Pennsylvania Senate Approves Distressed Cities Bill

HARRISBURG — Scranton residents could see their taxes rise under legislation approved unanimously Wednesday by the Senate.

The measure would require that Scranton levy a tax on residents equal to or more than its 0.75 percent commuter earned income tax.

This stipulation is included in a late amendment added to the bill by the sponsor, Sen. John Eichelberger, R-30, Hollidaysburg. The goal here is to treat all Act 47 municipalities — including those like Scranton that have distressed municipal pension plans subject to Act 205 — the same, said Sen. John Blake, D-22, Archbald.

Ten other municipalities levy a pension-related earned income tax, but they levy it on both commuters and resident workers, he added.

Read more: http://thetimes-tribune.com/news/senate-approves-distressed-cities-bill-1.1759951

Local Services Tax Could Triple Under Act 47 Plan

HARRISBURG — People who work in Scranton and other distressed municipalities could see a $52 annual tax triple under a new Senate amendment.

Lawmakers want to steer Act 47 municipalities to levy a higher local services tax as an alternative to a commuter tax.

The distressed cities legislation cleared a first Senate hurdle Wednesday with a comprehensive amendment added by the Local Government Committee.

The committee’s action is the latest step in an effort to overhaul the Act 47 program for fiscally distressed municipalities. Scranton, Nanticoke, West Hazleton and Plymouth Twp. have Act 47 status. Shamokin is seeking to enter the program.

Read more: http://thetimes-tribune.com/news/tax-could-triple-under-act-47-plan-1.1705643

Senate Committee Votes to Legalize Payday Loans in Pennsylvania

Editor’s note:  Many thanks to PJ McGill for forwarding us this important information!  Two Roy’s Rants thumbs down those Senators who helped move this bill out of committee.

HARRISBURG, PA — In a closely divided 8 to 6 vote today, the Senate Banking and Insurance Committee approved Senate Bill 975 legalizing payday loans with annual percentage rates of upwards of 300%. The bill moves to the Senate floor, despite the opposition of veterans, seniors, faith groups, and a majority of Pennsylvanians.

The Keystone Research Center issued the following statement on behalf of the Coalition to Stop Predatory Payday Loans in Pennsylvania:

“Senate Bill 975 rolls back the state’s longstanding protections against predatory payday loans. Pennsylvania has been recognized by both the Pew Charitable Trusts and the U.S. Department  of Defense for having among the strongest laws in the nation to keep out predatory payday lenders. A 2010 Pennsylvania Supreme Court case held that loans made in violation of existing law are illegal, even when made online.

“Senate Bill 975 would undo those protections, harming working families across the state. With this bill comes a higher likelihood of bankruptcies in Pennsylvania, and payday lenders gaining direct access to borrowers’ bank accounts. These are just some of the reasons that the bill faces opposition from a majority of Pennsylvanians.”

The Coalition thanks those Senators who stood with Pennsylvanians to oppose this bill: Senators Michael Stack, Lisa Boscola, Larry Farnese, Anthony Williams, Patricia Vance, and John Rafferty. Democratic Chairman Stack made a passionate plea for the committee to do what veterans and others have asked: to reject this bill and keep our existing, strong consumer protections in place.

We are disappointed in those Senators who stood with payday lenders by voting yes on this bill: Senators Pat Browne, Don White, Mike Brubaker, Kim Ward, Jake Corman, John Eichelberger, Joseph Scarnati, and Jim Brewster.

Bipartisan Effort Shapes Action On City Distress Issues

HARRISBURG – While the city of Scranton struggles daily with cash-flow problems, key state lawmakers see any unveiling of comprehensive legislative proposals to help fiscally distressed cities as being months away.

A rollout of bills is anticipated early next year with the start of the new legislative session, said Sen. John Eichelberger, R-30, Hollidaysburg, chairman of the Senate Local Government Committee.

A bipartisan group in the Senate and House is working on a host of related issues, including an overhaul of the Act 47 program for fiscally distressed municipalities, municipal pension benefits, collective bargaining for public employees and the role of nonprofit institutions clustered in cities.

Since four legislative committees held joint hearings last fall on the future of Act 47, lawmakers involved in the effort to find solutions to the problems cities face with eroding tax bases and increased demand for services have emphasized its bipartisan nature.

Read more: http://thetimes-tribune.com/news/bipartisan-effort-shapes-action-on-city-distress-issues-1.1357868