General Assembly

While the state House returned to Harrisburg in September with the goal of finalizing the remaining details of the FY24 budget. Much work remained to be done on the necessary code bills that would allow $1.1 billion in funding to flow to schools, mental health services, grant programs for homeowners, and more. When the House was in session the week of October 2, they finally passed several code bills to advance the budget toward the finish line. The bills now head to the state Senate.

Putting the spotlight on the Film Tax Credit, the tax code legislation – HB 1219 – did pass the House by a vote of 102-101 on Tuesday, October 3. Included in the legislation were several changes to the Film Tax Credit program: it increased the annual limit from $100 million to $150 million; removed a section limiting the increase in tax credits available for the Film Production Tax Credit; provides for an additional tax credit of 5% for certain qualified taxpayers; adds additional eligibility criteria related to PA producers and women-owned and minority-owned businesses, and designates the greater of 10% or $5 million of the available tax credit for PA producers.

These changes can be found in the text of HB 1219 beginning on page 39, line 39.

As with all the other code bills that the House passed this week, the tax code language was not drafted in conjunction with the Senate Republican Caucus, so the fate of the bill is uncertain. There is significant push back regarding certain aspects of the tax code bill, like combined reporting. Both the House and Senate return to voting session on Monday, October 16.

 

Shapiro Administration

Governor Josh Shapiro made several important announcements throughout September, including the crafting of a new statewide economic development plan, automatic voter registration for voters who visit PennDOT, and an executive order intended to help prepare the commonwealth to incorporate generative artificial intelligence into government operations.

Toward the end of September, Governor Shapiro spoke at the New Hampshire Democratic Party’s annual convention in support of President Joe Biden — a visit that has prompted rumors about Shapiro’s potential presidential ambitions. During his speech, Governor Shapiro called for political action on issues like abortion, climate change, and voting rights.

September also marked the first high-profile departure from Governor Shapiro’s cabinet, as Secretary of Legislative Affairs Mike Vereb abruptly resigned amid allegations of sexual harassment. Governor Shapiro has since appointed senior advisor Thomas Yablonski Jr. to the position.

2023 Elections

State House Special Election

On October 2, Lindsay Powell was sworn in as state Representative of the 21st District, making official the results of a September 19 special election that tipped the balance of power in the state House back to Democrats. The special election was held to replace former Representative Sara Innamorato, who resigned in August to focus on her campaign for Allegheny County executive.

State Supreme Court Election

With about a month to be until the November elections, the Democratic Legislative Campaign Committee (DLCC) announced that it will be investing six figures into the campaign to fill the Pennsylvania Supreme Court vacancy left by the passing of Chief Justice Max Baer last year. The race between Carolyn Carluccio and Dan McCaffrey will have lasting implications for court decisions on voting issues and other election cases.

Philadelphia Mayoral Election

September brought news that Democratic mayoral nominee Cherelle Parker and Republican nominee David Oh will be participating in a debate on October 26 on KYWNewsradio. Parker, who is heavily favored to win in November and continues to outraise her opponent, had previously indicated that she would not be participating in a debate during the general election cycle.

Philadelphia City Council Election

An increasing number of Philadelphia Democratic officials have chosen to endorse Working Families Party (WFP) City Council candidates, incumbent Councilmember Kendra Brooks and pastor Nicolas O’Rourke, despite threats from Democratic City Committee Chair Bob Brady to have the ward leader and committee members replaced ahead of the November 7 general election. Philadelphia’s Home Rule Charter requires that two of the seven at-large seats on Council be reserved for members of a minority party, which has historically meant Republicans. Of the minority-party candidates running, WFP candidates have been outraising their Republican opponents, and they’ve received endorsements from high-profile Democrats including Governor Shapiro and U.S. Senator Fetterman.

Meanwhile, in the Far Northeast, longtime District 10 Councilmember Brian O’Neill — currently the only Republican serving on City Council — is facing a serious challenge from Democrat and union leader Gary Masino. A win for Councilmember Brooks, Nicolas O’Rourke, and Gary Masino would be historic, as it would mean there would be no Republicans serving on City Council.

On October 4, the Philadelphia Building & Construction Trades Council announced its endorsement of four Democrats — Nina Ahmad and incumbents Isaiah Thomas, Katherine Gilmore Richardson, and Jim Harrity — and Republican Jim Hasher for City Council, due to his support of the proposed 76ers arena in Center City.

Allegheny County Executive Election

The end of September and beginning of October has seen Democrat Sara Innamorato and Republican Joe Rockey, both candidates for Allegheny County Executive, face off twice in televised debates, with topics ranging from the local economy, jobs, and tax policy to public safety, crime, and the justice system. The debates coincided with the airing of Innamorato’s first television ads of the general election season. Rockey has been airing ads since September. Innamorato is heavily favored to win in November.

Allegheny County District Attorney Election

The Allegheny County’ District Attorney race has attracted an unusual level of national attention, with dollars flowing into the race from groups affiliated with high-profile figures like George Soros and Andrew Yang. Stephen Zappala Jr. — a former Democrat running for re-election to the position as a Republican — launched negative campaign ads in mid-September attacking opponent and former chief public defender Matt Dugan’s stance on crime and public safety.

2024 Elections

Presidential Primary

On October 5, the state House passed legislation that would move Pennsylvania’s 2024 primary date from April 23 — which would conflict with the Jewish holiday of Passover — to April 2. The 102-100 vote occurred entirely along party lines, with Republicans arguing that a March 19 primary — which was approved by the state Senate in September but failed in the House after being heavily amended by the State Government Committee to include changes to voter identification requirements and mail-in voting rules — would give Pennsylvania voters more of a say in deciding presidential nominees. Election officials have expressed concerns about the logistical challenges of moving the primary date up. The bill now heads back to the Republican-controlled Senate, where its future is uncertain.

In other 2024 presidential race news, a recent Quinnipiac University poll shows President Joe Biden and former President Donald Trump virtually tied in Pennsylvania, setting up what will surely be a contentious rematch in the battleground state. In an early attempt to appeal to Pennsylvania voters, President Biden has begun airing television ads emphasizing his Scranton roots.

U.S. House Election

• Former WGAL News 8 news anchor Janelle Stelson has announced her candidacy for the Democratic nomination for Pennsylvania’s 10th Congressional District, a seat currently held by Republican Representative Scott Perry.
• Bhavini Patel has announced her candidacy for the Democratic nomination for Pennsylvania’s 12th District, challenging Democratic U.S. Representative Summer Lee, who has already launched her re-election campaign.
• Republican Tim Kramer has announced his candidacy for Pennsylvania’s 16th Congressional District, a seat currently held by Democratic Representative Mike Kelly.

U.S. Senate Election

Republican David McCormick finally announced his campaign for U.S. Senate in late September after months of building anticipation. As expected, he has been endorsed by the Pennsylvania Republican Party. While McCormick is running to unseat incumbent Senator Bob Casey, attacks against U.S. Senator John Fetterman — who was elected during the midterms in 2022 — have reportedly been more motivating for his base.

Pittsburgh-area Democrat Blaine Forkner has also announced that he will be challenging incumbent U.S. Senator Casey in the primary, though Senator Casey is currently expected to prevail.

State Attorney General Election

State Representative Jared Solomon (D-Philadelphia) announced his candidacy for Pennsylvania attorney general in mid-September, becoming the fourth Democratic candidate to join the race. Current Attorney General Michelle Henry, who was appointed by Governor Josh Shapiro to replace himself in the role, has already indicated that she will not run for election to a full term in office.

After a month-long delay, Governor Josh Shapiro has signed the $45.5 billion FY24 budget into law. The bill makes important investments in several key areas, including education, community and economic development, indigent defense, infrastructure, and resources for law enforcement and first responders, among others. While both chambers of the General Assembly had approved a $45.5 billion spending plan by early July, the budget was not able to be officially finalized until Senate President Pro Tempore Kim Ward (R-Westmoreland) called the chamber back into session for Thursday, August 3, in order to avoid further delays in critical state education and human services payments.

The primary sticking point was a $100 million line item for a controversial school voucher program — dubbed “lifeline scholarships” by proponents — which Governor Shapiro agreed to veto in order to persuade House Democrats to pass the budget back on July 5, despite having worked across the aisle to help create it. This week, Governor Shapiro honored that line-item veto commitment and also agreed to reserve a $1.1 billion portion of the spending plan for the time being for continued negotiations among lawmakers. This means funding will be delayed for mental health grants, public defenders’ offices, a home repairs program, “Level Up” funds targeted to the state’s poorest schools, and hospital emergency relief.

Legislative leaders acknowledged the need to continue negotiations on budget-related “code” bills as these pieces of legislation specifically dictate how money in certain general fund line items are distributed. Code bills sometimes also include policy changes that are negotiated by all four caucuses and the Governor. There is no timeline for when these budget-related bills might pass. Historically, changes to the Entertainment Production Tax Credit program have taken place in a budget-related code. This is the case for both funding changes and programmatic changes. So while some of the FY 2023-24 has been completed, our advocacy to increase the film tax credit continues as decisions on this program have not yet been finalize.

In other news…Democratic state Representative Sara Innamorato resigned from the PA House on Wednesday, July 19, in order to focus on her campaign for Allegheny County executive, which she is favored to win. This marks the third time this year that House Democrats will be forced to defend their majority, as the chamber is now tied once again at 101-101. Lindsay Powell has been selected as the Democratic nominee to fill the now-vacant House District 21 seat for a special election that will take place on Tuesday, September 19, before the General Assembly reconvenes in the fall. If elected, Powell would be the first Black woman to represent the district. The Allegheny County Republican Committee selected Erin Connolly Autenreith as their nominee for the special election. Autenreith, of Shaler Township, is a Realtor who also chairs the Shaler Township Republican Committee. 

Below is the fall session schedule that has been announced by both chambers.

Senate

September 18, 19, 20
October 2, 3, 4, 16, 17, 18, 23, 24, 25
November 13, 14, 15
December 11, 12, 13

House

September 26, 27
October 2, 3, 4, 16, 17, 18, 30, 31
November 1, 13, 14, 15

General Assembly

With Republican Michael Stender’s defeat of Democrat Trevor Finn and Libertarian Elijah Scretching in House District 108 in Central Pennsylvania and Democrat Heather Boyd’s victory over Republican Katie Ford in House District 163 in Delaware County, special elections have once again secured Democratic control of the chamber. Over the course of the campaigns, Pennsylvania Democrats spent more than $1 million in hopes of defending their narrow majority. The races have earned national attention, with President Joe Biden endorsing Democrat Heather Boyd.

And there are likely even more special elections on the horizon, as current state Representatives Sara Innamorato and John Galloway have good chances of winning their November general elections for Allegheny County Executive and district court judge, respectively.

While the special elections stole much of the focus at the beginning of the month, both chambers of the General Assembly have been hard at work passing legislation. Democrats in the state House have taken the opportunity to flex their progressive muscles by passing an expansion of protections for LGBTQ+ people, a guarantee to the right to organized labor and collective bargaining in Pennsylvania’s constitution, a “red flag” bill that would allow law enforcement to temporarily seize firearms from a person deemed an immediate threat to themselves or others and a bill to close the “gun show loophole,” and a bill to broaden the definition of “ethnic intimidation.” Meanwhile, the Republican-controlled Senate passed legislation to ban safe-injection sites, among other legislation. Bills passed in each chamber likely face uphill battles in the other chamber.

The state House also now has a new caucus — the Pennsylvania Progressive Caucus is comprised of a group of 34 state representatives seeking to halt political corruption and curb the impact of corporate interests on legislation.

Looking ahead to June, the Legislature will turn their attention to budget negotiations in order to pass a FY 2023-24 general fund budget before the end of the Commonwealth’s fiscal year on June 30^th. Today, the PA Department of Revenue announced that fiscal year-to-date general fund collections are $1.2 billion, or 2.9 percent, above estimate. 

Governor Shapiro

Governor Josh Shapiro kicked off the month by signing the first bill of his administration — a bill that requires insurers to cover preventative breast and ovarian cancer screenings to women who are considered high-risk at no additional cost.

May also saw the confirmation of several of Governor Shapiro’s cabinet nominees, including Mike Carroll as transportation secretary, Rick Siger as community and economic development secretary, Jason Kavulich as aging secretary, Russell Redding as secretary of agriculture. Governor Shapiro’s pick for secretary of state, Al Schmidt, is still undergoing a multi-hearing confirmation process.

PAFIA Engagement

We continue to work with the four film industry caucus chairs in our efforts to have the film production tax credit increased to $300 million in next year’s budget. As the pace of the legislative session picks up, our outreach to legislators and staff will become more nuisance as we filter through all the “noise” in Harrisburg to ensure this budget request is top of mind. The Cozen team will be bringing David Haddad to Harrisburg for some targeted meetings and we will remain engaged with other industry stakeholders to ensure a unified advocacy effort.

The state House kicked off the month of March by finally passing its session operating rules, which had been delayed due to the chamber leadership dispute that was ultimately resolved by three February special elections in Allegheny County. The new rules included procedural reforms that grant the chamber’s minority party, currently Republicans, more agency in the legislative process, a rules change that had been long called for by independent watchdogs to facilitate the body’s responsiveness to constituent needs.

However, this accomplishment in the House was quickly overshadowed by the allegations of sexual harassment levied against Democratic State Representative Mike Zabel (Delaware) and his subsequent resignation in mid-March. A lobbyist for Service Employees International Union BJ32 was the first to publicly speak out about Rep. Zabel’s inappropriate behavior, after which at least three others — including a current State Representative — came forward with similar claims.

Now, House Democrats maintain a narrow 101-100 majority heading into two May 16 special elections. Democratic educator and former school board director Heather Boyd will face Republican Army veteran and special education therapist Kathleen Ford in the race for former Rep. Zabel’s seat in House District 163, while Democratic Montour County Commissioner Trevor Finn and Republican Shikellamy director Mike Stender will be competing for now State Senator Lynda Culver Schlehel’s former seat in House District 108.

On March 7, Governor Josh Shapiro delivered the first budget address of his administration, highlighting his goal of bipartisan collaboration in Harrisburg. Priorities put forth in the $44.4 billion proposed budget include funding for new mental health, public safety, and workforce development programs. A transcript of the address in its entirety can be read here. Governor Shapiro did not propose any changes (ie no funding increase) to the Film Production Tax Credit in his budget.

Since the Legislature adjourned session on March 8, both the House and Senate Appropriations Committees have been holding budget hearings with various state agencies and departments to dive deeper into Governor Shapiro’s proposed budget. These budget hearings continue into mid-April with the House and Senate both returning to voting session on Monday, April 24.

Looking ahead to May, the Film Industry Legislative Reception is scheduled for Monday, May 1 from 4pm-6pm in the state Capitol’s East Wing Rotunda. Additional information about the reception will be shared soon.

The month of February began with much anticipation for the three February 7 special elections in Allegheny County that would ultimately determine control of the PA State House, thus ending a weeks-long standstill in the chamber — and by extension, the entire legislative branch. During this time, House Speaker Mark Rozzi continued his statewide listening tour to solicit feedback from constituents throughout Pennsylvania, many of whom expressed frustration and disappointment with the partisan gridlock in Harrisburg.

As early campaign finance reports indicated, Democratic candidates won all three special elections, making campaign and party staffer Joe McAndrew, attorney Abigail Salisbury, and McKeesport political fixture Matt Gergely the state’s newest House Representatives in Districts 32, 34, and 35, respectively. The three representatives filled seat vacancies left by the late longtime state Representative Tony DeLuca, U.S. Representative Summer Lee, and Lieutenant Governor Austin Davis. These elections gave Democrats a one-vote majority in the House for the first time in 12 years. Representatives McAndrew, Salisbury, and Gergely were officially sworn in on February 21.

On February 24, the state House approved legislation in Special Session that had been at the top of House Speaker Mark Rozzi’s priority list and would open a two-year window for sexual abuse victims whose statute of limitations has expired to file lawsuits. A few days later, on February 28, Speaker Rozzi officially stepped down as Speaker, paving the way for the House to elect Representative Joanna McClinton to the House speakership in a 102-99 vote. She is the first female and second Black person to serve in the role. Shortly after her swearing in, House Democrats formally announced their leadership team:

• Rep. Matt Bradford (Montgomery): Majority Leader
• Rep. Jordan Harris (Philadelphia): Appropriations Chair
• Rep. Dan Miller (Allegheny): Whip
• Rep. Leanne Krueger (Delaware): Caucus Administrator
• Rep. Tina Davis (Bucks): Caucus Secretary
• Rep. Mike Schlossberg (Lehigh): Caucus Chairman
• Rep. Ryan Bizzaro (Erie): Policy Chairman

On February 27, Lynda Schlegel Culver resigned her position in the House in order to be sworn in as the new Senator for District 27 — increasing both Senate Republicans’ majority and House Republicans’ minority. Senator Culver fills a vacancy left by former Senator John Gordner, who left his seat to take on a new role in the office of Senate President Pro Tempore Kim Ward. A special election to fill Senator Culver’s former seat in the House has not yet been called.

On March 1, the House finally passed its operating rules for the two-year term. The rules are a bit different than previous terms as changes include:

Looking ahead to March, Governor Josh Shapiro will be giving his first budget address next week. He is expected to touch on funding for local communities — particularly the revitalization of Main Streets throughout the commonwealth — as well as investment in child care. The Legislature will be in session on March 7, 8, and 9 before recessing for the remainder of the month to hold Appropriations Committee hearings on Shapiro’s proposed budget. Links to the House and Senate budget hearings schedules can be found online.

The PA House continues to be at standstill since the Democrats and Republicans were not able to agree to operating rules for the chamber. As such no legislative standing committees can be established and bills cannot officially be introduced. Speaker Mark Rozzi (D-Berks) has embarked on a statewide listening tour to meet with the public and good government groups to address the gridlock and invited members of the Speaker’s Workgroup to Move Pennsylvania Forward to join him.

Many insiders believe the outcome of the three special elections (House Districts 32, 34 and 35) scheduled for Tuesday, February 7 will finally end the stalemate. With the Commonwealth Court’s ruling this month that all these elections may take place in February, it is anticipated that the Democrats will regain their seated majority in the House. Right now, the House is not set to return to session until Monday, February 27 and a more detailed session schedule for the rest of the spring has yet been released.

In the meantime, the House R’s have basically thrown their hands up in the air and named their standing committee chairs even though the committees have not been set up. A list of those committee chairs can be found here. At least one of the Republican chairs will change soon as Rep Linda Culver, named as the Republican Chair for the House Children and Youth Committee, is the front runner for the state Senate seat vacated by Republican Sen John Gordner’s retirement. The special election for that seat was Tuesday, Jan 31.

The Senate has started the new legislative term in a more conventional manner. Chamber rules have been passed, committee chairs have been named, bills have started to be introduced and the chamber has even voted on a few pieces of legislation. The Senate session schedule has changed a bit due to the pause on the Larry Krasner impeachment proceedings and the lack of legislative action in the House. The updated Senate schedule can be found below.

January            3, 6 (NV), 9, 10, 11, 17, 18
February          27, 28
March              1, 6, 7, 8
April                24, 25, 26
May                 1, 2, 3, 8, 9, 10
June                 5, 6, 7, 19, 20, 21, 22, 23, 26, 27, 28, 29, 30

Governor Josh Shapiro and Lt. Governor Austin Davis have both sworn into office. Members of Shapiro’s cabinet who will require Senate confirmation have all been official nominated for their respective offices so that lengthy process can begin. Attached to this email is a list of Shapiro’s executive leadership team along with brief biographies. 

Governor Shapiro has signed several new executive orders, most of which follow up on promises made during the campaign.

• January 18 – Elimination of college degree requirement for nearly 65,000 state jobs – article
• January 20 – Implementation of a 3-part ethics package for employees under the Governor’s jurisdiction – new article
• January 24 - Creating the Office of Transformation and Opportunity – press release

Governor Shapiro continues to build out his team — primarily at the deputy secretary level, etc., — however, we do know that Shapiro will present his first ever budget address on Tuesday, March 7.

The month of October saw a flurry of legislative activity as the end of the 2021-22 legislative session draws to an end on November 30. Most bills that saw action in Harrisburg this month were issues that both political parties could agree on. It was very challenging to move legislation that had opposition, and bills that were contentious fell off the voting calendar and will need to wait until next session to be addressed.

The House is scheduled to return to session November 14-16, and the Senate is scheduled to return to session on November 15 to close out the current legislative term. While we had anticipated that the brief legislative schedule during “sine die” (the time period after the General Election and before the end of session on November 30) would be focused only on caucus leadership elections, House leadership has indicated that they will be voting on a few bills. While on its own merit, passing bills during sine die that are before the House on a concurrence vote is relatively harmless, it can be a dicey time if the Republican majority tries to pass more partisan legislation. We will be sure to keep you posted.

Looking ahead to the November 8^th general election, current Democratic Attorney General Josh Shapiro remains consistently ahead of his Republican gubernatorial opponent and current state senator Doug Mastriano in the polls. Shapiro has raised significantly more money this year (nearly $52 million) compared to Mastriano (nearly $6 million) as the race to be the next Governor is breaking state fundraising records. All 203 state House members and 25 of the 50 state Senate members are up for reelection next week. Based off of retirements, primary election results, and other circumstances, we already know that nearly 20% of the PA House membership will be newly elected on November 8^th. In the PA Senate, we know that roughly 25% of the 25 members up for re-election will not be returning to the chamber next session. This turnover of rank and file legislators, in addition to the fact that caucus leadership teams and dozens of legislative standing committees will have new chairpersons, means Harrisburg will look a lot different in 2023.

To close, we wanted to share the below public service announcement as it relates to Election Day next week. While every election is critical, there are several important seats on the ballot this year, and nearly one million Pennsylvanians have already cast mail-in ballots for U.S. Senate, Governor, Congress, state House and state Senate.

Here’s what you need to know:

Mail-In Ballots: The deadline to request a mail-in or absentee ballot was November 1, 2022. If you requested a ballot prior to that date and have not yet returned it, the Pennsylvania Department of State is now urging you to hand deliver your ballot to your county election office, designated drop box, or drop-off site. Mail-in and absentee ballots must be received no later than 8:00 P.M. on Tuesday, November 8. You can find your county election office, drop box, and drop-off sites here.

Election Day: Polls are open on Tuesday, November 8, from 7:00 A.M. until 8:00 P.M. Find your polling location here.

Click here for more information including what to do if you did not return your mail-in or absentee ballot.

For more information about Pennsylvania’s elections, click here.

The makeup of the PA Legislative and Executive Branches will look very different in 2023. Not only will PA have a new Governor (current Democratic Attorney General Josh Shapiro is running against current Republican State Senator Doug Mastriano) but, on November 8, 2022, all 203 House seats are up for re-election and 25 of the 50 Senate seats are up for re-election. After retirements and primary election results, we already know at least 51 members of the Legislature will not be returning to Harrisburg in 2023. These members include legislators from all four caucuses including those in caucus leadership, committee chairs and rank and file members. When also taking into account the results of November General Election, it is difficult to fully predict the political landscape for 2023. As a result, we will need to be nimble when setting legislative strategy for next year.

While the 2021-2022 legislative session runs until November 30^th, there are very few session days scheduled between now and the end of the term. The House will be in session for 12 days, with 9 of them taking place before the November election. The Senate will be in session for 10 days, also with 9 of them taking place before the November election. See below for a listing of each chamber’s remaining session schedule.

When the House and Senate briefly return to session the week of November 14^th, we expect that leadership elections for 2023-24 will take place in all four caucuses. So while we will know the new leadership teams in both chambers shortly after the General Election, we likely will not know committee chairs and committee assignments until December, and possibly not until January.  

FALL 2022 HOUSE SESSION SCHEDULE

September    12, 13, 14, 19, 20, 21

October        24, 25, 26

November    14, 15, 16

 

FALL 2022 SENATE SESSION SCHEDULE 

September    19, 20, 21

October         17, 18, 19, 24, 25, 26

November     15

A warm hello to our friends in film.

July 2022 was a huge month for the film industry in Pennsylvania!!!! Given the craziness of everyday life, it is important to take a moment and celebrate our recent success of increasing the film tax credit by $30 million, from $70 million per fiscal year to $100 million per fiscal year. This increase would not have happened without all of your support over the last few years. Cozen O’Connor Public Strategies would like to thank David Haddad, members of the PAFIA board, and PAFIA’s general membership for everyone’s willingness to take time out of your busy schedules to advocate for the film industry. We also want to thank Senators Camera Bartolotta and Jay Costa and Representatives K.C. Tomlinson and Joe Ciresi for their leadership on this issue. Their email addresses are listed below. Please consider sending them a brief thank you email recognizing their effort and hard work.

A warm hello to our friends in film.

July 2022 was a huge month for the film industry in Pennsylvania!!!! Given the craziness of everyday life, it is important to take a moment and celebrate our recent success of increasing the film tax credit by $30 million, from $70 million per fiscal year to $100 million per fiscal year. This increase would not have happened without all of your support over the last few years. Cozen O’Connor Public Strategies would like to thank David Haddad, members of the PAFIA board, and PAFIA’s general membership for everyone’s willingness to take time out of your busy schedules to advocate for the film industry. We also want to thank Senators Camera Bartolotta and Jay Costa and Representatives K.C. Tomlinson and Joe Ciresi for their leadership on this issue. Their email addresses are listed below. Please consider sending them a brief thank you email recognizing their effort and hard work.

Senator Camera Bartolotta – cbartolotta@pasen.gov

Senator Jay Costa – costa@pasenate.com

Representative K.C. Tomlinson – ktomlinson@pahousegop.com

Representative Joe Ciresi – jciresi@pahouse.net

Harrisburg is relatively quiet right now as the Legislature is currently in summer recess. The PA House and PA Senate do not return to voting session until mid-September. Legislators will be spending a lot of time in their districts campaigning as the November 8^th General Election draws closer.

We hope all of you are having a wonderful summer and don’t forget to take the time to celebrate the enormous victory we achieved together earlier this month!!!!

Jim & Beth

On Wednesday, April 20th, the Senate Finance Committee held a public hearing on Pennsylvania’s film tax credit program at the Omni William Penn Hotel in downtown Pittsburgh. Thank you to everyone who took time out of their busy schedules to either attend the hearing in-person or watch online. If you missed the hearing, please check out the Senate Finance Committee’s website here. It will give you access to all the written testimony that was submitted and a link to a recording of the one hour and 20 minute hearing.

We were thrilled with the number of legislators in attendance at the hearing – Senate Finance Committee Republican Chairman Scott Hutchinson and Senate Finance Committee Democratic Chairman Wayne Fontana, Senator Camera Bartolotta (R), Senator Judy Ward (R), Senator Devlin Robinson (R), and Senator Jay Costa (D). As you may recall, Senators Bartolotta and Costa are the Senate co-chairs of the bi-partisan Legislative Film Caucus.

Presenting testimony to the Senate Finance Committee was a group of film and hospitality panelists. All of them shared personal stories about why they love their jobs, why they want to live and work in PA, and why it is important for the Commonwealth of PA to support, and grow,  the film tax credit program. The legislators greatly appreciated the panelists’ real life stories about how each of them found their place in the film industry, how they want to grow their businesses and support others entering the film and TV workforce, and the immense proud they all share in having one of the over 30,000 full time jobs generated or impacted by the film industry.

While the film industry has generated over $5.2 billion in total economic activity since 2007, the impact of the industry is so much greater than what can be captured in an economic impact study. Our sincere thanks go out to those that participated in the hearing – Gregory Edwards (Executive Committee Member, IASTE Local 489 and Dolly Grip), Lela Checco (Crafty Craft Services, LLC), Keith Frank (Vice President, Teamsters Local 249), Brick Brickman (Set Painter), Trey Matheu (Managing Director, Nemocolin Woodlands Resort), and Dawn Keezer (Director, Pittsburgh Film Office). The wonderful testimony presented yesterday ensured that the legislators recognized and truly saw the faces of all the men and women working in the film industry (and dare I say they saw the hearts of each of the workers as well).

After such a successful hearing, we must ride the wave of enthusiasm and support for the film tax credit program. We are encouraging all of you to reach out to your state House and state Senate member and ask them to increase the film tax credit from $70 million to $125 million when they pass a budget in Harrisburg this June. You can find the name and contact information for your local legislators using the website found here.

We are also in the process of finalizing a date (tentatively Monday, May 23) and time for a reception in Harrisburg where film and TV industry stakeholders, like yourself, can mingle in-person with legislators and share your personal stories as to why increasing the funding for the film tax credit program is so important. We will share details about this receptions as they become available.

Lastly, we wanted to share the Post Gazette’s coverage of the hearing. We thought the article captured the essence of the hearing nicely. The text of the article can be found below or via the link here.

Pittsburgh-area film workers praise Pa.’s film tax credit, ask for increase before state Senate panel

  

APR 20, 2022

 

Pittsburgh Post Gazette

After ABC’s “The Bachelor” filmed at Nemacolin Woodlands Resort in Farmington, the hotel saw an 18% increase in net revenue over its highest-ever earnings.

While Tom Hanks filmed on a street in Bellevue for his upcoming movie “A Man Called Otto,” 20 nearby homes got repainted free of charge.

As crews worked 12-hour days on movies like “The Pale Blue Eye” set to come out this year, staff spent $1.7 million on snacks and drinks locally to keep them going.

These are all recent examples of the outward impact Pennsylvania’s film industry has on its broader economy, large and small, according to local film industry leaders who spoke before a panel of state senators on Wednesday.

Several southwestern Pennsylvania lawmakers gathered in Pittsburgh with the film industry professionals to discuss the success of the state’s Film Tax Credit Program — and its unpredictability.

Since its inception, the tax credit has brought more than $2 billion into the state, with 195 TV shows and movies filmed locally, according to the Pittsburgh Film Office.

Pennsylvania is one of 42 states that offers some form of a film tax incentive to draw filmmakers to their regions. State Sen. Camera Bartolotta, R-Monongahela, introduced legislation to increase the tax credit from $70 million to $125 million, but it was cut out of budget negotiations last year. The bipartisan lawmakers from the Pittsburgh region said they hope they can negotiate an increase as part of this year’s budget.

There is no lack of interest in filming in Western Pennsylvania, said Dawn Keezer, the Pittsburgh Film Office director. Instead, the tax credit gets used up so quickly that local film companies need to turn big-time films or TV series away.

“We have half a billion dollars worth of work that want to be here,” Ms. Keezer told the Senate panel.

Plus, Pennsylvania has two movie-making hubs with Philadelphia across the state, making it stand out among others — though that means the two regions need to share the tax credits, Ms. Keezer added.

“It’s Atlanta in Georgia, and Chicago in Illinois,” Ms. Keezer said about other popular places to shoot films in the U.S. “In Pennsylvania, it’s Pittsburgh and Philly, so the credit is underfunded and oversubscribed.”

Pittsburgh-area film crews have gotten “really good” at painting the city to look like New York, offering a smaller environment where crews can actually close down the streets, Ms. Keezer said. Its proximity to mountains and rural communities also offers filmmakers a desired location to shoot — though it can be hard for them to shoot movies based in beaches or deserts.

Last year, crime-thriller TV series “Mayor of Kingstown” wanted to film in southwestern Pennsylvania, Ms. Keezer said. But they didn’t have enough tax credits left to get them to film there, so they chose to film in Canada instead.

This year, “Mayor of Kingstown” will film in Pittsburgh for its second season.

“We’re thrilled about that, but we have to turn away more work than we ever see,” Ms. Keezer added.

Ms. Bartolotta said she hopes to increase the tax credit this year, and add some insurance that the tax credit will stay steady for the next three-plus years.

“You’re not going to build studios.. All of those people moving into Pennsylvania, that’s not going to happen if they think this is going to be a one-year experience,” Ms. Bartolotta added.

Several panelists from local unions said the film jobs produce consistent, comfortable wages for their employees.

Keith Frank, the vice president of Teamsters Local 249, tried to dispel the myth that these jobs are not sustainable. Most of his union members will work seven to nine months out of the year, but will work 3,000 hours during that time — much more than the 2,080 traditional 9-5 jobs offer, Mr. Frank said.

It’s when this tax credit isn’t made available — like in 2017 — that its workers lose jobs, he added.

Gillian McGoldrick; gmcgoldrick@post-gazette.com 

First Published April 20, 2022, 4:04pm