Monthly Archives: July 2014


Newest poll finds Tom Wolf still leading race.
Newest poll finds Tom Wolf still leading race.
A new poll by CBS and the New York Times shows Democrat challenger Tom Wolf leading Gov. Tom Corbett, 52 percent to 39 percent.

Results were based on the responses of 4,150 and came from a large panel of registered voters contacted through the Internet. Their responses were then weighted to reflect the demographic characteristics of the entire voting population.

Wolf’s lead was greatest with younger voters. He led 61 percent to 23 percent among voters age 18 to 29, and 55 percent to 32 percent with voters between 30 and 44.
But the results were significantly closer with the older voters who are most likely to turn up at the polls — 50 percent to 46 percent in favor of Wolf with those 45 to 64 and 50 percent to 47 percent among those over 65.

The results suggest that Wolf has done a better job consolidating his party base. He led 90 percent to 5 percent among Democrats while Gov.Corbett’s GOP advantage was 80 percent to 16 percent


Lt. Jim Cawley sets record straight about Gov. Corbett's record.
Lt. Jim Cawley sets record straight about Gov. Corbett’s record.
Lt. Gov. Jim Cawley wants to correct the record on “a damned lie” about his boss’ record on education spending, acknowledging such a frank pushback should have occurred three years ago.

But the administration was “so busy doing our job” it didn’t, he said. The failure to make a full-throated rebuttal to claims that Corbett initiated massive cuts to public education has been a source of frustration among the governor’s allies and continues to act as a millstone with fewer than 100 days to the general election. Polls show voters consider education a top priority and give Corbett poor marks on the issue.

“For three and a half years they have lied through their teeth and shame on us for not being louder in calling it exactly what it is – a damned lie,” Cawley said during a press conference at the Pennsylvania Manufacturers Association headquarters near the Capitol.

“I think I like to believe we were as clear about the truth as we needed to be,” Cawley said later. “But I think so often in our administration, we’ve been so busy doing our job that we haven’t always taken time to effectively explain what it is we are doing.”

The warring parties fundamentally disagree over what constitutes spending for public education: Democrats and teachers unions don’t believe public school employee pensions payments should be counted as public education spending; the Corbett administration and allies do.

“To say it can’t be counted or shouldn’t be counted is just factually inaccurate,” Cawley said.

Gov. Ed Rendell’s final budget in fiscal year 2010-11 contained $8.6 billion in state spending for public education, although nearly $655 million in federal stimulus funds were also used for basic education funding. An additional $388 million in federal stimulus Education Jobs Bill funding was later added by the Corbett administration to replace general funds spent on K-12 basic education state subsidies in 2011, pushing the federal support used for basic education above $1 billion in 2010-11.

However, there was an another more than $600 million in spending used by schools in the 2010-11 budget for items like full-day kindergarten, charter school tuition reimbursement and tutoring funding – items the Corbett administration has said was temporary funding – which Corbett cut in his first budget. But Corbett also notes that in his first budget, he had to add more than $300 million in new education spending to cover the pensions for public school employees (a year earlier, in 2010-11, the state contributed a total of $287.6 million to school employee pensions).

Corbett’s 2014-15 state budget contains more than $10 billion – including pension funding – for the support of the state’s public schools, an increase of approximately $1.5 billion (much of which is due to the state’s increased school employee pension contributions) since Corbett took office.

“The Corbett administration is insisting on an apples to oranges comparison. No previous administration cited pension funding in order to boost their claims about K-12 funding,” said Wythe Keever, spokesman for the Pennsylvania State Education Association (PSEA), the state’s largest teachers union. “Instead of name-calling, Lt. Gov. Cawley should simply acknowledge what Pennsylvanians already know: Gov. Corbett has not made education funding his top priority. The governor chose corporate tax breaks ahead of students.”

While the National Education Association – the PSEA’s parent organization – uses a different way of calculating public school spending (which includes pension payments) than PSEA, it’s latest calculation for Pennsylvania spending (in 2012-13) shows the state’s per pupil spending ($7,253.53), well ahead of the national average ($5,650.72) and more than the state spent during the last few years of the Rendell administration, even the stimulus-enhanced spending of 2010-11 ($6,673.04). And the Corbett administration has added to that state spending since then.

Cawley said he believes voters are “always interested in the truth.” But by not aggressively pushing back, their explanation appears not to have made an impact on the views of many voters. A Franklin & Marshall College poll from late June shows voters pick education and schools as the top issue of the election and it’s also the top issue for voters who disapprove of Corbett’s job performance.

“What I think a lot of citizens of the commonwealth believe out there is this lie, that this $1 billion was eliminated and that we’ve never addressed it and never addressed it since and it was all an autonomous decision by Gov. Tom Corbett. Nothing can be further from the truth on a whole host of levels in that accusation,” he said.

Cawley said some school districts have experienced layoffs and adjustments, while some haven’t seen anything at all. It has also been reported that 97 percent of Pennsylvania’s 500 school districts have “reserve-fund” balances currently totaling $4.27 billion, which is $690 million more than they had last year.

“So the truth of the matter is, when it comes to public education, we rely a great deal on local leadership of the 500 school districts to make decisions that are in the best interest of the people within their communities,” he said. “As far as any specific, regarding any specific school district, I think the question would be best left to them to answer.”
–Kevin Zwick, Staff Reporter for Capitolwire.



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    July 10, 2014

    Rep Stephen BloomHARRISBURG – Rep. Stephen Bloom (R-Cumberland) today issued the following statement in response to Gov. Tom Corbett’s veto of legislative funds in the 2014-15 state budget in an attempt to urge action on pension reform:

    “I’m 100 percent with the governor on the urgent need for state pension reform, and I voted for it.  I am also pleased he has finally signed the pro-taxpayer, fiscally responsible main budget we sent him on time last week. I am, however, disappointed that instead of focusing his energy on changing the minds of the Democratic and specific Republican legislators who are siding with special interests and public sector union bosses, the governor has chosen to lash out indiscriminately at the General Assembly as a whole. I’m concerned he might be needlessly alienating himself from even those of us who are fighting for reform and diminishing his ability to successfully negotiate critical issues on behalf of the hard-working taxpayers we represent.”


      By Joe Benish

      On July 8, Harrisburg City Council approved a new zoning ordinance; the city’s first major revision in decades, that could end up stifling major new development in some of the city’s blighted areas at the same time when the city is trying to recover from its financial crisis.

      In a classic example of “the Law of Unintended Consequences,” one of the major changes in the new zoning map would potential put a chilling effect on a major development project underway to revitalize the former U.S. Postal Service Building and its surrounding area at 815 Market Street, according to developer Adam Meinstein, President of Equilibrium Equities of Blue Bell.

      Meinstein purchased the former postal facility with the vision and intent of transforming the industrially-zoned building and its surrounding 700 parking spaces formerly shared by the post office and the Patriot- News.  Since purchasing the property he has pursued the mixed use concept by attracting several major businesses to the warehouse space and is marketing the former post office for both retail and office space.

      Recognizing the strategic location of the facility adjacent to the City Transportation Center that includes Amtrak and passenger bus service, Meinstein paved and installed state-of-the-art parking equipment, lighting and security for monthly and daily parking. He currently leases about 400 monthly spaces, to state, city and other downtown employees, with about 25 percent of his parking used by transient/daily parkers who use the transportation center.

      “Our vision for a true, mixed-use facility that includes industrial, business, retail and parking is coming together.  While we are supportive of a new zoning ordinance for the city, the Zoning Code as passed absolutely fails to recognize the hard work and investments by our firm and our tenant s since the time the zoning plan was first brought forth,” Meinstein says.

      Because the various uses Meinstein has successfully instituted at the site are not allowed under the new zoning, his entire project is a risk of becoming. ”some odd pre-existing, non-conforming use” that would put the entire future of the project at risk. Some City Council members agree. As a result, Meinstein engaged McNees Wallace & Nurick to prepare and put forward to City Council an amendment that would have allowed the project to proceed.

      In its vote on July 8, some members of City Council agreed with Meinstein’s objections. City Councilman Brad Koplinski introduced an amendment that would have grandfathered Meinstein’s current activities into the new ordinance.  Koplinski was joined by Council President Wanda Williams and Councilwoman Sandra Reed and spoke in favor of the change. However, other members of council voted against the change, saying the preferred not to single out one specific business for changes over others, this despite input from a number of businesses that the new zoning might require many appeals and exemption requests.

      Meinstein was joined by a number of other developers, realtors, business owners and residents at two public hearings in June, where many expressed concerns about the haste in which City Council was proceeding to enact the new zoning. One member of the Harrisburg 2020 committee noted that the process was “backwards” from normal city planning, with Council speeding to enact new zoning and later doing a comprehensive two-year planning process for the city.

      With  Meinstein’s efforts to successfully transform a previously vacant and deteriorating property into new development that could, over the next several years, help transform the area between the train station and Cameron Street, some questioned the city’s motives in taking action now.  One economic development official, who asked not to be identified, speculated that Meinstein’s success in providing affordable parking to downtown workers was in direct competition with the city’s new parking vendor, Standard Parking and could have been a factor.  While Meinstein rejected that notion, others raised the question.

      While the new zoning changes won’t go into effect for six months, Meinstein says he is working with his attorneys to see what can be done to allow him to proceed. In the meantime, he noted that he is currently leasing some 30,000 square feet of space to several major city companies, including Exhibit Studios and Chef’s Choice, a restaurant equipment company.

      In addition, Weinstein recently provided free warehouse space to the city to save and store 80 murals from the Mulberry Bridge as it is being rebuilt.  He also was able to accommodate Volunteers of America with more than 8,000 square feet of space after the non-profit’s facility OFF of Cameron Street was destroyed by fire.

      “We came to Harrisburg and invested private dollars at a difficult time in the city’s history,” Meinstein noted.   “To-date our efforts have been successful.  In the short-term we will continue to work with the city to see how our future plans will be affected and try to work on a solution.”  It would be a shame to lose the momentum we’ve started that could transform an important part of the newly zoned downtown, “Meinstein said.

      Local economic experts, including some members of the Harrisburg 2020 committee agree.  Since the objectives of economic development are to help grow existing business, retain existing business and attract new businesses, Meinstein project is considered a success because it does all three.  His vision includes an urban, mixed-use neighborhood that will evolve, over time, into a thriving section, rather than another blighted neighborhood.

      Meinstein also noted that the future development of the Transportation Center, which is landlocked, is directly tied to the future of his property.  “There is a physical connection, and as the Transportation Centeremerges over the years into a truly intermodal facility, the surrounding properties and business will grow and expand. We want to be a part of that,” he said.


      By Joe Benish

      While the debate rages about how to raise much-needed revenues for the Commonwealth’s cash-strapped budget, the cry to simply add an extraction tax to the Marcellus Gas fracking industry is a familiar cry, along with the long-standing opposition to such a tax from Gov. Tom Corbett.

      Marcellus leaders and critics of a severance tax maintain that it could negatively impact natural gas production and point to the financial benefits local municipalities already enjoy from impact fees.

      Proponents of a severance tax counter and say it’s simply unfair that Pennsylvania remains the only fracking state without a severance tax and that the companies will likely not leave one of the most productive shale gas fields in the country, strategically located near new and proposed transmission lines and ultimately LNG export facilities.

      Most observers agree that some kind of severance tax will ultimately be part of a budget compromise. Even the Governor has noted he would entertain tax “changes” if pension reform and liquor privatization is part of the budget mix.

      But determining just how much to tax the new Pennsylvania energy boom requires a fine balancing act. According to a nationally-renowned economist who visited Harrisburg recently, a number of serious factors should be examined thoroughly before an extraction tax is applied to fracking, not the least of which is the current level of Corporate Net Income (CNI) taxes and the  impact fees the industry already pays.

      While extraction tax proponents are quick to note that Pennsylvania is  the only major fracking state not to impose an extraction tax, “they fail to also acknowledge that Pennsylvania has the second highest Corporate Net Income   Tax,” explains Dr. Margo Thorning, Ph.D., Senior Vice President and Chief Economist at the American Council for Capital Formation.

      “Every dollar raised by Pennsylvania’s robust fracking industry is now subject to the CNI, “Dr. Thorning says. “Adding an extraction tax to the CNI and impact fees the industry already pays could have unintended consequences and could even result in reduced revenues if it forces a slowdown in fracking activity,” she cautioned.” For example, companies who pay less taxes elsewhere could shift their activity to other states, since the gas in Pennsylvania will be going nowhere.”  This view runs directly counter to the argument put forth by fracking tax proponents who say a tax will have little impact, since the companies are already here and will stay here.

      State lawmakers, therefore, should look good and hard on the long-range effects of taxation on Pennsylvania’s new “natural gas” boom, including getting an accurate measure of what the industry now contributes in state and local taxes before levying any new ones.

      Local (read State) and Federal taxation policies are just two factors that enter into a complex and exciting global energy shifts.  “With the U.S. now a global energy superpower—and Pennsylvania a major player on the verge of becoming a net energy exporter the potential is there for us to export energy to allies worldwide, encouraging growth at home,”  Dr. Thorning notes.

      “This means jobs, revenue and investment—but only against the right policy backdrop.  Permitting delays, punitive taxes and onerous new regulations would only threaten this bright future,” she says.

      One big potential: maintaining and increasing current Marcellus gas production by exporting  LNG to allies abroad.   Currently, about two dozen major export projects rest for approval at the U.S. Dept. of Energy and the Federal Energy Regulatory Commission (FERC).  These projects mean billions in investment, thousands of jobs and increased production, Dr. Thorning explains, noting that the failure of act now “cedes market competition to dozens of existing global competitors.”

      “The ability to move the gas to LNG facilities and ports is crucial for the U.S.—and Pennsylvania—remains critical if we are to enjoy the benefits of being a net energy exporter,  “  Dr. Thorning notes.  Those benefits include:

      • Economic impacts that include thousands of jobs and almost $75 billion in GDP impact;
      • Access to favorable global markets to help American producers expand output and grow supply & reserves;
      • Boosting  economic and strategic aims, both here and abroad, strengthening national security overall;
      • Surpassing Russia as the leading gas producer, allowing us to export LNG while still meeting domestic demands

      Among the Marcellus Shale states, Pennsylvania ranks first in producing wells and in gas production.  In 201, Pennsylvania ranked fourth in overall U.S. energy production and third in natural gas production.  Several critical taxation issues present challenges to Pennsylvania maintaining that key role in U.S. energy production, according to Dr. Thorning. “In addition to the potential impacts of severance taxes and the state’s high CNI tax, pending Federal tax reform plans also have a tremendous potential impact on the fracking/natural gas industry, “she notes.

      What can Pennsylvania lawmakers and policymakers do to keep the state’s oil and gas industry dynamic and growing?  According to Dr. Thorning, Pennsylvania leaders must strategically:

      • Help policymakers understand the impact of tax policies on investment and capital formation;
      • Consider the impact of state legislation that raise taxes on the oil and gas industry;
      • Keep an eye on regulatory policies of other Marcellus Shale states to remain competitive.

      For example, two possible federal tax reform models—the Bowles/Simpson model and the Growth and Investment Tax (GIT)  model  show little movement in the current Congress, but will be addressed at some point in the near future, possibly in the next Congress. Both impact the cost of capital in very different ways; a big factor large corporations—like energy companies— consider,  when looking to make major new capital  investments.


      As Capital Watch goes to press, Gov. Tom Corbett has just announced that he had signed the budget given to him, but at the same time used his line-item veto to cut millions of dollars from the Legislature’s budget. He also urged lawmakers to make a new effort to address  pensions for newly hired teachers and state workers.

      At a July 10 capitol press conference, Gov. Corbett announced that he cut $65 million from lawmakers’ budget and $7.2 million from projects designated by the Legislature, noting that the proposal sent to him last week increased the General Assembly’s own $320 million budget by 2 percent and included $5 million for parking.

      Legislators left Harrisburg with unfinished business,” Gov. Corbett said. “They need to come back and enact pension reform.”

      The Governor said he does not want to see school districts raising property taxes to cover pension obligations.

      “They filled the budget with discretionary spending and then refused to deal with the biggest fiscal challenge facing Pennsylvania,” said Gov. Corbett.

      The Governor did not call a special legislative session to deal with pension reform, stating that all options were on the table.

      As Pennsylvania awaits for more news on the budget, the following article seeks to compare House Bill 2328 to the Governor’s proposed February budget, particularly the policy priorities emphasized by Gov. Corbett when he unveiled his spending plan.

      The article will concentrate on how a $29.1 billion spending plan that won majorities in both the state House and Senate on only Republican votes – stack up against the $29.4 billion budget (other than the obvious $300 million difference in overall spending) proposed by Corbett in February?


      Gov. Corbett made education funding the centerpiece of his proposed $29.4 billion budget in February, but when lawmakers had to figure out a way to make up for a more than $1.4 billion revenue shortfall – the 2013-14 and 2014-15 fiscal years combined – something had to give.

      Gov. Corbett’s “Ready to Learn” block grant program has been trimmed back to a $200 million program, with $100 million – coming from the Accountability Block Grant program – of that to be distributed in the same manner as the 2013-14 Accountability Block Grant.

      Of the additional $100 million, $92 million will be distributed to public schools through a new funding formula that calculates payments based upon a base amount, student count, aid ratio and other factors. The state Fiscal Code legislation allows school districts to deduct these funding increases from the calculation for payment of charter school student tuition. The other $8 million will be distributed to charter schools through the same formula used for the $92 million for the public schools.

      The Governor did get in HB2328 the $20 million increase he proposed for special education funding, with the majority of that funding – all but $200,000 – to be distributed to school districts using a new formula – included in the state Fiscal Code bill– based upon student cost, relative district wealth and other factors. The other $200,000 is kept for extraordinary special education costs in districts and charter schools.

      Gov. Corbett’s desire to bump up funding for early childhood education, with Pennsylvania Pre-K Counts getting an increase of $10 million, likewise survived in HB2328. Also remaining intact is the governor’s $4.6 million increase for Pennsylvania assessment tests.

      The same could not be said for some of the Governor’s other proposals:

      • The $10 million Gov. Corbett proposed for Hybrid Learning Grants was removed entirely, as was the $350,000 he proposed to revive the Governor’s Schools of Academic Excellence;

      • Those who benefit from Career and Technical Education Equipment Grants got some good news as HB2328 restores the $3 million the Governor cut in his February proposal;

      • But approved private schools for special education took a $3 million hit in HB2328, compared to the flat funding proposed by Gov. Corbett; and

      • Public school libraries will have to live with flat funding in 2014-15, not the $500,000 increase Gov. Corbett had sought in February, although library access funds wouldn’t be cut by $250,000, in HB2328, as originally proposed by the governor.

      There were also changes to some of Gov. Corbett’s postsecondary education funding plans, although his plans weren’t all that extensive.

      The new policy the Governor wanted to implement as part of the 2014-15 budget was a $25 million “Ready to Succeed” scholarship program. The program would provide up to $2,000 to eligible students, who demonstrate academic merit and whose families earn up to $110,000, to apply to the costs of earning a two- or four-year degree. HB2328 only authorizes $5 million for the scholarship program.

      Gov. Corbett had proposed flat-funding all of the state-related universities, the State System of Higher Education institutions, the state’s community colleges, the Pennsylvania Higher Education Association (other than the “Ready to Succeed” program) and Thaddeus Stevens College of Technology.

      State lawmakers tweaked those proposals in HB2328:

      • Community colleges receive an additional $3.5 million and their capital funding remains the same as 2013-14 (not the $1 million cut proposed by the governor);

      • The Pennsylvania College of Technology, which is affiliated with Penn State University, will get a $2 million increase;

      • Thaddeus Stevens College of Technology will get $2 million in additional funding;

      • Penn State University, the University of Pittsburgh, Temple University, Lincoln University, the State System of Higher Education, PHEAA and institutional assistance grants for private schools remain level-funded;

      • Funding for regional community college services is increased by $1.2 million to support a new rural regional community college that provides two-year postsecondary education and workforce development (included in the state Fiscal Code).

      And while not entirely education-related, the governor’s plan to fund the state’s public pensions (with the school employees’ pension system the far greater funding responsibility – approximately $1.48 billion) appears to remain largely in place. However his “tapering of the collars” proposal was scrapped, meaning HB2328 had to come up with the $170 million Corbett planned to reduce the state’s combined pension payments in 2014-15 (which also include a $225 million transfer of private equity investments and cash reserves from the Tobacco Settlement Fund and the Health Venture Investment Account to Public School Employees’ Retirement System – although some question the true value of the investments – and approximately $80 million in savings from eliminating the charter school “pension double-dip”).


      The Governor’s proposal increased Pennsylvania First funding from $37.8 million to $42.5 million—with the WEDnetPA Job Training program receiving a $2 million boost, on top of an additional $3 million for what the administration describes as a base jobs training program.

      Gov. Corbett proposed boosting marketing for tourism and business by $1.25 million and $1.1 million, respectively, but both line items lost out in budget negotiations with the business side losing $1.4 million alone. The Legislature cut another $171,000 from tourism marketing, too.

      World Trade PA suffered a $1.5 million cut, despite the governor’s request for a $600,000 increase to the program. Discovered in PA, Developed in PA — a program Gov. Corbett wanted to see flat-funded in the 2013-14 fiscal year — fared worse, losing half of its $9.9 million budget.


      With regard to human services, the Governor didn’t get all that he wanted, but he didn’t strike out on his priorities.

      Overall, the Governor’s February budget proposal included a 3.9-percent increase for the state Department of Public Welfare and a 0.4-percent reduction of the Department of Health’s budget. HB2328 increases the Health Department’s budget by 2 percent and the Department of Public Welfare’s budget by 1.1 percent, although a significant amount of the difference between the governor’s plan and HB2328 for the DPW is due to Tobacco Settlement Fund and the Lottery Fund transfers.

      HB2328 ends up spending a larger total on services to persons with disabilities than that requested by the governor in February – $255.1 million compared to $253.1 million – however, due to supplemental appropriations, the starting point in the governor’s February budget was increased, from $225.4 million in February to $233.1 million in June. So instead of a $27.7 million increase in that line item, the increase is $22 million.

      Autism and intervention services got a bit more than requested by the governor in his budget proposal – a nearly $2.7 million increase versus a $2.1 million hike – while attendant care waiver services will see a larger overall appropriation than that sought by Gov. Corbett – $122.8 million versus $122 million – but, again, due to 2013-14 supplemental appropriations, the increase appears smaller than that sought by the governor, $6.7 million instead of nearly $9 million.

      HB2328 contains $14.1 million from the Pennsylvania Lottery (of a total of $130 million shifted from the Lottery Fund for Medicaid Home and Community-Based Waiver services) for the Department of Public Welfare to expand home and community-based services to an additional 2,468 seniors.

      The administration had also planned on spending an additional $4 million – which would push total spending to $8 million – for the Department of Health’s Community-Based Health Care program. However, HB2328 appropriates an additional $2 million, not $4 million, to help fund new community health care centers and clinics to increase access to preventative primary care services for the uninsured in medically-underserved areas of the state.

      Also to address underserved areas, the governor had proposed an additional $4 million to recruit and retain health care professionals in rural and underserved areas. The administration estimated that new funding would support an additional 70 awards to physicians, dentists and other practitioners who commit to work in rural and underserved areas, as well as 12 additional residency slots for medical school graduates to address primary care service shortages in these areas. In the end, HB2328 appropriated an additional $1 million.


      A few law enforcement-related budget lines in the 2014-15 general appropriations budget appear to skew the totals listed. When the Senate passed the spending plan back to the House, available funding from the 2013-14 fiscal year for certain lines – Corrections, State Police and the Commission on Crime and Delinquency – changed from the original spending plan they received from the House GOP, which used the same available dollars as Gov. Corbett’s Budget Office. The changes were explained by legislative staff to be the result of supplemental appropriations, as noted above.

      For instance, Gov. Corbett requested in February $13.7 million to fund four new State Police classes to train 350 troopers. The final spending plan shows Corbett getting about $1 million more. However, comparing the final spending number to the 2013-14 available funds used by Corbett and the House GOP, the final appropriation is actually $13.2 million – $500,000 short of the total Corbett sought.

      Spending for the Department of Corrections also appears reoriented. Using the final approved spending plan, the department’s overall total shows an increase of $61.2 million for the 2014-15 year to bring the department’s total to $2.06 billion. However, when comparing the final spend number to the Corbett/House GOP available 2013-14 funds, the total spend number shows department spending would increase by $97.7 million in 2014-15.

      Within the department’s overall increase is the State Correctional Institutions line item. The final spending plan appears to show lawmakers only increased funding for state prisons by 3.9 percent, or an increase of about $65 million. But comparing the final spend number to the Corbett/House GOP available funding line, lawmakers increased state prison funding by 6 percent or $99.2 million.

      Another law enforcement-related line item, the Commission of Crime and Delinquency, also shows more in the available 2013-14 funds column than what Corbett and the House GOP used. Under the final budget, the commission appears to have received a 2.7 percent cut, but that’s after the Senate increased the available 2013-14 dollars by $1.5 million to be $5.455 million.