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FALL

PRSRT2009
STD
U.S. POSTAGE
PAID
HARRISBURG, PA
PERMIT NO. 529

Dear Friends, Reed Votes Against State Budget with


Tax Increases
It continues to be an honor to serve
No elected official – whether they are a legislator or the governor of the
as your state representative. This
Commonwealth – gets everything they want in a state budget. The process
newsletter is my report to you about
is filled with negotiation and compromise. In the end, each lawmaker must
what is going on in our area and in our
decide whether the “good” outweighs the “bad” in the final budget deal. While
state Capitol.
I supported the increased funding for our local schools, I could not vote for
This year’s more than 100-day delay
this year’s state budget because, outside of education, I do not believe it set
in adopting a state budget took center
the proper spending priorities for our citizens.
stage for months in Harrisburg. While
I am pleased we have a spending plan
in place, I was disappointed with what Local School Funding
was included in the final bill. Earlier Schools across Pennsylvania will benefit from an approximately $300 million
this year, I supported a tax-free, increase in the state budget adopted in October. As you can see in the chart,
bipartisan budget proposal that would each of our local school districts will benefit from a funding increase.
have funded vital government services
without further burdening taxpayers. 
While our full budget plan was not  

   
adopted, one component of it was. 
 
This newsletter contains an article
about my proposal to raise revenues     
and create jobs by expanding natural     
gas harvesting on state forest lands.
I also have called on my colleagues to     
join me in implementing commonsense     
welfare reforms to protect taxpayer
    
dollars.
Finally, take a look at the section     
detailing some of the key votes taken
this year in the House and how I voted
on those issues.
As always, feel free to contact my
 I recently
district office if we can help you with
m e t w i t h
any state government-related issues. students from
Homer-Center
Sincerely, Elementary
School during
their trip to the
state Capitol.
Here, we have
Dave Reed our picture taken
State Representative on the steps of
62nd Legislative District the Main Capitol
Rotunda.

Budget continued on page 3...


Reed Unveils ‘Energize
PA’ Initiative to Tap State
Marcellus Shale Gas Deposits
At the beginning of this year, I was selected to serve as
one of two co-chairs for the House Republican Policy Com-
mittee Energy Task Force. At a Capitol news conference in
Reed Votes Against Tax-Hiking,
March, my colleagues on the task force and I unveiled the Watered-Down Marcellus Shale Bill
“Energize PA” plan to expand natural gas drilling on state
forest land and promote the creation of 7,000 new private- As part of the overall budget “deal,” legislators and the
sector jobs in Pennsylvania’s emerging Marcellus Shale governor agreed to expand natural gas harvesting on state
natural gas drilling industry. forest lands. This was the basic concept behind the “Ener-
My proposal – House Bill 1050 – is about promoting job gize PA” initiative my colleagues on the Energy Task Force
creation at a time when our state’s workers are suffering the and I unveiled earlier this year.
consequences of a national economic downturn. Unfortunately, the underlying concept was twisted and
The proposal would directly result in the creation of 7,300 distorted as it made its way through the legislative process.
new private-sector jobs during the next decade. This was a For example, Energize PA would have shared with local gov-
stark contrast to the potential effects of a new tax proposed ernments and conservation districts the increased revenue
by the governor in February, which experts predicted could from expanded natural gas drilling. The final agreement that
have cost Pennsylvania approximately 53,000 jobs during was adopted cut out our local municipalities and our con-
the next five years. servation districts, effectively hoarding all of the revenues
We were looking at a net difference of 60,000 jobs between in Harrisburg. This was done, despite the fact that local
our plan and the governor’s proposal. The question we governments would need the money to pay for infrastructure
needed to ask was, do we want to gain jobs or lose them? improvements, such as road repairs and water treatment
My bill would lease 390,000 acres of the approximately facility upgrades to handle the increased activity.
2.1 million acres of state forest land to natural gas drilling In addition, lawmakers hung additional proposals on the
companies in the next three years. underlying concept, turning the bill into a Christmas tree of
Of the total amount, 80 percent – or approximately $208 various unrelated policies. For example, the bill included a
million – would go toward filling the state’s projected $2.3 proposal to implement a new tax on “little cigars.”
billion budget deficit. Local governments that host existing The final bill also completely drained two of the state’s
natural gas, oil or coal shallow well drilling sites would share reserve accounts – the Health Care Provider Retention
12.5 percent – or $32.5 million – of the money. Local gov- Account and the Medical Care Availability and Reduction
ernments that host new Marcellus Shale drilling operations of Error (MCARE) Fund – which are dedicated to retaining
would share 2.5 percent – or $6.5 million – of the money. top-quality doctors in our state. If revenues fail to meet
Conservation districts across the state would share the expectations this year, the state will not be able to draw
remaining 5 percent – or $13 million – to pay for programs on these accounts to make ends meet. That could lead to
that protect the environment. additional service cuts or tax increases in the future.
In February, Gov. Ed Rendell proposed adding a new sev- I was pleased to see the governor and General Assembly
erance tax to natural gas drilling operations in Pennsylvania. incorporated our plan to increase natural gas harvesting on
A new tax would make it less attractive for natural gas drilling state forest lands. However, their decision to hoard all of
companies to expand their operations in the Commonwealth, the money in the state Capitol, cut our local municipalities
leading to fewer job opportunities for Pennsylvania workers. out of the funding and weigh the bill down with tax increases
We have an industry that wants to grow here and cre- and reserve fund-depleting proposals led me to oppose
ate more jobs and the governor responded by putting up a the final bill.
roadblock. The governor travels across the state handing
out cardboard checks to corporations that promise to deliver
jobs. Now, we have an employer who isn’t asking for any
money from the Commonwealth and the governor wants to
tax them!
The task force held informational meetings with natural
gas industry experts and executives to develop a workable
proposal that would provide revenue for the state, local
governments and conservation districts without enacting a I recently joined with fellow state and local officials at the
new tax on natural gas companies. groundbreaking event for the Southern Indiana County Regional
We continue to look at proposals aimed at ensuring there Sewage Improvement and Sewage Treatment Plant expansion,
are suitable facilities in Pennsylvania to treat the wastewater a project between the Blairsville Municipal Authority and Burrell
from Marcellus Shale drilling. We are committed to identify- Township Sewer Authority. The approximately $16 million
expansion will provide additional sewage service to residents and
ing policies that promote economic growth while protecting further enhance the economic development potential in southern
our environmental resources. Indiana County.

D R E E D @ PA H O U S E G O P. C O M
Budget continued from page 1.

Taxes
Unfortunately, budget negotiators were only able to balance
the $27.8 billion spending plan by raising taxes, depleting
the state’s reserve fund and reducing some tax credits - like
the education improvement tax credit program.
The budget includes a 25-cent-per-pack increase in the
state tax on cigarettes and creates a new tax on “little cigars”
at $1.60 per pack. In addition, it includes a tax on Medicaid
Important Votes
Managed Care Organizations (MCOs).
The state spending plan also calls for a $374 million tax on House Bill 1416 – State Budget Voted “No”
Pennsylvania employers at a time when the Commonwealth At a time when Pennsylvania families are cutting back
should be doing everything in its power to encourage job in their own budgets, this funding plan set the wrong
creation. This tax could delay or jeopardize Pennsylvania’s priorities for our commonwealth and required too many
economic recovery. That is the last thing local workers and tax increases.
families want as they struggle to make it through the current
international economic recession.
While the budget includes the targeted tax increases
House Bill 1531 – Tax Hikes Voted “No”
above, my colleagues and I were able to work together in a This bill required nearly $1 billion in tax increases to
bipartisan manner to block several new or increased taxes balance the budget proposal. Raising taxes during a
proposed by Gov. Ed Rendell. At various points during the recession defies common sense and could threaten our
budget process, the governor called for both a Personal Commonwealth’s economic recovery.
Income Tax (PIT) increase and an expansion of the state
Sales and Use Tax (SUT). We were able to avoid both of House Bill 1 – Health Care Tax Voted “No”
these broad-based tax increases. This bill includes a 2 percent tax on health care pre-
In addition, the governor proposed a severance tax on miums for those with health insurance to pay for an ex-
natural gas harvested in Pennsylvania. This would have pansion of the Commonwealth’s adultBasic health care
stunted the growth of Pennsylvania’s emerging Marcellus system for uninsured adults. Although I agree we need
Shale natural gas industry, resulting in fewer good-paying to find ways to make health care insurance more afford-
jobs for our workers. My colleagues and I were able to avert able for all of our citizens, taxing those with health care
this job-killing tax proposal. insurance is not the answer.

Reserve Accounts House Bill 1407, Amendment A4317 –


Budget negotiators balanced the state spending plan, in
part, by draining several reserve accounts. For example, the
Eliminating Funding for ACORN Voted “Yes”
Commonwealth had built up a $755 million Rainy Day Fund. I voted for an amendment to this bill that would strip
With the effects of the international economic recession, it is all Commonwealth funding for the Association of Com-
certainly “raining” in Pennsylvania. However, using all of these munity Organizations for Reform Now (ACORN), the
dollars to balance this year’s budget means we will have no controversial group that has come under scrutiny in recent
umbrella for next year. This could lead to taxpayers getting months.
soaked with large tax increases in next year’s budget.
House Bill 1089 – mini-COBRA Health Care
Government Operations Extension Voted “Yes”
As residents across the Commonwealth tighten their finan-
In 1986, Congress passed the Con-
cial belts in an effort to make ends meet during the recession,
solidated Omnibus Budget Reconcilia-
lawmakers in both the House and Senate are doing the same.
tion Act (COBRA) allowing employees
Funding for the Senate will be reduced by $9.7 million this
who lose their jobs to continue to pay
year and funding for the House has been cut by $7.3 million.
for and receive health care benefits
The governor’s office also joined in the effort, although its
at their previous group rate. COBRA
$393,000 funding cut is much smaller in comparison to those
applies to companies with 20 or more
of the Legislature. However, the important thing to note is
employees. This bill extended similar
that both branches of government, including Republicans and
health care protections for workers at
Democrats, acknowledged the need to trim spending.
smaller firms with between two and 19
employees.
Timing of the Budget
The more than 100-day delay in adopting a state budget was
House Bill 1770 – Extension of
both unnecessary and unacceptable. The Senate passed its
version of a budget on May 6. Unfortunately, the Democratic Unemployment Benefits Voted “Yes”
House Appropriations chairman did not bring a budget bill up The federal government approved a law paying for a
for a vote until after the July 1 deadline to enact a new spend- seven-week extension of unemployment compensation
ing plan. benefits for workers who were unable to find a job. This
The delay did lead to the introduction of several bills aimed bill empowered Pennsylvania to take advantage of this
at making the budget process more open, transparent and re- funding under the American Recovery and Reinvestment
sponsive to the will of the public. One thing is painfully obvious. Act (ARRA), allowing unemployed workers to collect ad-
The current process does not work and changes must be made ditional benefits without any increased cost to the state.
to ensure this year’s stalemate is not repeated in the future.

W W W. R E P D AV E R E E D . N E T
Saving Taxpayer Dollars: An Opportunity
for Bipartisan Accomplishment
Recent reports by Pennsylvania’s Demo- the way Pennsylvania helps those in need.
crat Auditor General revealed waste, fraud Specifically, our bill would reduce fraud by
and abuse in the Commonwealth’s welfare making welfare payments directly to service
system. providers instead of expecting welfare recipi-
In Philadelphia, a woman was receiving ents to pass the money along. It would also
welfare benefits to pay for child care for 10 enhance oversight by requiring a paper trail of
children. Unfortunately, she was using the receipts for welfare purchases. Furthermore,
money to pay the father of five of her children
to babysit his own kids. They duped the state
it would promote accountability by forcing
DPW to provide information to lawmakers,
Attention Local
welfare system for more than $7,000. streamline services by eliminating redundant Elected Officials
There were also reports that “potentially programs and avoid overpayments through
fraudulent employee activity has been de- stricter rules governing the welfare payment Many of the laws passed by the Gen-
tected in Philadelphia.” Translated from au- system. eral Assembly in Harrisburg have direct
dit-ese into English, this means the welfare In addition to the bill I have co-sponsored effects on our local governments right
recipients aren’t the only ones scamming the with my colleagues, I have also written a bill here in Indiana County. That is why, on
system in the City of Brotherly Love. by myself that would close a loophole in the
Wednesday, Dec. 16, I will host a meet-
In Pittsburgh, one welfare recipient has state welfare system. Specifically, my bill
reportedly received a total of 99 ACCESS would prohibit the use of welfare and child ing for local elected officials so that I can
cards. Some urban welfare departments support dollars to purchase alcohol. provide an update about what’s going on
evidently hand out new ACCESS cards like My bill would prevent state liquor stores in our state Capitol.
candy on Halloween. and beer distributorships from accepting All local elected officials from the 62nd
This is unconscionable at a time when our electronic benefit cards (EBTs) – which are Legislative District – regardless of political
state is being forced to reduce funding for part of DPW’s cash assistance and food
party affiliation – are welcome to attend
important programs, like our public libraries, stamp programs. My legislation also would
the State System of Higher Education and this free meeting.
prohibit the acceptance of EPPICards – debit
the Department of Environmental Protec- cards issued in lieu of child support payments The meeting will begin at 6 p.m. and will
tion, due to the reduced revenues that have by the domestic relation sections of county take place at the Rustic Lodge located at
resulted from the economic recession. courts of common pleas – from being used 2199 Oakland Ave. in Indiana.
Every dollar wasted on welfare fraud is to purchase alcohol. I hold this meeting each year because I
another dollar we cannot use to help those These welfare reforms are intended to believe it is important for lawmakers from
truly in need – our children, the elderly, the restore the integrity of the public assistance
the state and local governments to work
disabled and the underprivileged. system. Pennsylvania’s welfare programs
Pennsylvania taxpayers cannot afford to should be a safety net for vulnerable resi- together. Regardless of which office we
wait any longer for much-needed welfare dents, not a hammock for those who are hold, we are all elected to serve residents
reforms. While the abuses detailed by the lazy. from a portion of Indiana County. Lo-
auditor general never should have happened Saving taxpayer dollars is not a Republican cal folks are best served when we work
in the first place, the important thing now is or a Democrat issue. This is one area where together as elected officials to achieve
to immediately stop them from happening members of both parties should be able to
shared goals.
in the future. find common ground and work together to
It is past time to clean up the Common- If you are a local elected official and wish
protect taxpayers.
wealth’s welfare system. This is especially I am committed to working with my col- to attend this event, please RSVP by call-
important because the Pennsylvania Depart- leagues on both sides of the aisle to make ing my district office at 724-465-0220.
ment of Public Welfare (DPW) consumes these reforms a reality. For the folks who
more than $10 billion in state revenues truly need assistance – our senior citizens, STATE REPRESENTATIVE
each year. children, the workers who have lost their DAV E R E E D
To accomplish our goal, my colleagues jobs due to the recession and our taxpayers
INDIANA OFFICE:
and I are co-sponsoring legislation to reform – these changes can’t come soon enough.
550 Philadelphia Street, Indiana, PA 15701
Phone: 724-465-0220 Fax: 724-465-0221
COMING SOON Mark
Hours: Mon., Tues., Thurs., Fri.
8:30 a.m. - 4:30 p.m.
Veterans Expo and Job Fair Your
Calendars!
Wed. 8:30 a.m. - 6:30 p.m.
BLAIRSVILLE OFFICE:
122 E. Market Street, Blairsville, PA 15717
Veterans Expo Phone: 724-459-3245 Fax: 724-459-7270
In the spring, I plan to hold a veterans expo for military veterans from the 62nd Hours: Mon.-Thurs. 8:30 a.m. - 4:30 p.m.
Legislative District. We will invite representatives from state agencies and ven- HOMER CITY OFFICE:
dors from companies that provide programs and services for veterans to join us 30 E. Wiley Street, Homer City, PA 15748
at the event, where those who served in our armed forces can learn about the Phone: 724-479-5585 Fax: 724-479-8007
help that is available to them. Hours: Thurs. 8:30 a.m. - 4:30 p.m.
HARRISBURG OFFICE:
The event is scheduled for Thursday, March 18, at S & T Bank Arena at the White
PO Box 202062, Harrisburg, PA 17120-2062
Township Recreation Complex, located at 497 East Pike Road in Indiana.
Phone: 717-705-7173 Fax: 717-705-1947
Hours: Mon. - Fri., 9:00 a.m. - 4:30 p.m.
Job Fair
On Thursday, April 15, I plan to hold my annual job fair to match up workers with DREED@PAHOUSEGOP.COM
potential employers. Watch and listen for more information after the holidays! WWW.REPDAVEREED.NET

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