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Commissioner Tom Balya Mayors' Forum Minutes
Saturday, April 4, 2005, 9:00 a.m.
Clementine's Restaurant,
Lower Burrell

Attending Mayors:
John Campbell, Arnold
Karl Eisaman, Greensburg
Fran Jennings, Delmont
James Gallucci, West Leechburg
Don Kinosz, Lower Burrell
Frank Link, New Kensington
Jerry Lucia, Mt. Pleasant
James Roman, South Greensburg
Everett Saxton, Bolivar
Corey Tragesser, Sutersville

Guest Speaker:
Allen Kukovich, Southwest Regional Director
Governor Edward G. Rendell

Welcome by Commissioner Balya: Commissioner Balya extended his welcome to the gathering of mayors, noting that this was the first such forum held in the Alle-Kiski Valley. Commissioner Balya noted that the challenges elected leaders face in the Valley are similar to those throughout the county. The commissioner then introduced Allen Kukovich, the southwest regional director for Governor Ed Rendell. Commissioner Balya praised the governor for understanding the challenges facing cities and boroughs -- a skill he honed as mayor of Philadelphia -- while also saying that Kukovich, a former state legislator from Westmoreland County, will be a great asset to the county in his role with the governor.

Guest Speaker: Allen Kukovich began his remarks by stating that he is proud to be serving Governor Rendell, who has often been referred to as the "Mayor of Pennsylvania". He then explained his position and listed some of his priorities, beginning with his goal of keeping state economic stimulus dollars flowing into the county. Kukovich said that more funding for infrastructure and economic development has come to the county in the last 18 months than the total of the previous 10 years, including grants for water and sewage projects and through programs like "Hometown Streets". In his capacity as regional director, Kukovich works throughout 16 counties in the region. He has "senior staff" status, meaning he attends Cabinet meetings, and typically spends one day per week in the state capital. Kukovich is also a voting member of the Southwest Pennsylvania Commission, the region's planning organization (as is Commissioner Balya), which sets transportation priorities for the 10-county area.

Kukovich then talked about some of the potential challenges facing the state's budget, as a result of President Bush's federal budget proposal. The president has proposed completely eliminating Community Development Block Grants (CDBG). This program is a lifeline for many county communities, particularly cities, to help improve conditions. Kukovich urged the mayors to speak to their senators and congressman about this issue to ensure that this important program is not cut. He also noted that Governor Rendell is working aggressively with the National Governors' Conference to fight this proposed cut. (Note: Westmoreland County stands to lose $5 million if this program is eliminated).

Kukovich then talked about the Act 72 school property tax relief program that is tied to gaming revenue from the recently enacted slots legislation. The program seeks to first help those homeowners who are on fixed incomes, such as senior citizens. Kukovich noted that school property taxes have increased, on average, 58 percent over the past decade, while Social Security recipients have received, on average, a three percent annual increase during this same period. Kukovich mentioned the large financial discrepancies between urban and rural districts, offering that the "quality of education should not rely on zip codes".

Kukovich explained that Pennsylvanians spend $3 billion annually outside the state to gamble and that the goal of the slots legislation is to capture some of this revenue. The governor's plan calls for 34 percent of the estimated $1 billion in annual revenue to be used for school property tax relief and five percent for economic development, with the remaining monies going toward various causes such as volunteer fire departments, the horse breeding industry, and gambling addiction treatment. Kukovich said that, on average, property owners will enjoy a 23 percent reduction in their property taxes, with those in some poorer districts experiencing up to a 50 percent reduction. School districts have until May 30, 2005, to opt into the program. To date, only four of the 501 have done so. Kukovich blamed a lot of this "foot-dragging" on misinformation being spread on this issue. He also forecasted that slots could be up-and-running by next year, mentioning the prospect for locations in the region such as Seven Springs, the Meadowlands, and Nemacolin.

Kukovich next addressed one of Governor Rendell's highest legislative priorities, an environmental initiative called "Growing Greener II". The governor has proposed an $800 million bond issue to fund environmental projects, like abandoned mine reclamation, watershed restoration, and abandoned gas well plugging projects, as well as funding for sewer and water projects. Governor Rendell is seeking to finance the program by increasing fees on toxic emissions and landfill "tipping" fees. The governor is seeking a ballot referendum on this issue for the May primary.

Kukovich concluded his remarks by offering his office's assistance for local governments through such state programs as the Elm Street Program, the Governor's Action Team, and the First Industries Program. Those interested in more information or assistance can contact Allen Kukovich at 412.565.5770 or via e-mail at akukovich@state.pa.us. The address is State Office Building, 14th Floor, 300 Liberty Avenue, Pittsburgh, PA 15222.

A brief question-and-answer session followed that first focused on assistance for retail districts, per a question posed by Mayor Kinosz. Kukovich remarked that the governor views job retention as equally important as job creation, and that a valuable source of help for struggling retail districts are small business development centers, available at both St. Vincent College and the University of Pittsburgh. Mayor Eisaman followed with a question regarding the impact of President Bush's proposed budget on human services. Kukovich said the proposed elimination of federal community service block grants will be crippling to human service agencies and the vulnerable population they serve. He also mentioned that less federal dollars have resulted in the state's proposal to reduce some medical assistance benefits and force families on medical assistance to pay premiums. Federal highway funding also remains a concern, according to Kukovich, with the potential for Pennsylvania to receive 30 percent less than expected in the coming year.

Host Mayor Remarks: Lower Burrell Mayor Don Kinosz began his host remarks by detailing the struggles of his town's retail district, commenting that many store locations "are too little to be big and too big to be little". He also was optimistic about the impact a new mall being constructed nearby would have on the tri-cities, and said he is working with his fellow mayors in the area to determine the best "hook" to get mall shoppers to visit their downtowns.

Kinosz remarked that the borders dividing the tri-cities are disappearing. Lower Burrell, New Kensington, and Arnold have embarked on a successful intergovernmental resource-sharing program to reduce costs and improve efficiency. New Kensington Mayor Frank Link also mentioned that school districts can be a valuable partner with which to share equipment and manpower.

Kinosz also mentioned that his community recently completed its own comprehensive plan. (Note: Westmoreland County adopted a countywide comprehensive plan in December 2004). Noteworthy was that students from the Penn State-New Kensington campus helped complete the plan as part of a class project, performing the data collection. Kinosz offered contact information to the other mayors should they care to use this free student resource: Professor Richard Harnish, 724.334.6735.

Kinosz used the opportunity to speak about the efforts of the Westmoreland County Redevelopment Authority, of which he serves as vice chair. The authority is reevaluating its project selection methods, moving away from sporadic single building projects to larger "impact projects", such as the Lloyd Avenue project in Latrobe and the Seton Hill project in Greensburg's cultural district.

Kinosz closed by distributing to the mayors in attendance copies of Lower Burrell's 50th anniversary commemorative cookbook and complimentary tickets to that day's Strongland Expo Home Show.

Other Business: Commissioner Balya followed with an update on important county projects and initiatives -- the first being the 800-MHz emergency radio project. Commissioner Balya reported that the system is nearly 100 percent complete, with work on tower sites in North Huntingdon, Scottdale, and Monessen almost done. Training is ongoing, but first responders who have been working with the new system are extremely pleased. Commissioner Balya urged the mayors to seek funds for additional radios through the assortment of federal fire grants available, and offered the assistance of the county's Department of Public Safety in this regard (724.600.7300).

Commissioner Balya also informed the mayors that the rectification process for the county's GIS system is expected to be complete by year's end. The system will serve planning, public safety, and tax purposes, and will be a valuable tool in formulating local comprehensive plans.

Commissioner Balya also expressed his concerns with the proposed federal and state budgets, which will have a negative impact on community development and human services -- two keys areas of county government -- and also spoke about new un-funded mandates on county government, such as a new state DNA law that requires prisoners and probationers convicted of certain crimes to have a DNA sample taken -- at the county's expense.

Finally, Commissioner Balya updated the mayors on the county's video conferencing night court system, and talked about how the county is now beginning to explore its uses in Common Pleas Court, which should help reduce costs.

With no further business, the meeting adjourned at approximately 10:30 a.m.

 

 
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