PA Capitol DigestA Unique View Inside StateGovernmentBy Crisci Associates

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Harrisburg, Pa December 6, 2010

PA Employers Face Automatic $400 Million Increase In Unemployment Comp Costs Jan. 1

With Pennsylvania's Unemployment Trust Fund owing the federal government $3.7 billion, anexisting state law will automatically kick in January 1 increasing the UnemploymentCompensation Tax by .03 percent, or $400 million, on employers in the Commonwealth.

The Fund is expected to owe the feds $5 billion by the end of 2011 if no action is taken.These revelations came out at a press conference held by Senate Democrats late Monday

urging Congress to extend unemployment benefits for 83,000 Pennsylvanians due to expire onJanuary 1.

Senate Minority Leader Jay Costa (D-Allegheny) urged Gov.-Elect Tom Corbett to makethe issue of Unemployment Compensation a priority in the new Administration.

By the way, this $3.7 billion deficit is not counted in the $4 to $5 billion deficitPennsylvania faces in FY 2011-12.

Auditor General, Treasurer Issue Warnings On Rendell's New $1 Billion Bond Issue

Auditor General Jack Wagner said he would not give his approval for a $1 billion GeneralObligation bond Gov. Rendell wants to float to finance Capital Budget projects.

In a related action, State Treasurer Rob McCord warned Gov.-Elect Tom Corbett theRendell Administration is proposing to issue a $1 billion General Obligation bond to fundprojects they approved as part of the Capital Budget process.

In a letter to Gov.-Elect Corbett, Treasurer McCord said--"The Rendell Administration has proposed issuing $1 billion in General Obligation debt

during this transition time in state government. The proposed debt is to fund ongoing publicimprovement projects already approved by the Administration. This would be a substantial bondissue. There are potential advantages to issuing debt at this time. And there is also a need forsome new debt -- assuming the Corbett Administration intends to continue funding the public-improvement projects already initiated, contracted, and approved.

"The Capital Facilities Fund has a current balance of approximately $307 million. Thisamount is sufficient to finance the existing pipeline of projects through approximately February1. If no additional debt is issued, the ongoing pipeline of projects would begin to be adverselyaffected at that time.

"This matter arises, not just as you prepare to take office, but also as the Commonwealthfaces a structural General Fund budget deficit of perhaps $4 billion or more. The proposed debtwould make that challenge steeper still. It would require, for the next twenty years, an additional$82 million in debt-service payments out of the General Fund.

"While it is not unusual for outgoing Administrations to issue debt, it also is true that thisproposed $1 billion issuance is substantially larger than its predecessors. The largest prior"lame-duck" issuance was in late 2002, when former Governor Schweiker approved the issuanceof $500 million in GO debt, prior to Governor Rendell taking office.

"I ask that you review this matter promptly, as I stand ready to weigh the input of yourAdministration substantially in my own deliberations. I regard transitions to be delicate times ingovernance -- times when elected Constitutional officers such as myself have a special obligationto be respectful both to the ongoing needs of government and to the preferences and priorities ofthe incoming Administration. This is especially so during a time of financial crisis."

In a letter to Gov. Rendell, General Wagner said--"First, both our state and federal government are drawing in debt. The Commonwealth's

debt has increased from $6.1 billion as of June 30, 2002 to $84 billion as of November 18, 2010.This is a 39 percent increase in debt. The proposed bond issue would increase our current debtload by another 12 percent to over $9 billion, which, at this time, is too much to put on the backsof our children and grandchildren.

"Second, paying for this debt is being increasing expensive. Next year alone, debtservice will consume over $1 billion of state revenues. Borrowing another billion dollars willadd at least another $82 million in annual debt payments for the next 20 years. Money devotedto paying off debt is money that is not spent to provide programs and services to seniors,children, families or veterans, those who government must put first in times of deep economicdistress like today.

"Third, the next Governor and General Assembly will already face an increasinglychallenging fiscal crisis when they take their oaths of office in 2011. The budget gap will beapproximately $4-5 billion next year, with similar elevated levels into the future depending onhow the gap is addressed. Obligating another billion dollars to debt now would severelyconstrain the options of the new administration and legislature less than two months from nowand for years to come. In addition, the unemployment rate is higher now than it has been in theprevious ten years, causing a tremendous strain on the state's finances.

"Finally, as your administration draws to a close, it would appear inappropriate to imposesuch a major constraint on the operations of your successor. As we discussed, there are at least$300 million in proceeds from previous bond issuances still available to support projects whosefunding is truly essential during this transition period. Those proceeds and project prioritiesmust be scrutinized so that we can act in a fiscally responsible, accountable and transparentmanner."

NewsClips: Wagner Tells Rendell He Won't Sign Off On $1 Billion Bond$1 Billion Capital Bond Snags On Final OKState Bond Sale Dispute Threatens Projects$1 Billion Bond Issue Draws ObjectionsRendell's Billion Dollar Bond Request Shot DownWagner, McCord Fight Rendell On BorrowingImpasse Over $1 Billion State Bond May Affect Lehigh Valley

Editorial: One Last Billion For The RoadEditorial: AG, Treasurer- Approve State Bond

Gov.-Elect Corbett Names 400+ Agency Transition Team Members

Gov-elect Tom Corbett this week announced more than 400 members of his transition team. Thetransition team is made up of 17 different committees, each examining a specific area of stategovernment.

The members of each of committee, who are volunteering their time, are tasked withreviewing the operations of the state government departments and agencies under the governor’sjurisdiction and will prepare a transition report for Gov.-elect Corbett.

“I’m honored that so many men and women have agreed to participate in my transitionteam,” said Corbett. “The work they are doing is essential as we build a new administration andprepare to lead Pennsylvania.”

Below is a list of the members by committee relevant to Crisci Associates clients andissues--

Budget, Pensions & Revenue Committee

Chair – Ron Henry, Esq., Senior Consultant, Capitol Strategies Group, Harrisburg

Tom Armstrong, Univ. Liaison, Nanotech Program Manager, Department of Community &Economic Development; Scott Baker, Government Relations Professional, Buchanan, Ingersoll& Rooney, PA State Rep. John Bear; PA State Senator Pat Browne; Jerome Cochran, ExecutiveVice Chancellor & General Counsel, University of Pittsburgh; PA State Senator Jake Corman;PA State Rep. Sheryl Delozier; Rick Dreher, Director, Bureau of Revenue, Capital & DebtBudget Office; Rick Dreyfuss, Senior Fellow, The Commonwealth Foundation; Bob Greenwood,VP, Healthcare Finance & Insurance, The Hospital & Healthsystem Association ofPennsylvania; Paul McMillen, President, Pennsylvania Automotive Association; Dan Meuser,Former Owner, Pride Mobility; Steve Moore, Chair, McNees Wallace & Nurick; Ed Nolan,Executive Director, Pa. House Appropriations Committee; Sheri Phillips, Director, ManagementServices Division, Pennsylvania Office of Attorney General; Diana Reimer, Co-Founder,Philadelphia Tea Party Patriots; Steve Rosskopf; Ann Spishok, Special Assistant to the BudgetSecretary, Governor’s Office of the Budget; Dennis Walsh, President of Government Relations,Bravo Group; and Bob Wilburn, Distinguished Service Professor, Carnegie Mellon University.

Agriculture

Chair – Keith Eckel

Jim Adams, President & CEO of Wenger Feeds; Gary Althouse, Chairman of the Department ofClinical Studies of New Bolton Vet Center at Penn; John Barley, CEO of Versant Strategies;Lynda Bowman, Comptroller, Tom Corbett for Governor; Jim Brubaker, Partner, Buffalo ValleyFarms; PA State Senator Mike Brubaker; Rich Conti, Chairman of PA Forest ProductsAssociation; Erick Coolidge, Chairman of US Farm Service Agency; Mike Firestine, Senior VP

of Fulton Bank; Dennis Grumbine, CEO of Lebanon Valley Exposition Corporation; BootsHeatherington, Owner of B&R Farms; Chris Herr, EVP of Penn Ag Industries Association;Gordon Hoover, Director of Eastern Milk Supply, Land O Lakes; David Jaindl, Owner of JaindlFarms; Ron Kreider, President of Kreider Farms; Ed Leo, Mushroom Farmer; Anton Leppler,President & CEO of A.J. Leppler Strategies; PA State Rep. John Maher; Dr. Bill Newman, Headof the Radiology Department of Bedford Hospital (Retired); Alan Novak, President of NovakStrategies; John Pierce, VP of Sales, Lehigh Valley Dairy Farms; John Reininger, ChiefRelationship Officer, The Clemens Family Corporation; Carl Shaffer, President of thePennsylvania Farm Bureau; Jim Simpson, Co-owner of Hanover Shoe Farms; Paula Vitz, SeniorAssociate, Capital Associates; Kyler Walker; PA State Senator Noah Wenger.

Welfare

Co-Chair – Charles CurieCo-Chair – David Simon, Jefferson Health Systems

James Anderson, Executive Director, Juvenile Court Judges’ Commission; PA State Rep. MattBaker; Deb Beck, President of DASPOP; Fritz Bittenbender, VP of Cephalon; CharlieDeBrunner, DeBrunner Associates; Peg J. Dierkers, Executive Director, Pennsylvania CoalitionAgainst Domestic Violence; Dennis Felty, President of Keystone Human Services, Board ChairPAR, Federal Council Member FICE International, President FICE USA; Neely Frye,Government Affairs, Novartis; Anne Hart, Healthcare Practice Director, Bravo Group; BrianKelly, Government Relations, Buchanon, Ingersoll & Rooney; Monsignor Joe Kelly, Secretaryof Catholic Human Services; Jack Kane, Partner, Kelley & Murphy; Mike Kling, President ofMA Transportation; Jay Layman, President of Capital Associates; Bev Mackereth, ExecutiveDirector of York Co. Human Services; Russ McDaid, VP, Public Policy, M.H.A; BrendaMcLaughlin, National Medicaid Consultant; Jose Molina, Director, Office of CommunityEngagement & Government Affairs, Kutztown University; Tim Pawol, Trust Admin., ProviderAlliance; Jim Redmond, HAP; Steve Rosskopf; Mike B. Rosenstein, Senior Government AffairsSpecialist, Stevens & Lee; Todd Shamash, Jefferson Health Systems; Steve Suroviec, ExecutiveDirector of The Arc of PA; Lawrence Tabas, Partner, Obermayer Rebmann Maxwell & Hippel;PA State Senator Pat Vance; Shirley Walker, President, CEO of PA Service Network for Autismand Intellectual Disabilities; PA State Senator Kim Ward; Michael Wolf, Government AffairsDirector, Pfizer, Inc.

Education Committee

Co-Chair – Joel Greenberg, Susquehanna International GroupCo-Chair – Mark Nordenberg, Chancellor University of Pittsburgh

Jim Agras, CEO of Triangle Tech and State Board of Education; Jeanne Allen, President ofCenter for Education Reform; Chris Bravacos, President, Bravo Group; Matt Brouillette,President, Commonwealth Foundation; PA State Rep. Paul Clymer; Marie Conley, Chair of theHuman Resources Committee, Board of Governors; Bill Donahue, Treasurer of Donahue FamilyFoundation; Carolyn Dumaresq, Partner, Dumaresq Consulting; Dan Fitzpatrick, President/CEO,

Citizens Bank; Amy Forester, Saul Ewing; Don Francis, Independent Colleges & Universities;Dennis Giorno, Malady & Wooten; Vahan Gureghian, Chester County Charter School; LarryJones, President of Charter School Association; Michael Karp, President of University CityHousing; Ruth O'Block Grant, Member, Board of Trustees, Seton Hill University; Pat O'Connor,COB, Temple University, Cozen & O'Connor; PA State Senator Jeffrey Piccola; David Pollard,Susquehanna International Group; Ana Puig, Co-Chair of Kitchen Table Patriots; Father EdQuinlan, Secretary of Education, Harrisburg Diocese; Cynthia Richey, Director of Mt. LebanonLibrary System; Richard Sand, Managing Partner of Sand & Saidel Law Firm; Dave Schulik,Shulick Law Offices; Carl Singley, Counsel, Ciardi, Ciardi and Astin; Karen Stout, President ofMontgomery County Community College; Bob Taylor, Trustee, Slippery Rock University; PaulTaylor, Executive Director Archabbey, St. Vincent's College; Ron Tomalis, Director of DutkoWorldwide; Dennis Tulli, Cyber Charters; PA State Senator Anthony Williams; Charles Zogby,K12 Inc. (Knowledge Universe).

Energy & Environment Committee

Chair – David Kleppinger of McNees, Wallace & Nurick

Richard Allan, Principal, RJ Allan Consulting; Scott Baker, Buchanan, Ingersoll & Rooney PC;Cynthia Carrow, VP, Government & Community Relations, Western PA Conservancy;Rosemary Chiavetta of the Public Utility Commission; Thomas Chiomento, Director ofGovernment at Exelon Generation; Brian Clark, Shareholder, Buchanan, Ingersoll & RooneyPC; Nick DeBenedictis, Chairman, Aqua America; George Ellis, President, PA CoalAssociation; Ellen Ferretti, VP, PA Environmental Council Josh First, President , AppalachianLand & Conservation Services Co., LLC; John Giordano, Chief Legal, Philadelphia Works; PeteGleason, Partner, K&L Gates; Grant Gulibon, Regional Specialist, PA BuildersAssociation; David Hess, Former Secretary, Department of Environmental Protection; JohnHohenwarter, National Rifle Association; Charlie Kirkwood, President, Shawnee Insurance;Mike Krancer; John Oliver, Oliver Brothers; Stan Rapp, Senior Partner, Greenlee Partners; JohnRich, Ultra Clean Fuels; Todd Rucci; Hasu Shah; John Skoutelas, VP of Governmental Affairs,Waste Management; Pat Solano; Glen Thomas, GT Power Group; Eric Thumma, Director ofInstitutional Relations, Iberdrola Renewables; Don Welsh, Former President, PennsylvaniaEnvironmental Council; Pam Witmer, Energy & Environmental Practice Lead, Bravo Group;and PA State Senator Mary Jo White.

Transportation/Infrastructure Committee

Co-Chair – Vahan Gureghian, CEO of Charter School Management, Inc.Co-Chair – Brad Mallory, CEO of Michael Baker CorporationCo-Chair – Pete Tartline

Tony Bartolomeo, President & CEO of Pennoni Associates; Brenda Bratina, Director of TollRevenue Audit, Pennsylvania Turnpike Commission; Tom Caramanico, President of McCormickTaylor, Inc.; Randy Cheetham, Regional VP of CSX; Mark Compton, Director of GovernmentAffairs, American Infrastructure; Charles Courtney, McNees, Wallace & Nurick; Walter

D’Alessio, Northmarq Capital; Pasquale T. Deon, Sr., Chairman of SEPTA, TurnpikeCommissioner; Paul Detwiler, New Enterprise Stone & Lime; Douglas Dick; John Durbin,President, Durbin Associates; Tom Ellis, Special Counsel, Duane Morris; Liz Ferry, Manager,Policy Development, Select Greater Philadelphia; Mike Fesen, Resident VP Public Affairs,Norfolk Southern Corporation; Annette Ganassi, VP of Walmar Enterprises; Steve Haddad,President & CEO of Bieber Transportation Group; Kevin Johnson, President of Traffic Planningand Design; Bob Kinsley, President of Kinsley Construction; Ted Leonard, Executive Director ofPennsylvania AAA; Ross Myers, President of American Infrastructure; Jim Roddey, Principal,McCrory & McDowell, LLC; Bob Shuster; Mark Stine, VP of Legislative Affairs, PAAutomotive Association; Jeff Zell, CEO of Jeff Zell Consultants.

NewsClips: Corbett Names Huge Cast To Transition PanelsCorbett: Transition Team Provides Fresh Set Of Eyes On GovernmentCorbett Names Transition TeamCorbett Meets With Transition TeamCorbett Names Members Of Transition TeamCunningham Lends Corbett A Hand On Transition TeamCorbett Transition Team Member Irks DemsCorbett Panel Includes Marcellus LobbyistsJohn Baer: A Soft, Uncertain Start To Corbett Transition

Crisci Associates' David E. Hess Named To Energy & Environment Transition Team

David E. Hess, former Secretary of the Pennsylvania Department of Environmental Protection,was named this week to the Energy and Environment Transition Team established by Gov.-ElectTom Corbett.Hess presently serves as Director of Policy and Communications at CrisciAssociates.

The Energy and Environment Team is responsible for developing transition reports forthe departments of Conservation and Natural Resources and Environmental Protection. It willalso interact with related agencies such as Agriculture, the Public Utility Commission and theU.S. Environmental Protection Agency.

At the meeting Tuesday, Hess was named co-chair of the work group covering DEP.Hess served as Secretary of Environmental Protection for Governors Tom Ridge and

Mark Schweiker from 2001 to 2003.During his eight year tenure as Secretary and the senior deputy at DEP, the agency won

more national and international awards for excellence and innovation from the United Nations,the Ford Foundation, Harvard University, the Council of State Governments, Resources for theFuture and American Legislative Exchange Council than any other state environmental agency inhistory.

He also helped guide the successful rescue of nine miners trapped when water flooded theQuecreek Mine in Somerset County and the environmental response to the crash of Flight 93 inthe same county on September 11, 2001.

Hess also served as Executive Director of the Senate Environmental Resources andEnergy Committee for six years, serving both Senator (now Federal Judge) Mike Fisher andformer Senate Majority Leader David J. Brightbill and held a variety of positions in the formerDepartment of Environmental Resources.

He has a master's degree in Urban and Regional Planning from the University of Illinoisand a bachelor's degree in urban studies from Shippensburg University.

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Political News & NewsClips

Campaign Spending: Gov.-elect Tom Corbett outspent Allegheny County Executive DanOnorato, by a nearly two-to-one margin during the general election. Onorato spent about $10.7million to Corbett’s $20 million during the fall contest, and in the final days, the successful GOPcandidate was able to spend almost $6 million more than his opponent.

Corbett also outraised Onorato by $2.9 million - $4.8 million for him, to Onorato’s $1.9million – during the month-long reporting period that began on Oct. 19, two weeks beforeElection Day.

NewsClips: Governor's Race Cost Hopefuls $54 MillionCandidates For Governor Spent $56 Million

Senate GOP: Sen. John Gordner (R-Columbia) has been named Senate Republican CaucusAdministrator. The only slot left to fill is Chair of the Republican Policy Committee.

Here's a collection of NewsClips from around the state on political topics of interest--

Rendell Vetoes Bill To Expand Castle DoctrineRendell Vetoes Expanded Gun UseRendell Vetoes Self-Defense BillRendell Draws Fire For Gun Bill VetoRendell Vetoes Gun Bill, Two OthersRendell Vetoes Self-Defense Bill For Outside HomeVeto Keeps Public Access To Autopsy ReportsRendell Defends Vetoes Of Three BillsDespite Concerns, Rendell Signs Pension Bill Into LawRendell Might Have Signed Castle Doctrine Bill If Loophole ClosedMayors' Concerns Sway Rendell VetoRendell Uses Veto On Bills With Wide SupportRendell Calls Bid To Curb Guns In PA Lost CauseLocal Leaders Laud Firefighters' Cancer Bill VetoRendell: Legislature Afraid To Buck NRAEditorial: Rendell Veto To The RescueEditorial: Three Vetoes Should StickPA PoliticsPolitical Ads Bring Windfall For Local Broadcasters

John Baer: A Few Things To Throw Into The Fire3 In Governor's Mansions Got Their Start In Western PAPennsylvania Loses Clout In WashingtonSantorum Stumps In New HampshireGovernor's TransitionCorbett Names Huge Cast To Transition PanelsCorbett: Transition Team Provides Fresh Set Of Eyes On GovernmentCorbett Names Transition TeamCorbett Meets With Transition TeamCorbett Transition Team Member Irks DemsCorbett Panel Includes Marcellus LobbyistsCorbett Names Members Of Transition TeamCunningham Lends Corbett A Hand On Transition TeamCorbett Urged To Review Security ContractJohn Baer: A Soft, Uncertain Start To Corbett TransitionCorbett, New Governors Have Lunch With Obama, BidenCorbett Calls Meeting With Obama ProductiveSenate-House TransitionToomey Urges Austerity Before Jobless BenefitsDefeated Lawmakers, Retirees Pack Up For MoveHiring Staff A Challenge For New Congress MembersCongressman-Elect Kelly Declines Health CoverageBudgetWhere Will Corbett Find $4 Billion To Cut?Special Legislative Session Produces No LawsCorbett Donating Salary Raise To CharityCorbett, Rendell Won't Accept Pay RaiseRendell, Cabinet, Management Employee Pay Freeze ExtendedWagner Calls For Moratorium On Automatic Pay RaisesWagner, Legislator Criticize Pay RaisesFreeze State Pay Raises, Watchdog UrgesMost Legislators Say No To COLAOfficials, Lawmakers Run Away From Their RaisesRaise Kicks In For Lawmakers, State OfficialsSome Lawmakers Refuse Pay RaisesSen. Baker Rejects Hike In Legislative SalaryMore Lawmakers Reject Pay RaiseState Lawmakers Say No Thanks To RaisesMore Legislators Not Likely To Take COLAEditorial: Meaningless Gestures By COLA DonorsEditorial: Lawmakers Should Repeal COLA LawOp-Ed: Wagner, It's Time To Fix PA's Leaky Charter School SystemEditorial: Right Move On Liquor Fee IncreaseState Can Pay Pittsburgh Transit DeficitPittsburgh Transit Rescue Is Short-Term Fix

Philadelphia's Pension Problem HugeCities, Chamber Push Pension ReformEditorial: Pension Impasse Could Cost PittsburghersCravath Takes On Harrisburg Bankruptcy Work Pro BonoOp-Ed: Way Forward? End Harrisburg Region's Many FiefdomsIndictmentsPart Of Orie Case Goes To New JudgeSen. Musto Arraignment Dec. 15Sen. Musto Could Lose Pension Benefits If ConvictedBumsted: Another Politician SnaggedEditorial: The Musto IndictmentEditorial: Corruption Runs Very Deep In NortheastReformCritics: Judges' Luxury Cars Slap At TaxpayersReport: PA Pays Tab For Judges' Leased CarsEditorial: Time For Real Reform In HarrisburgEconomyCasey, Barletta Support Unemployment ExtensionState Warns Of Another Wave Of Job LossesJobless Numbers Rose Across Midstate In OctoberNE Jobless Rate Jumps Back Into Double-DigitsHarrisburg-Carlisle Job Picture Looks BrighterOtherOnorato Unsure If He'll Seek Re-ElectionCritz Urges Fix For Social SecurityFormer State Treasurer Hafer Denies Heirs' ClaimsSen. Baker: Witness May Have Lied At Homeland Security Hearing

Session Schedule

The House released their early 2011 scheduled this week--

SenateJanuary 4, 18, 19, 24, 25, 26February 7, 8, 9, 14, 15, 16, 28March 1, 2 (Budget presentation first full week in March)

House (New)January 4, 18, 19, 24, 25, 26February 7, 8, 9, 14, 15, 16, 28March 1, 2

Governor

New Governor takes office on January 18.

On The Senate/House Agenda

All legislation must be reintroduced and start over in January.

Calendars

None

Committees

No Committee meetings are scheduled.

Weeks Ahead

Upcoming meetings, hearings and other events on legislative issues in Harrisburg, unlessotherwise noted. NEW means new from last week.

No meetings of interest scheduled this week.

Senate Committee Schedule House Committee Schedule

You can watch the Senate Floor Session and House Floor Session live online.

Other News

State Revenues Slightly Below Estimates For Year

The Department of Revenue reported fiscal year-to-date General Fund collections total $9.2billion, which is $14 million, or 0.2 percent above estimates. The state collected $1.6 billion inGeneral Fund revenue in November, which was $4.5 million, or 0.3 percent, below estimates.

Sales tax receipts totaled $661.2 million for November, $26.8 million above estimate.Year-to-date sales tax collections total $3.5 billion, which is $71.3 million, or 2.1 percent, morethan anticipated.

Personal income tax revenue in November was $657 million, $22.4 million belowestimate. This brings year-to-date PIT collections to $3.6 billion, which is $77.6 million, or 2.1percent, below estimate.

November corporation tax revenue of $48.3 million was $6.6 million below estimate.Year-to-date corporation tax collections total $769.1 million, which is $55.8 million, or 7.8percent, above estimate.

Other General Fund revenue for the month included $65.6 million in inheritance tax, $3.8million above estimate, bringing the year-to-date total to $313.7 million, which is $100,000above estimate.

Realty transfer tax revenue was $20.6 million for November, $4.7 million belowestimate, bringing the fiscal-year total to $123.4 million, which is $32.9 million less thananticipated.

Other General Fund tax revenue, including cigarette, malt beverage, liquor and tablegames taxes totaled $120.3 million for the month, $4.3 million below estimate and bringing theyear-to-date total to $612.5 million, which is $3.1 million above estimate.

Non-tax revenue for the month totaled $18.7 million, $2.9 million above estimate,bringing the year-to-date total to $276.7 million, which is $5.7 million below estimate.

In addition to the General Fund collections, the Motor License Fund received $169million for the month, $10.3 million above estimate. Fiscal year-to-date collections for the fundtotal $1 billion, which is $43.4 million, or 4.5 percent, above estimate.

Slots Casino Revenues Increase More Than 8 Percent in November

The amount of gross revenues generated in November 2010 through the play of slot machines atCommonwealth casinos rose 8.37 percent over the previous year, according to figures releasedtoday by the Gaming Control Board.

The ten operating casinos generated $180,206,835 in gross revenues in November 2010compared to $166,293,583 in November 2009. Tax collections by the Commonwealth on thatamount last month was $98,651,842, a per-day average of $3.28 million in tax revenue.

In a comparison of the revenue for just the nine casinos operating in November 2010 thatwere also open for the full month of November last year, there was an increase of 2.40 percent.

A complete report is available online.

Wagner Calls For Moratorium On COLAs For Public Officials

Auditor General Jack Wagner said this week the governor-elect and General Assembly's firstorder of business should be to initiate a moratorium on the scheduled 1.7 percent cost-of-livingincrease for approximately 1,500 government leadership positions in state government.

Enacting a moratorium would save taxpayers approximately $3 million in the first yearand $12 million over four years, Wagner said. More important, a moratorium would symbolizestate government's commitment to fiscal prudence at a time of unprecedented fiscal peril: TheCommonwealth is facing a budget deficit of $4 billion to $5 billion in the 2011-12 fiscal year, henoted.

"Public service is about leadership and not about personal enrichment," Wagner said."With Pennsylvania struggling with its greatest fiscal crisis since the Great Depression, publicofficials should not be getting pay raises when working families are still tightening their beltsand senior citizens must get by with no Social Security cost-of-living increase."

Wagner said the salary savings could be used to provide financial assistance to vitalcommunity social services programs whose funding has been reduced in recent years, such ascommunity libraries.Over the past two months, Wagner, the state's independent fiscal watchdog, has highlightedmany ways that the state could save money without reducing services to Pennsylvanians. Hissuggestions, which have included reforming the state's charter-school funding formula and

reducing the error rate in Medicaid spending, now total more than $1.1 billion for the 2011-12fiscal year and $5.13 billion over the next four years.

NewsClips: Corbett Donating Salary Raise To CharityCorbett, Rendell Won't Accept Pay RaiseWagner Calls For Moratorium On Automatic Pay RaisesWagner, Legislator Criticize Pay RaisesFreeze State Pay Raises, Watchdog UrgesMost Legislators Say No To COLAOfficials, Lawmakers Run Away From Their RaisesRaise Kicks In For Lawmakers, State OfficialsSome Lawmakers Refuse Pay RaisesSen. Baker Rejects Hike In Legislative SalaryMore Lawmakers Reject Pay Raise

PA Supreme Court Upholds Beer Sales At Wegmans

The state Malt Beverage Distributors Association said it would "take to heart" a ruling by thePennsylvania Supreme Court that it needed to seek a legislative remedy to clarify confusinglanguage in the state's liquor control laws that, in the court's eyes, permit beer sales in Wegmanssupermarkets with restaurant sections.

If the General Assembly disagrees with the court's ruling, the court opinion stated, "It hasthe prerogative to enact responsive legislation."

David Shipula of Wilkes-Barre, MBDA president, said, "The court is saying we need toask the legislature to make clear that grocery stores cannot operate as de facto beer distributorswhich we believe is what they are doing."

He said the court made significant note of the difference in beer sale quantities permittedin supermarket restaurant licenses. Restaurants can sell no more than two six packs of beer at atime while distributors can sell in no less than case lots. "Most distributors would love to sellbeer by the six pack as a convenience to our customers but the letter of the law is clear here.What's not so clear in practice in the case of supermarkets is what constitutes a sale of only twosix packs."

"We have seen instances where the same individual buys multiple six packs on the sametrip to the supermarket – purchasing them in a string of two-pack-at-a-time transactions. Thatshouldn't be allowed but we now see that the court has told us to take it up with the GeneralAssembly."

NewsClip: PA Supreme Court Upholds Beer Sales At Wegmans

Quick Clips

A sampling of NewsClips on Slots, Sprinklers, Community College Support, Food Inspection,Wine Sales, Horse Racing Lawsuit, Distracted Driving

House GOP: No Lame Duck Slots AwardsSprinkler Systems Hot In 2011

School Districts Enter Talks With HACC On FundingColumn: Dropping HACC Support Would Be FoolishState Standardizes Food InspectionsWill Walmart Be Next To Sell Wine?Store Wine Kiosks Could Be Short-LivedEx-Horse Racing Duo Files Horse Racing CommissionDistracted Driving Adds To Hazards On The Roads

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