R e ic h le y R e p o r t

PRSRT STD
U.S. POSTAGE
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HARRISBURG, PA
PERMIT NO. 529

Newsletter for the People of the 134th Legislative District

Lehigh County: 1245 Chestnut Street, Unit #5, Emmaus, PA 18049 Phone: (610) 965-9933
Berks County: Bally Brook Industrial Park, 20 North Front Street, Bally, PA 19503 Phone: (610) 845-1425

Fa ll 2 0 0 9

Fire Company and Rep. Doug Reichley’s 3rd Annual Special

Emergency Responder Needs Awareness Day
Grant Seminar When: Saturday, March 13
Save the
Date
On Thursday, Dec. 3, from 6:30 Time: 10 a.m. to 2 p.m.
p.m. to 9 p.m. at the Kasych Pavilion Where: Integrated Health Campus Building
at Lehigh Valley Hospital, off I-78
and Cedar Crest Boulevard, Rep. 250 Cetronia Road, Allentown
Karen Beyer (R-131), Rep. Gary Day
(R-187), Rep. Julie Harhart (R-183) Families and friends involved with children or adults with special needs are invited
and I are hosting a Fire Company to attend this FREE event. More than 50 exhibitors will offer information about
and Emergency Responder Grant resources and services available to families in the Lehigh Valley.
Seminar in conjunction with State Fire For more information, please contact my district office at 1245 Chestnut Street,
Commissioner Ed Mann. Unit No. 5, Emmaus, or call (610) 965-9933. Office hours are also held in the Bally
This seminar is specifically for Brook Industrial Building, 20 North Front Street, Bally, on Tuesdays and Thursdays
persons who volunteer at fire companies from 9:30 am to 5 p.m. The phone number there is (610) 845-1425.
and ambulance organizations in order to
help them gain knowledge about grants
available from the state.
Though saving lives and fighting fires
is the core mission of every volunteer
emergency services organization,
funding is always needed to purchase
new equipment or to make necessary
renovations to buildings.
Grant programs available through
the state and federal government make
it easier for these organizations to
provide valuable life-saving services
to residents.
Please contact my office at (610)
965-9933 to RSVP if you plan to On Saturday, Oct. 31, Rep. Reichley and Lisa Walter from Sen. Mensch’s office congratulated
attend. Emmaus Police Department Chief David Faust with citations celebrating the 100th Anniversary
of the department.

Medicare Part D Enrollment Assistance Offered

Our office is offering to help constituents understand their choices regarding Medicare Part D on Fridays,
beginning Nov. 15, from 9 a.m. to noon. No appointment is necessary, but if those hours are not convenient,
we will be happy to make other arrangements for constituents.
We help enrollees to review current prescription plans through Medicare Part D in order to determine
if other plans might better suit their needs. Constituents are asked to bring along their Medicare Card, any
insurance card for their current plan, and a list of medications you may take on a regular basis (this can be
obtained from your pharmacy) to allow us to review the best options for you.
 E-Newsletters
In order to keep the people I represent informed, my office sends out periodic e-mail blasts
on legislative topics.
If you would like to receive full text of press releases that I send out, you can do so by
signing up on my Web site, e-mailing me to be added to the opt-in list, or by contacting my
office at (610) 965-9933.
We typically mail a newsletter about twice a year to update constituents.
In order to reduce costs, we are also now offering the newsletter via e-mail.
If you wish to receive your copy of The Reichley Report newsletter electronically, please e-
mail me at dreichle@pahousegop.com, or contact my office. Previous copies of my newsletters
are also available on my Web site, at RepReichley.com.

What is Ahead? Looming Pension Crisis

A number of constituents have expressed growing concern
over the school employee pension spike affecting the state’s 500
school districts, school employees and taxpayers in 2012.
Public schools and state employees participate in a defined
benefit pension plan. This means school districts and the state
are contractually bound to pay a certain amount every month
to school and state retirees. This differs from many “defined
contribution” pensions in the private sector.
Like many investment funds, the recession has reduced the
value of investments in the Pennsylvania School Employees
Retirement System (PSERS) by about $22.2 billion from a
peak of $67.5 billion on June 30, 2007 to about $45.3 billion
on September 30, 2009. Stock market downturns, inconsistent
employer contribution levels and changes to the pension system
benefit structure in 2002 have led to a possible 500 percent
increase in the employer contribution rate in 2012, potentially
translating into higher school district taxes.
It may seem that the simplest way to avoid pension spikes
is to reduce or withhold pension payments. However, the state
Supreme Court has ruled three times in the last 20 years that the
government cannot legally alter or terminate pension benefits.
We are contractually bound to make these payments to all current
retirees or employees.
The employer contribution rate has been 4.78 percent for about
12 years. PSERS currently predicts the employer contribution
rate will spike by more than 20 percent in 2012, and higher than
that in future fiscal years. This means Pennsylvania and its school
districts will have to kick in potentially hundreds of millions of
dollars to make the PSERS fund solvent. The state pays in about
55 percent. School districts have a 45 percent share.
Solutions to this problem are difficult. We could use education
stimulus dollars or table gaming revenue to chip away at pension
costs. We also have to look at changes in future pension benefits
paid by PSERS or the conversion to a defined contribution
pension for all new employees. Another extreme solution is the
issuance of state bonds to pay off the unfunded liabilities. Two
other House Republicans and I are leading our caucus’ efforts
to explore ways of diminishing the potential property tax hike.
Please feel free to offer your suggestions to us as we begin this
complex inquiry.

 At an Aging and Older Adult Services Committee hearing on Oct. 28, Rep. Reichley
 Rep. Reichley donned his sneakers for the St. Ann’s
joined committee members and met with constituents at the state Capitol who offered
School community walkathon on Sept. 25. Proceeds
testimony to promote November as Alzheimer’s Awareness Month.
from the event help to fund a new reading series for
grades K through 6.

On Thursday, Nov.  On Oct. 13, Rep.

19, Rep. Reichley Reichley presented a
visited with the citation to Emmaus
Longswamp Boy Girls Field Hockey
Scout Troop 575. Coach Sue Butz-Stavin,
congratulating her for
her 700th win.

RepReichley.com
 The 2009-10 Fiscal Year Budget Fast Facts
As many of you know, our state budget was finally enacted on October 9, 2009, more than 100 days past our
constitutional deadline of June 30. Here are some fast facts about that budget:

 Finalbudget for the current year (2009-10) is $27.8 billion. House Republicans proposed $27.5 billion, while Gov. Ed
Rendell wanted $28.9 billion and House Democrats proposed $29.1 billion.
 The deficit for the preceding fiscal year (2008-09) was $3.25 billion.
 The new budget includes $1 billion in new or increased taxes, which I opposed, including:
 A retroactive 1-mill increase (the tax is now 2.89 mills) in the Capital Stock and Franchise Tax on businesses, which
will increase taxes by $374 million.
 A 25-cent per pack increase in the cigarette tax (total tax is now $1.60 a pack), which would generate $97 million.
 A new $1.60 per pack tax on ‘little’ cigars to generate $16 million. These were not previously taxed.
 A new gross receipts tax on Medicaid Managed Care Organizations to generate $528.5 million to fund certain
Department of Public Welfare programs.
 A $38 million cut in the available amounts of several tax credits, including the Education Improvement Tax Credit that
benefits public and private schools.
 $708 million was transferred to the General Fund from the Health Care Provider Retention Account, which was created
to hold down doctors’ medical malpractice insurance premiums.
 $100 million transfer to the General Fund from the MCare Fund, another fund that provides malpractice coverage.
 The Rainy Day Fund is zeroed out: the budget transfers $755 million to the General Fund.
 These are all one-time transfers, making them unavailable next year if similar budget woes are encountered. Federal
stimulus money will also expire next fiscal year.
 The 2009-10 fiscal year revenue shortfall is already $160 million for the first three months this year.
I voted against the tax hike and the one-time fund transfers because they were poor policy in a deep recession. I also voted
against the budget, which relied on these tax increases. I felt we needed to do a better job allocating state funds.

Unfinished Business – Table Games

One topic that came up in budget negotiations was expanding gaming at Pennsylvania’s slots-only casinos to include table
games. The bill, still before the state House, anticipates $240 million in revenue and taxes, which is earmarked to fund state-
related universities. Though the governor has called for action on the bill, negotiations on the tax rate applied to table games
continues. However, reforms in the current way the Pennsylvania Gaming Control Board operates should precede expansion of
table game approval. In addition, I believe background investigations of licensees should be shifted to the Pennsylvania Office
of Attorney General.

State Funding for School Districts in the 134th District

School District 2009-10 2009-10 BEF State SEF Total BEF/SEF/ARRA
BEF Total percentage increase increase over 08-09 BEF
Boyertown Area $14,233,241 $522,089, 3.81% $3,138,089 $18,806,408, 11.6%
Brandywine Heights Area $03,926,155 $076,984, 2.00% $0,986,747 $05,445,766, 12.6%
East Penn $10,080,190 $595,628, 5.89% $5,967,031 $15,050,424, 15.2%
Parkland $06,585,611 $270,179, 4.28% $3,261,344 $12,559,160, 31.1%
Salisbury $02,226,202 $090,850, 4.25% $0,782,409 $03,568,533, 22.3%
Upper Perkiomen $08,547,909 $386,810, 4.74% $1,602,826 $11,124,598, 13.9%
BEF = Basic Education Funding SEF = Special Education Funding ARRA = federal stimulus money

Budget Timeline Proposed to Prevent Future Impasses

As a way of avoiding another protracted delay in passing a state budget, I have sponsored legislation
to require a member of the majority party of the House of Representatives to introduce a budget bill
no later than March 31 of each fiscal year. The bill also sets forth timelines for the Senate and the
governor to act. If these deadlines are not met, the governor, the House and Senate would not be
able to enter into contracts or award grants. Such a prohibition will act as an incentive to meet
end of fiscal year deadlines. This legislation, House Bill 2063, has been referred to the House
Appropriations Committee for further review.

RepReichley.com
 Franklin Savings On the Go in the 134th District
Certificates Bridge Repairs
Funds for college loans Rep. Reichley inspected
problems at Anthony’s
I have introduced a new bill creating
Mill Road Bridge in
Franklin Savings Certificates, an Washington Township
investment mechanism similar to with PennDOT and
a U.S. Savings Bond. These allow local officials looking
Pennsylvanians to invest in their into getting it repaired.
Commonwealth, but also create a loan
fund through the Pennsylvania Higher
Education Assistance Agency (PHEAA) 250th Anniversary
to help students to attend college by of Emmaus
offering low-interest loans.
If signed into law, the Franklin Rep. Reichley
participates in the
Savings Certificate Program and
ribbon cutting for
Student Loan Program Act would take the new triangle
effect during the 2010 fall semester in Emmaus during
and be available to students who are 250th anniversary
Pennsylvania residents and attending festivities.
eligible colleges and universities in our
state.
Bonds would be sold to investors, Sgt. Moyer Honored Kids Discovery Expo
with the proceeds distributed as loans
to students who have exhausted other
grant, scholarship and federal loan
assistance options.
This program encourages families
to save and invest in our state in a safe
and reliable way by creating a pool of
money for students to access to help
them afford the ever-increasing cost of
higher education. The family of Sgt. Ashly L. Moyer, along with
The total amount of Franklin Savings Rep. Reichley (R- Berks/Lehigh) and Sen. Bob
Certificates issued by the Pennsylvania Mensch (R-24), attended the dedication of
Treasury Department each year could Sgt. Ashly L. Moyer Memorial Road in Lower
not exceed $25 million. Certificates Macungie Township, Lehigh County. Moyer
would be sold in denominations ranging graduated from Emmaus High School and
from $25 to $10,000 and would bear was killed on March 3, 2007 by a roadside On Sept. 12, Rep. Reichley and Sen. Pat
interest at a rate set by the department. bomb while driving an armored patrol vehicle Browne held their annual Kids Discovery
in central Baghdad. Sgt. Ashly L. Moyer Expo, a unique and entertaining venue for
Accrued interest would be exempt
Memorial Road is part of state Route 2071 kids and their families. It celebrates science
from Pennsylvania and municipal taxes. (Brookside Road). education at the DaVinci Center.
Certificates would reach maturity 15
years after they are issued, and would Birthday Citations Senior Expo
not affect our General Fund or use tax
dollars.
The proceeds from the sale of the
certificates would then be transferred to
PHEAA for student loans at competitive
rates attractive to borrowers. As the
loans are repaid, these funds in turn will
be used to pay the certificate purchasers
when certificates are redeemed and to
issue loans to future students. Edward and Eleanor Whitehead received legislative Rep. Reichley’s annual senior expo brings
House Bill 1688 has been referred citations from Rep. Reichley for some important together many exhibitors who assist older
to the House Education Committee. If dates. Edward celebrated his 100th birthday on adults and their families with services they
enacted, it would take effect in 60 days. Sept. 10 and Eleanor her 99th on Aug. 31. need to help them in the Lehigh Valley.

Autism Funding
Total autism funding in 2009-10, including federal stimulus money will be $22.8 million, $3.4 million more than last year.
The previously reported diagnosis rate was about one in 150. According to the Centers for Disease Control and Prevention, about 1 percent
of U.S. children have been diagnosed with an autism spectrum disorder. There is a higher rate of occurrence among boys.
Pennsylvania has taken important steps to support individuals and families coping with autism. Act 62 of 2008 requires health insurance
policies renewed on or after July 1 to provide coverage for the diagnosis and treatment for autism spectrum disorders for individuals under
the age of 21. This applies to businesses with 51 or more employees and government programs such as adultBasic, Medical Assistance, and
CHIP. Coverage is capped at $36,000 per year, and is increased annually starting in 2012 to reflect changes in the Consumer Price Index.
Please feel free to contact my office if you would like more information about autism service providers or support groups in our area.