PRSRT STD
U.S. POSTAGE
Summer 2010
Dear Neighbor:
As the representative for the 87th
District in the Pennsylvania House
of Representatives, it is important to
me to hear from you regarding issues
involving state government, especially
how it impacts your life.
In early July, the General
Assembly completed the spending
plan for the 2010-11 fiscal year. I
voted against this proposal for many
reasons, including the reliance on
funding from the federal government
that is unlikely to fully materialize
and the underfunding to the state’s
pension systems. Additional details
regarding the state budget and the
pension systems are provided in this
newsletter and I am hopeful you find
the information beneficial.
The House is scheduled to
return to session on Sept. 13, and
it’s expected that the main issues
will be transportation funding, the
possibility of taxing the extraction of
natural gas in the Marcellus Shale
formation and the creation of an
Independent Fiscal Office to provide
reliable revenue estimates during the
annual state budget process. This fall
is shaping up to be a busy legislative
session and I am hopeful that my
colleagues in the General Assembly
remain focused on the taxpayers
and how their decisions affect every
Pennsylvania citizen.
If I can be of assistance
regarding any state government-
related matter, please contact me.
Sincerely,
Rep. Glen R. Grell
State Representative
87th District
PAID
HARRISBURG, PA
PERMIT NO. 432
Aug. 30 Public Hearing Set for Gaming
Facility in Hampden Township
I learned of Penn Harris Gaming’s application for a resort gaming license at
the Holiday Inn West property in Hampden Township after it was submitted to
the Pennsylvania Gaming Control Board (PGCB). I was quite surprised to learn
that a resort gaming license application had been filed for the Hampden Township
location.
The decision on this application solely rests with the PGCB and not with me or
the General Assembly.
Since there appear to be four applicants vying for only one license, we should
all hold our enthusiasm or concern in check, realizing that this project is far from a
done deal. Prior to any licensing decision by the PGCB, a completeness review is
conducted and an investigation of the applicant and its principals is performed.
On July 9, the PGCB announced the schedule of public input hearings for the
four applicants vying for the remaining Category 3 license that would permit the
operation of up to 600 slot machines and a maximum of 50 table games at a resort
hotel.
Public input hearings provide a forum for individuals to voice their support or
opposition to a proposed casino in their community, and permit those persons
with an interest in the applicant’s proposal to learn more about the character;
operational and financial suitability; community impact; diversity plans; plans for
the prevention of compulsive gaming; and other issues about the proposed facility.
Information received by the board during these proceedings will be included in
the record upon which the board will grant or deny licenses.
The hearing on the Hampden Township location is scheduled for 10 a.m.
on Monday, Aug. 30, at the Hampden Township Municipal Building,
located at 230 South Sporting Hill Road in Mechanicsburg. For additional
information, or to review the Local Impact and Diversity Reports, visit my website
at RepGrell.com and click on “Hearing on Proposed Hampden Township Gaming
Facility.”
Hearings regarding the other locations are scheduled to wrap up on Sept. 8.
Follow me on Facebook at Facebook.com/RepGrell
In order to save money, this
newsletter is being mailed
primarily to those who may not
have Internet access. You may
receive this newsletter and other
regular legislative updates by
visiting my website at
RepGrell.com and locate the
“Get E-Mail Updates” area.
 Budget Falls Short on Adequate Funding for Pension Systems
On June 30, the General Assembly passed the final spending plan for the 2010-11 fiscal year. The $28.04 billion
budget increases spending by $207 million, or 0.74 percent, over last year’s plan, and does not require any tax increases.
Although it was $1 billion less than the governor had originally requested, there are several items contained in the final
plan that prevented me from supporting it.
Most notably, this budget underfunds the Public School Employees’ Retirement System (PSERS) by $135 million. For
the past several months, I have been diligently working to bring this issue to the forefront by educating my colleagues
in the House and Senate on the importance of this issue. On June 16, the House passed legislation (House Bill 2497) to
address the long-term and short-term funding shortfalls facing PSERS; however, this bill remains in the Senate awaiting
consideration. The state cannot increase spending in other areas while shirking its responsibility to the pension system.
Serious financial troubles are facing school districts and the state, which will have a negative effect on school property
taxpayers. By artificially reducing the 2010-11 employer contribution to PSERS, the problem will only become worse.
In addition, this budget relies on the federal government providing the state an additional $850 million in funding
for Medical Assistance. This additional allotment has yet to be approved by Congress, and at this point, the full amount
seems unlikely. The reliance on “phantom” revenue is of great concern because of the serious deficit that will be created
if this money does not come through. I believe it is wrong for state government to spend money it does not have.
Next fiscal year, when the federal stimulus funding ends, Pennsylvania’s revenues will drop by nearly $3 billion. We
have known since the stimulus program was enacted that it would last only two years yet overall state government
spending has increased during this time. I believe the responsible course of action would have been to reduce spending
to prepare adequately for the financial challenges ahead.

General Fund Spending General Fund Revenue

2010-11 State Budget

* NOTE: Revenue only

* NOTE: Funding
reflects state dollars.
includes $2.75 Billion in
Federal stimulus funds are
federal stimulus dollars.
not included in this chart.

Detailed information about the 2010-11 state budget is available on my website, RepGrell.com, by reviewing the
“Final Spending Plan” documents within the “Appropriations Committee” link.

Capital Budget Contains Questionable Expenditures

A major component of the 2010-11 state budget package is the Capital Budget embodied in House Bill 2289, which
was signed into law by the governor on July 7. This legislation authorizes the Commonwealth to issue up to $1.55 billion
in additional debt to pay for capital projects in the 2010-11 fiscal year. The Commonwealth’s total outstanding capital
projects debt at the end of the current fiscal year will total nearly $9.6 billion.
This law provides $890 million for public improvement projects, $212 million for transportation assistance projects,
$200 million for bridge projects, $225 million for redevelopment assistance projects, $25 million for furniture and
equipment, and $35 million for flood control projects. Among these projects are the controversial funding of $10 million
for the Arlen Specter Library and $10 million for the John P. Murtha Center for Public Policy.
To assist in financing these projects, it was necessary for the General Assembly to approve and the governor to
sign House Bill 2290. This legislation amends the Capital Facilities Debt Enabling Act (Act 1 of 1999) by permitting the
Commonwealth to increase its borrowing capacity by $600 million. The state’s borrowing authority was increased from
$3.45 billion to $4.05 billion. This measure increases the amount of debt payments the state pays on an annual basis.
According to analysis of this additional borrowing, $963 million in principal and interest will be paid over the next 20 years
to pay off this additional debt.
Additional borrowing during an economic downturn is not fiscally prudent, especially when revenues are barely
keeping pace with projections. I am extremely concerned about the Commonwealth becoming over-extended, which has
the possibility to negatively impact taxpayers in the short term; for these reasons I could not support the Capital Budget.
 Pension Reform Bill Awaits Action by Senate
For the past few years, school districts and the would merely defer the day of financial reckoning. The
General Assembly have known about the financial final product, although not everything I had hoped for,
burden scheduled to strike school property taxpayers in is the work of rare bipartisan cooperation to bring about
2012 when the jump in payments to PSERS is projected substantial changes.
to increase from the 2009-10 fiscal year rate of 4.78 On June 16, by a vote of 192-6, the House passed an
percent to nearly 30 percent of amended version of House Bill 2497
a school district’s total payroll. that would reduce the short-term
In December 2009, the costs of funding PSERS and SERS,
Pennsylvania School Boards and restructure benefits for future
Association (PSBA) and I employees, the latter being a step in
collaborated on legislation the right direction. These changes
that would focus on long-term would apply only to new employees
benefit reforms to PSERS in hired in 2011 and beyond, and
an effort to stop the financial include:
bleeding that is occurring.
This bill would limit taxpayers’ • Reducing the multiplier used
exposure by placing all new During the Camp Hill School District School to determine retirement
employees into a “hybrid” Board meeting on May 17, Rep. Glen Grell benefits from 2.5 percent to 2
pension plan with features of made a presentation to board members and the percent. The legislative
a “defined benefit plan” and a public regarding the funding issues facing the pension multiplier is rolled
“defined contribution plan.” Public School Employees’ Retirement System back from 3 percent to 2
Following introduction of (PSERS). Rep. Grell made similiar presentations percent.
at Cumberland Valley School District and East
House Bill 2135, I participated • Increasing the vesting period
Pennsboro Area School District.
in public discussions at many from five years to 10 years.
school districts to provide an • Maintaining current employee
overview of the funding problem and share with them contribution rates of 6.5 percent (SERS) and 7.5
proposals to address future costs. percent (PSERS).
As a member of the PSERS Board since February • Increasing the full retirement age to 65.
2009, I have been a vocal advocate of taking action this • Eliminating the option for employees to take a lump
year to address the issues facing PSERS and SERS. As sum withdrawal of contributions upon retirement.
a result, in early June, I met with Democrat leaders in
the House to develop a series of reforms targeting the Although this bill must clear the Senate and be
short-term funding shortfalls and addressing the long- approved by Gov. Ed Rendell, I am optimistic that leaders
term costs of the state’s pension systems. I was pleased in both chambers can work together to take action on
to work with the leadership of the House Republican and a responsible pension reform package. I was further
Democrat caucuses to force long-term reforms as part encouraged by Gov. Rendell’s recent letter to the Senate
of any short-term relief measure. Doing anything less leaders urging passage of this reform legislation.

New Committee Assignment:

House Appropriations Committee
Earlier this year, I was appointed by House Republican
Leader Rep. Sam Smith (R-Jefferson) to serve on the House
Appropriations Committee to represent the Republican
Caucus.
I have been excited for this opportunity to advance from
the rank-and-file and have a more active and substantive role
in the annual budget process. I appreciate the confidence
Republican Leader Smith has shown in me through this
appointment and I have been representing the interests of
the residents of the 87th District on this committee.
As one of the busiest committees in the House, the
Appropriations Committee is responsible for considering
In May, the Cumberland Valley High School’s
legislation that deals with raising or expending taxpayer
Symphonic Winds Band performed in the Capitol
dollars. With the potential of at least a $3 billion deficit at East Wing Rotunda under the direction of
the end of the current fiscal year, the General Assembly must R. Scott Ainscough.
be proactive in controlling costs and reining in spending.
With the current economic climate at the state and national
levels, fiscally conservative spending policies are prudent to
weather the financial storm. As noted in the budget article
on page 2 of this newsletter, we must tightly control expenses at the state level. Due to the loss of $2.75 billion in federal
stimulus funds next year, we must review every line item in the state budget to ensure it meets the needs of the citizens
of Pennsylvania.
“Having a seat on the Appropriations Committee gives Representative Grell a stronger hand to fight for on-time
budgets and other budgetary process reforms,” Smith said. “Furthermore, his elevation to the committee shows the
confidence his peers have in him to help craft responsible spending plans for the state.”
 New Website Available for Electric Consumers
The Pennsylvania Public Utility Commission (PUC) is offering a one-stop shop website for residential, commercial and
industrial customers.
The website includes information about electric shopping, what it is, how to shop and which suppliers are available, as
well as the PUC’s list of competing suppliers and the Office of Consumer Advocate’s Shopping Guide pricing information.
A ZIP-code search feature is also available so consumers can see all suppliers and offers serving a given area.
For a link to the website and further information about electric rate information, visit my website at RepGrell.com.

Deadline to Apply for Property Tax/Rent

Rebate Program Extended
The deadline to apply for the state’s Property Tax/Rent Rebate program for 2009 has been extended to Dec. 31,
2010.
Eligible participants can receive a rebate of up to $650 based on their rent or property taxes paid in 2009. The
program benefits eligible Pennsylvanians who are 65 years or older, widows and widowers 50 years or older, and those
18 years or older with disabilities.
Eligibility income limits are set at the following levels, excluding 50 percent of Social Security, Supplemental Security
Income, and Railroad Retirement Tier 1 benefits:

• $0 to $8,000, maximum $650 rebate (Homeowners and renters)

• $8,001 to $15,000, maximum $500 rebate (Homeowners and renters)
• $15,001 to $18,000, maximum $300 rebate (Homeowners only)
• $18,001 to $35,000, maximum $250 rebate (Homeowners only)

The Property Tax/Rent Rebate program is one of many initiatives supported by the Pennsylvania Lottery, which
dedicates its proceeds to support programs for older Pennsylvanians. Since the program began in 1971, more than $4
billion has been paid to qualified applicants.
Residents are reminded to provide all the necessary income, property tax or rental information required to process
claims quickly and accurately.
Property Tax/Rent Rebate claim forms are available by contacting my district office at 795-6091, or by visiting my
website at RepGrell.com.

My office is always pleased to host tour groups at the beautiful state Capitol such as students from
East Pennsboro Middle School who posed on the steps in the Rotunda.

OFFICE LOCATIONS

Glen Grell
DISTRICT OFFICE:
5521 Carlisle Pike
Suite 2-D
Mechanicsburg, PA 17050
Phone: (717) 795-6091
Fax: (717) 795-6094
www.RepGrell.com
E-mail: ggrell@pahousegop.com
Facebook.com/RepGrell
HARRISBURG OFFICE:
3 East Wing
PO Box 202087
Harrisburg, PA 17120-2087
Phone: (717) 783-2063
Fax: (717) 705-7012