and accommodating national Republicans who have been unable to win Pennsylvania one election after another. It’s pure politics.”

Sen. Mike Stack (D-Phila.) said the Republican plan would have a major impact on Pennsylvania’s economy.

During the 2008 campaign, President Barack Obama raised $8.55 million and Sen. John McCain raised $3.26 million in the Philadelphia area alone.

“Every visit by a candidate brings a crowd, from the candidate’s staff and family to the media to the general public. These individuals need to eat. They need a place to stay. They need to gas up their vehicles,” Stack said. “Presidential elections are an economic boom for Pennsylvania, especially in our urban areas where candidates often focus their attention. For every campaign stop, people are put to work. Money is spent.

“Most important of all, the candidates pay attention to us because they know Pennsylvania’s electoral votes matter,” Stack said. “Yet the Republicans want us to change to an Electoral College process that only two other states — Nebraska and Maine — utilize. They’re not battleground states. They barely make the Radar during presidential election cycles.”

Pennsylvania is the sixth most populous state, whereas Nebraska is 39th and Maine is 42nd.

During the 2004 presidential elections, the Bush and Kerry campaigns and their affiliated interest groups spent a total of $36 million on advertising here. Pennsylvania was among the top five states that both presidential candidates visited, and we received the third highest percentage of television ad time that year.

Contrarily, Maine was targeted 13th in television ad time and received exactly one visit from Sen. John Kerry. Nebraska wasn’t even a factor in television advertising, nor did the candidates stop there.

“The current system gives our economy a nice little kick and brings national attention to the Keystone State at a time when we really could use it,” Stack said. “I oppose Senator Pileggi’s legislation and strongly urge the General Assembly to consider the implications of the measure. We need to focus our priorities on what’s best for Pennsylvania, not what’s best for a political affiliation.”

Sen. Tina Tartaglione said the legislation is essentially an acknowledgement that Republicans can’t win without changing the rules.

“They are telling their own candidates for president that Pennsylvania is lost and the best they can do is attempt a risky, pre-emptive attack on a 200-year-old system,” said Tartaglione (D-Phila.). “Newspapers and good-government groups across the state have expressed outrage. Republicans and Democrats alike have warned of the consequences of arrogance. Controlling the redistricting and then altering the election count along the lines of the districts is a broad overreach and it will ultimately backfire.”

Sen. Larry Farnese said the Republicans should focus on the real issues impacting Pennsylvania, including high unemployment numbers, rather than politics.

“This proposal once again shows that under Republican leadership we have a priority problem in Harrisburg,” said Farnese (D-Phila.). “Instead of focusing on getting people back to work, we’re trying to fix elections by changing how votes are counted instead of how people vote.”

Sen. Vincent Hughes said the measure has been tainted by partisan politics.

“This is a political power grab,” said Hughes (D-Phila./Montgomery). “It’s an attempt to disenfranchise all Pennsylvania people and advance only a certain sector.”

The Senate State Government Committee will hold a public hearing to address this legislation on Tuesday, Oct. 4 at 11 a.m. in Hearing Room 1 of the North Office Building in the Capitol in Harrisburg.

Sen. Anthony H. Williams, Democratic chairman of the committee, encouraged the public to submit written testimony or attend the public hearing.

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Senate Democrats Roll Out Billion Dollar Job Creation Plan

HARRISBURG – September 26 – State Senate Democrats today unveiled their revised job creation plan, called “PA Works Now,” which they claim would create 80,000 new jobs and leverage billions in private investment to generate jobs and economic activity.

State Senate Democratic Leader Jay Costa (D-Allegheny) said job creation is the number one priority for this fall’s session of the General Assembly.   He added that the PA Works Now package does not require new broad based taxes, is fully paid for and does not put additional strain on the state General Fund.

“PA Works Now features a new investment vehicle called the Pennsylvania Investment Bank that will quickly pump $1.2 billion into the economy and create jobs,” Costa said.  “Our goal is to jump start the economy and create new jobs in the shortest possible time.

“Job creation is the most important issue lawmakers must tackle this fall.”

The Democrats’ plan includes renewed investment in job-producing programs and public works such as water and sewer projects as well as money for new business investments.  The plan also provides a new round of capital infusion for the state Machinery and Equipment Loan Fund and would establish Pennsylvania’s version of the successful “Georgia Works” on-the-job training program.

The Pennsylvania Investment Bank would target more than $1.2 billion for water and sewer system reconstruction, new business investment and other public works.  The bank would capture funds generated from existing borrowing capacity.  The bank would use $500 million in Commonwealth Finance Authority dollars plus a half-billion from PENNVEST (Pennsylvania Infrastructure Investment Authority).

The investment bank would also utilize $80 million in funds from a proposed Marcellus Shale tax or fee along with surplus state revenues.  Democrats estimate that these sources would generate $180 million.

“There are so many workers who are looking for jobs and even more who are worried about what is next for them in this very difficult economic recovery,” Costa said.  “Our comprehensive PA Works Now plan addresses job creation and presents an opportunity to move our economy forward.”

Democrats said action is needed now on their job creation plan because of the recent increase in unemployment.  Pennsylvania’s unemployment rate spiked by nearly a half percent from July to August – rising to 8.2 percent.  Since May, the number of unemployed Pennsylvanians grew by 45,000.

Senate Democratic Appropriations Chair Vincent J. Hughes (D-Philadelphia/Montgomery) decried the alarming increase in unemployment and the inaction of both the Corbett Administration and Republican lawmakers who control floor action in both the state House and Senate.

“The Corbett Administration has failed to respond to the hardship in the labor market in any discernable way,” Hughes said.  “The administration is either tone-deaf to the plight of the unemployed or focusing on political wedge issues that do not create jobs.  They’ve produced no new jobs plan.

“The priorities of the administration are skewed,” Hughes said.

Hughes criticized Corbett and Republicans for focusing on changing the apportionment of electoral votes, English-only legislation and voter ID legislation.  These issues interest only “politicos on the extreme political fringe of the Republican Party. These proposals do nothing to help our economy grow,” Hughes said.

“We are stuck debating issues that appeal to the political extreme at the expense of working families,” Hughes said.  “Working men and women need jobs.  They don’t need political talk.  That is a sham and it’s a shame.”

Sen. Judy Schwank (D-Berks) said the state has lost an opportunity to reverse negative economic trends.  She noted that the recent business downturn has had a disproportionate impact on educators, women, minorities and Pennsylvania’s youth.

According to Schwank, the Corbett budget cuts have put several thousand educators or school staff out of work.  The Berks county lawmaker said Senate Democrats will soon flesh-out a package of bills that would specifically help women, minorities and young people find jobs.

“Failing to take action now condemns those who have a difficulty getting jobs in a robust economy – women, minorities and our youth – to even deeper despair when the labor market contracts,” Schwank said.  “Doing nothing on job creation is not an answer and it’s not fair.  That’s why we need to work on a jobs plan like PA Works Now.”

Sen. John Blake (D-Lackawanna/Luzerne/Monroe), who previously served as secretary of the state Department of Community and Economic Development, said PA Works Now would inject much-needed capital into business investment and job creation programs.  He said doing so is essential toward generating economic activity and employment opportunities now.

There is no question that our recovery from the recession is soft,” Blake said.  “The state has a responsibility to incent private sector investment for job growth.”

Costa, Hughes, Schwank and Blake were joined by a host of Senate Democratic colleagues at the Capitol news conference.

Senate Democrats unveiled a previous version of PA Works earlier this year.

Senators who attended today’s news conference included Democratic Whip Anthony H. Williams (D-Philadelphia), Caucus Chairman Richard Kasunic (D-Fayette/Somerset), Caucus Secretary Christine M. Tartaglione (D-Philadelphia), Caucus Administrator Wayne Fontana (D-Allegheny) and state Sens. Andy Dinniman (D-Chester), Daylin Leach (D-Delaware/Montgomery), John Yudichak (D-Luzerne/Monroe/Carbon) and Tim Solobay (D-Washington/Greene).

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Hundreds Turn Out for Tartaglione Senior Expo

HARRISBURG,  Sept. 26, 2011 –  Hundreds of local seniors packed the gymnasium at Camelot’s Excel Academy for state Sen. Christine M. Tartaglione’s annual Senior Expo.

Sen. Tartaglione greets visitors to her Senior Expo at Camelot's Excel Academy. Click on photo to view gallery.

“This is always the best event of the year,” Tartaglione said. “It brings together seniors from my district with students who put in a lot of effort to host them at the school.  Everybody has fun and everybody learns something.”

The Senior Expo featured dozens of exhibitors with products and services that can help seniors navigate the sometimes complicated system of services available to them.

“Getting face-to-face answers to questions makes some important decisions easier,” Tartaglione said. “The Senior Expo gives them a chance to keep up with a rapidly changing world.”

Students from Camelot’s Excel Academy helped transform their gymnasium into a crowded marketplace that included free help from state, federal and city agencies, as well as vendors ranging from home security systems to therapeutic footwear.

“We keep coming back here because the students and staff at Excel Academy do such a great job welcoming everyone,” Tartaglione said. “The community gets a chance to see what locals students can do with the right mentorship and guidance.”

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Tartagione Praises Agreement on Puerto Rican Festival

HARRISBURG,  July 15, 2011 –  State Sen. Christine M. Tartaglione today praised the city’s Latino leaders for coming to agreement on the handling of this year’s “Puerto Rican Festival.”

“For many years, leaders in the Latino community have worked to create an environment of harmony and understanding in Philadelphia’s neighborhoods,” Tartaglione said. “Putting an end to the controversy surrounding the annual Puerto Rican Festival shows that they can apply the same values to the relationship among the various advocacy groups.”

The Committee to Rescue Our Puerto Rican Heritage and Council of Spanish Speaking Organizations (Concilio) have both announced that the city’s annual Puerto Rican Festival will retain that name for this year’s activities.  The festival is a celebration and exposition of Puerto Rican and other Latino cultures in Philadelphia over the coming months, peaking with the Puerto Rican Day Parade on Sept. 25 along Benjamin Franklin Parkway.

Tartaglione Attempts to Reinstate Graterford Labor Agreement

HARRISBURG,  June 30, 2011 –  State Sen. Christine M. Tartaglione tonight offered an amendment to a key budget bill that would have prevented labor unrest at the Graterford Prison project.

“The Graterford project is an important project and its timely completion is critical to addressing the Commonwealth’s prison capacity needs,” Tartaglione told the Senate Rules Committee when offering her amendment to Senate Bill 907. “A project labor agreement is essential to guaranteeing that occurs.”

In 2008, the Department of General Services entered into a project labor agreement with labor organizations in southeastern Pennsylvania to ensure “labor peace and harmony through a no-strike, no lock out commitment by all involved personnel in order to meet the construction deadline.”

The agreement was later upheld by the state Supreme Court but, three months ago, Gov. Tom Corbett re-bid the project and nullified the PLA.

Despite the strong support of Democratic Leader Jay Costa of Allegheny County and Democratic Appropriations Chairman Vincent Hughes, of Philadelphia, the measure was defeated by a party-line vote.

“I’m grateful for the support of Senators Costa and Hughes who agreed that keeping everyone involved in the project working and resolving their differences without delays is the best way to ensure meeting the construction deadline,” Tartaglione said.

Tartaglione: Sound-Bite Budgeting is Shortsighted

State Sen. Christine M. Tartaglione today released the following statement on the budget:

“Trying to spare wealthy corporations from any sacrifice during a difficult budget year, the governor and the majority have gutted programs that have been proven to be successful and cost effective.  That kind of budgeting is shortsighted and lends itself more to glib sound bites than effective governing.

A key example is the absurd treatment of the Homeowners’ Emergency Mortgage Assistance Program (HEMAP), a model enterprise that has the strong support of the banking industry and been given a glowing review in Moody’s Weekly Credit Outlook.

The program has distributed more than $480 million in assistance on only $244 million in state appropriations while $260 million has been paid back to the program.

That simple math says the program is keeping families together, preserving communities, preventing blight and stabilizing the banking industry at no cost to taxpayers.

So, of course, this administration cut 80 percent of its funding.

It makes no sense.”

Tartaglione: Budget Ignores Better Choices

State Sen. Christine M. Tartaglione released the following statement about today’s budget vote in the Appropriations Committee:

“It’s been said many times that the state budget process is about choices.  Sometimes, those choices are tough.

But the budget plan pushed through the Appropriations Committee today after unilateral negotiations is more about ignoring choices than making tough ones.

Teachers will be laid off and local property taxes will be going up across the state because the governor puts his promise to a lobbyist ahead of his obligation to education.

This budget is being promoted to protect large corporations that are intent on avoiding their obligations to other taxpayers.

More than half of the states that levy corporate income taxes have now adopted a ‘combined reporting’ requirement, making sure that corporations can’t form out-of-state shell companies to lower their state tax bills.

The Department of Revenue has estimated that combined reporting could recoup more than $500 million in lost tax revenue, enough to keep our teachers in their classrooms, protect hospitals and lower our highest-in-the-nation corporate net income tax.

Before the explosion of gas drilling in Pennsylvania’s Marcellus Shale, energy companies created hundreds of Delaware subsidiaries.  Last year, 87 percent of drilling-related companies paid no corporate net income tax in Pennsylvania.

At the same time, laid off workers, struggling to recover from the recession, have gone back to work over the past 12 months and have contributed from their paychecks to a budget surplus that will hit $700 million by the middle of next week.

It is an insult to working families that the legislature and the governor will sit on that surplus and continue to let corporations play games with their tax bills and then claim we can’t afford to keep teachers in classrooms.

The same lawmakers who hyperventilate about $400 million in nebulous and unidentified welfare fraud have gone mute over $500 million in unpaid corporate income taxes.

That’s not making tough choices.  That’s making a clear choice to ease the tax burden of multi-national corporations and dump it on the poor, the struggling and the sick.

If this budget is adopted, thousands of families across Pennsylvania will see property taxes go up as their children go back to school in more-crowded classrooms, while the state stashes their tax dollars and protects the profits wealthy corporations.

With tax policy that puts the burden on families, schools and hospitals, while giving a pass to energy and retail giants, it’s no wonder that Wall St. has recovered from the recession while working families continue to struggle.

Pennsylvania families should demand that their hard-earned dollars be used to educate their children, improve their communities and lower their local taxes.

This budget doesn’t do it.”

Lawmakers Offer Philadelphia Teacher Contract Protections

HARRISBURG, June 20, 2011 – Democratic lawmakers today introduced legislation that would blunt the Philadelphia School Reform Commission’s (SRC) attempt to violate seniority provisions in the existing teacher labor contract and then potentially cancel other labor agreements on June 30.

Senate Democratic Appropriations chair Sen. Vincent J. Hughes, Sen. Christine Tartaglione, Democratic chair of the Senate Labor and Industry Committee, House Democratic Education chair Rep. James R. Roebuck, Jr., and House Democratic Children and Youth chair Louise Bishop, all from Philadelphia, are sponsoring legislation, Senate Bill 1168 and House Bill 1699, aimed at preempting the SRC from overriding collective bargaining agreements relating to employee layoffs. The measures would also prevent the cancelling of labor agreements before the contract expires.

In dismissing teachers without regard to seniority and threatening to cancel valid contracts, the lawmakers argue that the SRC is exceeding its authority.

“Philadelphia teachers have been an active partner in trying to deal reasonably with the tough economic situation the school district faces,” Hughes said. “The teachers have made concessions and have worked within the collective bargaining framework.

“The teacher’s union has not been blind to the enormous fiscal challenges that the school district faces, but the SRC’s actions go way too far.”

The distressed schools law contains provisions that enable school districts to by-pass provisions in the state school code in certain situations. However, Hughes said that he does not believe that those provisions override a valid labor agreement negotiated in good faith.

Tartaglione, a leader on labor issues in the Senate, said that “contract provisions should not be subject to alteration after a labor agreement is reached, unless both sides agree to changes,” Tartaglione said. “The SRC agreed to the seniority provisions and they should honor their word and abide by the contract with the teachers union.”

Both Hughes and Tartaglione maintained that the law that allows the SRC to void contract provisions was not intended to be open-ended; and that the district and its teachers have had multiple collective bargaining agreements since 2001.

Roebuck said “the SRC should follow the process it negotiated and agreed to not only when it comes to laying off teachers but for all other provisions. There is a great need for the teachers and the district to work together in both solving the fiscal crisis and providing quality education to Philadelphia’s school students.
“There is no legislative mandate or desire to restructure negotiated labor agreements.”

Philadelphia Federation of Teachers President Jerry Jordan echoed the lawmakers’ call for legislation clarifying the powers of the SRC.

“We are in dire need of legislative clarity that defines the powers of the SRC relative to voiding contract provisions that were bargained for and agreed-to in good faith,” Jordan said. “The teachers in Philadelphia shouldn’t be held to different standards based on murky provisions in law.”

The lawmakers said that their legislation would reassert the intent of the original law and emphasize that the SRC’s power to alter labor contracts is limited. The measures have the strong support of Philadelphia delegations in both the Senate and House.

The Philadelphia School District is dealing with a funding shortfall of $629 million as a result of the loss of federal funds and state budget cuts proposed by Gov. Tom Corbett.

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Tartaglione Praises Passage of Compromise on Unemployment

HARRISBURG,  June 17, 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.

“I am grateful that my colleagues have seen the wisdom of preserving and extending benefits during the worst days of the economic decline,” Tartaglione said as Senate Bill 1030 headed for Senate passage today. “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.

During the recession, more than $15 billion in benefits were spent on food, mortgages, utilities and doctor bills,” Tartaglione said.

“Without that economic impact, we would have seen higher unemployment, more foreclosures and a deeper hole for families to climb out of,” she said.

The Senate Labor and Industry Committee took language from Tartaglione’s Senate Bill 994, and amended it to Senate Bill 1030 to allow Pennsylvania to adopt a “three-year lookback,” and qualify for federal help that will extend benefits for as many as 130,000 workers.

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 did not qualify on May 21, and 45,000 Pennsylvanians could have lost their benefits as of June 11.  An estimated 90,000 more would have lost regular benefits and not qualify for extended benefits through the end of the year.

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.

House and Senate negotiators agreed to a compromise bill that freezes the maximum benefit amount and makes other changes intended to shore up the trust fund.

The Senate unanimously passed the compromise bill today.  It now heads to the governor’s desk.

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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.

###

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.”

Senate Democrats Gather Ideas on Improving Job Training Programs

Philadelphia – April 15, 2011 –Senate Democratic Policy Committee Chair Lisa Boscola (D-Northampton/Lehigh/Monroe) said Democrats will hone their PA Works jobs and economic development plan with many of the ideas offered at yesterday’s roundtable discussion in Philadelphia.

“I thought the region’s labor, business, government and training experts who took part in yesterday’s discussion had some great ideas for getting people back to work,” Boscola said. “My committee will continue to seek local input as we visit different regions of the state and discuss aspects of our “PA Works” legislative package.”

Mark Boyd, president and CEO of Goodwill Industries, discussed the need for consolidating and making job training programs more efficient and effective. He called for simplifying contract systems and placing more emphasis on finding work opportunities for the disabled, uneducated and ex-offenders.

“I would offer zero taxes for companies that bring Pennsylvania high-paying manufacturing jobs,” Boyd added.

Everett Gillison, Philadelphia’s deputy mayor for public safety, agreed, suggesting that workforce development is an important component of public safety and attracting employers to a community. Ryan Boyer, business manager for the Laborers District Council added, “The best social program is a job.”

Patrick Eiding, president of the Philadelphia Council AFL-CIO said there needs to be a greater coordination between employers and job trainers to make sure people are being trained for existing long term jobs. He also suggested putting a greater emphasis on offering incentives to attract more employers to Pennsylvania.

“Ninety percent or more of solar heating components are made in China,” Eiding said. “Why not give them an old facility in Kensington, give them the building, any available tax credits and help them get started.”

All of the roundtable participants commended the Senate Democrats’ PA Works package. They said it would help get more people to work and help the state emerge from the recession.

Boscola said PA Works would create more than 28,000 jobs while actually saving state taxpayer dollars. She said the Democratic plan would leverage $2 billion in private investment to help put people to work, cut business taxes and help small businesses be more competitive, rebuild the state’s aging infrastructure, foster the growth of promising new clean and green energy industries and retool worker training programs.

In addition to Eiding, Boyd, Boyer and Gillison were: Pat Merk, Health and Safety Director, Finishing Trades Institute;  Stacy E. Holland, co-president, Philadelphia Youth Network; Liz Robinson, executive director of programs, Energy Coordinating Agency; and Gary Masino, president of the Sheet Metal Workers Local 19.

Senators joining Boscola were Senate Democratic Leader 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), and 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.

Senate Democrats to Hold Philly Hearing on Job Training Proposals

Harrisburg – April 7, 2011 – The Senate Democratic Policy Committee will hold a roundtable discussion on job training issues at the Temple Corporate Learning Center in Philadelphia next week.

“Any legislative effort to stoke our economy and create jobs must include an aggressive job training plan,” said Sen. Lisa Boscola (D-Northampton), who chairs the committee. “While Senate Democrats have already introduced job training bills, I am eager to get input from Philadelphia region employers, union representatives and workers on how best to train our workers for good jobs today – and tomorrow.”

Boscola said creating jobs and strengthening the state’s economy must be the top legislative priority this year. She said getting people back to work is the key to rebounding from the recession.

“We need to pinpoint what is working, and what is not, and how we can move forward on this important issue for the people we represent,” Boscola said. 

The roundtable discussion will be held in Philadelphia at the request of members from the Philadelphia Senate Legislative Delegation. It will be held on Thursday, April 14 at 11 a.m. at the Temple Corporate and Learning Center, 2450 W. Hunting Park Avenue, Philadelphia. The public is welcome to attend.

In February, Senate Democrats unveiled a six point legislative plan, called PA Works, which is aimed at invigorating Pennsylvania’s economy and creating jobs.

“The beauty of the Democratic legislative package is that it would create more than 28,000 jobs, while actually saving state taxpayer dollars,” Boscola said.

She said the Democratic plan would leverage $2 billion in private investment to help put people to work, cut business taxes and help small businesses be more competitive, rebuild the state’s aging infrastructure, foster the growth of promising new clean and green energy industries and retool worker training programs.

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For the Philadelphia hearing, Boscola said the committee would focus on job training. Democrats have introduced these PA Works job training bills to date:

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

In addition to committee members, those expected to take part in the informal roundtable discussion include: Patrick  Eiding, president of the Philadelphia Council AFL-CIO; Pat Merk of the Finishing Trades Institute; Laura Shubilla, president/CEO of the Philadelphia Youth Network; Mark Boyd, president and CEO of Goodwill Industries; Everett  Gillison, deputy mayor of public safety; Ryan Boyer, business manager of the Laborers District Council; Liz Robinson, executive director of programs, Energy Coordinating Agency; and Gary Masino, president of the Sheet Metal Workers Local 19, Philadelphia.