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FOR IMMEDIATE RELEASE
January 19, 2012
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Harrisburg Happenings

A report on the Legislative Session week of January 16, 2012
By Senator Jane C. Orie

40th Senatorial District

Well Safety Bill Headed to Governor

On Wednesday the Senate unanimously sent to the Governor a bill that improves emergency management and response at Marcellus Shale well sites.

Senate Bill 995 requires the operator of each unconventional oil and gas wells within Pennsylvania to register the location of the well with GPS coordinates, post signage around the well, and submit an emergency response plan with state, county and local officials.

Senate Approves SSHE "Modernization" Bill

On Tuesday, the Senate unanimously approved legislation allowing Pennsylvania's State System of Higher Education (SSHE) to offer advanced degrees.

Senate Bill 1133 would allow our 14 state universities to offer applied doctorate degrees, a level of education currently only available at Indiana University of Pennsylvania.  This expansion will not impact IUP, but rather augment and modernize SSHE to make it more competitive and attract more students.  SB 1133 would set defined standards for establishing applied doctorate programs – a degree for working professionals who must be licensed to practice in their field of expertise – under the direct control and oversight of SSHE.  IUP will remain the only state university to offer PhD programs, which are for those pursing research and engaging in scholarship.

The bill now goes to the House of Representative for consideration.

Independent Fiscal Office issues economic projections

The Independent Fiscal Office (IFO) that the General Assembly created under Act 120 of 2010 issued its first report on the economic prospects for the Commonwealth this week.

The panel projects that economic growth will be modest for the Commonwealth (1.6 percent) for 2012 and that the statewide unemployment rate will remain "elevated" at 7.9 percent.  Economic growth is expected to improve in 2014, but the unemployment rate will stay relatively stagnant, according to the IFO.  State revenues are projected to increase by about 1.6 percent per annum through Fiscal Year 2013-14, then increase to 4 percent thereafter.

The IFO identified three trends that we must take into account as we look toward the state budget:

• General Fund expenditures will outpace revenues, assuming no further policy actions to bring the two series into balance.
• Demographic trends will cause significant growth in the number of residents eligible for Medical Assistance, creating budgetary pressures.
• Pension contributions will comprise a rapidly increasing share of General Fund expenditures: 4.2 percent for 2011-12 growing to 11.6 percent for FY 2016-17.

CONTACT:

Nate Silcox
(717) 787-6538