PRSRT STD
U.S. POSTAGE
Summer 2008
2008-09 State Budget Recap
I was a “no” vote on this year’s state budget,
and the following are a couple of reasons why I
felt it in the best interest of the people I represent
to stand up for more responsible management of
the state’s fiscal future:
Overall Budget Spending
This year, the state enacted a budget that will
spend more than $28 billion. In the past 10 years,
the budget has ballooned by $10 billion. Most of
the spending increases have taken place during
the current administration of Gov. Ed Rendell.
When the governor signed his first state budget
into law, it spent approximately $21.9 billion. By
the time he signed his sixth budget into law this
year, the state was slated to spend more than
$28 billion. This means, that since taking office in
2002, Gov. Rendell has increased General Fund
spending by 38.6 percent, more than $7.8 billion.
Such growth is approximately double the rate of
inflation.
Even this year, at a time of economic uncertain-
ty, the governor insisted on continuing to increase
spending within the state budget.
Spending Increase
The state budget signed into law this year by
the governor represents a $1.08 billion increase
in spending over last year’s budget. Taxpayers
simply cannot afford to watch state spending in-
crease by more than $1 billion each year. Sooner
or later, such large spending increases will require
some form of additional revenue – such as a tax
increase – to pay for them.
We simply cannot continue this spending spiral
without consequences.
State Borrowing
In conjunction with passage of the state budget,
an additional $2.9 billion in new borrowing pro-
grams was approved. This additional borrowing
will ultimately cost Pennsylvania taxpayers ap-
proximately $4.8 billion to repay. During Rendell’s
time in office, enacted new borrowing programs
have totaled $6.05 billion, which will ultimately cost
PAID
HARRISBURG, PA
PERMIT NO. 529
taxpayers more than $9.5 billion to repay over a period of
20 to 30 years.
Furthermore, the Legislature passed and the governor
signed into law two bills in conjunction with the budget that
would provide for further borrowing to address Pennsylva-
nia’s aging water-related infrastructure. They were:
 Act 63 – Provides for up to $800 million for water or
sewer, storm water, flood protection and dam safety projects.
The money will be provided through bonds, which will be
paid back using existing state revenue sources.
 Act 64 – Provides for a ballot referendum to autho-
rize $400 million in new bonds to pay for improvements to
drinking water and wastewater treatment systems. YOU will
have a chance to VOTE on whether or not the state should
proceed with this plan to borrow money for these projects.
Revenues and the Economic Effect
Pennsylvania’s economy has slowed significantly over
the last several months – a point that further supports the
need for controlled spending.
Three of the last four months of the 2007-08 Fiscal Year,
General Fund Revenue collections fell more than $100 mil-
lion short of the Department of Revenue’s monthly projection.
This is a clear sign that we may be faced with serious fiscal
concerns in the coming year, and it should have prompted
us to scale spending back even further this year.
Despite having a $167 million revenue surplus in 2007-08,
no money was deposited into the Rainy Day Fund. Instead,
the entire surplus was used to support new spending.
Education Funding
On July 4, the Pennsylvania General Assembly approved
the largest dollar increase – $275 million – for basic educa-
tion funding in at least two decades. The budget included a
minimum 3 percent increase in basic education funding for
all school districts, which was increased from the governor’s
original proposal of a 1.5 percent minimum.
While increased funding for basic education may seem
like a positive benefit for all Pennsylvanians, the Geographic
Price Adjustment included in the funding formula by the
governor reduces funding for rural areas where there is
a “so-called” lower cost of living. It still remains unknown
if rural school districts, such as those in Blair County, will
suffer as a result of increased gas prices and longer travel
distances.
 Electric Deregulation Agreement
Set to Expire in 2010
Nearly a decade ago, Pennsylvania passed legislation to deregulate the electric industry with the idea this would spur competition
and lower electricity prices for consumers. As part of this agreement, the price on the generation, or production, of electricity was
limited or capped at its 1997 price. Throughout the rate cap period, Pennsylvanians have benefited greatly. When adjusted for
inflation, customers are paying 12 percent less for power than they paid in 1996. However, we are now faced with the challenge
of how to transition electricity prices in Pennsylvania to market prices while mitigating the financial impact on consumers.
Pennsylvania’s electric utilities cannot continue to indefinitely serve customers at capped rates. Rather, as envisioned by the
1996 Competition Act, utilities will and must eventually buy power at competitive market prices and charge customers accord-
ingly. And unfortunately, wholesale electricity prices – like all other goods or services – have risen since 1996.
There is sufficient time if we act now to develop a reasoned response before the expiration of the caps in 2010 and 2011.
Legislation in various forms is already under consideration, and the Public Utility Commission has taken steps to put in place
programs to educate consumers, to encourage energy conservation, and to encourage proposals to gradually phase-in in-
creases.
Please know that I will work to minimize, to the greatest
extent possible, the impact that the expiration of the rate
caps will have on consumers. At a time when the cost of
living continues to escalate, I can appreciate how difficult
it has been for individuals on fixed incomes and families.
Rep. Stern recently spoke at an energy conference
in Penn State hosted by the Pennsylvania Rural Electric
Association (PREA). During his remarks, Stern noted his
concern for the exorbitant amount of borrowing on behalf
of the state to explore new alternative energy sources,
especially since companies like PREA already make use
of many renewable energy sources. He also spoke about
the impact of the impending lift of rate caps on electricity
and the need to work harder at reducing the state’s overall
energy consumption. Pictured left to right is Frank Betley,
PREA president and CEO; PA Attorney General Tom Corbett;
Stern; and William Logan, PREA vice president for public
affairs and member services.
*Photo courtesy of PREA

Health Care at Top of Fall Agenda

I don’t think anyone can argue the fact that health care costs have risen dramatically over the past several years, making it
difficult for employers and individuals to access affordable health insurance coverage. In fact, since 2000, the cost of family health
insurance premiums has increased nearly 76 percent.
With health insurance becoming a growing financial burden for many Pennsylvania businesses, families and individuals, House
Republicans created a task force which has been working hard at developing a plan to address this issue and make sure that all
Pennsylvanians have access to affordable health care. The task force, of which I am a member, has worked with interested par-
ties to develop a plan which decreases costs, increases access and improves the quality of health care for every Pennsylvanian,
as well as covering more of the uninsured – without raising taxes. Unfortunately, the governor and House Democrats have been
touting an alternative, government-subsidized plan that will only succeed in raising tax and driving more employers and doctors
out of state. The chart below provides a side-by-side comparison of the two primary plans currently before the General Assembly.
I encourage residents to contact their elected representatives and senators, and the governor, to let their voices be heard on what
type of plan they would like to have implemented in the Commonwealth.

Health Care Plan Comparison

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Rep. Stern held a health care roundtable in Duncansville with local health care �������������������������������
professionals, insurance providers and business owners to gather information and � ����������������������������
share ideas about the House Republican health care plan. Pictured left to right is
Stern; Rep. Scott Boyd (R-Lancaster), co-chairman of the House Republican Policy ��������������������������
Committee’s Health Care Task Force; and Rep. Mike Fleck (R-Huntingdon).
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JERRYSTERN.COM
New Law Exempts COLA from
PACE, PACENET Eligibility
A new law will help ensure that senior citizens enrolled
in Pennsylvania’s PACE and PACENET programs do not
lose their prescription drug coverage because of this year’s
Social Security cost-of-living adjustment. Act 69 of 2008,
formerly House Bill 2345 (or Senate Bill 4), was signed into
law on July 9.
As of Jan. 1, senior citizens began receiving a 2.3 percent
COLA in their Social Security benefits. Without this legislation,
the relatively small increase would bump some seniors just
above the income limits for PACE and PACENET, jeopardiz-
ing their access to vital prescription coverage. This new law
applies to anyone enrolled in PACE as of Dec. 31, 2008, and
whose maximum income limit is exceeded solely due to the
Social Security COLA.
The legislation will guarantee that seniors currently enrolled
in PACE and PACENET would remain eligible, regardless of
whether the Social Security COLA pushes their income above
eligibility limits for the programs. The new law will help 15,000
Pennsylvania seniors keep their prescription coverage.
New Tax Credit Available to
Fire, EMS Volunteers
Recognizing the valuable contributions and sacrifices made
by members of our volunteer fire and EMS units, the General
Assembly has adopted a new law offering these volunteers a
tax credit.
Legislation Would Make
Health Care Costs More Transparent
As a member of the House Republican Policy Committee’s
Health Care Task Force, I have authored legislation that would
reveal previously hidden health care costs to consumers.
House Bill 2028 would require the Pennsylvania Health Care
Cost Containment Council to establish an Internet database
so that the general public could compare the cost of the most
common health care services and treatments, including those
services patients receive in physician offices across the Com-
monwealth.
Making previously hidden costs transparent to consumers will
allow them to make smarter choices and have more control over
their health care. No person should be forced to make a health
care decision without having all the facts, and my legislation will
help shine a light on the true costs of health care and create
healthy market competition within the industry.
House Bill 2028 is part of the Real Prescription for Penn-
sylvania, a health care plan created by the Republican Health
Care Task Force, and is currently before the state House for
consideration.
LEGISLATION INTRODUCED TO
RE-AUTHORIZE VITAL STATE AGENCY CHARGED
WITH ADDRESSING
RISING HEALTH CARE COSTS
The Pennsylvania Health Care Cost Containment Council
(PHC4) was established in 1986 to collect information on the cost
and effectiveness of health care in the state. It is an independent
state agency responsible for addressing the problem of escalating
JERRYSTERN.COM
Under the law, Act 66 of 2008, volunteers actively serving
during the 2008 tax year are eligible to receive a tax credit of
up to $100 against their state income tax liability.
The state fire commissioner and the director of the Emer-
gency Medical Services Office in the Department of Health
will develop a point system establishing annual requirements
for certification of active volunteers. The system will consider
things like the number of emergency calls, the volunteer’s
level of training and participation in drills, and time spent on
administration and support activities.
According to the Office of the State Fire Commissioner,
there were about 325,000 volunteer firefighters in Pennsyl-
vania in the late 1970s. Those numbers dropped to about
75,000 five years ago. The most recent count this year puts
the volunteer force at closer to 50,000. We hope the tax credit
will help retain current volunteers and encourage others to
join their ranks.
Rep. Stern
recognized
Krystal Edwards
on the House
floor in June.
Krystal, a
resident of
Williamsburg,
is the National
American Miss
PA Teen.
health costs, ensuring the quality of health care and increasing
access for all citizens regardless of their ability to pay.
Based on its success, PHC4 was the nation’s first state-level
clearinghouse for data on cost and quality of its kind. It has
become a model for other states across the nation.
Unfortunately, the council was closed for approximately two
weeks starting June 30 when passage of legislation to continue
its operations was stymied in the General Assembly.
The General Assembly had the perfect opportunity to address
both the continuation of the good work of PHC4 and the MCare
abatement to keep our doctors practicing in Pennsylvania. Unfor-
tunately, political gamesmanship got in the way of making both
of those goals a reality and, subsequently, PHC4 was reduced
to nothing more than a political pawn. PHC4 is an important
agency and my legislation will ensure that it continues its work
through the foreseeable future.
Although PHC4 has now been temporarily re-opened, my
legislation, which would only include language for the re-enact-
ment of PHC4, would keep the council open for a period of one
year. The governor said if he received a clean bill only address-
ing the re-authorization of the council and not including MCARE
abatement, he would sign it into law.
This legislation is generating a great deal of support and it
is my hope that we can pass this legislation upon our return to
session in September. Increased cost transparency and im-
provements to information technology are critical components to
contain rising health care costs. I believe the council provides
the Commonwealth with an invaluable service.
The House Insurance Committee is currently holding public
hearings on the reauthorization of PHC4.
 Busy in Blair . . .
Rep. Stern had
the pleasure
of presenting
a check to
Hollidaysburg
Borough for the
purchase of radios
for the police
department.
Pictured left
to right is Joe
Dodson, mayor;
Jeff Ketner, chief
Children attending the summer program at the new
of police; Stern;
Hollidaysburg YMCA showing signs of appreciation for Rep.
and John Little,
Stern’s participation in obtaining state funding for the expansion
borough manager.
project.

Rep. Stern Rep. Stern, joined

visited by Jim Burkey,
the renovation environmental
site at Myers engineer, and
Elementary Ivan Riggle,
School in environmental
Bellwood. health and safety
Pictured with manager, were
Stern are Terri present for
Harpster, the opening of
principal, and the Albemarle
Don Maurer, Corporation’s new
project “Nature Trail”
supervisor. located above the
Albemarle plant on
Back Vail Road in
Tyrone.

Rep. Stern recently

attended the monthly
breakfast meeting of
the Tyrone High School
Class of 1942 at Joe’s
Place in Tyrone.

District Office Services District Offices:

324 ALLEGHENY STREET
My district office is here to help you. Services my staff and I HOLLIDAYSBURG, PA 16648
provide include: (814) 695-2398
● Driver’s license and vehicle registration applications and
renewals. 34 CHERRY AVENUE
● Assistance with PennDOT paperwork. TYRONE, PA 16686
● Copies of birth and death certificates. (814) 684-6092
● PACE and PACENET applications for seniors.
● Property Tax and Rent Rebate forms and applications.
● Voter registration forms and absentee ballot applications.
● State tax forms.
Harrisburg Office:
ROOM 315A MAIN CAPITOL BUILDING
● Student aid applications.
PO BOX 202080
● Free state maps, state park information, and PA Vacation
Guides. HARRISBURG, PA 17120-2080
● Copies of legislation. (717) 787-9020
● Tours of the State Capitol.
● Referrals to agencies to resolve state-related matters. I also can be contacted via the Web at
If you need help with any of the above or with any other state- JerryStern.com
related matter, please do not hesitate to call my offices: or email at jstern@pahousegop.com