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In this Update:
Standing Firm for Fiscally Responsible State Budget
On July 12, I voted in favor of a fiscally responsible state budget that stands up for taxpayers, doesn’t raise taxes on Pennsylvania families and protects affordability and job growth. Gov. Josh Shapiro’s original proposed budget would have unsustainably raised spending by $2.7 billion (5.4% increase) and robbed approximately $4.6 billion from the state’s emergency reserves in the Rainy Day Fund. If left unchecked, the governor’s plan would have required massive tax increases—as early as next year—to cover his reckless $7.3 billion demand for increased spending. While our neighboring states raise taxes, push out and punish job creators, and beg taxpayers to stay, we are doing the opposite by blocking tax hikes and limiting the growth of government by keeping spending below the rate of inflation. Over the past two years, we successfully fought to force the governor and state agencies to turn over more than $4.5 billion in lapsed funds, special fund balance transfers and offsetting General Fund appropriations over a two-year period (including last fiscal year). The final budget agreement negotiated by Senate Republicans cut more than $1.1 billion from the governor’s original spending request, setting the Keystone State on a more sustainable path and avoiding potential bond downgrades and higher debt costs. As families struggle with affordability, the worst thing lawmakers could do now is pass a bloated, irresponsible budget that would take more of their hard-earned money. Although this budget is far from perfect, once again, we’re not draining the Raining Day Fund, we’re not increasing taxes on the people of this commonwealth, and we’re forcing greater accountability on the part of the executive branch. Withholding Funding from Massive Managed Care Organizations Saves PA Taxpayers Additional $1.3 Billion
One of the best parts of this year’s budget is that we are finally forcing transparency on Medicaid and Medicare administrative expenditures to save Pennsylvania taxpayers an additional $1.3 billion. We have three Managed Care Organizations (MCOs) in the commonwealth that are largely responsible for these rapidly rising costs. One of those MCOs is forcing Pennsylvania to pay for all the administrative costs of the other states that they manage. Tennessee and Florida have successfully clawed this money back, while Pennsylvania is still on the hook for these increases. What we are doing through this year’s budget is withholding funding to force MCOs to take the money that’s sitting in their massive reserves and directly apply it to our people. For example, AmeriHealth Caritas is supposed to be passing the money Pennsylvania and the federal government supply to take care of our disabled communities, Medicaid and Medicare recipients and function as a Pharmacy Benefit Manager getting state and federal money to our local pharmacies. They have apparently kept the money we gave them to pay for doctor appointments prior to the COVID lockdowns that were never used due to patients being denied access to medical care. Agencies that take care of the disabled, hospitals and others have reported to me that they have seen none of the increases the legislature has approved over the past few years. Local pharmacies are experiencing the same reimbursement shortages, forcing many (including a treasured pharmacy in Mill Hall closing later this month) to shut down. I’m also told that AmeriHealth Caritas may have at least $600 million in reserves, much of which is reportedly being spent on funding political campaigns. Of course, all these allegations of waste, fraud and abuse must be fully investigated! Fortunately, my resolution directing the Legislative Budget and Finance Committee to conduct an audit on the commonwealth’s medical assistance programs was also approved by the Senate on July 12. PennDOT Required to Release Funds for Local Road Projects
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