Pennsylvania employers shed another 10,300 jobs in September, according to new employment figures released today by the Pennsylvania Department of Labor & Industry.
The Rendell Administration is attempting to put the best possible spin on the continuing bad news by pointing out that Pennsylvania's 8.8% unemployment rate "remained below the United States' unemployment rate, which rose one-tenth of a point to 9.8 percent."
Doesn't that make you feel better, especially if your unemployment benefits are about to run out?
The bottom line is that Ed Rendell, Barack Obama and Congressional Democrats have done a terrible job dealing with economic issues, resulting in record unemployment.
From the Pennsylvania Department of Labor & Industry:
Pennsylvania's seasonally adjusted civilian labor force -- the number of people working or looking for work -- rose by 9,000 in September to 6,368,000.
Employment was unchanged in September, while resident unemployment rose by 9,000.
The Pennsylvania labor force was down 55,000 from September 2008.
Pennsylvania's seasonally adjusted unemployment rate was up one-tenth of a percentage point to 8.8 percent in September.
The state rate remained below the United States' unemployment rate, which rose one-tenth of a point to 9.8 percent.
Pennsylvania's rate was up 3.2 percentage points from September 2008, while the U.S. rate was up 3.6 percentage points in the 12-month period.
Pennsylvania's seasonally adjusted total nonfarm jobs count dropped by 10,300 jobs in September.
The majority of the job losses were among service providing industries, however, the Professional and Business Services sector added 2,700 jobs.
Pennsylvania job count was down 198,100, or 3.4 percent, since September 2008. Nationally, jobs were down 4.2 percent over the same time period.
NEWS FLASH: Pa. Legislature sends $27.8B budget to Rendell
It took 101 days into the new fiscal year, but the country's most expensive state legislatures has finally agreed on a budget for 2009-10.
From Marc Levy of The Associated Press:
A $27.8 billion state budget was on its way to the desk of Gov. Ed Rendell following a lopsided vote of approval from the Senate — a giant step toward ending Pennsylvania's 101-day budget stalemate, the nation's longest this year.
The 42-7 Senate's vote followed House approval on Wednesday.
The Senate voted without debate moments after signing off on a companion bill to tap more than $1.5 billion from the state's reserves. That bill still awaited House approval.
Rendell has said he would sign the appropriations bill, but it was unclear whether he would do so before the House passes the companion bill.
The appropriations bill cuts overall spending by more than 1 percent, while boosting spending on operations and instruction in public schools by $300 million, or 5.7 percent, a level that Rendell insisted upon.
The politically divided Legislature has been stymied by how to resolve a multibillion-dollar, recession-driven shortfall.
The final agreement relies on a blend of federal budget aid, transfer from reserve funds, spending cuts and nearly $500 million in new taxes on sales of cigarettes, little cigars and businesses that pay the capital stock and franchise tax.
The plan also relies on legalizing and taxing table games at the state's slot-machine casinos and leasing more state forest land to natural gas exploration companies.
Rep. Curt Schroder (R-155) issued a press release late Friday stating that it appears Gov. Ed Rendell and certain House and Senate leaders are repeating the mistakes in the tentative state budget agreement that got Pennsylvania in the financial mess it is in now.
From Schroder's release:
"This budget does not solve our problems," said Schroder. "It increases spending, relies on one-time revenues and taxes businesses and citizens at a time they can least afford it. Passage of this budget will ensure another budget fiasco next year."
On Sept. 18, Gov. Ed Rendell and three of the four legislative caucuses reached a tentative $27.9 billion state budget agreement without the participation of the House Republicans, who several weeks ago, put forth their own $27.5 billion plan. The Republican plan cut spending below last year's level, did not raise taxes, covered essential government services, provided increased funding for education and preserved the state's Rainy Day Fund. Further, the plan was balanced and sustainable, but House Democrats, who hold the majority and therefore the control in the House, refused to consider it. Instead, House Republicans were left out of the budget process.
"Three months into the new fiscal year, Pennsylvania is the only state without a budget, and the budget being proposed calls for increased spending in a down economy. Ironically, it is awash in walking-around-money or WAMs," said Schroder. "This budget proposal cuts funding for libraries, social services and education. To include grants for legislators' pet projects is an affront to every group getting its funding slashed. It taxes museums, concerts and other cultural events, cigarettes and small games of chance. It expands gambling and drains the Rainy Day Fund, which leaves us without money to cover essential services should we come up short again next year.
"The most disturbing thing is the stealth, secretive way this deal was reached. We will be asked to vote on this deal within days, yet we have not seen the line-item details," said Schroder. "As I see it, the proposed budget will only serve to prolong the pain being experienced by Pennsylvania citizens, and it offers little hope for economic recovery anytime soon," he said.
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:
Rendell job approval sinks as budget deal unravels
It's deja vu all over again as the latest Quinnipiac University poll reveals that Pennsylvania residents still have a low regard for both Gov. Ed Rendell and the Pennsylvania Legislature.
I'm going to go out on a limb and speculate that the three-month-old budget stalemate has something do with it.
Rendell's job approval rating remains negative, 42% approve - 51% disapprove, a slight improvement from his record low of 39% - 53% recorded July 21, according to a Quinnipiac University poll released Wednesday.
Only 26 percent of voters approve of his handling of the state budget, while 53 percent say he has been too inflexible and 30 percent call him courageous, the poll says. (The Sept. 18 budget deal reached by Rendell and leaders of three of the four legislative caucuses appears to be dead as rank-and-file lawmakers balk at the new taxes and spending cuts contained in the agreement.)
More from the Quinnipiac Poll:
Only 31 percent of voters approve of the budget agreement, while 37 percent disapprove and 31 percent aren't sure, the poll finds. Rendell is most responsible for the impasse, 27 percent say, as 21 percent blame legislative Republicans; 9 percent legislative Democrats and 30 percent say they are equally to blame.
"Gov. Ed Rendell remains at the low ebb of his governorship when it comes to public opinion, perhaps not surprising given the lengthy budget stalemate. He does better with women, who disapprove 49 - 44 percent, than with men, who disapprove 54 - 41 percent. The legislature's rating, where 27 percent approve and 64 percent disapprove, is even worse," said Peter Brown, assistant director of the Quinnipiac University Polling Institute.
For more poll analysis and to review the numbers (including who has the edge to replace Rendell next year), go to the Quinnipiac University Web site.
At the 90-day mark in the new fiscal year, Gov. Ed Rendell announced he is setting an Oct. 4 deadline ... or maybe Oct. 6 ... for the Legislature to have an approved budget on his desk.
We know how well the Legislature meets deadlines. It took the leaders of three of the four caucuses 80 days into the fiscal year to reach a budget agreement acceptable to Rendell. (House Republicans still don't want any part of the deal.)
So why the new-found sense of urgency on the part of the governor? Because people are beginning to figure out that the "deal" reached on Sept. 18 was just another red herring to distract Pennsylvanians from the ineptness of the governor and Legislature.
"We've had time," Rendell said Monday. "We should be able to get this done, no ifs, ands or buts about it. And there are a lot of people out there who are depending on us to get this done."
The reality is there is no deal. Rendell and the legislative leaders don't have the votes to get the so-called compromise agreement passed in the state House. They've been trying for 10 days to gather enough votes, but they keep coming up short. And every day that goes by, the "deal" loses more support.
Some house members won't vote for the "deal" because of the controversial tax on admission to arts venues, museums and zoos. Others object to the plan on environmental grounds. Some are upset with the proposal to tax games of chance and bingo operations at fire halls.
It's clear that Rendell and the legislative leadership jumped the gun on Sept. 18. While the Senate could probably come up with 25 or 26 votes to pass the budget deal, the votes are not there in the House, where up to 30 Democrats could bolt.
Democrats hold a slim 104-99 majority. Even if 10 Republicans can be bribed into voting for the deal, that's still not enough votes to make up for the Democratic defectors.
Forget about Rendell's latest deadline. It will come and go. I'm thinking Halloween before a real budget agreement is reached.
Check out more on the unraveling of the "budget deal" at POLICY BLOG
Rep. Doug Reichley: Budget deal 'not in the best interest' of many PA residents
Rep. Doug Reichley (R-Berks/Lehigh), Republican vice chairman of the House Appropriations Committee, issued the following statement Monday following the announcement Friday of a tentative budget agreement between Gov. Ed Rendell and three of the four legislative caucuses:
"I think all Pennsylvanians welcome the end of the embarrassing spectacle of our budget impasse over these last three months. Not only are we the last state in the nation to reach a budget agreement, we were also the only state in the country where the governor was proposing to increase spending in the midst of the worst economy in 70 years. Regrettably, the agreement reached by the governor and Senate Republicans, House Democrats, and Senate Democrats is not in the best interest of the many residents of our state who are struggling with job losses and lower household incomes.
"The governor and these three caucuses have brokered a deal where many businesses will look at a retroactive increase in the Capital Stock and Franchise Tax. This 53 percent increase will then be continued over the next three years, instead of permanently phasing out the tax as was currently stated in law.
"Individual consumers will see a 25 cent increase per pack in the cigarette tax, a new tax on small cigars, a new 20 percent tax on the proceeds from small games of chance, such as raffles and punchcards, and a new sales tax on the ticket price for admission to concerts, museums, and zoos.
"In addition to these new taxes, the concocted plan calls for taking every last cent out of the $750 million Rainy Day Fund, and raiding the state medical insurance fund which is meant to protect health care providers from disastrous litigation awards. This is not a prescription for fiscal stability either this year or next year when we may be faced with similar budget shortfalls.
"What is even more troubling than the tax hike binge is the absolute lack of detail being provided to the general public. We still do not know how libraries, hospitals, service providers, and school districts will be impacted. The governor was pleased that an additional $300-plus million of state tax dollars will be invested in education as well as his other pet programs, but the question remains whether those funds will be distributed equitably or primarily used to benefit Philadelphia, as has happened in the past.
"For five months, House Republicans have proposed budget plans calling for greater reductions in spending than agreed to last week. Our plan balanced the budget without raising a single tax on businesses or individuals. Unfortunately, the governor has convinced the other caucuses to increase taxes and maintain spending at last year's $28 billion budget level.
The governor and the other three caucuses have made their deal. Now let them put up the votes to raise taxes and spending."
Gov. Ed Rendell said Friday night that there are no winners or losers in the compromise that ended Pennsylvania's 80-day-old budget impasse.
Don't believe him. There are always winners and losers in every budget agreement and this one is no exception.
If you smoke, you're going to pay more. If you support the arts in Pennsylvania, you are going to pay more. (The deal expands the state sales tax to cover tickets for concerts, museums, theaters, etc.)
If your church or nonprofit group uses bingo or other small games of chance as fundraisers, you're going to have to pay the state under a new tax inlcuded in the deal.
If you're a business owner, you're going to continue paying some of the highest business taxes in the country. And so on.
Although details are sketchy, (Rendell purposely declined to reveal many details until the rank-and-file state lawmakers are briefed next week), The Commonwealth Foundation offers some instant analysis based on what we do know.
The budget deal includes $821 million in tax increases and fails to address at least $1.7 billion in deficit spending from last years' budget, according to the Foundation.
The state's "Rainy Day Fund" will be exhausted with legislative leaders agreeing to spend the entire $775 million to balance the budget, according to the Foundation.
That's a risky move because the economy isn't getting any better and we could sitting on another huge budget deficit next summer.
The Associated Press is reporting that a deal has been reached between legislative leaders and Gov. Ed Rendell to end the state's 80-day-old budget stalemate.
Pennsylvania had been the only state without a budget for the fiscal year that began on July 1, 2009. The last budget ended up $3.25 billion in the red.
Gov. Ed Rendell is scheduled to announce the agreement at an 8 p.m. news conference from the Governor's Reception Room in the State Capitol.
From the wire service:
Negotiators struggled all summer to resolve a partisan dispute over whether to fill the state's multibillion-dollar budget hole with new or higher taxes, cuts in state programs or a combination of the two.
A week ago, Republicans and Democrats in the Legislature announced a $27.95 billion budget deal that included $1.2 billion in recurring revenues — mostly new taxes — but Rendell threatened to veto it unless significant changes were made.
Rendell, leaving the Capitol earlier Friday, told The Patriot-News of Harrisburg that he had "good news. It's not the budget I would have chosen, but it fits my two markers."
The plan still requires approval from the Legislature, where minority House Republicans are adamantly against new taxes, but Republicans who control the Senate and House Democratic leaders confirmed they would join Rendell at the announcement.
Pennsylvania lost another 8,800 jobs in August, according to new numbers released today by the Pennsylvania Department of Labor & Industry.
State officials tried to put the best possible spin on the bad news by pointing out that Pennsylvania's 8.6% unemployment rate "remained below the United States' unemployment rate, which rose three-tenths of a point to 9.7 percent in August."
Doesn't that make you feel better?
Pennsylvania's unemployment rate was up 3.1 percentage points from August 2008, compared to an increase of 3.5 percentage points since August 2008 for the nation.
Since August 2008, Pennsylvania has shed 191,500 jobs!
Just a reminder that the governor of Pennsylvania is Ed Rendell, a Democrat, who has increased spending by $8 billion since 2003. Much of that spending went for various economic revitalization projects that Rendell claimed would bring more jobs to the state.
And in case you forgot, the Democrats also control both houses of Congress and the White House. If you're one of the 15 million Americans out of work, be sure to thank a Democrat in Harrisburg or Washington, D.C.
For a detailed breakdown of the employment numbers, follow the link below:
"They made their numbers work on paper, but the numbers won't work in the real world," Gov. Ed Rendell said today of the budget agreement reached Friday by Senate Republicans and House Democrats.
Rendell said he will not sign the budget compromise if it reaches his desk. House Republicans are also opposed to the proposed budget, which is now 74 days late.
Read Rendell's full statement and his list of flaws contained in the budget deal at the link below:
Rendell says he will veto bipartisan state budget proposal
Gov. Ed Rendell is the last man standing in the state's 73-day-old budget impasse. Legislative leaders announced today that they have reached agreement on a compromise budget that avoids broad-based tax increases (income tax or sales tax) but Gov. Rendell is threatening to veto the budget because he wants to see a big tax hike for Pennsylvania residents.
Rendell is alone in his call to raise taxes, so he won't have anybody to blame but himself if he carries out the threat to veto the budget.
Read the full text of the budget agreement announcement here.
Read more about Rendell's threatened veto at the link below:
The Pennsylvania Department of Revenue has released tax collection numbers for the month of August, the second month of the new fiscal year (although the state still doesn't have a budget for the 2009-10 fiscal year).
Without an approved budget and with last year's budget ending up $3.25 billion in the red, the state remains on shaky financial ground.
Pennsylvania collected $1.6 billion in General Fund revenue in August, which was $19.9 million, or 1.2 percent, less than anticipated, according to Revenue Secretary Stephen H. Stetler. Fiscal year-to-date General Fund collections total $3.3 billion, which is $22 million, or 0.7 percent, below estimate, Stetler said.
The state collected 5 percent less in July 2009 ($1.65 billion) than it did in July 2008 ($1.75 billion) when Gov. Ed Rendell's $28.3 billion red ink budget kicked in.
Collections from the two biggest sources of revenue, the sales tax and the personal income tax, were both down in August, as they were in July.
Translation for Gov. Ed Spendell and the dimwitted Democrats in the House who are holding up the budget in order to raise taxes: Pennsylvanians don't have jobs so they can't pay income taxes and they have nothing left after paying off their bills so they can't buy anything to increase sales tax revenues.
From a Revenue Department Press Release:
Sales tax receipts totaled $662.7 million for August, $13.4 million below estimate. Year-to-date sales tax collections total $1.4 billion, which is $13.4 million, or 1 percent, less than anticipated.
Personal income tax (PIT) revenue in August was $683.5 million, $28.3 million below estimate. This brings year-to-date PIT collections to $1.3 billion, which is $28.4 million, or 2.1 percent, below estimate.
August corporation tax revenue of $50.2 million was $3.9 million above estimate. Year-to-date corporation tax collections total $137.9 million, which is $2.1 million, or 1.6 percent, above estimate.
Other General Fund revenue figures for the month included $59.2 million in inheritance tax, $2.6 million below estimate, bringing the year-to-date total to $122.5 million, which is $2.7 million below estimate.
Realty transfer tax was $29.1 million for August, $2.2 million below estimate, bringing the total to $58.7 million for the year, which is $2.2 million less than anticipated.
Other General Fund tax revenue, including cigarette, malt beverage and liquor taxes totaled $91.5 million for the month, $8.5 million above estimate and bringing the year-to-date total to $174 million, which is $8.4 million above estimate.
Follow the link below to read the rest of the revenue report:
Taxpayers must fight Rendell and the 'spending interests'
Lowman S. Henry has some sound advice for Pennsylvania taxpayers: "If YOU don't speak up now, then the outcome of the budget crisis will be determined by those who do."
While it appears nothing much is happening while the state budget impasse marks its ninth week, Gov. Ed Rendell and the "spending interests" are working feverishly to weaken the resolve of Republican lawmakers, who have taken a "No New Taxes" stance.
From Henry's most recent post at his Lincoln Blog:
The spending interests are deploying a new tactic in their effort to inflict higher taxes on the working families of Pennsylvania: they are picketing the offices of their local state senators and state representatives and calling a compliant news media in for coverage.
In an effort to put pressure on fiscally responsible legislators, the spending interests are now resorting to pickets and demonstrations all the while chanting the mantra that it is time to end the stand-off.
I agree the budget stalemate should come to an end - but it should do so with state government living within OUR means and not raising any taxes. Otherwise, the budget crisis can go on until Easter if necessary.
Rendell has been manufacturing all sorts of doomsday scenarios for weeks now. In recent days school district officials - whose coffers are currently flush with local tax revenue - have be whining like spoiled children over the delay in state money, and over the fact Republicans want to give them less of an increase in their allowance, er, subsidies than they want.
Henry suggests Pennsylvania taxpayers give Rendell and the "spending interests" a taste of their own medicine.
"The tactic of demonstrating in front of legislative district offices is one taxpayers and taxpayer groups should emulate. Why should the spending interests be the only ones who make their voices heard?"
It would benefit every taxpayer to take time to call, write, visit - or take to the streets - in front of his/her legislator and senator's offices to either thank them for standing firm against tax hikes, or call upon them to put taxpayers first.
Rep. Rohrer blasts Rendell plan to expand sales tax
For the past six years, Gov. Ed Rendell has opposed efforts by state Rep. Sam Rohrer's efforts to expand the state sales tax in order to eliminate school property taxes.
Now that Gov. Rendell is floating the idea of expanding the state sales tax to help cover his $3.2 billion budget deficit, Rohrer is among the first state lawmakers to publicly condemn the idea.
From a press released issued today by Rohrer, a Republican who represents the 128th District in Berks County:
"The governor seems unable to understand that, on taxes, no means no," Rohrer said. "There is only one acceptable solution to the ongoing budget stalemate. The state must reduce spending to match its income. State government should not be adding to the burden of working families by raising taxes during this economic recession. That would be cold-hearted and wrong. Pennsylvania taxpayers deserve a compassionate government that does not kick them while they're down."
Rohrer is the Republican chairman of the House Finance Committee and the sponsor of the School Property Tax Elimination Act (SPTEA), a plan to free Pennsylvania homeowners from the burdensome property tax. Rohrer's plan would use an expanded sales tax, among other revenue sources, to fund education in the Commonwealth.
Rohrer warned residents not to be confused by the governor's proposal. While Rohrer's is about eliminating property taxes, the governor's is about expanding the state budget.
"My plan offers the hope of a property tax-free Pennsylvania," Rohrer said. "The governor's proposal is just another attempt to dig deeper into the pockets of taxpayers. He just wants more money to spend on more government."
Rendell is proposing the sales tax expansion after his earlier proposal to increase the state income tax was shot down by the General Assembly.
"The governor just doesn't get it," Rohrer said. "Whether it's an income tax, a sales tax or any other tax hike proposal he cares to offer, people just can't afford it right now. Instead of always expecting taxpayers to sacrifice and do more with less, the governor might actually have to sacrifice for a change."
Rohrer also noted it would be interesting to see which House Democrats would rise to support the governor's call for an expansion in the state sales tax to pay for additional state government spending.
"In the past, some House Democrats have adamantly opposed my plan to use a sales tax expansion to eliminate school property taxes," Rohrer said. "Will those same lawmakers now rise to support the governor's proposal to expand the tax to pay for more government? If that's the case, they would essentially be saying that they'd support a sales tax expansion to help the governor, but not to help homeowners. That's one heck of a message to send to property taxpayers in your district."
Rohrer said he will encourage his colleagues in the General Assembly who have supported the SPTEA to oppose the governor's sales tax expansion.
"The sales tax was instituted in 1953 for education only. It should remain for education only," Rohrer said. "It should not be used as a back door into the pockets of taxpayers to pay for more government spending."
House GOP Leader: Democrats still want to raise taxes on PA residents
House Republican Leader Sam Smith is warning that Gov. Ed Rendell is working on another sneaky tax increase as the state's budget crisis enters its ninth week.
Smith issued the following statement regarding the Sales and Use Tax expansion proposal being offered by the governor as a means to fund his bloated state spending proposal.
For 55 days, Pennsylvania has not had a full operating budget in place, and the latest official budget proposal put forth by the Democrats increases state spending to $29.1 billion, far more than is supported by anticipated state revenues and federal stimulus dollars.
"One way or another, the governor wants your money. In this climate, more taxes can be devastating for Pennsylvania families and employers.
"Last week, Democrats were looking to tax legal services and limit access to the courts.
"Now, we learn 'everything is on the table,' and they have a list of items, including many other 'services' they are looking to tax for more revenues – including each and every ATM transaction.
"Newspapers and magazines; movie, sports and theater tickets; museums, historic sites and the zoo will all have the state Sales and Use Tax added to their costs just to increase state spending. Research and development, advertising, and administrative services will be taxed under the governor’s plan. In order to pay for big government services, Democrats are even looking to tax Unemployment Compensation Claims, mass transit, textbooks, flags and dry cleaning.
"In order to spend, they are looking to tax. More taxes on Pennsylvanians and Pennsylvania employers are wrong and cause harm. Republicans have a better idea.
"House Republicans have introduced the $27.5 billion, no-tax-increase 2009-10 Republican Compromise Budget, House Bill 1943, which includes a $150 million increase for basic education as well as an increase for services to non-public schools; money for hospitals and health care programs that were eliminated from the governor’s proposal; and necessary dollars for human service programs.
"The House Republican proposal is a complete budget that funds the needs and priorities of Pennsylvania. Reflecting the state of the global economy, some may have to do with less, but none will have to do without.
"By using reason and setting realistic priorities, a no-tax-increase budget is indeed possible."
For some perspective on the "suffering" of social service agencies and the education community because of the state budget impasse, we turn to state Rep. Curt Schroder (R-155):
Human services providers and the people they serve have been put in a very precarious situation as a result of the state budget impasse. Unfortunately, they have become the new prisoners in the budget battle. When Gov. Ed Rendell signed the so-called interim budget and vetoed funding for vital government services, he released one set of hostages, the state employees, and claimed another. Now human services groups, social services programs, libraries, school districts and students heading off to college this fall, are suffering.
They are suffering, not because lawmakers don't want to fund them but because the governor would rather use them as leverage to get his higher spending and higher taxes. His actions are cruel and lack compassion. With many human service programs and child care centers now on the brink of closure as a result of the governor's actions, Senate Republicans tried to override more than $2 billion of his vetoes. Unfortunately, Senate Democrats voted against the effort, forcing human service providers, their consumers and others to continue going without the funding they need indefinitely.
The budget impasse could end tomorrow and could have ended months ago if the governor would take the approach that millions of Pennsylvanians have already taken during this recession. People have adjusted their lifestyles to live within their means, and the taxpayers of this state have every right to expect state government to do the same! We must encourage economic growth by keeping taxes low in order to see state revenue rebound. Only then will our schools, libraries, human services and other programs have the funding necessary to sustain them.
Unlike the governor, most Pennsylvanians know that a tax increase is not the answer. I will not yield that ground and, in fact, both Republicans and many Democrats in the House and Senate have stood up to the governor on this issue. Pennsylvanians deserve an end to the games and brass knuckle tactics of the Rendell Administration that have prevented a reasonable resolution to this budget.
Rep. Reichley Supports Senate Move to Restore Funding, End Crisis
Rep. Doug Reichley (R-Berks/Lehigh), Republican vice chairman of the House Appropriations Committee, issued the following statement in response to the Pennsylvania Senate's attempts to override certain line-item vetoes made by Gov. Ed Rendell to Senate Bill 850:
"I support the Senate's attempts Wednesday to fund $2 billion worth of vital services for the citizens of Pennsylvania. This was a responsible effort to ensure that people who rely on needed services from day care centers, from autism, mental health, and drug and alcohol service providers, and from veterans' outreach services can all continue to obtain that assistance. It should be abundantly clear that all those service providers, along with libraries, hospitals, school districts and college students have all been placed at risk to proceed through the fiscal year without funding because of the actions of one person - Governor Rendell.
"The Senate attempted to restore much of what the governor line-item vetoed for his stated intent of continuing the pressure on members of the House and Senate to pass a tax increase to fund more spending. I don't agree with the governor's tactic of cutting this vital funding and delaying state funding for more than 50 days past the end of the fiscal year.
"Delaying passage of crucial budget components will not serve to sway those of us who are standing firm against a tax increase during a recession.
"The governor doesn't seem to understand or care that there is no public support for a tax increase. Those service providers and funding recipients who have been pushed to the brink of ruin need to clearly question the strategy which seeks to make them martyrs on the altar of Governor Rendell's tax hike platform.
"Two times before, House Republicans have offered a compromise budget. We have now introduced this same budget in House Bill 1943. This compromise budget cuts spending by nearly $1 billion and funds essential services without a single tax increase. Admittedly, the funding levels in our compromise bill are at lower levels than last year's budget, but we are in a different economic climate than last year. The governor needs to learn how to tighten his belt and his appetite for spending other people's money."
Rendell urges Senate GOP to 'cancel their vacations, their fun'
Party pooper.
Gov. Ed Rendell issued the following statement after Senate Democrats refused Wednesday to join their Republican colleagues to override Rendell's veto of funding for education and social services.
"The Senate Democratic caucus did the right and courageous thing today: they put the next generation before the next election, and they demonstrated a strong and long standing commitment to passing a real and responsible budget for the citizens of this state.
"The failed attempt to override my veto of SB 850 further demonstrates the extreme and politically motivated nature of the position held by the Republican leaders. Once again, I call on them to cancel their vacations, their fun and their fundraisers. Return to Harrisburg. Immediately begin non-stop negotiations. Convene the conference committee. Get real. Lead, negotiate and compromise until a final comprehensive budget is in place for the commonwealth."
Now I'm really confused. I thought Rendell and the Democrats were looking out for the little people. But it was Rendell and the Democrats who refused to fund education and the social services.
Sounds like Rendell and the doormat Democrats are the ones playing politics.
We know what the Pennsylvania Senate has been up to this week. Senate Republicans attempted Wednesday to override Gov. Ed Rendell's veto of education and social services funding.
But what was the House of Representatives up to as the state's budget impasse began its eighth week?
Here are some of the Resolutions that passed the House on Wednesday:
House Resolution 415 - Commending the Chiropractic Fellowship of PA for its educational efforts, and recognizing the month of September 2009 as "Vertebral Subluxation Awareness Month" in Pennsylvania.
House Resolution 417 - Recognizing September 13, 2009 as Commodore John Barry Day in Pennsylvania.
House Resolution 443 - Recognizing September 13, 2009 as Grandparents Day in Pennsylvania.
P.S. - Senate Democrats blocked the GOP attempt to free up money for college tuition grants and homeless shelters, as well as services for veterans, mentally retarded and victims of rape and domestic violence, according to The Associated Press.
The votes on each were 30-19, three votes short of the two-thirds count necessary to override a gubernatorial veto. The votes were nearly along partisan lines, as just one Democrat — Sen. Lisa Boscola of Northampton County — crossed party lines to defy Rendell, the AP reported.
P.P.S - It costs taxpayers between $30,000 and $50,000 a day for every day the Legislature is in session past the end of the last fiscal year (June 30). Is it worth $30,000-$50,000 to have the Legislature proclaim Commodore John Barry Day in PA?
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.
Rep. Sam Rohrer on state budget: 'What's Really at Stake?'
State Rep. Sam Rohrer, Republican chairman of the House Finance Committee, has released the first in a series of videos where he will lay out the facts underlying the ongoing budget stalemate between Gov. Ed Rendell and the General Assembly.
Senate Republican Majority Leader Dominic Pileggi and State Rep. Mario Civera, R-164, the Republican chairman of the House Appropriations Committee, met with the editorial board of the Delaware County Daily Times to discuss the state's seven-week-old budget stalemate. The two Republican leaders placed the blame for the budget mess on the shoulders of Democratic Gov. Ed Rendell.
As long as Rendell insists on raising taxes and increasing state spending, don't look for the Republicans to budge.
This comment from Pileggi doesn't sound like a budget deal will come any time soon:
"The governor is still actively going around the state saying we need to increase the personal income tax by $1.5 billion and we need to increase our spending in the state by close to a billion dollars over last year. This isn't maintaining services. This is massive new taxation and massive increases in spending at a time when we're going through the worst recession in Pennsylvania since the Great Depression ... The problem, and the reason we're so far apart, is that the governor hasn't changed his objective even though the bottom has fallen out of the economy."
Pennsylvania is 40 days into a new fiscal year, but state officials are no closer to agreeing on a new budget than they were on June 30, the last day of the 2008-09 fiscal year.
In a recent poll, 30 percent of the state's voters placed the blame for the budget impasse on Gov. Ed Rendell, but 17 percent blamed the Republicans in the Legislature while 11 percent blamed the Democrats and 28 percent blamed everyone equally.
Pennsylvania finished the 2008-09 budget year with a #3.25 billion deficit, but Rendell wants to spend even more money for 2009-10. And a newspaper is now reporting that Rendell has also spent more than $360 million in borrowed money.
The man has a serious problem, which is why he is being referred to more often as "Ed Spendell."
From a story by Debra Erdley in today's edition of The Pittsburgh Tribune-Review:
Faced with the growing impact of a prolonged recession and revenue shortfalls, Gov. Ed Rendell last fall froze state hiring, ordered spending reductions and hunkered down for a coming budget battle.
On the surface, it appeared Pennsylvania was mired in a financial morass that would affect spending at all levels.
But records obtained by the Tribune-Review show one thing hasn't been hampered by the state's revenue woes: Rendell's ability to spend borrowed money.
While he was battling revenue shortfalls and lobbying for an income tax increase, Rendell was running his own economic stimulus program, quietly handing out $361 million in bond money across the state.
Read the full story, "Pennsylvania Governor Rendell doles out $361 million in borrowed money," at the newspaper's Web site.
You keep going down the same road and you end up in the same place.
The Pennsylvania Department of Revenue has released tax collection numbers for July, the first month of the new fiscal year.
Without an approved budget and with last year's budget ending up $3.25 billion in the red, it's hard to figure out where the state stands financially.
Let me just take a wild stab and predict Pennsylvania is on a path to an ever bigger deficit than the one recorded last year.
The news is all bad. The state collected 5 percent less in July 2009 ($1.65 billion) than it did in July 2008 ($1.75 billion) when Gov. Ed Rendell's $28.3 billion red ink budget kicked in. The small monthly deficits at the beginning of the fiscal year turned into a runaway train as the year finished.
(And Rendell actually wants to spend more ($29 billion) for 2009-10 than he did the previous fiscal year. This is why the state does not have an approved budget five weeks into the new fiscal year. Rendell still hasn't come to his senses.)
The Associated Press says the July 2009 revenue total is the 11th straight month in which Pennsylvania's tax collections have fallen short of the same month in the previous year.
Collections from the two biggest sources of revenue, the sales tax and the personal income tax, were both down. Translation for Ed Spendell and the dimwitted Democrats in the House pushing for higher taxes: Pennsylvanians don't have jobs so they can't pay the income tax and they don't have money to spend so they're not paying the sales tax.
From a Revenue Department Press Release:
HARRISBURG -- Secretary of Revenue Stephen H. Stetler today reported that the state collected $1.7 billion in General Fund revenue in July, the first month of the 2009-10 fiscal year.
Sales tax receipts totaled $735.2 million; personal income tax revenue was $639.9 million; and corporation tax revenue was $87.7 million for July.
General Fund revenue figures for July included $63.4 million in inheritance tax and $29.6 million in realty transfer tax. Other General Fund revenue, including the cigarette, malt beverage and liquor taxes, totaled $82.5 million for the month. Non-tax revenue totaled $12.6 million for the month.
In addition to the General Fund collections, the Motor License Fund received $319.8 million for the month.
The Gaming Fund received $59.9 million in unrestricted revenues for July. Gaming Fund receipts include taxes, fees and interest. Of the total for the month, $59.8 million was collected in state taxes for property tax relief. Other gaming-related revenues collected for July included $1.9 million for the Local Share Assessment; $8.8 million for the Economic Development and Tourism Fund; and $21.1 million for the Race Horse Development Fund.
Gov. Ed Rendell released a rambling statement today about the state's budget impasse, blaming the Republican-controlled state Senate for blocking his efforts to raise the state income tax by 16 percent.
Contrast Rendell's rant with the most recent survey of voters and you'll see that Rendell is not dealing with reality.
GOV. RENDELL: "GOP Senators are isolated in their position. The people of Pennsylvania are fed up with their government right now, and I'm fed up that the majority party in the state Senate shows so little regard for getting the job done."
REALITY:Gov. Ed Rendell's job approval rating has shrunk to its lowest level ever, 39 percent, and voters see him as most responsible for the state's budget mess, according to a Quinnipiac University poll. Also, 63 percent of voters reject Rendell's call to raise the state income tax temporarily to balance the budget, the Quinnipiac poll says.
More from the Quinnipiac poll:
Only 28 percent of voters approve Rendell's handling of the state budget and only 33 percent approve of his handling of the economy.
"Voters clearly don't want their taxes raised to solve the budget mess," said Peter A. Brown, assistant director of the Quinnipiac University Polling Institute. "Given a choice between raising taxes to maintain the level of services, or cutting spending and leaving taxes the same, 55 percent favor spending cuts and 35 percent say raise taxes."
To read more of Rendell's nonsensical statement, follow the link below.
* Pennsylvania Gov. Ed Rendell's job approval rating has shrunk to its lowest level ever, 39 - 53 percent negative, and voters see him as most responsible for the state's budget mess.
* Voters also reject 63 - 33 percent the governor's call to raise the state income tax temporarily to balance the budget.
* State Attorney General Tom Corbett has the best name recognition among Republican contenders in the 2010 Governor's race, while there is no clear leader in the Democratic field.
* Rendell is most to blame for the budget stalemate, 30 percent of voters say, while 17 percent blame the Republicans in the Legislature; 11 percent blame the Democrats and 28 percent blame everyone equally.
* Pennsylvania voters disapprove 57 - 27 percent of the job the State Legislature is doing, close to the all time worst score of 60 - 26 percent October 5, 2005.
The most significant bill on the list is House Bill 89, which amends the Crimes Code to expand the offense of sexual abuse of children to include intentionally viewing child pornography.
Lowman S. Henry offers an interesting analysis of Gov. Ed Rendell's mental status as the state's budget impasse enters Day 14 and Rendell is unable to drum up support for a massive tax hike to dig his way out of a fiscal hole.
From Henry's latest post at Lincoln Blog:
The governor is clearly becoming unglued. He is acting like a junkie who can't get his next fix. Which is exactly what he is: a spending junkie. The governor is used to the legislature rolling over and funding his insatiable appetite for spending.
But this year is different. This year, Republicans - and not a few Democrats - are refusing to cave into the governor's demands for new taxes in the midst of an economic recession.
As a result, Rendell is becoming hysterical.
Obviously 4,000 state employees are not going to be laid off. And, if that many could be laid off the question that pops up is: were they even needed in the first place?
Q: How can you tell if Gov. Ed Rendell is lying? A: His lips are moving.
Rendell has spend a lot of your tax dollars riding around the state on a bus to lie to constituents about Senate Bill 850, which reduces state spending and eliminates the need for a tax increase.
The Commonwealth Foundation has caught Rendell ... repeatedly ... lying about the impact of SB 850 on public education.
There's a big debate in Pennsylvania over Gov. Ed Rendell's call for a "temporary" 16 percent increase in the state's personal income tax, which is paid by workers and businesses. Rendell says the increase would only last three years and would raise $4.5 billion, enough to cover the $3.25 billion deficit Rendell ran up this year with some spare change to spend on bigger state government.
The problem with Rendell's "temporary" tax hike is very few people are interested in paying it. Senate and House Republicans in the state Legislature have vowed to fight Rendell on the "temporary" tax hike.
I have an alternative. How about a "voluntary" tax hike?
Since Rendell claims that people want to pay more, here's the opportunity to prove it.
Under my plan, the state will raise taxes only for those who want to give more of their income to Harrisburg. We probably won't be able to collect $4.5 billion, but it's a start.
I'm taking names of Pennsylvania residents who would like to pay more taxes:
HARRISBURG – Republican Party of Pennsylvania Chairman Rob Gleason was elated after hearing the news that hardworking Pennsylvanian s will not have to suffer the burden of Gov. Ed Rendell's plan for a major increase in the personal income tax.
"I am pleased to see that concrete and positive steps are being taken to reach a fiscally responsible solution to our current budget crisis that does not raise taxes on hardworking Pennsylvanians," Gleason said. "This is a major victory for the taxpayers of our Commonwealth and I am proud of our Republican leaders in the state Senate and House for flatly rejecting the Governor and the Democrat Party's attempt to impose a major tax increase."
Over the last few weeks, Democrats in Harrisburg have proven just how out-of-touch they are with hardworking Pennsylvanians. Democrats everywhere used scare tactics and the Governor traveled the state on the taxpayer dime trying to convince hardworking Pennsylvanians that his 16% tax increase was necessary and that an additional $500 a year wasn't really that much money. Perhaps the most out-of-touch comment came from Rep. Phyllis Mundy of Luzerne County who, in the midst of stressing the need for the Governor's major tax increase, was quoted in The Patriot News as saying, "The people just don't get it."
Gleason added, "Sorry Rep. Mundy, the people do get it! They can't afford another tax increase and they are glad it failed. They also believe that the state government should work to control their spending, just as other Pennsylvania families have been forced to do during these tough economic times.
"Our Party is founded on the principles of lower taxes and fiscal responsibility, and the budget plan being supported by our Republican leaders adheres to those beliefs. This is a big win for our Party and we are ecstatic that we were able to defeat such a major tax increase that would have cut the budgets of hardworking Pennsylvania families."
Keep the pressure on lawmakers to prevent tax hike
As of Friday, 11 state Senators and 73 state Representatives have made the affirmation to oppose new taxes on Pennsylvania families and businesses, according to the Commonwealth Foundation, but it takes 26 Senators or 102 Representatives to stop a tax increase.
Taxpayers must keep the pressure on the Legislature to oppose any of Gov. Ed Rendell's proposed tax increases.
Find out if your area lawmakers have signed the No Tax pledge here.
A day after effectively killing Gov. Ed Rendell's call to raise the state income tax by 16 percent, Pennsylvania House Republicans have enveiled a balanced General Fund budget for the 2009-10 fiscal year that calls for no tax increases.
House Republican Leader Sam Smith (R-66) and Republican Appropriations Chairman Mario Civera (R-164) announced the House Republican Caucus' $27.27 billion, no-tax-increase budget proposal at a Harrisburg press conference.
From a press release issued by Smith's office:
"Pennsylvanians expect a balanced budget, and they can't afford more taxes. House Republicans are offering a plan which meets those expectations," Smith said. "House Democrats have gone from one extreme to the other, yet, despite the budget deadline having passed more than a week ago, they still haven’t brought a budget bill to the floor.
"As consequences mount without a budget, Republicans think the Democrats' approach is irresponsible."
The Republican's fiscally responsible alternative increases funding for public education and continues funding for state parks, hospitals and universities.
"Today, we're presenting a $27.27 billion budget with no tax increases that ensures each school district gets increased funding. It continues necessary government services and avoids the thousands of layoffs projected by the governor and House Democrats. The Republican priority has always been protecting public safety, human services and educating our kids ... our budget proposal accomplishes it."
To balance the budget in the face of declining revenues and a $3.2 billion deficit, House Republicans are proposing a tax amnesty program to collect an estimated $1.5 billion in back taxes, as well as leasing of state-owned lands for natural gas drilling in the Marcellus Shale region.
"We have brought to the people of Pennsylvania a balanced and fiscally responsible spending plan that does not raise a single tax. The governor and House Democrats said it could not be done, and we are here today to show them it can," Civera said.
"This plan does what every family in the Commonwealth has to do every day – it budgets what we can afford. It protects the state's priorities like education and public safety, and it ensures we are prepared for what may lie ahead.
"I admit it does not come without some pain. There were a lot of tough decisions made in this budget. But we took leadership and did what needed to be done."
Tax Hike Not the Answer to Pennsylvania's Spending Crisis
By Rep. Curt Schroder R-Chester County
Gov. Ed Rendell has announced plans to raise the Personal Income Tax of Pennsylvania taxpayers by 16 percent, or a half percentage point increase as his answer to the state’s $3.2 billion budget shortfall.
The Rendell administration is spending a lot of time selling the idea that we have a revenue crisis in this state and more money is needed. We don't have a revenue crisis in Pennsylvania. We have a spending crisis and it's time we acknowledge it and begin dealing with it responsibly.
The state Senate recently passed a budget bill that was widely criticized for the depth of cuts it proposed. While the Senate bill was far from a perfect solution, it did reflect the economic realities facing lawmakers and Pennsylvania citizens.
Now is the time to scale back state government, to cut non-essential services and discretionary grant programs, and hold the line on spending. Yet, the governor's original budget proposed $700 million in new state spending even in the face of a massive deficit, at a time when people are losing their jobs and losing their homes to foreclosure. Now he proposes to take even more out of their paychecks. This is not a responsible or acceptable solution.
Last year, before passage of the 2008-09 budget, we were warned by Senate budget analysts that the proposed spending plan would result in a $1 billion deficit this year. They warned that revenue estimates were too high and unrealistic, and one-time revenue sources were being used. I rejected that budget, as did 31 of my House colleagues.
The taxpayers of this commonwealth need to know what is at stake. In order to maintain the level of state spending the governor is proposing, a broad-based tax increase like the one he has proposed would be necessary. Our current economic crisis could have been avoided if Pennsylvania's spending increases had stayed within the rate of inflation during the Rendell years. Under Rendell, the state budget has increased nearly 40 percent -- double the rate of inflation. Had we held spending to a modest 3 percent in each of the past six years, our spending would be in line with the revenues coming in today. Our budget would be balanced, important programs would be retained and there would be no danger of a tax increase.
Instead we are in a budget crisis. We are left with no easy choices, but the choices are clear. We must live within our means or prepare for a major tax increase. I will not vote for a tax increase, and I challenge those members of the General Assembly who are critical of efforts to budget responsibly to come clean with taxpayers and let them know which taxes they will raise in order to pass a budget that increases spending to the levels proposed by the governor.
Rep. Curt Schroder is a Republican who represents the 155th House District in Chester County. For more information, visit his Web site, www.curtschroder.com
The Pennsylvania Cable Network will dedicate Wednesday evening's programming to the state budget impasse.
Beginning at 5 p.m. on Wednesday, July 8, PCN will air a block of special "On the Issues" programs featuring key lawmakers involved in the budget process.
Following these one-on-one interviews, Lieutenant Governor Joe Scarnati and Governor Ed Rendell will take viewers' calls during two separate LIVE PCN Call-In Program specials set to air starting at 6 p.m.
Each hour-long Call-In program will give viewers an opportunity to talk directly to the featured guest by dialing toll-free at 1-877-PA6-5001.
The schedule, including replay times, for this special PA budget programming block is as follows:
Wednesday, July 8:
5:00 p.m. – On the Issues: Rep. Mario Civera (R) – House Minority Appropriations Chair Replays – Wednesday, July 8 at 8:00 p.m. and 11:00 p.m.
5:15 p.m. – On the Issues: Rep. Dwight Evans (D) House Majority Appropriations Chair Replays – Wednesday, July 8 at 8:15 p.m. and 11:15 p.m.
5:30 p.m. – On the Issues: Sen. Dominic Pileggi (R) – Senate Majority Floor Leader Replays – Wednesday, July 8 at 8:30 p.m. and 11:30 p.m.
5:15 p.m. – On the Issues: Sen. Jay Costa (D) Senate Minority Appropriations Chair Replays – Wednesday, July 8 at 8:45 p.m. and 11:45 p.m.
6:00 p.m. (LIVE) – PCN Call-In program: Sen. Joe Scarnati, Lieutenant Governor/PA Senate Pro Tempore Replays – Wednesday, July 8 at 9:00 p.m; Thursday, July 9 at 12:00 a.m. and 9:00 a.m.
7:00 p.m. (LIVE) – PCN Call-In program: Governor Ed Rendell Replays – Wednesday, July 8 at 10:00 p.m; Thursday, July 9 at 1:00 a.m. and 10:00 a.m.
For updated information about special budget programming and other programming information, visit the daily schedule at pcntv.com
Balancing the state budget is not rocket science. You simply spend less money than you take in. Pennsylvania families and businesses have to live within their means every day. Why can't Ed Rendell?
"Contrary to the Governor's rhetoric, there are a plethora of reforms and spending cuts that can balance the budget without firing our police, evicting our elderly, or dumbing down our kids," says POLICY BLOG, which offers 10 Ways to Balance the Budget Without Tax Hikes.
Some of the suggestions:
1) Eliminate corporate welfare. The Governor's latest General Fund budget contains over $410 million in corporate welfare.
2) Eliminate, privatize, or implement user fees for "private goods" - such as museums, parks, and the arts. The Governor's budget spends almost $500 million to maintain non-core functions of state government.
3) Control self-service government programs expenses like legislative leadership accounts used to fund illegal bonuses. A number of state programs and expenditures work to benefit of government official and the detriment of citizens. Rendell's revised General Fund budget about $200 million on self-benefiting expenses.
We're more than half way there. As I mentioned before, the magic number is 128, which would constitute a majority in the House (102) and Senate (26) against the Rendell income tax hike.
As of today, 81 lawmakers have signed the "No Tax" pledge sponsored by the Commonwealth Foundation. To check if your state senator or representative is on the list, click here.
The important numbers are in the House, where Democrats hold a 104-99 majority. Assuming all 99 Republicans vote against the Rendell tax hike, at least three Democrats must stand with taxpayers.
If your state representative is not on the list, call or e-mail him or her to find out why they want to raise your taxes.
State Rep. Sam Rohrer, R-Berks, made the following comments at a PACT with PA Press Conference in Harrisburg regarding the move by Gov. Rendell and House Democrats to raise taxes for Pennsylvania families and business owners:
Can we really afford to raise taxes? What will be the impact on our taxpayers – our small businesses- our struggling economy – on jobs? If taxes are raised, can the honestly be called "temporary?"
These are all great questions and they must be openly discussed, not twisted and spun to try and convince the public that what they know to be poison is really medicine.
Well if we look at history, this legislature hasn't done so well in regard to this principle. In 1991 we were faced with a $1 billion deficit—but instead of cutting back on spending, taxes were raised $3 billion - $ 1 Billion in needed revenue, $2 Billion to “buy” the votes. That $2Billion/yr has resulted in taxpayers losing over $35 Billion dollars. You see raising taxes is VERY expensive.
In fact, this legislature has resorted to raising taxes in every previous recession (1983, 1991, and 2003). Today, we're facing a $3 billion+ deficit from just this current year with the need to address in this budget an equivalent of around $7Billion. Does anyone think we can afford to raise taxes without absolutely destroying our economy and breaking the backs of our taxpayers? So history doesn't look to good. Now is the time to learn from history, consider the negative impact of the previous tax increases and live within available revenues.
Fact 1: Tax Freedom Day, or the day where Americans stop working to pay taxes and start working for themselves, fell on April 13th. Pennsylvanians work a full 103 days, or three and a half months, to pay federal, state and income taxes. During 2009, you and I will pay more in taxes than we spend on food, clothing, and housing combined.
Fact 2: Pennsylvanians in particular shoulder a heavy burden: with the 11th high state and local tax burden in the country, Pennsylvanians pay on average $13,000 PER PERSON (not wage-earner) in taxes. In 2008-2009, our Pennsylvania state and local governments spent $10,000 for every man, woman, and child.
Fact 3: Raising the PIT as the Governor wants to do will destroy jobs: According to the PA State Tax Analysis Modeling Program, or PA-STAMP, a 1% increase in personal income tax would result in a net loss of 47,633 jobs next year.
Can your family afford a state income tax increase right now? If not, you must make your voice heard in Harrisburg, where Gov. Ed Rendell and his doormat Democrats in the House are planning to raise the state income by 16 percent to cover the $3.2 billion budget deficit they ran up in the past year.
If you're tired of sending your paycheck to Harrisburg, if you're tired of uncontrolled spending by professional politicians, you need to send a message to your state House member that you will vote them out in 2010 if they vote to raise your taxes in 2009.
Veteran Harrisburg reporter Brad Bumsted does a good job of getting to the heart of the current stalemate between Gov. Rendell and his doormat House Democrats versus the Republican-controlled Senate.
Rendell and Democratic leaders want to raise the state income tax by 16 percent to make up for the $3.2 billion deficit Rendell ran up this year.
Senate Republicans (and their House counterparts) say they will not support any new taxes.
What's at stake is control of the Legislature in 2010 and beyond. Rendell is a lame duck. What he wants doesn't matter.
If Senate Republicans cave on the tax issue, they lose all credibility with voters and Democrats will chip away at the GOP's 30-20 majority.
If even one of the 99 Republicans in the House caves on the tax issue, Republicans will become a permanent minority.
Voters are angry. Angry about runaway spending. Angry about the state's economic woes, brought on largely by Rendell's failed policies.
Voters changed 1 in 3 members of the House over the past two election cycles since the infamous pay raise vote in 2005. If House members give in to Rendell and approve a tax hike, expect another large-scale voter revolt in 2010.
That's what Busted thinks, too.
From his latest column in The Pittsburgh Tribune-Review:
Will the GOP hold the line?
Are we in for a replay of the 1991 budget battle under then-Gov. Robert P. Casey when it took until mid-August to round up the votes for an income tax hike?
That began as an effort to close a $1 billion deficit. In the end, the tax hike was almost $3 billion. About $2 billion in additional spending bought members' tax votes. Hundreds of millions went for increased program spending sought by Democrat lawmakers, along with millions for their pet projects.
But the bigger question comes if the full Legislature acquiesces to Rendell and goes along with a tax increase. With the 2005 pay-jacking outrage still fresh in the minds of many, will a full-scale public revolt be next?
The Republican Party of Pennsylvania released a new Web ad titled "$500" today, examining the true cost of Gov. Ed Rendell and the Democrats' plan to raise personal income taxes by 16% on Pennsylvania families.
From a GOP press release:
"Pennsylvanians should be outraged by the Governor's proposal to increase taxes," said PA GOP Chairman Rob Gleason. "Rather than make fiscally responsible decisions in Harrisburg, he has decided to shift the burden of the state's $3 billion budget deficit to Pennsylvania families by calling for a major tax hike. Governor Ed Rendell's decision to cut the annual budget of every hardworking Pennsylvania family by $500 is deplorable."
The Republican Party of Pennsylvania encourages Pennsylvanians to contact Gov. Ed Rendell and Democrat Party leaders and to pass a fiscally responsible budget that will not increase taxes before the end of the fiscal year on June 30.
"For months, Republicans have put forth real solutions that will balance our budget without raising taxes. It is time for Democrats to do the job they are paid to do and make tough decisions in Harrisburg, not force hardworking Pennsylvanians to carry the burden of their out-of-control spending proposals and decision to increase taxes."
Can your family afford a state income tax increase right now? If not, you must make your voice heard in Harrisburg, where Gov. Ed Rendell and his doormat Democrats in the House are planning to raise the state income by 16 percent to cover the $3.2 billion budget deficit they ran up in the past year.
If you're tired of sending your paycheck to Harrisburg, if you're tired of uncontrolled spending by professional politicians, you need to send a message to your state House member that you will vote them out in 2010 if they vote to raise your taxes in 2009.
Rep. Curt Schroder, R-155, on the Rendell drumbeat for higher taxes to help the governor dig out of the $3.2 billion deficit he created:
"The Rendell administration is spending a lot of time selling the idea that we have a revenue crisis in this state and more money is needed," Schroder said in a written statement. "We don't have a revenue crisis in Pennsylvania. We have a spending crisis and it's time we acknowledge it and begin dealing with it responsibly."
Schroder said the Senate's budget bill, which was killed by Democrats in House committee, was widely criticized for the depth of cuts it proposed. While acknowledging that the bill was far from perfect, he said it reflected the economic realities facing lawmakers and Pennsylvania citizens.
"Now is the time to scale back state government, to cut non-essential services and discretionary grant programs, and hold the line on spending," said Schroder. "The governor's budget proposes $700 million in new state spending at a time when people are losing their jobs, and losing their homes to foreclosure. Now he proposes to take even more out of their paychecks. This is not a responsible solution. It's time to cut spending now!"
Let's assume for a moment that 10 members of the Republican Senate majority go insane and vote with the 20 Senate Democrats to support Gov. Ed Rendell's 16% income tax hike, which would drain $4.5 billion from working Pennsylvanians and small business owners over the next three years.
The tax hike would still have to pass the House, where Democrats hold a 104-99 majority.
For any legislation to pass the lower chamber, a majority vote of 102 members is needed.
For Rendell's tax hike to die in the House, only three Democrats need to join the 99 Republicans in voting against an income-tax increase.
In the past two weeks, I've been posting contact information for Southeast Pennsylvania House members who are serving in their first or second terms.
Only three of the lawmakers listed below need to oppose Rendell's tax hike and stand with their constituents against higher taxes and runaway spending.
If you recognize the names below as your representative, click on the link and send them a message that you can't afford to pay any more taxes ... and remind them that you will never vote for them again if they support Rendell's tax hikes.
Another 18,000 Pennsylvania residents lost their jobs in May, bringing the state's unemployment rate to 8.2 percent, up from 7.8 percent the previous month, according to the latest numbers released by the Pennsylvania Department of Labor & Industry.
Pennsylvania has lost 185,000 jobs since May 2008. The 8.2% unemployment rate is the highest the state has seen since 1985.
Despite the continuing recession, Gov. Ed Rendell wants to raise taxes on working Pennsylvanians and small business owners.
A coalition of business and industry groups predicts the loss of an additional 24,000 jobs if Gov. Rendell is successful in persuading the Pennsylvania Legislature to increase the state's income tax by 16 percent to help make up for the $3.2 billion budget deficit Rendell has run up in the past year.
For more labor statistics, click on the link below:
Business leaders: Rendell's $4.5B tax hike will cost 24,000 jobs
Somebody should tell Gov. Ed Rendell there's a recession going on.
With tens of thousands of Pennsylvania residents out of work and businesses closing their doors every day, the last thing the state needs to do is raise taxes on workers and small business owners.
That's the message a group of business leaders want to send to Gov. Rendell and the Pennsylvania Legislature as state officials get closer to the state's annual budget deadline.
The National Federation of Independent Business/Pennsylvania, the Pennsylvania Business Council, the Pennsylvania Chamber of Business and Industry, and the Pennsylvania Manufacturers' Association issued a joint statement warning that a 16-percent increase in the state's personal income tax would result in the loss of 24,000 jobs.
And that's the short-term consequences, warn business leaders. Higher taxes will worsen the Commonwealth's budget and financial problems, and extend them deeper into the future, the business coalition says.
Gov. Rendell's tax hike also would reduce Pennsylvanians' disposable income by an estimated $1 billion, the group estimates.
Along with the personal income tax increase, Rendell also wants to impose new taxes on tobacco and the fledgling natural gas industry, the business leaders said. There is also a movement in the Legislature to allow counties to raise the state sales tax.
"When you tax something, you get less of it," NFIB state director Kevin Shivers said in a written statement. "The decline in sales tax revenues and income tax collections are a stark reminder that consumers are afraid to spend because they are worried about their jobs and economic uncertainty. Proposing new taxes now would have a chilling effect on Pennsylvania's economy."
More from Shivers:
"Pennsylvania businesses already are being asked to pay $400 million in new payroll taxes to help pay down the $1 billion deficit in the state's unemployment fund. Raising the state income tax -- which is THE business tax for most small businesses -- would be especially harmful in the current climate and impede our ability to recover. Business will be forced to adapt to such dramatic losses in revenue by postponing new hiring, equipment purchases and upgrades; reducing work hours for current employees; and unfortunately cutting jobs."
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.
Brad Bumsted of the Pittsburgh Tribune-Review does a nice job of putting the state budget process into the right perspective in his latest column.
Gov. Ed Rendell and House Democrats want to increase state spending (and raise taxes) even though the current budget is more than $3 billion in the red and tens of thousands of Pennsylvanians are out of work.
Republican lawmakers want minimal cuts in state spending and have introduced a $27 billion balanced budget.
From Busted's latest column:
What's at stake between $27 billion and $29 billion is quite simply whether you pay higher state taxes. And talk is aplenty of a state income tax increase to close a projected $3.2 billion deficit.
Rendell's propaganda campaign lays the groundwork for an income tax boost by pointing out all of the "devastating" consequences of spending less.
Busted also questions the use of taxpayer dollars by Rendell to promote his deficit, higher-taxes budget.
"How many hundreds of employee hours and state tax dollars went into preparing these news releases, which are all aimed at spending even more of your tax dollars?" Busted asks.
And how much did the recent propaganda bus tour orchestrated by Rendell cost taxpayers?
Rep. Matthew D. Bradford is a freshman Democrat who represents the 70th House District in parts of Montgomery County.
Bradford has served in the Legislature for five months. His first major vote will be on Gov. Ed Rendell's $29 billion budget for the 2009-10 fiscal year. The only way to balance Rendell's budget is through major tax increases. Rendell's current budget is expected to finish $3.2 billion in the red.
Bradford campaigned on the promise of reducing property taxes. Ironically he is being pressured by Rendell and the Democratic party bosses in Harrisburg to raise taxes on his constituents to continue the out-of-control spending in Harrisburg.
If you live in the 70th House District -- the townships of of East Norriton (PART, Districts 01 [PART, Divisions 01, 02 and 03] and 02), Lower Salford, Skippack (PART, District 01), Towamencin (PART, Districts 02 [PART, Divisions 02 and 03] and 03 [PART, Division 03]) and Worcester and the borough of Norristown (PART, Districts 01 [PART, Divisions 02 and 03], 03 and 04) -- you need to remind Rep. Bradford that if he votes to raise your taxes, he will not receive your vote in 2010 when he seeks re-election.
While the Pennsylvania Legislature debates what to designated as the state reptile and is busy issuing proclamations, somebody is thinking about how to deal with the state's fiscal crisis.
In this case, it would be the staff of The Harrisburg Patriot-News, which published a series of articles Sunday under the banner, "Big Ideas for Pennsylvania."
"We're in a real mess here with the June 30 budget deadline looming," the newspaper says. "The state is looking at a $3 billion deficit and there are no signs that the economy is going to improve any time soon."
The suggestions are intended to spark debate on ways the state can save money or find new sources of revenue.
The "big ideas" include:
1) Sell the Pennsylvania Liquor Control Board
2) Charge tolls on Pennsylvania's interstates
3) Expand gambling in Pennsylvania
4) Enact a mileage tax
5) Give state employees a 4-day work week
6) Overhaul the state pension program
I don't agree with all of the ideas, but I applaud the newspaper for offering the pros and cons of each. It's a shame the most expensive state Legislature in the country can't find the time to discuss these proposals in between voting on proclamations such as "June Is Dairy Month."
P.S. -- The Patriot-News is also taking suggestions from readers for other ways the state can save money.
Columnist: Don't believe Rendell on 'temporary' tax increase
Lowman S. Henry, writing at Lincoln Blog, is skeptical of a proposal floated by Gov. Ed Rendell and House Democrats for a "temporary" increase in the state income tax to deal with the $3.2 billion deficit Rendell and the Legislature created.
When was the last time a "temporary" tax was repealed? Never. When has Ed Rendell kept a promise to taxpayers? Never.
From Lincoln Blog:
Sensing there is virtually no chance of getting a broad-based tax hike approved by the legislature, Governor Ed Rendell floating a new trial balloon: a temporary 1% rate hike in the state personal income tax.
Temporary, right, uh huh. The Governor wants the tax hike just to get us through the recession and to cushion the loss of federal stimulus money in two years and then it would go away. (Wink, wink.)
Come on governor, we all know there is no such thing as a temporary tax hike. We are still paying a special levy imposed to help finance recovery from the great Johnstown flood. And Johnstown hasn't been flooded in generations with anything but John Murtha's pork-barrel spending.
With Gov. Ed Rendell and House Democrats pushing for higher taxes to dig themselves out of the fiscal hole they created, it's time for Pennsylvania taxpayers to be heard.
Join the State Capitol Taxpayers' Protest on Tuesday, June 9
Here is some basic information courtesy of The Commonwealth Foundation:
WHAT: Concerned citizens who will descend on Harrisburg for the all-day Pennsylvania State Capitol Taxpayers' Protest, will be welcomed by a united coalition led by State Representative Daryl Metcalfe (R-Butler) and more than 30 fiscally conservative state lawmakers, state and national watchdog groups and radio talk shows hosts.
WHO: Some of the outstanding confirmed speakers and organizations participating will include: Jim Broussard, Citizens Against Higher Taxes; Josh Culling, National Taxpayers' Union; Bob Durgin and R.J. Harris, WHP 580; Patrick Gleason, Americans For Tax Reform; Kevin Shivers, NFIB; David Taylor, Pennsylvania Manufacturers' Association; Susan Staub, Right to Work; Matt Brouillette, Commonwealth Foundation; Jeffrey Trimbath, The Heritage Foundation; Colin Hanna, Let Freedom Ring and many others. State Senator John Eichelberger and Representatives Kerry Benninghoff, Karen Boback, Paul Clymer, Jim Cox, Tom Creighton, Scott Hutchinson, Rob Kauffman, Tim Krieger, Bob Mensch, Donna Oberlander, Tom Quigley, Kathy Rapp, Mike Reese, Brad Roae, Todd Rock, Sam Rohrer, Curt Schroder, Jerry Stern, Rosemarie Swanger, Will Tallman, Katie True, Mike Turzai, Matt Gabler, Stan Saylor, Sheryl Delozier, Carl Metzgar, Seth Grove, John Payne, Gordon Denlinger and Keith Gillespie are also scheduled to participate.
Brouillette to Counter Rendell's 'Tax You More' Bus Tour Present the truth about taxes and spending in our public schools
Harrisburg, PA — Gov. Rendell's week-long, state-wide bus tour to scare and mislead Pennsylvanians into thinking they pay too little in taxes and don't spend enough on public education will be met head on by Commonwealth Foundation president and CEO Matthew Brouillette.
As Rendell burns tax dollars in the gas tank of a giant campaign bus to lobby for higher taxes for public education, Brouillette — a former teacher, football/baseball coach, and school board member — will be at each stop along the way to present the truth about education funding under the proposed Senate budget.
"The governor's education half-truths, misleading rhetoric, and inaccurate characterizations will be met with the reality about Pennsylvania's public school funding and performance," said Brouillette. "Contrary to what will be stated in the governor's campaign to raise taxes on working Pennsylvanians, public education spending would still be the highest it has ever been under the Senate's proposed spending plans—despite a severe recession and a $3 billion deficit."
"The people of Pennsylvania deserve the truth about taxes and spending in their public schools," Brouillette noted, "so we'll be following the governor's 'Tax You More Bus Tour' to provide the facts to local communities and media in the wake of the governor's fallacies."
Brouillette will hold informal news conferences immediately following each of Rendell's bus stops across Pennsylvania. Monday's tour stops include:
EVENT #1: U.S. Sen. Casey, Secretary Zahorchak to discuss education funding TIME: Noon LOCATION: East Pennsboro Area High School, 425 Shady Lane, Enola, Cumberland County
EVENT #2: Secretary Zahorchak to discuss education funding TIME: 3 p.m. LOCATION: Hollidaysburg Area Junior High School, 1000 Hewit St., Hollidaysburg, Blair County
EVENT #3: Secretary Zahorchak to discuss education funding TIME: 6 p.m. LOCATION: Baldwin High School, 4653 Clairton Blvd., Pittsburgh
Check CommonwealthFoundation.org for event updates throughout the week, as well as specific information on public education funding.
From House Republican Leader Sam Smith (R-Jefferson County) on the announcement that Gov. Ed Renell will kick off a statewide bus tour outlining the "evils" of the no tax increase balanced budget passed by Senate Republicans:
"The governor is hitting the campaign trail again, only this time for higher taxes. A few weeks ago, we predicted the series of scare press releases, and his administration orchestrated at least 15 so far. We should have predicted the scare bus tour, because here it comes. It's a campaign tactic to support unrealistic spending increases and push for large tax increase. It's the 'Tax You More Bus Tour.'
"Increasing taxes is wrong, and now is possibly the worst time to take any more money out of the wallets of Pennsylvanians."
Despite a record $3.2 billion budget deficit projected for the current fiscal year, Rendell and House Democrats want to raise taxes and increase state spending to an astronomical $29 billion for the 2009-10 fiscal year.
Senate Republicans passed an alternative $27.3 billion that calls for no new taxes, but maintains funding for essential state programs. The vote was 30-20, with every single Senate Democrat opposing the budget.
The Senate version of the budget has been praised by independent organizations (The Commonwealth Foundation, Lincoln Institute) as a fiscally-responsible alternative to Rendell's uncontrolled spending.
Despite the scare tactics by the Rendell Administration and their teachers union allies, the Senate-passed education funding plan provides a minimum increase of 3.1 percent funding over the current year for every school district in the state, Smith noted.
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.
Ed Rendell began his tenure as governor in 2003 by signing the second largest income tax hike in Pennsylvania history. Rendell then proceeded to spend $8 billion over the next six years, increasing state spending at twice the rate of inflation.
The results of Rendell's failed fiscal policies is a $3.2 billion budget deficit for the current fiscal year. With less than two years before he leaves office, Rendell is pushing for another massive income tax hike to make up the huge deficit he created.
The Democratic doormats in the House of Representatives will do whatever Rendell wants. Raising taxes during a recession is a bad idea, but that hasn't stopped Democrats in the past.
"That would be the quick, easy, and most destructive resolution possible to the budget crisis currently gripping the state. The real issue here is not financial; rather it is the unwillingness of state Democrats to make the hard decisions demanded of those governing in tough times. The real issue here is the unwillingness of state Democrats to begin living within our means."
It's time to let your Democratic state House member know that he or she will be out of a job in 2010 if they support a tax hike to bail out Rendell.
Read more about the state's sad state of financial affairs and how Rendell and House Democrats are working on a tax hike in The Pittsburgh Tribune-Review.
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.
Report: Rendell forgot to disclose $2,000 in slots winnings
Gov. Ed Rendell, who signed the 2004 bill legalizing gambling in Pennsylvania, hit the jackpot last year to the tune of $2,000 while gambling at one of the state's slot parlors.
The news is being reported more than a year later because Rendell neglected to report the winnings on his 2008 Statement of Financial Interest, a form elected officials are required to fill out every year.
The governor's spokesman called it a "clerical oversight." You don't say. I'd like to believe him but this is Ed Rendell we're talking about.
From a story in The Philadelphia Inquirer:
Rendell reported his winnings on his 1040 tax form, which he filed jointly with his wife, a federal appellate judge, to the IRS last month. (The couple reported $446,682 in adjusted gross income in 2008, primarily from their government salaries.)
Tax returns are not public documents, though Rendell has provided them when reporters have asked.
If he had not released his return this year, the public might never have known about his winnings. That's because Rendell did not disclose them on his 2008 Statement of Financial Interest, a public document filed with the state Ethics Commission last week.
The commission considers gambling winnings income, and public officials must report them on their financial interest forms if they exceed $1,300 annually.
Chuck Ardo, Rendell's press secretary, said aides who help the governor fill out such disclosures simply had failed to note the winnings on his seven-page ethics report. Ardo called it a "clerical oversight."
Pennsylvania has posted a breakdown by school district of how much property tax savings qualified homeowners can expect to see this year under Gov. Ed Rendell's idea of "tax relief."
The Pennsylvania Department of Education says there is $613 million available from slot parlors for school property tax relief, which is not exactly the $1 billion minimum Gov. Rendell promised when he signed the slots bill into law in 2004.
"For many homeowners the amount of the relief is about the same as last year and varies between $32 and $641, depending on your school district," notes the Pennsylvania Taxpayers Cyber Coalition. "Don't get too excited about your huge and historic (Gov. Rendell's words) 'relief' money and don't plan to spend all of it in one place!"
Like many of Rendell's promises since he came into office in 2003, property tax relief remains elusive.
As state Rep. Sam Rohrer, R-Berks, noted when he announced the re-introduction of House Bill 1275 earlier this week:
"When we first introduced the idea of school property tax elimination, our proposal ran parallel with Gov, Rendell's proposal to use gambling proceeds to relieve — never solve — the property tax burden. Here we are, seven years later, and homeowners have received just one payment, and a pittance at that, to help with their taxes. Had we enacted the School Property Tax Elimination Act back then, we would have already passed through the four-year phase out. Homeowners would not only be free from paying any school property taxes, but the state would have had the time to build up the excess revenue in order to weather this current economic storm."
The PTCC, which is a coalition of more than two dozen tax groups across the state, is backing House Bill 1275, The Property Tax Elimination Act, re-introduced by Rep. Rohrer. HB 1275 would phase out all school property taxes over a four-year period.
The PTCC has launched a petition drive urging lawmakers to co-sponsor Rohrer's bill. You can sign the petition online or download copies to gather signatures at the group's Web site, http://ptcc.us
Pennsylvania took in nearly $1 billion less than anticipated in tax revenues for the month of April, sending the state's already massive budget deficit to historic levels.
The state collected $3 billion in General Fund revenue in April, but that was $941.5 million, or 24.2 percent below what state officials projected, according to the Pennsylvania Department of Revenue.
The state has been operating in the red every month since the fiscal year began last July 1, but the April numbers were much higher than previous monthly deficits, which were running about 7 percent below estimates.
Fiscal year-to-date General Fund collections total $21.7 billion, which is $2.6 billion, or 10.5 percent, below estimate, Secretary of Revenue Stephen H. Stetler said.
Gov. Ed Rendell had been predicting a $2.3 billion deficit by the end of the current fiscal year on June 30, but the April numbers will probably send the deficit past the $3 billion mark.
"Tax revenues in April are sobering evidence of the harsh effect the national recession has had on Pennsylvania's workers and businesses," Rendell said in a written statement issued late Friday afternoon. "Though Pennsylvania's Personal Income Tax rate is one of the lowest in the nation, it still accounts for nearly 40 percent of our General Fund revenues, and that category alone was 30 percent below estimate."
To close the potential $3 billion gap, Rendell said he wants the Legislature to tap into the state's Rainy Day Fund, which contains about $750 million, and the Healthcare Provider Retention Account.
"There are signs the overall economy is heading toward recovery, but this is a very volatile time and the pain of this recession is widespread," Rendell said.
Previous measures Rendell took to control state spending include a hiring freeze, which has been violated at least 100 times by his administration, and a ban on out-of-state travel, which has also been ignored by some state officials.
April tax collection revenues were down in every category.
POLICY BLOG is reporting that the state's projected budget deficit has grown by nearly $1 billion, following a historically low tax revenue collection month in April.
In other words, the mess Gov. Ed Rendell and the Legislature created is far worse than anyone could have imagined.
"Quite frankly, I am a bit astounded," writes Nathan Benefield, who has been monitoring the state's red ink for months. "This shortfall is almost three times the estimated shortfall the Office of the Budget provided us in mid-March. How did they get it so wrong? I will be curious if there is any explanation."
The official April tax revenue numbers have not been released yet, but lawmakers have said the April General Fund revenue shortfall is $941.5 million.
That means the state spent nearly $1 billion more than it took in during a single month!!!!
The projected deficit for the fiscal year ending June 30 had been $2.3 billion but the April figures will send the deficit past $3 billion.
The appointment of Greg Fajt, Gov. Ed Rendell's chief of staff, to replace Mary DiGiacomo Colins as chairman of the Pennsylvania Gaming Control Board has not instilled confidence in the editorial board of The Pittsburgh Tribune-Review.
From a recent editorial:
Pennsylvanians haven't exactly hit the jackpot with the state's continually spinning, always controversial Gaming Control Board. They've received lots of lemons along the way.
Loose licensing. Board employees at odds with the law. "Transparency"? What's that? And talk of a possible FBI and/or state grand jury investigation doesn't exactly instill confidence in this enterprise.
What's needed, now, is an advocate for the public interest, not an arrogant bureaucracy that has gambled away its credibility.
Just because your former boss has been indicted in the biggest corruption scandal in state history doesn't mean you can't rise to a top position in the Rendell Administration.
The Pittsburgh Tribune-Review reports that Colleen Kopp, the former aide and lobbying partner of ex-Rep. Mike Veon, has been promoted to the post of Rendell's secretary for legislative affairs.
The promotion comes about a month after Kopp joined the Rendell Administration as deputy legislative secretary.
Kopp is not facing any charges in the Bonusgate corruption case, but her name was mentioned in a recent grand jury report that led to the arrest of Veon and 11 other members of the House Democratic Caucus, according to reporter Brad Bumsted.
Kopp was hired by Rendell in March to a $102,000 state job despite a hiring freeze Rendell imposed last fall.
Former U.S. Attorney Patrick Meehan, who is thinking about running for governor of Pennsylvania, wants Pennsylvania Attorney General Tom Corbett, who is also interested in running for governor, to investigate Gov. Ed Rendell, who currently occupies the governor's mansion. Did you get all that?
Meehan for Pennsylvania, an exploratory committee set up for a possible 2010 run by Meehan, released a copy of a letter Meehan wrote today to Corbett asking the state's top law enforcement officer to open an investigation of "pay-to-play" allegations involving Rendell and a Texas law firm hired by Rendell under a no-bid contract.
The Wall Street Journal reported that Rendell received more than $90,000 in campaign contributions from attorney F. Kenneth Bailey between February and October 2006. In August 2006, 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, according to The Pittsburgh Tribune-Review.
Rendell won a second term as governor of Pennsylvania in November 2006, far outspending his Republican opponent, former NFL star Lynn Swann.
From Meehan's letter:
I very much hope a thorough review will clearly establish that no wrongdoing occurred. All of us who have built the public trust know how important it is for the dealings of government to be truly transparent and free from the taint of corruption. It is long past time for Pennsylvanians to stop shrugging off allegations of improper dealings and "pay to play" as "business as usual."
Rendell has awarded more than $1 billion in no-bid contracts to politically-connected firms since he became governor in 2003.
Corbett is troubled by the contract with the Texas firm because he says the work the out-of-state law firm was hired to do could have been done by the Attorney General's Office.
Citing a recent editorial in The Wall Street Journal questioning the propriety of Rendell's relationship with the out-of-state law firm, Meehan urges Corbett to "assert your power as Attorney General and take control of this case on behalf of taxpayers."
The letter appears to take political shots at both Rendell and Corbett. Meehan accuses Corbett of enabling Rendell "to assume certain of your authority to pursue healthcare fraud on behalf of Pennsylvania taxpayers."
"Taxpayer dollars already underwrite a Medicaid Fraud Unit in your office," Corbett writes. "These lawyers should be in a position to pursue this litigation. By taking over this case from the Texas firm, the Commonwealth will be in the immediate position to realize the benefit of seven million dollars by settling with Eli Lilly, one of the defendants in this scope of litigation."
If Corbett doesn't want to pursue the case, Meehan said the attorney general should at least insist that a Pennsylvania law firm handle the case.
From Meehan's letter:
"The allegations and insinuations in the media concerning the award of this contract are serious. Pennsylvania has long been plagued by a 'pay to play' political culture that hinders our competitiveness as a state and undermines our citizen’s trust in government. Rooting out corruption and reversing perception must be a priority. A full investigation should be conducted to determine whether anything improper or illegal has occurred in this matter."
No comment yet from Corbett or Rendell about Meehan's letter, but I'm sure both will have plenty to say.
State Rep. Sam Rohrer, R-Berks, who has led the fight to eliminate property taxes in Pennsylvania, says Gov. Ed Rendell still doesn't get it.
Pennsylvanians are no closer to truly owning their homes than they were when Rendell took office in 2003, according to Rohrer.
While Rendell is touting his administration expects to deliver $200 in average property tax relief to Pennsylvania homeowners this year, Rohrer says Rendell misses the point about Pennsylvania's onerous system of property taxes to fund schools.
"At the end of the day, not one single Pennsylvanian is any closer to truly owning their home as a result of legalized gambling," Rohrer said in a statement. "The only way Pennsylvanians can truly own their homes is if the state completely eliminates the school property tax. Until that happens, homeowners are merely renting their homes in exchange for school property tax payments. After all, if a homeowner fails to pay, the government will evict them."
Rendell's budget secretary announced today that she has certified approximately $770 million in property tax relief for 2009, but Rohrer argues that that is simply proof that people continue to lose money at Pennsylvania casinos.
"In order for homeowners to win, the Pennsylvanians who put their money in slot machines must lose," Rohrer said. "The entire system is built around creating more dependence. It seems that the governor desires that homeowners, from senior citizens to working families, become dependent on this state tax 'relief' program in order to be able to pay their school property tax bill rather than fixing the problem so they can keep their home. Schools are increasingly dependent on people losing their hard-earned money as the way to fund our public schools. Compulsive gamblers are then encouraged to look to government services to help them quit the addiction government encouraged them to start. The whole thing is set up so that people look toward government for the answers to their problems when, in fact, the existing school property tax system is the real problem."
The Rendell property tax relief provided an average of $169 per household in relief in 2008, although some homeowners received as little as $50.
Rohrer said the "relief" that Rendell is promoting has already been eaten up by higher property taxes imposed by most of the state's school districts.
"For many homeowners, the $200 in so-called 'relief' they will receive is less than the amount their property tax bills were raised since 2006," Rohrer said. "Pennsylvania homeowners deserve more than the false hope the governor’s gambling scheme has to offer."
What Gov. Ed Rendell considers "property tax relief" is probably dinner for the family at a local restaurant.
So much for that "substantial" property tax relief Rendell promised when he signed slot gaming into law in Pennsylvania in 2004.
Most residents will see a reduction of between $50 and $200 on their school property tax bills this summer.
With most school districts in Pennsylvania proposing property tax hikes of at least 5 percent, the "relief" Rendell is touting is a wash at best.
"Property tax relief is real and it is making a difference in the lives of older adults and hard-working families across Pennsylvania," Rendell said today.
What's real is that $50-$100 savings on a $3,000 tax bill is a joke, governor.
You can read Rendell's propaganda at the link below:
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.
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.
Study: Small firms create all net new jobs in Pennsylvania
Small firms created all of the net new jobs in Pennsylvania from 2004 to 2005, the most recent data available, according to new Department of Commerce figures. By comparison, firms with more than 500 employees in the state reported 40,994 jobs lost during that same period, according to the report.
So how come Gov. Ed Rendell travels around the state presenting corporate welfare checks to big companies when they don't create jobs?
Ask the hundreds of thousands of Pennsylvania residents on the unemployment line if they agree with Rendell's policy of rewarding corporate fat-cats and campaign contributors with taxpayer dollars.
The threat of furloughs for state workers is no longer in Gov. Ed Rendell's bargaining arsenal.
Rendell announced today he reached a tentative agreement with some of the state's largest employees' unions to eliminates the immediate need for rolling furloughs of employees in those unions to help close the state's growing budget gap.
Pennsylvania has run up a $1.6 billion budget deficit as of the end of March and Rendell projects a $2.3 billion deficit by the end of the current fiscal year at the end of June.
The agreement to temporarily reduce the commonwealth's health care benefit contribution rate by 20 percent will generate up to $200 million in savings over the next 15 months, Rendell said in a press release.
"This agreement is truly a win-win for employees and the state," Rendell said. "The temporary reduction in our health care contribution rate will provide us with enough savings to eliminate the immediate need to consider rolling furloughs for participating unions. This ensures that state government will keep running at the same pace for the people of Pennsylvania."
Rendell used furloughs last year to bully the Legislature into passing his deficit budget. Without the threat this year, expect the Harrisburg bunch to spend all summer haggling over the budget.
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.
Rendell official back at work after stint in alcohol rehab
Acting Pennsylvania Secretary of Labor & Industry Sandi Vito is back on the job after spending two weeks seeking treatment for an alcohol problem that was exposed after Vito was cited by police for public intoxication.
Gov. Ed Rendell welcomed Vito back with a vote of confidence.
"Sandi's personal difficulties are no reflection on her work performance," Rendell said in a statement. "In the past 14 months she has led the Department of Labor & Industry brilliantly. Since 2003 she has been an invaluable leader in reforming Pennsylvania's workforce development system to align it with the needs of business and industry."
Newspaper: Rendell's latest hire worked for Mike Veon
Gov. Ed Rendell has made another exception to the hiring freeze he imposed last fall, offering a $102,000-a-year state job to ex-state Rep. Mike Veon's lobbying partner, according to the Pittsburgh Tribune-Review.
Her name is Colleen Kopp and she is Rendell's new senior deputy secretary for legislative affairs.
Veon, the former No. 2 ranking Democrat in the state House, is right smack in the middle of two of the biggest corruption scandals in Pennsylvania political history.
He is facing charges involving the Bonusgate scheme in which millions of dollars were awarded to state workers for allegedly conducting political work on taxpayers' time. Veon has also been charged in a scheme involving misuse of state money to fund a nonprofit organization that received $10 million from the state.
Kopp has not been charged with any wrongdoing. She does, however, have a long association with Veon, including stints as executive director and chief of staff of Veon's legislative staff.
Reporters Brad Bumsted and Debra Erdley said Kopp is the third prominent Democrat hired by Rendell since the hiring freeze was imposed.
From their article:
Rendell hired Colleen Kopp last week, the third high-profile exception he has made to the freeze he implemented in September. He hired defeated Democratic Rep. Dan Surra of Clearfield County for $95,000 a year to oversee a nature-tourism project, and last week agreed to pay Ken Snyder of Philadelphia $100,000 to tout the federal stimulus package. Snyder, a public relations man who consulted for Rendell in 2003, represented a nonprofit pillaged by convicted former Sen. Vincent Fumo.
PA GOP blasts Rendell for hiring 'budget publicist'
Pennsylvania Republican Party Chairman Rob Gleason is wondering why Gov. Ed Rendell is violating his own hiring freeze for a $100,000-a-year consultant to publicize how Rendell plans to spend the $18 billion the governor expects to receive in stimulus dollars from the federal government.
"Gov. Rendell's decision to hire a consultant to spread the word about his spending initiatives is outrageous," Gleason said in a statement. "Gov. Rendell proves once again that the taxpayers never win. He is using Pennsylvanians' tax dollars to publicize the egregious spending he is doing. Even more troubling is the fact that he gave the contract to a former employee. At a time when ethics are being questioned in Harrisburg, the governor's actions will do little to assure weary Pennsylvanians. So much for a hiring freeze!"
More from Gleason's press release:
According to a report from the Associated Press, Gov. Rendell is paying a former employee, Ken Snyder, $100,000 to publicize the programs he funds with the billions of federal economic stimulus dollars the state expects to receive.
Gleason concluded, "Democrats at every level continue to fail our nation on the economy. In the midst of an economic crisis, our President has spent more time filling out his NCAA basketball bracket and appearing on late night television than he has dealing with the fact that his Treasury Secretary Timothy Geithner continues to make costly mistake after mistake. Here in the Keystone State, Governor Rendell is using the stimulus dollars to launch a media campaign to better his image in the media. I am not sure this is the 'change' people were looking for when they cast their ballots last November and I guarantee Rendell's publicist will do nothing to help our economy get back on track."
For more on the Pennsylvania Republican Party, visit its Web site, http://www.pagop.org/
We've tried it Ed Rendell's way for six years and look where it's gotten us: Massive budget deficits, high taxes and a lower standard-of-living for most Pennsylvanians.
Rendell is offering more of the same for the coming fiscal year: Higher spending and higher taxes.
House Republicans have a better idea: Reduce state spending, eliminate waste and cut taxes for workers and business owners.
Eliminating spending on wasteful government programs and giving money back to hard-working middle-class families and small businesses need to be top priorities for the 2009-10 state budget, Republican Whip Mike Turzai (R-Allegheny) and Rep. Tom Quigley (R-Montgomery) said Monday at a Capitol press conference.
"We need to bring fiscal sanity back to Pennsylvania's state government," Turzai said. "The governor's proposed cuts were a good starting place, but don't go nearly far enough. We need to make significant changes to the Commonwealth's budget and reprioritize spending on the programs that benefit our citizens the most."
Monday's presentation focused on additional cuts under the Department of Community and Economic Development (DCED) and rolling back the Personal Income Tax (PIT) to 2.99 percent from the current 3.07 percent level.
Turzai plans to roll out additional cost-saving measures over the next couple of weeks.
From a press release issued by Turzai and Quigley:
During his 2009-10 budget address, Gov. Ed Rendell proposed eliminating 24 DCED programs, saving $135.6 million. Turzai proposes eliminating another eight programs to save an additional $169.8 million. The programs eliminated under Turzai and Quigley's proposal are: the Opportunity Grant Program, Infrastructure Development, Community Conservation and Employment, Infrastructure and Facilities Improvements Grant, Economic Advancement, Community and Regional Development and World Trade PA. By eliminating these programs, the state can reduce more than $300 million from last year’s expenditures and return that money back to Pennsylvania’s middle-class families and small businesses.
"With the state of our economy, the best thing we can do to improve our situation is to get money back in the hands of the people," said Quigley. "Reducing the PIT and increasing the buying power of Pennsylvania's families will raise confidence and allow people to spend more, which will help to pull us out of this slump."
"Small businesses and middle-class families are hurt the most during tough economic times," Turzai added. "Reducing the PIT to 2.99 percent will help Pennsylvania's families and small businesses better survive this economic downturn. As is often said, we cannot tax ourselves into prosperity. Now is the time to reduce taxes, put tax dollars back in the pockets of hard-working tax payers and improve Pennsylvania’s economy."
GOP questions Rendell's ability to spend stimulus money
When Pennsylvania Gov. Ed Rendell wants to get his way, he's never allowed a little thing like the state Constitution stand in his way.
With billions of federal dollars being funneled into the Pennsylvania and the state dealing with its own budget deficit, House Republican leaders are questioning Rendell's authority to shuffle state funds to programs other than those for which it was originally appropriated by the Legislature.
House Republican Leader Rep. Sam Smith and Rep. Mario Civera, the Republican Appropriations Committee Chairman, are wondering if Rendell has overstepped his Constitutional authority. The GOP leaders are also asking the governor to submit a new budget proposal that reflects the federal stimulus dollars coming to the state.
Smith and Civera sent a letter to Rendell on Monday listing their concerns. (I'm sure Rendell is perusing the letter as we speak.)
"Without judging the merits of the governor's emergency relief proposals,: the GOP leaders have serious questions about the governor's expansion of state programs without the Legislature's approval, according to a press release they issued along with the text of their letter to Rendell.
In the letter, Smith and Civera cite Shapp v. Sloane, 395 A.2d 595 (Pa. 1978), which reinforced the "doctrine of separation of powers functions." The GOP leaders also cited Article III, Section 24, of the Pennsylvania Constitution, as well as Act 117 of 1976, which reinforces their contention that "the General Assembly is responsible for enacting programmatic legislation and appropriating the necessary funds to implement the programs."
Very little of what Gov. Ed Rendell does or say gets past the editorial board of The Pittsburgh Tribune-Review.
The newspaper took exception to a comment Rendell made last week equating increased food stamp usage as an indirect economic stimulus.
From the editorial:
Where does one begin with such mental midgetry? Jake Haulk, president of the Allegheny Institute for Public Policy, begins with a highly technical economics term -- "goofy."
Aside from urging taxpayer teat suckling among those perhaps not truly in need, aside from urging spendthriftiness and dependence over frugality and independence, it also requires the government "to spend money that it will first have to borrow," reminds Dr. Haulk, a Ph.D economist.
"If Rendell wants to help folks, he should be pressing for government spending reductions in Harrisburg and leading the charge for lower taxes at every level of government," Haulk says. "Letting people keep more of their own money allows them to create stimulus in ways they see fit."
Rendell cabinet official to seek alcohol treatment
Scant coverage in the political blogosphere of the news that a top Rendell Administration official has been charged with public drunkenness. With one exception, there was no mention of Sandi Vito's legal troubles among left-wing bloggers in Pennsylvania.
Imagine the outrage if Ms. Vito was a Republican.
Vito, awaiting Senate confirmation as Pennsylvania's next Labor Secretary, was charged with public drunkenness after an incident at a Harrisburg hotel bar on Wednesday.
Vito, 43, issued a statement Thursday apologizing for the incident, which involved a dispute about whether Vito should take a cab home after she had been drinking at the hotel, according to the Harrisburg Patriot-News.
"I am deeply embarrassed and profoundly humiliated by my actions last night," Vito said. "My behavior was inexcusable. I did not have a car and was intent on walking to my nearby home. In retrospect, I understand that the authorities were merely considering my safety when they insisted I take a cab rather than walk."
The Associated Press reports today that Vito is entering an alcohol treatment program.
Vito was appointed by Rendell as Acting Secretary of the Department of Labor & Industry on Feb. 4, 2008. She is awaiting confirmation from the Republican-controlled Senate to run the Labor Department until the end of Rendell's term.
Before going to work at Labor & Industry, Vito served as chief of staff to State Sen. Christine Tartaglione, a Philadelphia Democrat. She previously held the post of political director for the Pennsylvania Democratic Party.
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.
Rendell threatens 'rolling furloughs' of state workers
With the state facing a projected $2.3 billion budget deficit in its General Fund budget, Gov. Ed Rendell is looking to save money by putting the squeeze on state workers.
The Harrisburg Patriot-News reports Rendell is giving the unions representing state workers until the end of March to come up with concessions or face furloughs or layoffs.
From a story by reporter Charles Thompson:
"We've agreed to give the unions a couple of more weeks to look at the options and get back to us," Rendell said during a Capitol press conference. "But by the end of March, if we don't have an agreement ... I'm going to have to act."
Rendell said again that he is leaning toward a system of "rolling furloughs," in which certain, nonessential aspects of state government would close for a day at a time, causing cuts in hours for thousands of state workers.
"If there's a way that I can do this and minimize the number of layoffs, I will take that way," Rendell said. "I think it's better for everyone to lose X percentage of their wages than for 2,000 people to be thrown onto unemployment."
Union leaders have vowed not to take wage concessions back to their rank-and-file, making the case that they have accepted wage freezes and sacrificed in other ways during past contract negotiations with Rendell.
Read the full story, "Rendell gives unions ultimatum," at the newspaper's Web site.
Columnist Gil Spencer, writing in the Delaware County Daily Times, imagines a scenario where Gov. Ed Rendell attends the most recent Harrisburg meeting of Problem-Gamblers Anonymous.
From Spencer's column:
ED: I hardly gamble at all. I mean, I’ll bet the governor of another state the occasional cheesesteak if the Phillies or Eagles are in the playoffs, but I don’t even actually shell out for that. It’s in my office budget.
HOST: So you gamble with other people’s money, you mean, not your own.
ED: That’s just a P.R. thing.
HOST: Whatever you say, Ed. It’s your mike.
ED: Look, I’m here to let every one of you know that the state of Pennsylvania and my administration cares about your issue, ‘er addiction, umm, problem. And that’s why we’re offering $5,000 grants to groups like this one all over the state to make sure that problem gamblers, like yourselves, get the funds and information they need to help battle their addictions.
ADDICT 1: What about your addiction — the state’s addiction — to gambling revenues?
ED: I wouldn’t call it an addiction.
ADDICT 2: What would you prefer? Dependence?
ED: I would prefer “policy choice.”
A1: That’s a good one. Maybe that’s what I should call my losing my house thanks to my gambling losses — my “policy choice.”
ED: You don’t understand, the state makes money from gambling. We don’t lose. We can’t lose.
A2: Then how come the state is $2.3 billion in debt? If I owed $2.3 billion, somebody, somewhere would be calling me a loser. A big one.
If you didn't catch Thursday's "Talking Politics with Tony Phyrillas and Mike Pincus," you missed a lively discussion about the future of Sen. Arlen Specter.
Mike and I agree that Specter is finished in the Republican Party. If he runs for re-election in 2010 as a Republican, Specter will lose in the GOP primary, most likely to former Congressman Pat Toomey, who came close to knocking off Specter in 2004.
Mike gave two good reasons why Specter can't win, even though he's the incumbent and has a ton of money. First, Specter has lost all support in the Republican Party even from the pragmatic party officials who held their nose and supported Specter despite his tendency to vote with Democrats. Second, most of the "moderate" Republicans who supported Specter in the past left the party in 2008. They are now registered Democrats or independents and are unlikely to switch their party affiliation back to Republican so they can vote in the 2010 GOP primary. Specter's base is gone.
Specter's only option for retaining his Senate seat is to switch his party affiliation to Democrat. The question is, would the Democrats take him back? Pennsylvania is trending blue and the Democrats could win the Senate seat without Specter, so why take a GOP retread when the Dems could run a younger, more liberal candidate. If Specter can wheel-and-deal his way to the Democratic Party nomination, it sets up a November 2010 showdown between Toomey and Specter. And that's a toss-up.
But there's another scenario, one that Mike and I believe is more probable. Specter will not seek re-election in 2010. This would go a long way in explaining why he betrayed the Republican Party and supported Obama's trillion-dollar bailout plan.
Specter can bow out of the 2010 race by citing health reasons (not to mention that he'll be 80 by the time the election rolls around).
This clears the way for Pennsylvania's worst nightmare. Gov. Ed Rendell will probably succeed Specter in the U.S. Senate seat.
Rendell did say after his 2006 re-election to a second term as governor that it was his last political campaign, but Rendell has lied before.
And despite the damage Rendell has done to the state during his failed tenure as governor, he's still popular enough with Democrats (and the Specter RINOs) to easily win the Senate seat. Bob Casey Jr. and Ed Rendell reunited in the Senate. Oh, the horror.
The Pennsylvania Gaming Control Board is encouraging anyone who thinks they may have a gambling problem to seek help during "Problem Gambling Awareness Week" from March 1-7.
Meanwhile, Gov. Ed Rendell continues to push for legalization of 17,000 video poker machines in Pennsylvania ... so we can create more problem gamblers.
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.
The Rendell Administration, which legalized slot parlors in 2004, is marking 'Problem Gambling Awareness Week' for all those Pennsylvania residents who spend too much time at those very same slot parlors. Go figure.
A new poll commissioned by the Pittsburgh Tribune-Review finds that 7 in 10 Pennsylvanians oppose Gov. Ed Rendell's proposal to allow counties to enact another 1 percent sales tax.
From a story by Brad Bumsted:
The responders rejected by a 71 percent to 26 percent margin Rendell's suggestion to give 65 counties an add-on to the state's 6 percent sales tax. Three percent of those polled didn't know. Allegheny County and Philadelphia, which charge a percentage point, would not get to levy more.
The poll by Franklin & Marshall College surveyed 644 adults between Feb. 17 and Sunday. It has a margin of error of 3.9 percentage points.
While there's no surprise that Pennsylvania residents have no appetite for new taxes, the poll also revealed that 70 percent of those polled opposed another Rendell initiative to study the consolidation of Pennsylvania's 500 school districts.
The proposal has received wide editorial support from the state's newspapers and is seen by many as a way to eventually eliminate the hated property tax.
From Bumsted's story:
By a 70 percent to 21 percent margin, with 9 percent unsure, residents said they oppose Rendell's idea to consolidate 500 school districts into 100 as a way to reduce costs.
Read the full story, which also has poll results on Arlen Specter, at the newspaper's Web site.
State Sen. John C. Rafferty, Jr., R-44th, has asked Gov. Ed Rendell and the State Police to re-open the Skippack barracks in Montgomery County on a full time basis.
Rafferty thanked State Police Commissioner Frank Pawlowski for his recent comments at a public hearing in which he stated that the pilot program instituted by Gov. Rendell was not working and said he would ask the governor for an exemption to the hiring freeze to re-staff the Skippack barracks.
"I respect Col. Pawlowski for the courage of his convictions," Rafferty said in a statement.
The Skippack barracks is in Rafferty's district.
State Police began closing the Skippack Barracks for 16 hours every weekday and all weekend in December 2006 in a cost-cutting move.
Between 8 a.m. and 4 p.m., Monday through Friday, a clerk is available to answer phone calls and assist visitors, according to Rafferty. However, after these hours the barracks "go dark" and all calls and visitors are directed to an automated ACC which redirects the caller or visitor to a Consolidated Dispatch Center (CDC).
In other words, it's unlikely you'd find a state trooper at the Skippack barracks if you stopped by for help.
"My concern is for the public safety," said Rafferty, chairman of the Senate Law and Justice Committee. "People expect that a state trooper or official clerk will be at barracks when they go there,"
The state Senate overwhelmingly approved Senate Bill 318 in May 2007 which would have required all State Police barracks to remain open 24 hours a day, every day, Rafferty said, but the was not considered by the Democratic-controlled state House Representatives in the last session.
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.
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-hosts "Talking Politics with Tony Phyrillas & Mike Pincus" Thursdays at 5 p.m. on WPAZ 1370 AM.
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