STATE REPRESENTATIVE SAM ROHRER PRSRT STD

LEGISLATIVE REPORT
U.S. POSTAGE
PAID
HARRISBURG, PA
PERMIT NO. 529

Fall 2009

Republican Finance Committee Rohrer Opposes Tax-Hiking,

Chairman Keeps Eyes on Revenues Over-Spending State Budget
In June, Rep. Sam Rohrer, Republican chairman While Rep. Sam Rohrer and most Pennsylvanians were
of the House Finance Committee, released a back- relieved when Gov. Ed Rendell ended a 101-day-long stale-
grounder prepared by his staff showing the state’s ver- mate by signing a state budget into law, the Berks County
sion of a checking account was running low on cash, legislator opposed the tax hikes and excessive spending
could succumb to deficits in as little as three months in the final budget agreement.
and could require lawmakers to waste resources fi- “The good news is that the budget standoff has come
nancing short-term debt instead of providing valuable to an end,” Rohrer said. “The bad news is that the standoff
programs and services for constituents. was ended through the enactment of a state budget that
The issue revolved around the state’s cash on raises taxes and spends too much. After waiting more
hand, which can be thought of in the context of a than 100 days past the deadline for a budget, a majority of
family’s checking account. Cash on hand is the money Pennsylvanians were rightfully disappointed with the final
that is available to pay the Commonwealth’s bills. product.”
The House Finance Committee backgrounder
showed the state’s “checking account” was in a Tax Hikes
weakened condition. During the previous two years, The budget includes a 25-cent-
the state ended the fiscal year with more than $4 bil- per-pack increase in the state tax on
lion in its checking account. This year, the state was cigarettes, creates a new tax on “little
projected to end the year with half that – or less than cigars,” calls for a $374 million tax on
$2 billion – in this important account. Pennsylvania employers, and includes
To read more about this issue and view the House a tax on Medicaid Managed Care Or-
Finance Committee backgrounder, visit Rohrer’s Web ganizations.
site at [Link]. Continued on page 2...

Rohrer Proposed ‘Pact with PA’ to Guide Budget Development

In June, Rep. Sam Rohrer led a bicameral group of lawmakers in unveiling the “Pact with Pennsylvania,” a proposed
agreement between state legislators and the constituents and taxpayers they are elected to represent.
The proposal was based on the underlying premise that – instead of focusing on how much money special interest
groups and politicians want to spend – a state budget should represent how much taxpayers can afford to pay.
The pact was not a budget proposal. Rather, it was an agreement detailing the five principles that should guide mem-
bers’ actions during budget negotiations and the eventual budget vote. Those principles included:
1. No tax increases.
2. No additional state debt.
3. Rainy Day Fund: preserved for original intent.
4. Stabilize existing financial obligations.
5. Proactive tax reform to improve Pennsylvania’s job climate.
Copies of the “Pact with Pennsylvania” are available at Rohrer’s Web site at [Link].

W W W. S A M RO H R E R . C O M
 State Budget continued from page 1 Local Students Win
“This budget suggests that the law- Statewide Academic Competition
makers who crafted it believe some Penn-
sylvanians can afford to pay higher taxes A team of students from Wilson High School in Berks County won
in the middle of a recession,” Rohrer said. the statewide Pennsylvania Academic Competition hosted by Rep. Sam
“This budget targets smokers and small Rohrer on behalf of the Pennsylvania House of Representatives, earning
business owners to carry an extra burden the team an opportunity to compete at this year’s National Tournament
during tough economic times. Singling out of Academic Excellence (NTAE) held at Disney World in Florida.
specific groups used to be called discrimi- The Wilson High
nation. I guess now this is what passes School team was
as budget policy in the Commonwealth of coached by John
Pennsylvania.” Magala and included
While the state spending plan in- students Dustin Hill,
cludes the targeted tax increases above, Collin Hull, Mike Ma-
Rohrer and his fiscally conservative col- hon, Purau Patel and
leagues were able to block several new Jen Uspal. As the
or increased taxes proposed by Governor statewide champions,
Rendell, including the governor’s call for a the students earned a
Personal Income Tax (PIT) increase. $2,000 scholarship for
their high school.
Draining the Reserve Accounts Rep. Sam Rohrer (left), Coach John Magala (right) and the stu- Students from
Budget negotiators balanced the state dents from Wilson High School had their picture taken on the
House floor following the team’s victory in the statewide Penn- across Pennsylvania
spending plan, in part, by draining several sylvania Academic Competition. traveled to the state
reserve accounts. The Commonwealth Capitol to participate
had built up a $755 million Rainy Day Fund in the 18th annual Pennsylvania Academic Competition. Prior to the
that is intended to help lawmakers pay for competition, the House unanimously approved a resolution introduced
unanticipated expenses. That fund will by Rohrer marking the week of April 20 through April 24 as “Pennsyl-
be completely depleted during the current vania Academic Competition Week.” Chester County Intermediate Unit
budget year. organized the event, which Rohrer has hosted for the last 11 years.
“Instead of making the decisions nec- The students competed based on their knowledge of the following
essary to balance revenues and costs, categories: literature, fine arts and grammar; world history and geog-
this budget relies on reserve accounts to raphy; American history, geography and economics; science; contem-
pay for excessive spending,” Rohrer said. porary events; and, potpourri (any subject).
“By raiding the Rainy Day Fund, budget
negotiators have left us with little protec-
tion against unforeseen events. If we
experience a natural disaster, no money
Health Care Reform: A State Issue
will be left in the reserve accounts to help
As the lawmaker who has led Pennsylvania’s efforts to reaffirm its
us respond to it.”
sovereignty under the 10th Amendment of the U.S. Constitution, Rep.
Federal Bailout Dollars Sam Rohrer firmly believes that health care reform is a state – not a
The federal government also assisted federal – issue.
Pennsylvania in overspending. “Instead of “Health care is an issue that should be discussed and debated on
encouraging states to bring expenses in the state level,” Rohrer said. “The federal government should keep its
line with revenues, Uncle Sam – through nose out of areas where it has no right to infringe. There is certainly no
federal stimulus dollars – essentially constitutional basis for a federal takeover of the health care system.”
printed more money and handed it out Rohrer noted that the House Republican Caucus established a
to the states to fill their budget deficits,” Health Care Task Force to determine how to best meet the ever-changing
Rohrer said. “This amounted to a bailout needs of residents and the Commonwealth’s health care system. This
for state governments, effectively freeing Task Force has been examining the cost of health care and insurance
them from the responsibility of taking the and is focusing on increasing consumer choice, reducing government
necessary steps to enact realistic spend- bureaucracy, providing tax credits, reform-
ing plans. ing medical liability laws, and enhancing
“Politicians in our nation’s Capitol are marketplace competition.
hoping that most people won’t realize that Earlier this year, Rohrer introduced a
federal taxpayers and state taxpayers are resolution to reaffirm Pennsylvania’s sov-
quite often the very same people. This is ereignty and its right to deal with this and
equivalent to trying to pay off one credit other state issues under the 10th Amend-
card using another. While the place you ment, which reads:
send the check has changed, you are still The powers not delegated to the
on the hook for the payment.” United States by the Constitution, nor
The state budget includes more than prohibited by it to the states, are re-
$2.6 billion in federal bailout dollars. Added served to the states respectively, or to
to the nearly $25.2 billion in state dollars the people.
in the final budget, this means the Com-
monwealth will spend approximately $27.8
billion in the 2009–2010 fiscal year.
F O R M O R E I N F O R M AT I O
 Rohrer Reintroduces School Property Tax Elimination Act
Hailing it as the school property taxes, but the state would have had the
single most important time to build up the excess revenue in order to weather
step Pennsylvania law- this current economic storm.”
makers could take to The SPTEA addresses the spending side of the
jumpstart the state’s equation, tying the school districts’ revenue to the sales
economy, Rep. Sam tax. Under the current system, as overall property tax
Rohrer recently unveiled revenue decreases because of increasing foreclosures
the School Property Tax and delinquencies, schools are forced to consider rais-
Elimination Act (SP- ing their property tax rates, further burdening those who
TEA). can pay and creating a vicious cycle of foreclosures and
“No tax should have delinquencies. Under Rohrer’s plan, the sales tax would
the power to leave you continue to create a stable form of revenue. Even in
homeless,” Rohrer said. difficult economic climates when the sales tax revenue
“Seniors citizens, retired declines, schools would be forced, along with all Penn-
couples, young families, sylvanians, to reduce their spending.
recently laid-off work- Rohrer argued that using the state sales tax to fund
ers—through no fault of their own, all these people are education poses significant benefits over the existing
standing on the precipice of losing their homes, as their property tax system. Specifically, he noted that the sales
pensions have plummeted and incomes have been tax was instituted in 1953 expressly for the purpose of ed-
reduced or even eliminated. For families struggling to ucational funding, and, as such, remains the best-suited
make mortgage payments, this plan offers the only true source for schools, because sales tax revenue—and thus
hope of remaining in their homes and securing their school revenue—will grow as the economy improves.
home ownership.” In addition, Pennsylvanians will have more control over
The bill is distinctive in that it remains the only plan the amount of taxes they pay, as they can increase or
that has the capacity and the simplicity to present a com- reduce their tax burden based on the purchases they
prehensive restructuring of the way Pennsylvania funds make. Finally, sales tax revenue is sensitive to economic
its schools and addresses issues of spending controls, realities, ensuring that when Pennsylvania families are
predictability, debt, and distribution. Instead of relying on forced to reduce their consumption, schools also will be
local school property taxes, school districts would receive forced to rein in their spending.
their primary source of funding from an expanded state Rohrer’s plan also offers the first real opportunity
sales tax. The sales tax rate would remain at 6 percent, for voters to have direct control over any future tax in-
but would be expanded to include some currently tax- creases. Under the SPTEA, any future tax increases
exempt items. Food, clothing, prescription medications would have to be approved by voters through a ballot
and other essential items and services would not be referendum.
taxed under Rohrer’s plan. The SPTEA also would use “Under the provisions of Act 1, the voter referendums
a percentage of royalty payments generated through we have are what I like to call ‘taxpayer protection in
expanded natural gas harvesting activities on state forest name only,’” Rohrer said. “Sure, we have a law that
lands to fund Pennsylvania schools. says voters are supposed to have the right to approve
“Partial reduction is not the answer,” Rohrer stated. or deny any school tax increases. But the Department
“Taxes continue to rise unabated, and the governor’s so- of Education usually grants the district an exemption
called ‘Property Tax Relief Fund’ barely makes a dent in and the voters never have a chance to vote on the tax
what most taxpayers have to pay. It’s a political response, increase. My plan offers real voter empowerment where
designed to alleviate the problem and never solve it, and previous plans offered only false hope.”
it has distracted from the real issue. The only solution is “For years, school property tax elimination seemed
complete and total elimination.” like a pie-in-the-sky idea to lawmakers in Harrisburg—a
Funds from the expanded state sales tax and the noble but impractical goal,” Rohrer said. “But we have
revenues from Marcellus Shale natural gas development a plan to make that dream a reality. Now, it is only a
would be deposited into a newly created Education Op- matter of whether state lawmakers choose to listen to
erating Fund (EOF). The money in the EOF would be their constituents and then act upon their cries in order
used to implement a four-year phase out of school district to make that dream come true for Pennsylvania property
property taxes. The phase-out would ensure a smooth taxpayers.”
transition into the new system without disrupting normal The SPTEA has been introduced as House Bill 1275.
operations of either schools or businesses. For more information about the proposal, visit Rohrer’s
“When we first introduced the idea of school property Web site at [Link].
tax elimination, our proposal ran parallel to the governor’s
proposal to use gambling proceeds to relieve—never
solve—the property tax burden,” Rohrer said. “Here we
are, seven years later, and homeowners have received
just one payment, and a pittance at that, to help with their
taxes. Had we enacted the SPTEA back then, we would
have already passed through the four-year phase out.
Homeowners would not only be free from paying any

O N , V I S I T W W W. S A M R O H R E R . C O M T O D AY !
Rohrer Introduces Emergency Mandate Suspension Act
Rep. Sam Rohrer was joined recently at a Harrisburg who all lent their support to
news conference by members of groups representing local Rohrer’s legislation.
governments and school boards to unveil the Emergency According to the Penn-
Mandate Suspension Act (EMSA). The proposal would sylvania Economy League,
provide financial relief to school districts, counties and mu- 45 of the 53 “third-class cities” in Pennsylvania can be
nicipal governments that are struggling to pay for unfunded categorized as “financially distressed.” CCAP reports that
state mandates. an average of 60 percent of a county’s budget is made up
“Essentially, if there is no money, there will be no man- of directives from outside entities.
date,” Rohrer said. “Local authorities would be given the “The burden of unfunded mandates is real, and it is
option to temporarily opt out of expensive unfunded man- something that must be addressed,” Rohrer said. “The old
dates for a period of up to five years. This is the fastest ostrich-head-in-the-sand approach is no longer an option.
and most direct way that we can help school districts, local The governor and state Legislature cannot sit by and watch
governments and the taxpayers who must fund them.” as more and more local governments and school boards
Rohrer was joined by representatives from the County are pushed over the cliff of financial distress. The problem
Commissioners Association of Pennsylvania (CCAP), is unfunded mandates and the solution is the Emergency
the Pennsylvania School Boards Association (PSBA), Mandate Suspension Act.”
the Pennsylvania State Association of Boroughs and the In addition, the bill provides for a similar temporary
Pennsylvania State Association of Township Supervisors, suspension of reimbursable mandates. If the state fails
to reimburse local authorities for a mandated program,
the local authority could suspend local payments for it.
This provision would apply to programs for which the state
ordinarily provides adequate funding to cover costs but,
for whatever reason, has failed to provide that funding or
if the Commonwealth missed two consecutive payments
– as happened recently in many instances due to the state
budget stalemate.
“Too often, leaders in Harrisburg have adopted a law
and passed the costs on to local leaders,” Rohrer said.
“They take credit for the idea but pass responsibility for
funding it on to our local governments and school boards.
It is time for elected leaders at all levels of government to
acknowledge the economic consequences facing taxpay-
ers. This bill does more than talk about the problem. It
Rep. Sam Rohrer and representatives from local governments and school identifies and proposes a solution. Now, it’s time for law-
boards unveil the Emergency Mandate Suspension Act (EMSA) at a news
conference in the Capitol media center. The EMSA is intended to rush finan-
makers in Harrisburg to roll up our sleeves to make this
cial relief to local authorities and the taxpayers who fund them. policy a reality.”

Around the
128th District

On May 14, the Miller-Keystone

Bloodmobile visited Rep. Sam
Rohrer’s Flying Hills district of-
fice. The lawmaker, who here is
pictured donating blood, was On May 21, Rep. Sam Rohrer hosted an open house at his Flying Hills district
pleased with the good turnout office. Rohrer discussed timely issues with those who attended and answered
for the event. a variety of questions from constituents.

REPRESENTATIVE SAM ROHRER How My Office Can Help You

 PACE/PACENET applications
District Office: Harrisburg Office:  Property Tax/Rent Rebate forms
29 Village Center Drive Room 45 Capitol East Wing  Copies and status reports of legislation before the
General Assembly
Suite A–7 PO Box 202128  Voter registration forms and absentee ballot
applications
Reading, PA 19607 Harrisburg, PA 17120-2128  Birth and death certificates
Phone: (610) 775–5130 Phone: (717) 787–8550  State tax forms
 Referrals to agencies to resolve state-related problems
Fax: (610) 775–3736 Fax: (717) 787–7862  Driver licenses and registration