Post by melody on Oct 4, 2013 21:01:56 GMT -5
Joint Legislative Budget and Finance Committee
10/2/13, 9:30 a.m., Hearing Room #2, North Office Building
By Jeff Cox, PLS
The committee met to release one performance evaluation and two performance audits.
Members present included Chairman Robert Mensch (R-Montgomery), Sen. James Brewster (D-Allegheny), Rep. Stephen
Barrar (R-Delaware), Rep. Jim Christiana (R-Beaver), Rep. Phyllis Mundy (D-Luzerne), Sen. Kim Ward (R-Westmoreland),
and Sen. John Wozniak (D-Cambria).
The committee then considered a performance audit of the Pennsylvania Fish and Boat Commission (PFBC).
Patricia Berger, the project manager, told the committee members, “We found that during the period we reviewed, primarily
FYs 2009-2010 through 2011-12, the PFBC continued to make progress in several areas addressed in our prior audit.” She
provided an overview of the audit’s findings, including:
• Total Fish Fund and Boat Fund revenues have increased by 7.8 percent over the last three years.
• The PFBC has made efforts to contain the growth in spending.
• The Boat Fund reserve balance is projected to become insufficient to meet cash flow needs by FY 2016-17.
• The Commission implemented many of the objectives of its July 2012-June 2015 Strategic Plan but due to funding issues
it is developing a new plan for adoption in 2014.
• The Commission has largely implemented the Legislative Budget and Finance Committee's recommendations from the
2010 report.
• The Commission implemented reorganization in 2012 to address identified needs.
• Fishing license sales decreased in 2010 and 2011 but have increased by 5.5 percent for resident licenses sold in 2012.
Berger said the audit recommends the Commission proceed with its efforts to streamline its strategic plan to focus on
core functions and conduct a review of its new organizational structure at the end of FY 2013-14 to determine whether the
goals identified for change have been achieved. She also explained that the audit recommends that the General Assembly
consider amendments to the Recreational Use of Land and Water Act to clarify and broaden the scope of legal protection of
landowners who make land and water areas on their property available for public recreational purposes.
Dr. Timothy Schaeffer, Director of the Commission’s Policy and Planning Office, commented that the audit supports
the Commission’s own internal assessment and noted the commission has made significant progress in implementing
the objectives of the plan. He said the audit also placed a heavy emphasis on the Commission’s financial position and
acknowledges that the Commission is in the process of revising its strategic plan to reflect new fiscal realities such as
health care costs, retirement benefits, and other personnel obligations beyond the Commission’s control while also dealing
with the increasing costs of doing business that faces other agencies and businesses. Schaeffer offered an overview of the
Commission’s efforts to secure funding through fishing licenses. He attributed the sustained growth in the number of licenses
purchased to numerous marketing initiatives. Schaeffer assured the committee members that seeking and sustaining more
funding streams will continue to be a top priority for the Commission. He said, “The General Assembly has the opportunity to
take a historic step in this direction with Senate Bill 1.” Schaeffer explained that under current law the Commission secures a
refund of 12 cents per gallon of the state Liquid Fuel Tax paid on gasoline for the operation of motor boats and water crafts.
He said that over the past ten years the Commission has received an average of $1.9 million per year from that source.
According to Schaeffer, under Senate Bill 1, this same type of formula would apply to the Oil Company Franchise Tax and
could generate an additional $3.8 million to $6.4 million over the next five fiscal years.
Sen. Wozniak wanted to know how Pennsylvania’s fishing license fees compare to other states. Berger said the license fee
for a Pennsylvania resident is $21 and for a nonresident it is $51.00. She explained that cost of resident licenses range from
$5 in Hawaii to $45.93 in California and the cost for nonresident licenses range from $20 in Delaware to $145 in Alaska.
Schaeffer pointed out that the PFBC is self-sustaining while similar agencies in other states receive moneys from their
states’ general fund.
Sen. Brewster asked how dependent the Commission’s strategic plan is on the passage of Senate Bill 1. Schaeffer explained
that the Commission spends approximately $50 million per year. He said Senate Bill 1 would give the Commission an
infusion of potentially $3.6 million to $6.5 million in the first fiscal year. Schaeffer also explained that the infusion would allow
the Commission to concentrate on the repair of several high hazard dams.
Chairman Mensch asked if discounted licenses for veterans and other similar discounts help to increase sales. Schaeffer
said he did not know but added that any reduction in a license fee does affect the bottom line.
The performance audit was unanimously approved.
10/2/13, 9:30 a.m., Hearing Room #2, North Office Building
By Jeff Cox, PLS
The committee met to release one performance evaluation and two performance audits.
Members present included Chairman Robert Mensch (R-Montgomery), Sen. James Brewster (D-Allegheny), Rep. Stephen
Barrar (R-Delaware), Rep. Jim Christiana (R-Beaver), Rep. Phyllis Mundy (D-Luzerne), Sen. Kim Ward (R-Westmoreland),
and Sen. John Wozniak (D-Cambria).
The committee then considered a performance audit of the Pennsylvania Fish and Boat Commission (PFBC).
Patricia Berger, the project manager, told the committee members, “We found that during the period we reviewed, primarily
FYs 2009-2010 through 2011-12, the PFBC continued to make progress in several areas addressed in our prior audit.” She
provided an overview of the audit’s findings, including:
• Total Fish Fund and Boat Fund revenues have increased by 7.8 percent over the last three years.
• The PFBC has made efforts to contain the growth in spending.
• The Boat Fund reserve balance is projected to become insufficient to meet cash flow needs by FY 2016-17.
• The Commission implemented many of the objectives of its July 2012-June 2015 Strategic Plan but due to funding issues
it is developing a new plan for adoption in 2014.
• The Commission has largely implemented the Legislative Budget and Finance Committee's recommendations from the
2010 report.
• The Commission implemented reorganization in 2012 to address identified needs.
• Fishing license sales decreased in 2010 and 2011 but have increased by 5.5 percent for resident licenses sold in 2012.
Berger said the audit recommends the Commission proceed with its efforts to streamline its strategic plan to focus on
core functions and conduct a review of its new organizational structure at the end of FY 2013-14 to determine whether the
goals identified for change have been achieved. She also explained that the audit recommends that the General Assembly
consider amendments to the Recreational Use of Land and Water Act to clarify and broaden the scope of legal protection of
landowners who make land and water areas on their property available for public recreational purposes.
Dr. Timothy Schaeffer, Director of the Commission’s Policy and Planning Office, commented that the audit supports
the Commission’s own internal assessment and noted the commission has made significant progress in implementing
the objectives of the plan. He said the audit also placed a heavy emphasis on the Commission’s financial position and
acknowledges that the Commission is in the process of revising its strategic plan to reflect new fiscal realities such as
health care costs, retirement benefits, and other personnel obligations beyond the Commission’s control while also dealing
with the increasing costs of doing business that faces other agencies and businesses. Schaeffer offered an overview of the
Commission’s efforts to secure funding through fishing licenses. He attributed the sustained growth in the number of licenses
purchased to numerous marketing initiatives. Schaeffer assured the committee members that seeking and sustaining more
funding streams will continue to be a top priority for the Commission. He said, “The General Assembly has the opportunity to
take a historic step in this direction with Senate Bill 1.” Schaeffer explained that under current law the Commission secures a
refund of 12 cents per gallon of the state Liquid Fuel Tax paid on gasoline for the operation of motor boats and water crafts.
He said that over the past ten years the Commission has received an average of $1.9 million per year from that source.
According to Schaeffer, under Senate Bill 1, this same type of formula would apply to the Oil Company Franchise Tax and
could generate an additional $3.8 million to $6.4 million over the next five fiscal years.
Sen. Wozniak wanted to know how Pennsylvania’s fishing license fees compare to other states. Berger said the license fee
for a Pennsylvania resident is $21 and for a nonresident it is $51.00. She explained that cost of resident licenses range from
$5 in Hawaii to $45.93 in California and the cost for nonresident licenses range from $20 in Delaware to $145 in Alaska.
Schaeffer pointed out that the PFBC is self-sustaining while similar agencies in other states receive moneys from their
states’ general fund.
Sen. Brewster asked how dependent the Commission’s strategic plan is on the passage of Senate Bill 1. Schaeffer explained
that the Commission spends approximately $50 million per year. He said Senate Bill 1 would give the Commission an
infusion of potentially $3.6 million to $6.5 million in the first fiscal year. Schaeffer also explained that the infusion would allow
the Commission to concentrate on the repair of several high hazard dams.
Chairman Mensch asked if discounted licenses for veterans and other similar discounts help to increase sales. Schaeffer
said he did not know but added that any reduction in a license fee does affect the bottom line.
The performance audit was unanimously approved.