REP.

GARY DAY PRSRT STD

U.S. POSTAGE
PAID
187TH Legislative District HARRISBURG, PA
PERMIT NO. 432
DISTRICT OFFICE:
Northwest Centre, Suite 302
6299 Route 309
New Tripoli, PA 18066
Phone: (610) 760-7082
HARRISBURG OFFICE:
PO Box 202187
Harrisburg, PA 17120-2187
Phone: (717) 787-3017

Fall 2010

Inside This Newsletter: Dear friends and neighbors,

 Jobs
 Property Taxes
 Government Reform
Rep. Day, a former coach, had the pleasure
of throwing out the first pitch for the Park-
land Little League All-Star games. Thanks to
all the coaches, kids and parents for a great
event!
My chief responsibility is to serve the constituents I represent in the 187th Legis-
lative District as best as possible. As your representative, I continue to focus on the
pressing issues of our times -- jobs, government reform and property taxes. Our col-
lective district voice must be heard in Harrisburg by focusing on these and other issues
that the people have indicated are important.
I have been operating an aggressive effort to reach to as many people in our district
as possible. Stretching from Laury’s Station near the Lehigh River through Walnut-
town just southwest of Fleetwood, our district covers a large geographic area. I have
employed various ways to communicate with you. Some traditional communication
tools are the telephone and postcards, as well as visiting neighborhoods, e-mail, my
website and Facebook, which are all more economical ways. You can participate by
providing your e-mail address, visiting my website or joining us on Facebook.
This newsletter will update you on efforts I have undertaken that reflect those pri-
orities. It contains information on job creation policies, helping employers put people
back to work, the school property tax issue, legislative action to help prevent huge
property tax increases as a result of looming spikes in the two public pension systems,
and efforts to reform the way government operates.
If you have any questions regarding the information in this newsletter, please con-
tact me at gday@pahousegop.com or at (610) 760-7082.

9-11 Memorial Legislation

With the ninth anniversary of the Sept.
11, 2001, attacks soon upon us, and the
10th anniversary approaching next fall, I
am working on an idea that will encour-
age schools across the Commonwealth to
commemorate the tragic and heroic events
of Sept. 11, 2001.
The attacks on the World Trade Center
and Pentagon resulted in a great loss of
life, but a fourth plane was hijacked that
day, and its brave passengers fought for
control of that plane over the airspace of
our Commonwealth.
Some of the most notable and heroic
actions occurred in Pennsylvania that day.
I believe the Legislature should honor
those Americans who fought back on Sept.
11, 2001, and died in Pennsylvania.
I am authoring legislation requiring
every school building in the Common-
wealth to display a mileage marker in
its lobby indicating how many miles the
building is from Shanksville, Somerset
County.
It is my hope that inquisitive children
and adults will see this marker and ask,
“What does this mean?”
PennDOT will be responsible to se-
cure signs that resemble traditional road-
way mileage markers for the schools
and will also be required to post mileage
markers in each of the 11 engineering
districts across the state.
My goal is to remind and educate stu-
dents about the events that occurred in
Pennsylvania, and keep their sacrifices
on the front of the minds of future gen-
erations and travelers throughout Penn-
sylvania.
I have included language in the bill
that will authorize a 9-11 memorial spe-
cial license plate that will cost $20 more
than regular plate, but will help pay for
the cost of this program.
I hope to pass this bill as soon as pos-
sible, so that Pennsylvania will be able
to implement this program of honor, long
before the 10th anniversary of Sept. 11,
2001.

R e p G a r y D a y. c o m
 Job Creation
State Policies Must Encourage Employers to Hire
As our national economy tries hard es for a specific unit of employees while to enter into self-employment through
to recover, the effects of the economic allowing those workers to collect a pro entrepreneurial training and counseling
downturn are still impacting the residents rata portion of unemployment compensa- while continuing to receive unemploy-
of the Allentown-Reading corridor. tion benefits. ment compensation.
In June, the jobless rate for Berks In addition, a Keystone Works Pro- Finally, we are proposing the cre-
County was recorded at 9.8 percent and gram would remove barriers to employ- ation of a youth employment incentive
for Lehigh County at 10 percent, above ment by matching unemployed persons tax credit to encourage employers to hire
both the state and national averages of and welfare recipients with businesses workers in their teens. This tax credit will
9.2 percent and 9.6 percent respectively. seeking to hire on a conditional basis, allow employers to hire more inexperi-
Something must be done, and it must with no cost to employers unless the em- enced workers at a reduced cost.
be done now if hard-working families are ployer chooses to hire the worker on a This legislation is part of the Policy
to return to the workforce. permanent basis. Committee’s Solutions for Pennsylvania
Besides the dispute of whether we We also are proposing an unemploy- package to empower individuals to find
should encourage private or public sector ment training and education option which employment and return to work.
jobs, it’s apparent to me that the leader- would allow unemployment recipients to We all know that a good job market
ship and direction of the House of Repre- enter into short-term career training or has multiple advantages. In addition to
sentatives, whether Republican or Dem- re-training while still collecting unem- the feeling of self-worth and a paycheck,
ocrat, should also adopt policies which ployment benefits. This will allow for an the Commonwealth’s citizens benefit
stabilize expectations for employers, so easier transition for someone wishing to through a stronger tax base and less pub-
they may cope with the challenges of this change careers or gain necessary skills lic funds being directed to public assis-
economy. for an emerging job market. tance programs. I hope these proposals
The House Republican Policy Com- It also is important to reauthorize will help employers to deal with the de-
mittee explores new ideas which may and restructure the employment incen- cision to lay off, keep or create jobs in
lead to changes in policies to create a tive payments program, which was suc- the future.
positive jobs climate. cessful at encouraging employers to hire
One of our ideas is to reduce the num- individuals who are currently receiving Job Growth in
ber of permanent job layoffs by creating public assistance in the form of welfare
a flexible Shared Work Program that al- benefits. This program provides a unique Emerging Industries
lows employers to reduce hours and wag- opportunity for unemployed individuals
According to some reports, the Mar-
cellus Shale industry could create as
Government Facilitates Jobs many as 100,000 jobs in Pennsylvania
By Providing Stability and generate $1 billion in taxes a year
under current tax laws. In addition, you
I want to develop a new mindset in Harrisburg when it comes to creating more will continue to hear about the need for
government. There may indeed be a need for new government jobs; however, we must a Marcellus Shale gas extraction tax to
review our processes and procedures to streamline them and conserve valuable re- fill a looming multi-billion structural
sources. deficit next year or fund other spending
The Redevelopment Assistance Capital Program (RACP) is a prime example of projects.
government’s answer to a problem. It illustrates how many believe the solution is to Although legislation for the tax pro-
throw money at the problem instead of developing an overall policy of stability and posal hasn’t been drafted and no one yet
predictability. This would allow job creators to plan and navigate this tough economic knows what the final proposal will look
climate. like, I suspect that some may use the tax to
The law, which I opposed, added $600 million in borrowing to increase our debt justify high government spending or make
ceiling to more than $4.05 billion. That spending includes $10 million for yet-to-be- false promises, regardless of the positive
constructed libraries for Sen. Arlen Specter and the late Congressman John Murtha. long-term impact of the industry.
Such projects are better funded by private contributions, not public, taxpayer funds. I want a smart policy for natural gas
At the very minimum, these funds should be tied to job-creating endeavors, which extraction, not one which may curtail job
wasn’t a requirement of the $600 million spending authorization. opportunities and not fulfill the promises
that are being made.

Customer Service Rating Helps Us Serve You

I want to make sure my office, indeed all of government, is responsive to the people and taxpayers it serves. So, starting with
my office, I have implemented a simple accountability customer service rating system I used when I was in the private sector.
This customer service metric will give us feedback as to how well we are serving you and your neighbors.
I am pleased to report that my office, for the previous sixth months, has had a customer service rating of 94.48 percent. We
have assisted more than 3,633 people from our district. The success of our operation’s efficiency and courteousness is a direct
result of the hard work of my staff in the district and Harrisburg offices. If you have any state-related issues, please contact us
and give us the opportunity to assist you.
If you have contacted my office with a question or problem involving state government, please take the time to fill out a brief
survey about the job myself and my staff are doing to fulfill your needs.

House Passes State Pension System Reforms
In an effort to ease an
anticipated spike in pen-
sion costs for state employ-
ees and teachers, the House
recently passed House Bill
2497, which would make
changes to the methodology
by which employer contri-
bution rates are calculated.
This bill is currently before
the Senate for consideration
during the fall session.
I voted in favor of it,
along with 191 other mem-
bers of the House because I
felt it is a step in the right Rep. Gary Day speaks at a joint House and Senate Policy Committee tax increase. While House
direction to help our school hearing in Breinigsville on Pennsylvania’s pension systems, as other Bill 2497 will not solve all
districts avoid large tax in- legislators look on.
creases. Sometimes, the
more thorough solution to
a problem is politically complicated and
does not have broad-based support.
Many who have called for more ex-
tensive reforms have argued we should
move from the current defined benefit
plan, where the employer – both the
state and school district – each put a set
amount into the retirement system. In
turn, state employees and public school
employees put a portion of their salary
(before taxes) into the system with those
funds pooled and invested by the pen-
sion plan. These are highly dependent on
stock market fluctuations, and with re-
cent market downturns, we have seen the
value of those investments drop, hamper-
ing the ability of these funds to meet re-
tirement payouts which were promised to
employees.
Retirement plans frequently used to-
day in the private sector are known as
defined contribution plans. These include
Property Taxes
managed properly. Proper
management includes ap-
propriate funding of the sys-
tem and an appropriate level
of benefits drawing from the
system. Too little funding
and too many benefits with-
out regard for the impact is
the type of overall manage-
ment which has caused this
funding crisis.
If something is not done
to address this looming cri-
sis, Pennsylvania families
could be facing a massive
of the problems facing our
state pension systems, I
supported it because it is an
401(k) or 403(b) plans in which the em- important first step toward keeping the
ployee elects to defer a portion of his or systems healthy without placing a greater
her salary into a plan and each participant burden on taxpayers.
generally directs the investment, depend- As we move forward, I will be calling
ing on the amount of risk he or she wish- for reform to this system to incorporate
es to take. defi ned contribution plans for new em-
However, because of collective bar- ployees into the mix so that government,
gaining agreements (contracts) with state both at the state and school district levels,
and public school employees, a new plan will run more like a business, which will
would have to be agreed upon by union ultimately save taxpayers money.
negotiators. The court has ruled that this
change could only be for new employ-
School Property Tax
ees. The legislation addresses the coming Elimination Advocate
spike in employer contribution rates by The departure of Rep. Sam Rohrer
capping the rate of increase to help lessen from the Legislature at the end of this
expenditures by school districts and the year creates a void in one of the most
state. In addition, the bill includes sev- vocal advocates for the elimination of
eral reforms impacting new hires into the school property taxes. I intend to con-
pension systems. tinue to advocate for Sam’s plan and
Financially, it should not be the only pledge to seek new ways to reduce this
solution. The existing defined benefit overwhelming burden on Pennsylvania’s
pension plans should be able to work, if property owners.

School Visits

Members of the Parkland High School Academic Students from Kutztown Elementary
Team tied for second place in the annual Pennsylvania visited the Capitol on May 25.
Academic Competition held at the Capitol in April.
 Government Reform
Government Efficiency Day Moves
Paves the Way to Reform to End Practice
One of my top priorities in government reform is identifying ways we can cut of Overcharging
costs, streamline and make government operate more efficiently. Legislators al-
ways need to be responsible stewards of taxpayer money, especially during tough
Firearms Owners
economic times.
A young man came to me with a
We need to eliminate ineffective programs, decrease excess staff and find ways
question as to why Lehigh County was
to do the same job more efficiently with technology or innovative thinking. Taxpay-
charging $38 for a license to carry a
ers are watching and expecting government to do more with less. However, when
firearm (concealed firearm) permit,
government looks at itself, it sometimes cannot see the change that is needed.
which led me to investigate and dis-
A number of good ideas have been discussed this year as possible solutions to
cover inconsistencies in the pricing of
lowering the cost of government without adversely affecting the services it offers.
Pennsylvania’s license to carry across
It is imperative we find ways to do more with less. These are just some of the ideas
the state.
that have been advanced this session:
State law mandates that persons
 Using purchase cards (P-Cards), which enable the state to engage in more
applying for a license to carry at any
electronic payments when it buys goods and services. If P-Cards are used by state
of the state’s 67 county sheriff offices
government for 20 percent of the total number of transactions in Pennsylvania, it
should undergo and pass the appropri-
could save $62 million. If used 70 percent of the time, the state could save as much
ate background checks, and then be is-
as $219 million.
sued a license to carry for $25.
 Reducing tax refund errors in the PA Department of Revenue is also a plau-
As I discovered, there is a stunning
sible way to find cost savings. Taxpayers could save up to $50 million a year.
lack of uniformity across the state, and
 Right-sizing the state’s fleet of vehicles, which cost taxpayers $72.5 mil-
29 of the state’s 67 issuing agents were
lion annually. We could cut that expense in half.
charging more – and in some cases
 Eliminating Medicaid eligibility errors, as detailed by Auditor General
significantly more than $25. Some are
Jack Wagner (D-Allegheny) in an audit last year, could save at least $288 million
charging $46 – 84 percent more than
– if the error rate is 4 percent as DPW admits. This savings could amount to up to
authorized under statute.
$1 billion if the error rate is as high as 14 percent, as Wagner suggests.
I asked the sheriffs to explain why
 Improving compliance with Pennsylvania’s unclaimed property laws could
the fees they are charging are more
mean $50 million to $80 million saved annually.
than allowed by statute. Many re-
 Collecting uncollected Sales and Use Taxes for electronic and non-elec-
sponded that it is in part due to high-
tronic business-to-consumer and business-to-business transactions. If just 3 per-
tech laminating machines that make
cent of these revenues are captured, that amounts to $21 million. There is about
three-dimensional licenses to carry,
$706 million lost annually in untaxed transactions in Pennsylvania.
similar to driver’s licenses, but this is
 Processing Supplemental Security Income (SSI) payments could bring in
above and beyond the basic licenses to
revenue. We have become self sufficient in doing this ourselves and could per-
carry authorized by Act 66.
form this service for other states, saving them money, and generating millions. This
Act 66 of 2006 provided for a tem-
could generate $50 million to $152 million annually.
porary $5 surcharge on $20 license-to-
The use of P-cards and reducing the Revenue Department error rate were provi-
carry permits so county sheriff offices
sions included in the final budget proposal.
could upgrade their technology. The
I will be pushing to implement “process review” policies, which will uncover
extra $5 fee is collected and distrib-
other areas where departments can find additional efficiencies to free up more tax-
uted by the Pennsylvania Commission
payer funds for our core responsibilities. The policies should also identify further
on Crime and Delinquency in the form
areas in need of reform. Next fiscal year, Pennsylvania is looking at a structural
of grants to counties that are to be used
deficit of $3 billion to $5 billion, unless the economy starts turning around radi-
to purchase new equipment that pro-
cally, which economic forecasters are not predicting.
duce uniform licenses across the Com-
monwealth.
In working with the Pennsylvania
Sheriffs’ Association, we are down to
26 as the number of sheriffs who con-
tinue to charge more than is allowed by
statute. From 2006 through 2008, the
overcharges added up to $1.5 million in
additional revenue beyond what is au-
thorized to be collected in state law.
The $5 fee authorized by Act 66 is
scheduled to sunset next year, and if not
reauthorized, the license fee would re-
vert to $20.
Rep. Day spoke at a press conference on June 3 in Hatboro regarding the in- I have stated that I would support
troduction of a bill to address deficiencies in Pennsylvania’s child labor law making the $25 fee permanent if the is-
as it relates to television and film productions in the Commonwealth, with a suing agents would become compliant
focus on protecting children who star in reality television series. with state statute.

gday@pahousegop.com