Nearly 2,000 House of Representative staffers pulled down six-figure salaries in 2009, including 43 staffers who earned the maximum $172,500 — or more than three times the median U.S. household income.
Starting salaries on Capitol Hill are still low — many entry-level congressional jobs pay less than $30,000 a year. And many of the most highly paid staffers could make several times the maximum by jumping to lobbying and consulting jobs in the private sector.
But the salary data, compiled for POLITICO by LegiStorm.com, show that it’s possible to make an enviable living in Congress, even without winning an election.
The 43 staffers who maxed out at $172,500 — the salary cap for leadership and committee staffers — include John Lawrence, chief of staff to House Speaker Nancy Pelosi; Paula Nowakowski, the late chief of staff to House Minority Leader John Boehner; and House Parliamentarian John Sullivan. They earned only slightly less than rank-and-file members of Congress, who make $174,000.
All the salary data are part of the public record and are culled from congressional office disbursement reports.
So much for the myth of "public servants" forgoing big money in the private sector to devote themselves to toil for the government.
On March 23, 1775, Patrick Henry delivered an address to the Virginia Provincial Convention in which he is said to have declared, "Give me liberty, or give me death!"
If Patrick Henry were alive today, he probably would have said "Give me liberty, or give me debt!" in response to the trillions of dollars of debt that Barack Obama and Congressional Democrats have piled on the American taxpayer.
For the latest numbers on the National Debt Clock, click here.
Shocking AP Fact Check: Premiums Will Rise Under Obamacare
From a new "Fact Check" by The Associated Press on Obamacare:
Buyers, beware: President Barack Obama says his health care overhaul will lower premiums by double digits, but check the fine print.
Premiums are likely to keep going up even if the health care bill passes, experts say. If cost controls work as advertised, annual increases would level off with time. But don't look for a rollback. Instead, the main reason premiums would be more affordable is that new government tax credits would help cover the cost for millions of people.
I cannot believe Barack Obama, Nancy Pelosi and Harry Reid have been lying to us all this time!
You knew the day was coming. Everybody knew the day was coming. But nobody has done anything about it. Social Security is taking in less money that it pays out. In some circles, that's called bankruptcy. (And since the government has done such a great job with Social Security, why don't we let the feds run health care, too?)
From The Associated Press:
This year, for the first time since the 1980s, when Congress last overhauled Social Security, the retirement program is projected to pay out more in benefits than it collects in taxes — nearly $29 billion more.
Sounds like a good time to start tapping the nest egg. Too bad the federal government already spent that money over the years on other programs, preferring to borrow from Social Security rather than foreign creditors. In return, the Treasury Department issued a stack of IOUs — in the form of Treasury bonds — which are kept in a nondescript office building just down the street from Parkersburg's municipal offices.
Now the government will have to borrow even more money, much of it abroad, to start paying back the IOUs, and the timing couldn't be worse. The government is projected to post a record $1.5 trillion budget deficit this year, followed by trillion dollar deficits for years to come.
There really are two Americas, but the divide is not between rich and poor, black and white, Democrat and Republican.
The gap is between the growing governing elite and the working class paying taxes to support the permanent political class.
From a thought-provoking column by Dr. Mark W. Hendrickson, adjunct faculty member, economist, and contributing scholar with The Center for Vision & Values at Grove City College:
The truly revolutionary American idea of government as the servant of the people may be fading away. Many of today’s so-called “civil servants” are a protected, privileged class. While Middle America struggles through a difficult recession, a lot of government employees have lived on the gravy train.
Here are some facts to buttress that assertion:
Since the recession began in 2008, a period during which approximately eight million private-sector workers lost their jobs and millions more saw their income decline, the number of federal employees is increasing at a 7 percent per-year rate and their income is holding up quite nicely. According to the Cato Institute, the average federal worker’s pay and benefits now approximates $120,000 per year, or roughly double the compensation of the average private-sector employee. Factor out the lavish government fringe benefits and look at salary only, and the civil servant is still far ahead: $71,197 vs. $49,935.
During this recession, the percentage of federal employees earning annual base salaries above $100,000 increased from 14 to 19 percent. The number of Defense Department employees being paid more than $150,000 per year increased from 1,868 to 10,100. Before, the Department of Transportation had one employee with a salary above $170,000, but now has 1,690.
Read the full column by The Center for Vision & Values at Grove City College Web site.
Nebraska, with a population of under 2 million and an annual budget of $18 billion somehow found enough money to lure a Pennsylvania manufacturer(and up to 90 jobs) to the Cornhusker State, yet Pennsylvania, with 12.6 million people and a General Fund budget of $28 billion, couldn't come up with financial incentives to keep the jobs in the Keystone State.
What's wrong with this picture?
Can one of you Ed Rendell lovers out there shed some light on the subject? "Fast Eddie" is always bragging that he's pouring billions of dollars into economic development. How could he allow Nebraska to steal away a manufacturing firm that traces its Pennsylvania roots to the 1920s?
From an article in today's edition of The Mercury about NEAPCO Components moving to Nebraska:
Neapco Components announced Friday it will be phasing out manufacturing at its Pottstown facility over the next 18 to 24 months, eliminating 70 to 90 jobs.
The manufacturing operations from Pottstown will be moving to Beatrice, Neb., said Neapco Executive Vice President and General Manager Keith Sanford.
"Why Nebraska versus Pottstown?" Sanford said. There were "financial incentives (offered) by the state of Nebraska."
Sanford said the move to Nebraska was an obvious business decision.
The first rule of holes - when you find yourself in a hole, stop digging.
Unfortunately, Gov. Ed Rendell never learned that bit of wisdom.
As of the end of February, Rendell has spent $476.7 million more than the state has taken in for the current fiscal year, which ends June 30. That's called a deficit.
Over the past two fiscal years, Rendell has spent $4 billion more than the state took in. That's called a fiscal catastrophe.
The Pennsylvania Department of Revenue reports that Pennsylvania collected $1.5 billion in General Fund revenue in February, which was $102.3 million, or 6.4 percent, less than anticipated.
Fiscal year-to-date General Fund collections total $16 billion, which is $476.7 million, or 2.9 percent, below estimate, according to the revenue department.
For a breakdown of tax revenues collected, follow the link below:
If you're looking for an objective look at spending in Pennsylvania, The Commonwealth Foundation is your best source of information.
The Commonwealth Foundation has released two new analyses of the Pennsylvania State Budget.
Pennsylvania State Budget Overview
* Think the state budget is only $29 billion? You might be surprised to learn that the total Pennsylvania operating budget is $66 billion, or $5,300 for every man, woman, and child.
* Think that the state government has a balanced budget, and therefore doesn't borrow like the federal government? Wrong! Pennsylvania state debt is $42 billion, an increase of 78% since Gov. Rendell took office. The state budget now includes over $1 billion on debt payments alone.
* Have you heard that Gov. Rendell has slashed spending to the bone? In reality, he has increased the General Fund budget by 45%, or $9 billion, since taking office, more than double the rate of inflation.
* Think public schools and welfare are underfunded? Under Gov. Rendell, state spending on K-12 education increased 46%, and on Public Welfare by 68%
Rep. Fattah Proposes New Tax To Pay Down National Debt
What's the Democrats solution to paying down the national debt that they've helped create by spending more money than the government takes in? Raise taxes, of course.
Congressman Chaka Fattah (D-PA) today introduced legislation that calls for a penny on every dollar on transactions in the United States economy to be directed to eliminating America's national debt.
I guess it never occurred to Fattah or any other Democrat to just stop spending or cut taxes to jump-start the economy.
Rendell proposes expansion of state sales tax to cover years of deficit spending
It was classic Ed Rendell today as the governor delivered his eighth -- and final -- budget to the Pennsylvania Legislature. Having run out of things to tax, Rendell proposed expanding the state sales tax to cover more items.
Rendell and his lockstep Democrats in the Legislature have repeatedly opposed expansion of the sales tax to cover services when it was attached to a plan to eliminate property taxes. That's what Republican state Rep. Sam Rohrer has been pushing for years.
But now that Rendell has run out of opportunities to raise other taxes, he needs the expanded sales tax to fund his $29 billion spending plan and pay for years of deficit spending.
Despite running up huge deficits in the past two budgets, Rendell wants to increase state spending by $1.1 billion for the 2010-11 fiscal year, which begins July 1.
Rendell wants to pay for the spending by using $1.1 billion in federal stimulus funds, which may or may not be approved by Congress. (Imagine what will happen to "stimulus" handouts when Republicans take back control of Congress in November.)
And Rendell is leaving with a final "up yours" to the taxpayers of Pennsylvania.
Having presided over a massive expansion of state spending over the past eight years -- $9 billion and counting -- Rendell warned lawmakers that Pennsylvania is facing a "fiscal tsunami" -- a potential $5.6 billion deficit from the 2011 expiration of federal stimulus money and the ticking time bomb of public pension obligations.
It's basic economics. You can't spend what you don't have and Rendell (with the Legislature as his accomplice) has been spending money the state doesn't have. The chickens will come home to roost. Unfortunately for Pennsylvania taxpayers, Rendell will have flown the coop.
Rendell wants to reduce the state sales tax rate from 6 percent to 4 percent, but expand it to more than 70 services currently exempt (lawyer and accountant fees, dry cleaning, for example) and items such as firewood, candy, gum, bottled water, magazinies and "personal hygiene" products. (Groceries, clothing and prescription drugs would remain exempt from the sales tax under Rendell's plan).
Rep. Rohrer has proposed a similar plan, but it would lead to the elimination of the state's onerous property tax. Taxpayers would come out ahead under Rohrer's plan. Rendell simply wants more money from taxpayers to cover up his deficit spending.
The state finished with a $3.25 billion deficit for the 2008-09 fiscal year and is looking at a minimum $500 million deficit for the 2009-10 fiscal year.
In addition to expanding the sales tax, Rendell wants to extend the tobacco tax to include cigars and smokeless tobacco products and enact a new severance tax on natural gas extraction.
Will any of these taxes pass? Rendell is not running for re-election. He doesn't care. But all 203 members of the state House and 25 of the 50 members of the state Senate face the voters in 2010. How many of them are going to vote for one of the largest tax increases in Pennsylvania history?
A week after Punxsutawney Phil made his annual appearance, another Pennsylvania icon, Gov. Ed Renell, will pop up on Tuesday to deliver his annual Budget Address to a joint session of the Pennsylvania Legislature.
Will we have another six months of deficit spending?
The Pennsylvania Cable Network will have comprehensive coverage of the event.
Live coverage begins at 9:30 a.m. at the PCN studios with former PA Lt. Gov. Mark Singel of The Winter Group.
Live coverage of the Governor's Budget Address before a joint session of the House and Senate starts at 10:30 a.m.
An encore presentation of Rendell's speech has been scheduled for 6 p.m. Tuesday for those of us who still have jobs and need to work during the day to support Rendell's massive spending plan.
PCN will hold an open phone session following the live budget address. Viewers can dial toll-free at 1-877-PA6-5001 to share their thoughts.
PCN will provide budget reaction from lawmakers following the address.
Rendell will be the guest on the LIVE PCN Call-In program beginning at 7 p.m. on Tuesday. Viewers can dial toll-free at 1-877-PA6-5001 to speak directly with the governor.
Through the coming weeks, PCN will provide extensive coverage of the 2010-11 fiscal year state budget proceedings. Check pcntv.com for programming details.
Pennsylvania collected $2.1 billion in General Fund revenue in January, which was $120.2 million, or 5.4 percent, less than anticipated, Acting Secretary of Revenue C. Daniel Hassell announced Monday.
Fiscal year-to-date General Fund collections total $14.5 billion, which is $374.4 million, or 2.5 percent, below estimate, according to Hassell.
The 2009-10 fiscal year began July 1, 2009, but the state Legislature was 101 days late in approving the spending plan.
Pennsylvania has posted deficits for six consecutive months and will finish the fiscal year on June 30, 2010, at least $500 million to $1 billion in the red.
While that's a lot better than the 2009-09 fiscal year, in which the state finished $3.25 billion in the hole, it still shows the fiscal irresponsibility of Gov. Ed Rendell and the current leadership of the Pennsylvania Legislature.
From the Pennsylvania Department of Revenue
Sales tax receipts totaled $790.5 million for January, $49.5 million below estimate. Year-to-date sales tax collections total $4.8 billion, which is $230.7 million, or 4.6 percent, less than anticipated.
Personal income tax (PIT) revenue in January was $1 billion, $51.7 million below estimate. This brings year-to-date PIT collections to $5.3 billion, which is $163.4 million, or 3 percent, below estimate.
January corporation tax revenue of $101 million was $3.2 million below estimate. Year-to-date corporation tax collections total $1.2 billion, which is $4.1 million, or 0.3 percent, below estimate.
Other General Fund revenue figures for the month included $50.4 million in inheritance tax, $9.9 million below estimate, bringing the year-to-date total to $425.7 million, which is $3.3 million below estimate.
Realty transfer tax was $16.6 million for January, $6.6 million below estimate, bringing the total to $178.3 million for the year, which is $3.3 million more than anticipated.
Other General Fund tax revenue, including cigarette, malt beverage and liquor taxes totaled $100.1 million for the month, $2.1 million above estimate and bringing the year-to-date total to $694.8 million, which is $32.3 million above estimate.
Obama signs debt ceiling increase to $12.4 Trillion
How high will the U.S. deficit go? Depends on how long Democrats stay in power. If you'd like to bury your children and grandchildren in debt, keep voting Democrats back into Congress. If you think it's time to stop the madness, vote Republican in 2010.
From Reuters:
Obama Signs U.S. Debt Limit Increase Into Law
WASHINGTON - President Barack Obama on Monday signed into law an increase in the U.S. national debt limit to $12.4 trillion, the White House said in a statement.
Congress approved an increase in the debt limit from $12.1 trillion on Thursday, winning two more months of funding for a record U.S. deficit as Obama tries to stimulate economic growth after the country's worst recession in 70 years.
Critics say Democrat Obama is making the deficit worse, but the White House blames the recession and unfunded cuts in taxes and prescription drug aid, which were all inherited from his Republican predecessor George W. Bush.
The U.S. government posted a record $1.4 trillion deficit in the fiscal year ended September 30 and is on track during the current fiscal year to spend at least $1 trillion more than it collects.
The debt has more than doubled since 2001, thanks to wars in Iraq and Afghanistan, tax cuts and the recession, which has caused tax revenues to plunge and safety-net spending to rise.
If Democrats are doing something good for the country, why did the party bosses have to spend so much taxpayer money to bribe Democratic members of Congress into voting for the "health care reform" bill? Just wondering.
If the growing national debt of $12.4 trillion doesn't scare you, add the cost of unfunded liabilities (currently $62.9 trillion) to that total and you'll get a sense of how close this country is to declaring bankruptcy under the free-spending Democrats.
From CNSNews.com:
While Congress has voted to raise the national debt ceiling to $12.4 trillion, the Government Accountability Office (GAO) has reported that the federal government's unfunded liabilities – the costs of promised benefits through Social Security, Medicare, Medicaid, and several other programs – total $62.9 trillion in today's dollars.
When asked about these costs and the government's entitlement promises to the American people, House Minority Leader John Boehner (R-Ohio) told CNSNews.com that it is "irresponsible" for the federal government to continue to spend money it does not have and that this issue will be the “most important thing” Congress will discuss next year.
"I said on the floor last night, American families can't spend more than what they bring in for 36 of the last 40 years," Boehner told CNSNews.com at his weekly briefing. "No business in America can exist that spends more than it brings in for 36 of the last 40 years, and certainly, our government can't continue to exist if we continue to spend money that we don't have."
While millions of Americans struggle with unemployment and declining wages, Uncle Sam is paying big salaries to federal workers.
From The Washington Examiner:
While many workers in the private sector have despaired of a pay increase in the past few years, Congress takes care of federal employees with annual raises, awarding 3.9 percent in 2009, 3.5 percent in 2008 and 2.7 percent in 2007.
The average pay for the nation's 1.9 million federal workers is a little over $71,000, with the 372,041 federal workers in the Washington area earning an average of $94,047. The average salary for the nation's 108 million private-sector workers is $50,028.
While the proposed pay increase for next year is relatively small, the boost combined with an increase in federal government salaries amid a looming budget deficit crisis and the nation's 10 percent unemployment rate managed to raise some eyebrows.
"I about fell off my chair when I saw that the number of federal employees making more than $150,000 have more than doubled in the last 18 months," said Rep. Jason Chaffetz, a Utah Republican. "While the American people are hurting, the federal government is padding its pocket. This is totally inappropriate and unacceptable."
The honor just keep pouring in for Federal Reserve Chairman Ben Bernanke. On the same day he was named Time magazine's 2009 Person of the Year, Bernake was also selected 2009 Villain of the Year by the National Inflation Association.
The Association is a citizen watchdog group that is concerned about the growing threat of hyper-inflation due to unchecked spending by the federal government and the uncontrolled printing of money by the Fed.
While the far-left staff at Time magazine thinks Bernanke helped prevent a second Great Depression, the folks at the National Inflation Association believe Bernanke has sown the seeds of a massive collapse of the U.S. dollar and the world economy.
When it costs $20 for a gallon of milk in a few years, Americans will have nobody to thank more than Bernanke, the Association says.
Who's right? My money (for what it's worth) is on the National Inflaton Association.
The U.S. government's unprecedented spending splurge, with no end in sight, is creating a mountain of debt that endangers both our economy and way of life. Can something be done about it?
Anyone who reads IBD knows we're not doomsayers. Sometimes, in fact, we've been chided for cockeyed optimism in the face of even the gloomiest prognostications. Our faith in America's resilient economy, the world's largest and most creative, and in the productive people who make it go, was reason enough.
That said, we face a rather stark fact today: The current path for U.S. debt is unsustainable.
Our $14 trillion economy is more than three times bigger than the next largest in the world. But our debt will soon surpass even the bloated level of WWII, when we were literally fighting for our lives and freedoms with a weak economy struggling to emerge from the Great Depression.
In just the last year alone, according to a report this week from the Committee for a Responsible Federal Budget (CRFB), total U.S. public debt has jumped to $7.6 trillion, or 53% of GDP, from $5.7 trillion, or 41% of GDP.
The number of federal workers earning six-figure salaries has exploded during the recession, according to a USA TODAY analysis of federal salary data.
Federal employees making salaries of $100,000 or more jumped from 14% to 19% of civil servants during the recession's first 18 months — and that's before overtime pay and bonuses are counted.
Federal employees making salaries of $100,000 or more jumped from 14% to 19% of civil servants during the recession's first 18 months — and that's before overtime pay and bonuses are counted.
The United States is running out of money to pay its bills. So what do the Democrats have in mind? Print more money, of course.
From POLITICO:
In a bold but risky year-end strategy, Democrats are preparing to raise the federal debt ceiling by as much as $1.8 trillion before New Year's rather than have to face the issue again prior to the 2010 elections.
"We've incurred this debt. We have to pay our bills," House Majority Leader Steny Hoyer told POLITICO Wednesday. And the Maryland Democrat confirmed that the anticipated increase could be as high as $1.8 trillion — nearly twice what had been assumed in last spring's budget resolution for the 2010 fiscal year.
The leadership is betting that it's better for the party to take its lumps now rather than risk further votes over the coming year. But the enormity of the number could create its own dynamic, much as another debt ceiling fight in 1985 gave rise to the Gramm-Rudman deficit reduction act mandating across-the-board spending cuts nearly 25 years ago.
Pennsylvania continues to spend more than it takes in.
For the fifth month in a row in the 2009-10 fiscal year that began July 1, the state spent more than it collected in tax revenues, resulting in a cumulative shortfall of $217 million at the end of November.
While the deficit spending is below last year's pace (when Gov. Ed Rendell and the Legislature spent $3.25 billion more than the state took in), it's clear the state is headed for another budget deficit.
The Pennsylvania Department of Revenue reported Tuesday that Pennsylvania collected $1.6 billion in General Fund revenue in November, which was $56.8 million, or 3.4 percent, less than anticipated.
Fiscal year-to-date General Fund collections total $10.4 billion, which is $217 million, or 2 percent, below estimate, according to Secretary of Revenue Stephen H. Stetler.
The two biggest sources of revenue, the sales tax and the personal income tax, came in below estimate in November.
From the Revenue Department:
Sales tax receipts totaled $609.1 million for November, $52.7 million below estimate. Year-to-date sales tax collections total $3.3 billion, which is $142 million, or 4.1 percent, less than anticipated.
Personal income tax (PIT) revenue in November was $705.4 million, $21.2 million below estimate. This brings year-to-date PIT collections to $3.6 billion, which is $105.5 million, or 2.9 percent, below estimate.
Other General Fund revenue figures for the month included $58.3 million in inheritance tax, $600,000 above estimate, bringing the year-to-date total to $301.1 million, which is $4.7 million below estimate.
Realty transfer tax was $24.4 million for November, $4.5 million above estimate, bringing the total to $132.6 million for the year, which is $2.1 million more than anticipated.
Other General Fund tax revenue, including cigarette, malt beverage and liquor taxes totaled $108.5 million for the month, $4.6 million above estimate and bringing the year-to-date total to $462.3 million, which is $16.8 million above estimate.
Independent reviews of Obama's claims of job created by the stimulus bill show that the government is making up numbers. As Rep. Joe Wilson so aptly said it, "You lie!"
From Watchdog.org:
Just how big is the stimulus package? Well for one, it has doubled the size of the House of Representatives, according to recovery.gov, which says that funds were distributed to 440 congressional districts that do not exist.
According to data retrieved from recovery.gov, nearly $6.4 billion was used to “create or save” just under 30,000 jobs in these phantom congressional districts–almost $225,000 per job. The Web site operates on an $84 million budget and is tasked with monitoring the distribution of the $787 billion stimulus package passed by Congress–which, for the record, counts 435 members–in early 2009.
It's clear you can't trust anything coming from the Obama Ministry of Propaganda or the state-run media that should be reporting on the most corrupt and deceptive administration ever.
Chutzpa: 1. unmitigated effrontery or impudence; gall. 2. audacity; nerve.
File this under chutzpa in the dictionary.
ACORN has sued the federal government demanding that it give back taxpayer dollars to the corrupt agency that Congress voted to deny it earlier this year.
From POLITICO:
ACORN claims that the legislation was of "malicious and punitive intent." The suit also claims Congress violated the Fifth Amendment by skirting due process before doling out the punishment of the funding cut. OMB Director Peter Orszag and Treasury Secretary Timothy Geithner are listed as co-defendants in the suit.
This is what America has come to in the Age of Obama. Criminals are suing the government demanding that taxpayers continue to fund their corrupt ways.
Economist and author Allen W. Smith is on tour to promote his book, "THE BIG LIE: How Our Government Hoodwinked the Public, Emptied the Social Security Trust Fund, and caused The Great Economic Collapse"
Gerlach: PA budget impasse a 'national embarrassment'
Jim Gerlach, a Republican candidate for governor, said on Thursday that Pennsylvania's broken budget process has become a national embarrassment.
On the 100th day of the state's budget impasse, Gerlach said this would never happen if he was sitting in the governor's mansion.
"We do not need to waste any more time playing political games and pointing fingers," Gerlach said in a written statement. "This dysfunctional process has resulted in a 100-day delay in enacting a budget. The Harrisburg culture of putting self-interest ahead of the public interest must end. The families of Pennsylvania understand the importance of paying your bills on time and not spending more than you can afford. For far too long Harrisburg has ignored these basic principles.
"That's why I was the first candidate for governor to propose moving to a a two-year budget cycle to cut costs, increase accountability and avoid the annual budget soap opera, which for the last seven years has resulted in increased government spending and higher taxes. And we must stop rewarding politicians in Harrisburg for failure. If the state cannot meet the Constitutional requirement of enacting a budget by July 1st of each year, then the Governor, his Cabinet and lawmakers should lose a day's pay for every day the fail to pass a budget."
In September, Gerlach released a 17-point "Pledge to Pennsylvania" that is a contract to protect taxpayers and send a very clear message that the days of rewarding failure, ignoring runaway spending and tolerating a lack of accountability in Harrisburg are over.
The entire "Pledge to Pennsylvania" is available at his campaign Web site, www.gerlachforpa.com
Brad Bumsted, the outstanding state capitol reporter for The Pittsburgh Tribune-Review has been writing a lot lately about the costly "per diems" being collected by Pennsylvania legislators as they work to pass a state budget.
In addition to their regular salary, state lawmakers collect a $158 daily allowance for showing up in Harrisburg and with the state budget impasse going on for three months, lawmakers have been raking in the bucks.
From a new column by Bumsted:
Even when they are not voting on the House floor, most state legislators collect per diems worth $158 for food and lodging.
Those per diems may be for committee hearings, when they are summoned by the speaker or caucus leader, or just for staying an extra day in Harrisburg and working in their offices.
Some of them spent a lot of days in their offices over the past few months.
House and Senate members of both parties, about 170 in all, racked up $532,000 in per diems in July and August during the first two months of the ongoing budget impasse. It's money taxpayers would not have had to shell out if the budget had been completed on July 1, as required by law. And that's a conservative figure because some lawmakers didn't submit their per diems yet.
The situation is growing out of control now that Gov. Ed Rendell wants the Legislature to stay in Harrisburg until a budget is passed.
That prompted Bumstead to consider alternatives to "per diems," including the possibility of Pennsylvania taxpayers taking in lawmakers "like signing up for a foreign exchange student."
Rendell, Legislature keep digging a deeper hole for PA
The first rule of holes: When you're in one, stop digging.
While Gov. Ed Rendell and the Pennsylvania Legislature are still trying to figure out what to do about last year's $3.25 billion budget deficit, Pennsylvania is facing another financial disaster for 2009-10.
Revenue collections for the first three months of the new fiscal year have fallen short of projections. That's a fancy way of saying Pennsylvania is headed for another fiscal crisis -- even while elected officials struggle to get the state out of the mess they created last year.
Pennsylvania collected $2.1 billion in General Fund revenue in September, which was $118.6 million, or 5.5 percent, less than anticipated, according to Revenue Secretary Stephen H. Stetler. Fiscal year-to-date General Fund collections total $5.3 billion, which is $140.6 million, or 2.6 percent, below estimate, Stetler reported.
Tax revenues from the state's two biggest sources of income fell short for the third consecutive month of the new fiscal year, adding to the 12-month decline in the 2008-09 fiscal year.
From the Department of Revenue's September Collection Report:
Sales tax receipts totaled $633.4 million for September, $38.8 million below estimate. Year-to-date sales tax collections total $2 billion, which is $52.2 million, or 2.5 percent, less than anticipated.
Personal income tax (PIT) revenue in September was $835.4 million, $69.5 million below estimate. This brings year-to-date PIT collections to $2.2 billion, which is $97.9 million, or 4.3 percent, below estimate.
The only bright spot is September's corporation tax revenue collections of $403.9 million, which was $5.6 million above estimate. Year-to-date corporation tax collections total $541.4 million, which is $7.3 million, or 1.4 percent, above estimate.
More from the Revenue Department:
Other General Fund revenue figures for the month included $59.1 million in inheritance tax, $3.4 million below estimate, bringing the year-to-date total to $181.6 million, which is $6.1 million below estimate.
Realty transfer tax was $23.5 million for September, $1.5 million below estimate, bringing the total to $82.2 million for the year, which is $3.7 million less than anticipated.
Other General Fund tax revenue, including cigarette, malt beverage and liquor taxes totaled $85.4 million for the month, $7.2 million below estimate and bringing the year-to-date total to $259.4 million, which is $1.2 million above estimate.
Non-tax revenue totaled $9.8 million for the month, $3.7 million below estimate, bringing the year-to-date total to $52.1 million, which is $10.8 million above estimate.
Click on the link below to view the full September report:
U.S. Rep. Ron Paul will be making a return appearance on The Daily Show Tuesday, Sept. 29 to talk about his latest book, "End The Fed," which challenges the constitutionality of the Federal Reserve.
From www.CampaignForLiberty.com:
The Congressman's latest release recently entered the New York Times' bestseller list at number six, mirroring the success of his previous book, "The Revolution: A Manifesto."
"End The Fed," has served as a rallying point for supporters of Paul's bill, H.R. 1207 The Federal Reserve Transparency Act, meant to shed light on the practices of the nation's central bank. Last week, the House Financial Services Committee held hearings on bringing more transparency to the Fed, this development came after increased support and a super-majority sponsorship of the bill in Congress.
The success of Congressman Paul's book and the "Audit The Fed" movement has given him a greater platform to spread his message of sound money and economic stability to the public, which seems to be growing ever more receptive since the economic crisis of last year.
The episode will air on Tuesday at 11:00 pm EDT, and again Wednesday at 7:00 pm EDT.
The Commonwealth Foundation has launched a new Web site and public service campaign called BankruptingPA to educate taxpayers about "wild and unaccountable government spending."
The Foundation is looking for feedback to help it choose the most effective message and imagery to make this effort as successful as possible, says Commonwealth Foundation CEO Matthew J. Brouillette.
Visit the new Web site at www.BankruptingPA.com, click on the "VOTE" buttons n the right side of the page and leave comments or criticisms.
"Time is of the essence. Please help us ensure BankruptingPA is successful," Brouillette adds.
Left unchecked, Barack Obama, Nancy Pelosi and Harry Reid plan to run up higher deficits over the next 10 years than all American presidents and Congress have incurred in the last 230 years.
From DefeatTheDebt.com:
Think America is "Unsinkable?"
Every year, the government spends hundreds of billions of dollars it doesn't have, and we sink deeper and deeper into debt. We cannot afford to go down with this ship.
The national debt will grow by more than $9 trillion, according to an August 2009 report by the White House Office of Management and Budget.
How much is $9 trillion, or even $1 trillion? Confronted with enormous numbers like millions, billions and trillions, it's helpful to use comparisons with other contexts. For example, one million seconds will pass in just 12 days. One billion seconds is almost 32 years. And one trillion seconds? That’s 31,688 years. One trillion dollars is a lot of money, and over the next decade the US federal government will borrow that sum nine times over — more than $9 trillion.
In the next 10 years, the federal government will borrow trillions of dollars for spending it cannot afford. But the American people will eventually have to pay the price for this irresponsible borrowing.
The federal deficit for the current fiscal year is four times higher than it was under George W. Bush. And keep in mind that Democrats have controlled Congress since 2007 and have approved record spending and record debt since then.
Under Barack Obama, the national debt will reach astronomical and unsustainable levels as the U.S. heads toward bankruptcy and national suicide.
A non-partisan group called Defeat the Debt has launched a public service campaign to inform Americans how serious the debt problem is. Here is the first of three articles on the subject:
How Much is a Trillion Dollars?
The national debt is larger than ever before, and experts predict it will only continue to expand.
The national debt will grow by more than $9 trillion, according to an August 2009 report by the White House Office of Management and Budget.
In July of 2009, the Congressional Budget Office and the staff of the Joint Committee on Taxation released their analysis of America's Affordable Health Choices Act. They estimated the bill would add an additional net deficit of $1.042 trillion over the next decade. In January of 2008, Social Security's unfunded liabilities were estimated at $6.6 trillion, and Medicare unfunded liabilities totaled more than $36.3 trillion, according to the GAO's Fiscal Year 2008 Financial Report of the United States Government. In addition to our current national debt of more than $11.6 trillion, our future obligations to Social Security and Medicare total $43 trillion.
How much is $9 trillion, or even $1 trillion? Confronted with enormous numbers like millions, billions and trillions, it's helpful to use comparisons with other contexts. For example, one million seconds will pass in just 12 days. One billion seconds is almost 32 years. And one trillion seconds? That's 31,688 years. One trillion dollars is a lot of money, and over the next decade the US federal government will borrow that sum nine times over — more than $9 trillion.
In the next 10 years, the federal government will borrow trillions of dollars for spending it cannot afford. But the American people will eventually have to pay the price for this irresponsible borrowing.
We all know about the $3.25 billion deficit Gov. Ed Rendell ran up in the General Fund budget for the 2008-09 fiscal year, but Pennsylvania is drowning in red ink when you take into account all other state and local debt.
The Commonwealth Foundation has a terrific post at its Web site about the state of "Debtsylvania."
Pennsylvanians owe $115 billion in state and local government debt, according to the Foundation, which reviewed spending from 2002 to 2008.
No surprise here, but the debt has skyrocketed during the tenure of Gov. Rendell.
"Under Governor Rendell, total state general obligation debt outstanding has increased from $6.8 billion to a projected $9.5 billion with his 2009-10 budget proposal, a 40% increase in seven years," The Foundation says.
To read the full report visit The Commonwealth Foundation Web site.
A Central Pennsylvania television station recently calculated that the Pennsylvania Legislature is burning through $50,000 a day in taxpayer money every day it convenes since the June 30 fiscal year deadline.
And what is the most expensive state legislature in the country doing with its time (other than debating the budget, of course)?
Pennsylvanians can take comfort in knowing that while their elected representatives couldn't cobble together a cohesive state budget by deadline, they nevertheless were dutifully at work attending to pressing public matters.
Among some lawmakers' priorities: a resolution on the Borough of Dushore's 150th anniversary and legislation on county park police training requirements.
Then there's that crucial legislation from Rep. Babette Josephs, D-Philadelphia, which bans the forced implantation of computer chips in humans. What a relief!
Maybe this crew should draft legislation banning the replacement of state representatives with cyborgs. With regard to some, it's difficult to differentiate the human beings -- those capable of intelligent problem-solving -- from what appear to be preprogrammed robots at work on the assembly line at the Susquehanna Sausage Factory.
Now, it doesn't require an awful lot of intelligence, artificial or otherwise, to figure out that a growing multibillion-dollar state deficit, looming for months, would demand considerably more focus in state budgeting this year. And yet, once again, the clock ran out without a fiscal accord in hand.
Thus began the backroom dealing, with Gov. Ed Rendell's 16 percent income-tax hike in the balance. And, ultimately, the adoption of a state budget that will be handed to the public as a done deal.
This, sadly, is what passes in Pennsylvania as "representative government."
Stop me if you've heard this one before: Gov. Ed Rendell wants to raise your taxes.
The same governor who signed the second biggest income tax hike in state history when he first took office in 2003 wants to raise the state's personal income tax again.
It seems Gov. Rendell has spent all of the money the first tax hike brought in, so he'd like you (the few Pennsylvania residents who still have a job) to send more of your paycheck to him so he can spend it before he leaves office at the end of 2010.
Some good early reaction to Rendell's idiotic plan to raise taxes during a recession from conservative bloggers.
Governor Rendell announced today that to satisfy his appetite for more spending, he would like to increase Pennsylvania's Personal Income Tax (PIT) by 0.5 percentage points - to 3.57%.
As we announced yesterday, a PIT increase would cost thousands of Pennsylvania jobs.
Our updated analysis reveals that Rendell's latest proposed increase would cost 24,000 Pennsylvanians their jobs. This is on top of those jobs already lost during the current recession.
The movie "Hangover" continues to top the box office charts, and here in Harrisburg Governor Ed Rendell's pursuit of a new state budget is about as, well, juvenile.
Like the schoolyard bully given a wedgie, the governor is threatening to take the budget ball and hide in his room until he again gets his way. And he's willing to stay there until at least Labor Day, or so he says.
Yep, that's the latest from Rendell. Give me what I want or nobody gets anything. That is his response to legislative Republicans who have refused to roll over and give him new taxes, and who are insisting that the state trim the budget and spend within our means.
I don't call him "Rundown Rendell" for nothing. Fast Eddie continues to try to destroy the state of Pennsylvania with his old tired "tax and spend" philosophy. His latest idea: a 16% personal income tax increase. Another liberal-genius way to lose tens of thousands of Pennsylvania jobs that Pennsylvania doesn't have to lose to begin with.
With one month to go in the current fiscal year, Pennsylvania's General Fund budget is $2.8 billion in the red.
The Pennsylvania Department of Revenue released the May tax revenue numbers today and the state's bottom line is not looking so good.
Pennsylvania collected $1.6 billion in General Fund revenue in May, which was $287.5 million, or 15.1 percent, less than anticipated, according to Revenue Secretary Stephen H. Stetler. Fiscal year-to-date General Fund collections total $23.3 billion, which is $2.8 billion, or 10.9 percent, below estimate, Stetler reported.
Gov. Ed Rendell, who signed the deficit budget last July knowing it would never come close to balancing, now projects a deficit of $3.2 billion by the end of the current fiscal year on June 30.
Here's the blow-by-blow breakdown from the Revenue Department:
Sales tax receipts totaled $607.4 million for May, $106.4 million below estimate. Sales tax collections, year-to-date, total $7.5 billion, which is $527.7 million, or 6.6 percent, less than anticipated.
Personal income tax (PIT) revenue in May was $721.4 million, $55.7 million below estimate. This brings year-to-date PIT collections to $9.4 billion, which is $1.1 billion, or 10.4 percent, below estimate.
May corporation tax revenue of $81.6 million was $38.8 million below estimate. Year-to-date corporation tax collections total $4.4 billion, which is $531.4 million, or 10.7 percent, below estimate.
Other General Fund revenue figures for the month included $65.3 million in inheritance tax, $10.8 million below estimate, bringing the year-to-date total to $704.5 million, which is $94.4 million below estimate.
Realty transfer tax was $18.6 million for May, $12.2 million below estimate, bringing the total to $267.3 million for the year, which is $105.2 million less than anticipated.
Other General Fund tax revenue including cigarette, malt beverage and liquor taxes totaled $83.3 million for the month, $10.4 million below estimate, bringing the year-to-date total to $958.2 million, which is $21.2 million below estimate.
Imagine if Pennsylvania voters had the power of initiative and referendum, like their counterparts in California do. Gov. Ed Rendell's disastrous fiscal policies could have been stopped six years ago before Rendell ruined the state's economy with tax increases and record deficit spending.
Gov. Ed Rendell imposed a hiring freeze last fall to help deal with the state's massive budget deficit. The ban has been violated at least 100 times, including by Rendell himself.
Rendell also imposed a ban on out-of-state travel. That's been violated too.
The latest example of government workers taking expensive trips was uncovered by a Pittsburgh television station.
From the station's Web site:
A Team 4 investigation finds pension fund employees staying at five-star resorts in London, Paris and even Monte Carlo -- and the way they're paying for these trips is raising concern with top state officials.
Earlier this year, Team 4's Paul Van Osdol found state employees spending hundreds of thousands of dollars on trips after Gov. Ed Rendell ordered a travel ban.
Officials of the two big state pension funds say they've been able to get around the travel ban because taxpayers are not paying for most of their trips. Instead, the investment managers hired by the state are covering the cost.
Here's the catch: The state employees traveling to these exotic places are the same people whose job it is to keep an eye on the money managers paying for the trips.
Read the full story, "Team 4 Investigates: Pa. Pension Workers Taking Lavish Trips," or watch the actuall report at the station's Web site.
A new report says more Pennsylvanians are struggling to survive economically.
From an article in the Pittsburgh Tribune-Review:
One in five Pennsylvania households do not make enough money to meet basic needs even though many live above the federal poverty level, according to a study released Monday.
"It's not a lack of work effort that's a problem," Diana M. Pearce, director of the Center for Women's Welfare at the University of Washington, said during a telephone news conference. "It's the lack of adequate wages."
Pearce is author of "Overlooked and Undercounted: Struggling to Make Ends Meet in Pennsylvania," a study conducted in cooperation with the nonprofit PathWays PA for the Pennsylvania Department of Labor and Industry.
The report found that twice as many of the state's 3.4 million households are having a hard time making ends meet compared to data based on the federal standard for poverty. Just one in 10 households in the state lives in poverty, according to the federal standard.
How can this be?
Hasn't Gov. Ed Rendell increased state spending by $8 billion since he took office in 2003? Isn't he a Democrat and don't Democrats help the little people?
Where did all that money go?
How else can we deal with rising poverty except spend more money? That's what Ed Rendell has been saying and doing for the past 6 years. That's what Barack Obama and Congressional Democrats keep saying.
I'm confused. I'm beginning to lose faith in Democratic politicians. I can't believe they've misled us all these years. I can't believe they waste our tax dollars on pork projects that don't benefit working people. I'm not voting for Rendell again.
Newspaper calls for criminal investigation of Rendell deal
The Pittsburgh Tribune-Review is calling for a criminal investigation of Gov. Ed Rendell's latest "play-to-play" scheme, this one involving the awarding of a no-bid state contract to a law firm that contributed generously to Rendell's 2006 re-election campaign.
From the editorial:
A troubling trail has been exposed that has all the appearances of a pay-to-play scheme and a quid pro quo involving Pennsylvania Gov. Ed Rendell.
The Wall Street Journal documents campaign contributions to Mr. Rendell between February and October 2006 of more than $90,000 from attorney F. Kenneth Bailey. In August 2006, Mr. Bailey's law firm -- Bailey Perrin Bailey LLP of Houston, Texas -- was awarded a lucrative no-bid contingency fee contract to represent Pennsylvania in a lawsuit against Janssen Pharmaceuticals.
In a case that state Attorney General Tom Corbett thought lacked merit, the Rendell administration alleges Janssen improperly marketed a drug for off-label use.
Rendell has awarded more than $1 billion in no-bid contracts to politically-connected firms during his six years as governor. Too much taxpayer money is changing hands without any accountability.
From the Tribune-Review:
Gov. Ed Rendell denies any impropriety. But the smoke on this one is dense. It behooves the U.S. Department of Justice to see if there's any fire.
Have you opened your 401(k) statement lately? Don't bother. You've lost most of your money in the collapse of the U.S. economy over the past six months -- unless you're a government worker in Pennsylvania.
You can't lose because the taxpayers are obligated to pay your entire pension regardless of how much of that money is lost in investments.
What's so special about state workers, you say? Why should you bail them out?
The Pittsburgh Tribune-Review is wondering the same thing. The newspaper concludes in an editorial that state workers should have the same type of retirement plan as those in private industry. When the market goes up, everyone benefits. When the market goes down, everybody shares the pain equally.
The state must renegotiate existing public-sector pensions to make them defined-contribution plans and establish a unified statewide retirement system for public employees, the newspaper argues.
Otherwise, Pennsylvania residents will see huge jumps in property taxes to cover the costs of guaranteed lifetime pensions for state workers.
Read the full editorial, "The pensions crisis: Only one solution," at the newspaper's Web site.
Gov. Ed Rendell has violated his own hiring freeze -- again.
Reporter Charles Thompson of the Harrisburg Patriot-News has confirmed that Rendell has hired has hired an attorney from Philadelphia to fill a vacancy in the Office of General Counsel -- the solicitor's office for state government.
Since when are lawyers considered essential personnel?
The latest case of "do as I say, not as I do" is a familiar one. The hire is a politically-connected friend or colleague of Rendell and the pay is at least $100,000.
It's the four time Rendell has done this since he imposed a hiring freeze in light of the $2.3 billion budget deficit he put the state into by years of uncontrolled spending.
All total, 110 people have been hired by the Rendell administration since the governor ordered the "hiring freeze."
You see why it's so hard to take this guy seriously.
From Thompson's story:
General Counsel Barbara Adams announced via e-mail this week that she has hired Patrick Lord as an executive deputy general counsel, effective April 13.
Chuck Ardo, press secretary to Gov. Ed Rendell, said Lord has been hired as a replacement for Nora Winkelman, who has moved on to work as chief counsel for the House Democratic Caucus.
Lord has "many but not all of her duties while also assuming many new duties for which the office has a need," Ardo said, adding the administration has not filled 14 attorney positions vacated since the statewide hiring freeze took effect in September.
The March tax revenue numbers are in and Pennsylvania continues to hemorrhage red ink under Gov. Ed Rendell.
With three full months left in the current fiscal year, the state has already spent $1.6 billion more than it took in. (Rendell projects the deficit will reach $2.3 billion by the end of June.)
Pennsylvania collected $3.9 billion in General Fund revenue during March, $334.6 million, or 7.9 percent, less than anticipated, according to Revenue Secretary Stephen H. Stetler.
Fiscal year-to-date General Fund collections total $18.7 billion, which is $1.6 billion, or 7.9 percent, below estimate, Stetler says.
March is usually the biggest tax collection month of the year, but nothing could slow the runaway train of deficit spending under Rendell and the current Legislature.
Here's the monthly recap from the Pennsylvania Department of Revenue:
Sales tax receipts totaled $589.2 million for March, $51 million below estimate. Sales tax collections, year-to-date, total $6.2 billion, which is $350.4 million, or 5.4 percent, less than anticipated.
Personal income tax (PIT) revenue in March was $763.6 million, $59.8 million below estimate. This brings year-to-date PIT collections to $7.2 billion, which is $376.5 million, or 5 percent, below estimate.
March corporation tax revenue of $2.3 billion was $192.5 million below estimate. Year-to-date corporation tax collections total $3.9 billion, which is $366.7 million, or 8.7 percent, below estimate.
Other General Fund revenue figures for the month included $66.7 million in inheritance tax, $10.5 million below estimate, bringing the year-to-date total to $569.6 million, which is $74.9 million below estimate.
Realty transfer tax was $17.4 million for March, $13.4 million below estimate, bringing the total to $230.3 million for the year, which is $79.7 million less than anticipated.
Other General Fund tax revenue including cigarette, malt beverage and liquor taxes totaled $102.1 million for the month, $16.2 million above estimate, bringing the year-to-date total to $785.8 million, which is $9.1 million below estimate.
Non-tax revenue totaled $14.1 million for the month, $23.6 million below estimate, bringing the year-to-date total to -$76.4 million, which is $350.6 million below estimate.
In addition to the General Fund collections, the Motor License Fund received $184.1 million for the month, $14 million below estimate. Fiscal year-to-date collections for the fund total $1.9 billion, which is $109 million, or 5.5 percent, below estimate.
The Gaming Fund received $54.9 million in unrestricted revenues for March. Fiscal year-to-date collections for the fund total $434.2 million. Gaming Fund receipts include taxes, fees and interest. Of the total for the month, $56.8 million was collected in state taxes for property tax relief, bringing the year-to-date total to $434.3 million.
Other gaming-related revenues collected for March included $6.7 million for the Local Share Assessment, for a net total of $50.2 million for the year; $8.3 million for the Economic Development and Tourism Fund, for a year-to-date total of $63.9 million; and $20 million for the Race Horse Development Fund, bringing the total for the year to $153.3 million.
Auditor General to review PA 'fire sale' of state office building
Pennsylvania Auditor General Jack Wagner is reviewing the Pennsylvania Department of General Service's agreement to sell the State Office Building in Pittsburgh for $4.6 million, claiming the purchase price amounts to a "fire sale."
The Department of General Services announced Tuesday it was selling the 16-story structure to River Vue Associates LP of Canonsburg.
"I continue to believe this is the worst possible deal for the taxpayers of Pennsylvania," Wagner said in a statement. "It makes no sense for the commonwealth to sell this prized asset -- the signature building of state government in Western Pennsylvania -- for the lowest possible price during the most depressed real-estate market in decades."
Department of General Services Secretary James P. Creedon countered that selling the Pittsburgh State Office Building is in the best interest of taxpayers.
Creedon said he welcomes the audit from Wagner's office.
"We have discussed this decision and engaged in the process to sell the Pittsburgh State Office Building publicly for more than two years," Creedon said in a statement. "While the auditor general seemed to only become interested in this topic during the last month, he is welcome to review any and all of our material and we will fully cooperate with him in that review."
Creedon says the decision to sell the 50-year-old building was based on many factors, including "significant annual operating costs and the substantial costs necessary to rehabilitate the structure."
Engineering estimates show that nearly $65 million in state funds would be needed to thoroughly rehabilitate the building, Creedon said.
The state will save $14 million by selling the building and moving state employees into leased space in downtown Pittsburgh, Creedon said.
Wagner isn't buying it.
"The land alone is worth more than the sale price," Wagner said in a press release, adding that the state has agreed to purchase the City of Pittsburgh's Municipal Courts Building, which is one-fifth the size of the State Office Building and is situated in a less desirable location, under the Liberty Bridge and next to the Allegheny County Jail, for $9 million.
The State Office Building sale is a bad deal, Wagner argues, because "there would not be enough profits from the sale to offset moving expenses and pay for the first year of leases at multiple locations in downtown Pittsburgh, saddling taxpayers with an additional spending burden."
Postmaster General John Potter told Congress today the U.S. Postal Service will run out of money this year without help from the government.
The Postal Service lost $2.8 billion last year and expects a bigger loss this year, Potter said. The agency is projecting a $6 billion loss in 2010.
How the hell do you lose that much money when you're a government monopoly?
Potter is asking Congress for permission to cut Saturday mail delivery to save $3.5 billion, but it still doesn't get the Postal Service out of the red. Maybe Potter can hire some of the executives at AIG.
If you need any further proof that the government can't do its most basic jobs, look no further than the Postal Service.
So of course, Barack Obama wants the government to do more, including taking over the health system in this country.
Picture yourself waiting in line to see a doctor just like you wait in line to buy stamps.
As America slides deeper and deeper into recession, 27 million small business owners want President Barack Obama to answer one question at his press conference Tuesday.
Why are you allowing Fortune 500 firms to participate in government economic stimulus contracting programs designated for small businesses?
Since 2003, over a dozen federal investigations have been released, which found billions of dollars in federal small business contracts have been diverted to Fortune 500 firms and thousands of other large businesses around the world.
A recent investigative story by the Washington Post found up to 38.5 percent of all federal small business contracts were actually going to Fortune 500 firms alone.
The president of SEIU Local 668, the Pennsylvania Social Services Union, has a few choice words for Gov. Ed Rendell, who earlier this week gave state workers an ultimatum: Find ways to reduce costs or face furloughs and/or layoffs.
Kathy Jellison said in a statement that the governor is "negotiating though the press" and "not being honest with taxpayers."
Jellison said the union has "repeatedly given (Rendell) suggestions on ways to cut the budget, and he has ignored all of our ideas. Instead, he wants to focus on the most extreme option - laying off workers."
State workers are upset with Rendell because he has awarded more than $1 billion in outside contracts since he became governor in 2003. "Many of those contracts cover work that had been done by state employees," Jellison says.
"The first thing the governor can do to stop wasteful spending in the state budget," Jellison said, "is to cut out some of the private contracts he has given to outside companies to do work that our members can do better and at a lower cost."
While Rendell is threatening to implement a system of "rolling furloughs" to reduce personnel costs, the union wants the state to offer early retirement options to workers.
News item: The Pennsylvania Liquor Control Board is spending more than $173,000 to improve employee manners — making sure clerks say "hello," "thank you" and "come again" to customers.
I don't know about you, but I'd put up with rude sales clerk if we could purchase liquor cheaper.
Since the liquor store system is a monopoly in Pennsylvania and proceeds go into state coffers, I think we can safely point to this as another example of how government wastes our money.
From the Tribune-Review article:
Eric Epstein, a Harrisburg activist and founder of RockTheCapital.org, a voter education project, called the idea "a demented interpretation of happy hour."
"It's a sad state of affairs when you have to train people to be kind and courteous," he said.
Moderate Democratic Sen. Evan Bayh of Indiana is among a growing number of Congressional Democrats who are voicing opposition to the massive spending plans proposed by President Obama and fellow Democrats.
Writing in The Wall Street Journal, Bayh says the $410 billion Omnibus Appropriations Act of 2009 is full of wasteful spending.
"The Senate should reject this bill," Bayh writes. "If we do not, President Barack Obama should veto it."
From Bayh's column:
"The bloated omnibus requires sacrifice from no one, least of all the government. It only exacerbates the problem and hastens the day of reckoning. Voters rightly demanded change in November's election, but this approach to spending represents business as usual in Washington, not the voters' mandate.
Now is the time to win back the confidence and trust of the American people. Congress should vote "no" on this omnibus and show working families across the country that we are as committed to living within our means as they are.
Bayh says Congress has to stop contributing to the nation's economic woes by continuing to overspend.
"The economic downturn requires new policies, not more of the same," Bayh writes. "Our nation's current fiscal imbalance is unprecedented, unsustainable and, if unaddressed, a major threat to our currency and our economic vitality. The national debt now exceeds $10 trillion. This is almost double what it was just eight years ago, and the debt is growing at a rate of about $1 million a minute."
With four months to go in the current fiscal year, Pennsylvania has already spent $1.3 billion more than it has taken in.
The fiscal hole Gov. Ed Rendell and the Pennsylvania Legislature started digging last July keeps getting deeper.
Pennsylvania collected $1.5 billion in General Fund revenue in February, $196.8 million, or 11.6 percent, less than anticipated, according to the Department of Revenue.
Fiscal year-to-date General Fund collections total $14.8 billion, which is $1.3 billion, or 7.9 percent, below estimate, says Acting Revenue Secretary Stephen H. Stetler.
The numbers are down across the board:
* Sales tax receipts totaled $561.2 million for February, $60.9 million below estimate. Year-to-date sales tax collections total $5.6 billion, which is $299.4 million, or 5.1 percent, less than anticipated.
* Personal income tax (PIT) revenue in February was $742.7 million, $40.8 million below estimate. This brings year-to-date PIT collections to $6.4 billion, which is $316.7 million, or 4.7 percent, below estimate.
* February corporation tax revenue of $62.9 million was $21 million below estimate. Year-to-date corporation tax collections total $1.5 billion, which is $173.9 million, or 10.2 percent, below estimate.
* Other General Fund revenue figures for the month included $53 million in inheritance tax, $17.5 million below estimate, bringing the year-to-date total to $502.9 million, which is $64.4 million below estimate.
* Realty transfer tax was $12 million for February, $11.5 million below estimate, bringing the total to $212.9 million for the year, which is $66.3 million less than anticipated.
* Other General Fund tax revenue including cigarette, malt beverage and liquor taxes totaled $76.4 million for the month, $4.3 million below estimate, bringing the year-to-date total to $683.8 million, which is $25.2 million below estimate.
* Non-tax revenue totaled -- $5.8 million for the month, $40.8 million below estimate, bringing the year-to-date total to -- $90.6 million, which is $327.1 million below estimate.
The Department of Revenue report is full of gloomy statistics:
* In addition to the General Fund collections, the Motor License Fund received $146.6 million for the month, $22.5 million below estimate. Fiscal year-to-date collections for the fund total $1.7 billion, which is $95 million, or 5.3 percent, below estimate.
* The Gaming Fund received $49.1 million in unrestricted revenues for February. Fiscal year-to-date collections for the fund total $379.2 million. Gaming Fund receipts include taxes, fees and interest. Of the total for the month, $48.9 million was collected in state taxes for property tax relief, bringing the year-to-date total to $377.6 million.
* Other gaming-related revenues collected for February included $5.7 million for the Local Share Assessment, for a net total of $43.5 million for the year; $7.2 million for the Economic Development and Tourism Fund, for a year-to-date total of $55.5 million; and $17.2 million for the Race Horse Development Fund, bringing the total for the year to $133.3 million.
The current fiscal year ends June 30 and Rendell has predicted the deficit will grow to $2.3 billion by then.
Republican National Committee Chairman Michael Steele released the following statement on President Barack Obama signing the stimulus bill:
"Americans looking for jobs and struggling to pay bills will be disappointed by the spending package written by Congressional Democrats and signed by President Obama today. The transparency and bipartisanship that President Obama promised the American people was sacrificed to pass a pork-laden bill without any public review or meaningful Republican support.
"In these difficult economic times, it is imperative that Republicans and Democrats work together to create new jobs and grow the economy. Instead, Congressional Democrats worked behind closed doors to write legislation that will fall short of creating the promised new jobs, but will guarantee a larger debt burden on our children and grandchildren.
"Republicans are unified in our disagreement with Congressional Democrat leaders and President Obama on this bill. It all comes down to this - the Democrat plan focuses on putting Americans on the public dole, while the Republican plan focuses on putting America back to work.
"The Republican Party stands ready to work together in a bipartisan manner with the Democrat leaders in Congress and the President. Hopefully they will learn from the mistakes in this bill and be interested in true bipartisan efforts in the future."
The Center for Public Integrity has launched a new blog called The Daily Watchdog, which will compile investigative reports from around Washington, D.C. -- from the Government Accountability Office to Inspectors General to Congressional oversight committees.
"We'll be compiling these (often-overlooked) investigative reports, so you don't have to go searching for them," the Center said in announcing the new site. "The Daily Watchdog is your go-to resource for the latest results of important federal investigations."
Be sure to bookmark the site and check it often. The Democrats are back in power in Washington, but I'm afraid little has changed.
Newspaper: Rendell must come clean on 'pay-to-play'
The Pittsburgh Tribune-Review says in an editorial today that a grand jury investigation may be warranted to investigate Gov. Ed Rendell and key members of his administration in what may be a pay-to-play scheme that directed a no-bid contract to a politically-connected firm.
The editorial is based on reporting by The Harrisburg Patriot-News involving a contract the Rendell administration awarded to Deloitte Consulting and its affiliates. The Patriot-News obtained a draft report of an audit conducted by Auditor General Jack Wagner, a Democrat.
From the editorial in the Pittsburgh paper:
The Wagner audit suggests the Rendell administration engaged in vendor favoritism and improperly employed no-bid contracts.
Furthermore, the auditor general says Deloitte, a financial consulting firm, benefited from inside information and questions another one of those funny job creation/job retention grants in which only one beneficiary -- Deloitte -- is apparent.
And then there are allegations of conflicts of interest involving the dealings of Rendell acolytes with the firm.
Among the objections voiced by Republicans to the Obama/Pelosi stimulus: "the bill isn't temporary because it calls for a permanent expansion of government that could add hundreds of billions of dollars to the federal budget every year."
Read a transcript of the full GOP response by following the link below:
Gerlach opposes largest spending increase in U.S. history
The House of Representatives just voted 246-183 to approve Barack Obama's $787 billion "stimulus" plan, without a single Republican supporting the massive pork bill.
The 1,071-page bill goes to the Senate, where Democrats will approve it with the help of the three RINOs (Republican In Name Only), including Sen. Arlen Specter of Pennsylvania.
U.S. Rep. Jim Gerlach, a Republican who represents Pennsylvania's 6th Congressional District, voted against the biggest federal spending increase in U.S. history and said the bill is so massive that Washington could send a check for more than $10,000 to every family of four in the 6th District.
I live in the 6th District and I'd love to get my hands on a check for $10,000.
From a press release issued by Gerlach's office:
"Instead of getting checks from Washington, generations to come will be giving more of their hard-earned paychecks to the federal government to pay for this spending plan that tops $1.1 trillion when debt costs are added," Gerlach said. "It's fitting that this bill is being rammed through the House on Friday the 13th because it's truly a nightmare for our children and grandchildren who will be stuck paying off the mountain of debt. What started out as a process to get Americans working again degenerated into a big-government spending spree.
"Some have tried to claim that this legislation is crucial to rebuilding our roads, bridges, and highways and giving a boost to our public transit systems. However, just 3.5 percent of the $787 billion will be spent on highway and bridge projects. And nearly twice as much -- $15 billion -- will be spent on giving $1,000 tax breaks to individuals who do not pay a penny in federal income tax as will be spent on public transit -- $8.4 billion. With spending priorities like that, it's no wonder that nearly 60 percent of the people in a Jan. 23 Rasmussen Poll feared too much government spending would occur in the next two years.
"I understand that this is a time of extreme economic uncertainty and that we have an obligation to work on policies that help American workers collect paychecks instead of pink slips. However, I am confident that most of my constituents are just as puzzled as I am about how many jobs will be created by spending $650 million on digital television converter box coupons."
"Congress has missed an historic opportunity to roll up our sleeves and work together with President Obama on a bipartisan bill. Republican proposals to ease the tax burden of the unemployed by eliminating the federal income tax on unemployment benefits were brushed aside. And legislation that I have sponsored to reward American companies that provide health insurance and retirement benefits to workers and keep their headquarters on U.S. soil was never considered."
Tony Phyrillas is the city editor and political columnist for The Mercury, a two-time Pulitzer Prize-winning daily newspaper in Pottstown, Pa. Phyrillas has won several national and state awards for his columns. Phyrillas has been featured on National Public Radio (NPR) and in The New York Times and is a frequent commentator on radio and television programs. He co-hosted "Talking Politics with Tony Phyrillas & Mike Pincus" on WPAZ 1370 AM.
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