Rep. Quigley: Democrats' Budget Built on a House of Cards
State Rep. Tom Quigley (R-Montgomery) issued the following statement on the passage of House Bill 2279, which is Gov. Ed Rendell's proposed budget, minus the taxes Rendell wants to pay for the $29 billion spending plan:
"By relying on yet-to-be-approved federal funds, this legislation builds our budget on a house of cards. We should not allocate $850 million in federal money we only hope to get, but we should focus on the resources we know we have. This budget is the epitome of writing a check the taxpayers might not be able to cash, and it is irresponsible.
"For the past two budget cycles, Pennsylvania outspent its means. We are expected to end the year with a more than half-billion dollar deficit, which is a clear sign that this is not the time to increase spending. This budget calls for a $1.2 billion, or 4 percent, spending increase. Pennsylvania’s families continue to scale back their personal budgets, and this proposed state spending growth is not reflective of our current economy.
"I will continue putting my efforts into examining ways to make state government more efficient, and I am hopeful the Senate will amend this bill with a more realistic spending goal that will shield Pennsylvania families from future tax increases. We need to adopt a budget that is practical and sustainable."
The budget bill passed the House by a vote of 107-89, mostly along party lines, and now goes to the Senate for consideration. Since Republicans hold a 30-20 majority in the Senate, they will likely discard the Rendell/Democratic budget and craft their own spending plan.
Tuesday's House vote was essentially a publicity stunt by House Democrats. March 23 marks 100 days before the constitutional deadline to approve the budget for the 2010-11 fiscal year. You'll recall that the Legislature was 100 days late with in approving the 2009-10 budget.
Rohrer blasts House Dems for 'fiscally irresponsible' budget
Pennsylvania has spent $4 billion more than it has taken in over the past two years. Unemployment is at the highest level in two decades. The state's business climate continues to sink. Former and current state legislators are being hauled into court on corruption charges.
The "funny money" Barack Obama has sent to states as part of his "stimulus" package will dry up in two years. So what do the Democrats who control the Pennsylvania House do to show they're serious about the state's fiscal mess? They approved a $29 billion budget that is $1.2 billion higher than the current red-ink spending plan. And they have no way of paying for it. The budget the House passed along party-line votes Tuesday does not include any of the tax increases Gov. Ed Rendell proposed as part of the $29 billion budget.
So what is the most expensive state legislature in the country up to? State Rep. Sam Rohrer, an 18-year veteran of the House who is leaving to run for governor, has some thoughts about the state's fiscal woes:
"The current administration has led Pennsylvania down the path to fiscal insolvency," Rohrer said. "The budget approved today by the House is simply a continuation of the fiscally irresponsible practices of the last eight years. It spends too much, disregards financial reality and ignores the wishes of Pennsylvanians."
The budget bill approved today by the House was based on Gov. Ed Rendell's proposal outlined in his February budget address before the General Assembly. The bill calls for a $1.2 billion increase in state spending, which would drive up total state expenditures to in excess of $29 billion.
While the proposal calls for more than $29 billion in state spending, it anticipates only $26.2 billion in state revenues. Rohrer, who serves as the Republican chairman of the House Finance Committee, says the administration's revenue projections are far too optimistic.
"The budget approved today by the House is based on overstated revenues and underestimated costs," Rohrer said. "The state is already facing a half-billion dollar budget deficit for the current year. The administration and House Democrat leaders want to toss another $1.2 billion in spending on top of that through this budget proposal. Realistically, we are facing a $4 billion to $5 billion structural deficit, because that's how much state spending is outpacing our revenues."
Rohrer says revenues are likely to come in close to where they were in 2004 and state spending should be brought in line with where it was back then.
"The current administration cuts a dollar of spending with its left hand and then spends it somewhere else with its right hand," Rohrer said. "That is why state spending has increased by more than $8.6 billion since the administration took office. We need to make real cuts that root out waste, fraud and abuse from state spending initiatives."
Rohrer also argued that by passing the governor's budget proposal, House Democrats were ignoring the will of Pennsylvanians. In a recent Quinnipiac University poll, nearly half (49 percent) of respondents said the governor's budget proposal increases spending "too much." By comparison, only 6 percent of respondents said the governor's spending increase proposal was "not enough."
"Pennsylvanians are tired of lawmakers in Washington, D.C., and Harrisburg who refuse to listen to the people," Rohrer said. "This budget is a slap in the face to the taxpayers who foot the bills around here. They continue to speak out, but their voice was disregarded by the majority in the House of Representatives today."
The budget bill now heads to the Senate, where Republicans hold a 30-20 majority, for consideration.
The Pittsburgh Tribune-Review notes that Pennsylvannia lawmakers need to revisit Act 1 of 2006, Ed Rendell's bogus scheme to stem rising property taxes. The legislation has failed miserably, much like most of Rendell's schemes.
From the editorial:
The 2006 state law that was supposed to give taxpayers at least some say in school budget increases has instead led to continuing property tax hikes -- with marginal public recourse.
Unlike in most states, Pennsylvania's 501 school districts have carte blanche to nose-thumb taxpayers -- most notoriously in union contracts, which become public after the dealing is done.
Pennsylvanians deserve a meaningful say in what their school boards spend. And voter referendums shouldn't be the exception to the rule. That change begins by reforming Act 1.
Nebraska, with a population of under 2 million and an annual budget of $18 billion somehow found enough money to lure a Pennsylvania manufacturer(and up to 90 jobs) to the Cornhusker State, yet Pennsylvania, with 12.6 million people and a General Fund budget of $28 billion, couldn't come up with financial incentives to keep the jobs in the Keystone State.
What's wrong with this picture?
Can one of you Ed Rendell lovers out there shed some light on the subject? "Fast Eddie" is always bragging that he's pouring billions of dollars into economic development. How could he allow Nebraska to steal away a manufacturing firm that traces its Pennsylvania roots to the 1920s?
From an article in today's edition of The Mercury about NEAPCO Components moving to Nebraska:
Neapco Components announced Friday it will be phasing out manufacturing at its Pottstown facility over the next 18 to 24 months, eliminating 70 to 90 jobs.
The manufacturing operations from Pottstown will be moving to Beatrice, Neb., said Neapco Executive Vice President and General Manager Keith Sanford.
"Why Nebraska versus Pottstown?" Sanford said. There were "financial incentives (offered) by the state of Nebraska."
Sanford said the move to Nebraska was an obvious business decision.
The first rule of holes - when you find yourself in a hole, stop digging.
Unfortunately, Gov. Ed Rendell never learned that bit of wisdom.
As of the end of February, Rendell has spent $476.7 million more than the state has taken in for the current fiscal year, which ends June 30. That's called a deficit.
Over the past two fiscal years, Rendell has spent $4 billion more than the state took in. That's called a fiscal catastrophe.
The Pennsylvania Department of Revenue reports that Pennsylvania collected $1.5 billion in General Fund revenue in February, which was $102.3 million, or 6.4 percent, less than anticipated.
Fiscal year-to-date General Fund collections total $16 billion, which is $476.7 million, or 2.9 percent, below estimate, according to the revenue department.
For a breakdown of tax revenues collected, follow the link below:
Accountants: Rendell Sales Tax Expansion Would Hurt Many Businesses
Gov. Ed Rendell's recent budget proposal to remove the exemption of the state sales tax for professional services would have damaging long-term effects on Pennsylvania business growth, says the Pennsylvania Institute of Certified Public Accountants
From a press release issued today by the PICPA:
While the PICPA recognizes the state's need for revenue to support critical state operations and programs, expanding the sales tax to include services - such as those provided by CPAs, attorneys, advertisers, and public relations - will be a quick fix that ultimately hurts Pennsylvania's long-term growth prospects.
PICPA, in several testimonies to the Pennsylvania House and Senate, has strongly encouraged a simplification of the current state tax code to attract more business and thus more revenue. Removing the sales tax exemption on services will create more confusion in the marketplace and could also be a strong deterrent for business expansion and sustainability. The negative effects of this tax expansion include the following:
-- Compliance difficulties and increased administrative burden to the thousands of small businesses in Pennsylvania.
-- Pennsylvania would be at a competitive disadvantage, as only three other states tax professional services, and none surround the Commonwealth.
-- Further expansion of the sales tax will not make the state any more business-friendly as Pennsylvania already has one of the highest business tax rates.
Pennsylvania CPAs established the "Guiding Principles of Good Tax Policy" pamphlet, which can be viewed on PICPA's Web site at www.picpa.org/taxpolicy
The Pennsylvania Institute of Certified Public Accountants is a professional association of more than 19,000 CPAs who work in public accounting, industry, government and education.
For more information, visit the group's Web site at www.picpa.org
Rep. Quigley questions Rendell call to increase spending
Rep. Tom Quigley (R-Montgomery) released the following statement in response to Gov. Ed Rendell's annual budget address to the Pennsylvania Legislature:
"There were two aspects of the governor's speech that I was in agreement with, including the call to get this budget passed on time and the need to plan for the financial difficulties Pennsylvania will face in years to come. We cannot view our state budgets as documents that address only a single fiscal year, but must craft them with an eye on the future economic health of Pennsylvania.
"I differ with the governor on how best to address the pending funding cliff we face when the federal stimulus money ceases. Pennsylvania can do a better job of controlling spending. The governor is calling for a spending increase of $1.2 billion, while the state is up against a projected $525 million shortfall for the fiscal year. I do not believe such a spending increase is sensible at this time. We have to budget based on the conditions at hand, which means facing the fact that our citizens cannot afford a tax increase and our state cannot afford to raise spending."
Rendell proposes expansion of state sales tax to cover years of deficit spending
It was classic Ed Rendell today as the governor delivered his eighth -- and final -- budget to the Pennsylvania Legislature. Having run out of things to tax, Rendell proposed expanding the state sales tax to cover more items.
Rendell and his lockstep Democrats in the Legislature have repeatedly opposed expansion of the sales tax to cover services when it was attached to a plan to eliminate property taxes. That's what Republican state Rep. Sam Rohrer has been pushing for years.
But now that Rendell has run out of opportunities to raise other taxes, he needs the expanded sales tax to fund his $29 billion spending plan and pay for years of deficit spending.
Despite running up huge deficits in the past two budgets, Rendell wants to increase state spending by $1.1 billion for the 2010-11 fiscal year, which begins July 1.
Rendell wants to pay for the spending by using $1.1 billion in federal stimulus funds, which may or may not be approved by Congress. (Imagine what will happen to "stimulus" handouts when Republicans take back control of Congress in November.)
And Rendell is leaving with a final "up yours" to the taxpayers of Pennsylvania.
Having presided over a massive expansion of state spending over the past eight years -- $9 billion and counting -- Rendell warned lawmakers that Pennsylvania is facing a "fiscal tsunami" -- a potential $5.6 billion deficit from the 2011 expiration of federal stimulus money and the ticking time bomb of public pension obligations.
It's basic economics. You can't spend what you don't have and Rendell (with the Legislature as his accomplice) has been spending money the state doesn't have. The chickens will come home to roost. Unfortunately for Pennsylvania taxpayers, Rendell will have flown the coop.
Rendell wants to reduce the state sales tax rate from 6 percent to 4 percent, but expand it to more than 70 services currently exempt (lawyer and accountant fees, dry cleaning, for example) and items such as firewood, candy, gum, bottled water, magazinies and "personal hygiene" products. (Groceries, clothing and prescription drugs would remain exempt from the sales tax under Rendell's plan).
Rep. Rohrer has proposed a similar plan, but it would lead to the elimination of the state's onerous property tax. Taxpayers would come out ahead under Rohrer's plan. Rendell simply wants more money from taxpayers to cover up his deficit spending.
The state finished with a $3.25 billion deficit for the 2008-09 fiscal year and is looking at a minimum $500 million deficit for the 2009-10 fiscal year.
In addition to expanding the sales tax, Rendell wants to extend the tobacco tax to include cigars and smokeless tobacco products and enact a new severance tax on natural gas extraction.
Will any of these taxes pass? Rendell is not running for re-election. He doesn't care. But all 203 members of the state House and 25 of the 50 members of the state Senate face the voters in 2010. How many of them are going to vote for one of the largest tax increases in Pennsylvania history?
A week after Punxsutawney Phil made his annual appearance, another Pennsylvania icon, Gov. Ed Renell, will pop up on Tuesday to deliver his annual Budget Address to a joint session of the Pennsylvania Legislature.
Will we have another six months of deficit spending?
The Pennsylvania Cable Network will have comprehensive coverage of the event.
Live coverage begins at 9:30 a.m. at the PCN studios with former PA Lt. Gov. Mark Singel of The Winter Group.
Live coverage of the Governor's Budget Address before a joint session of the House and Senate starts at 10:30 a.m.
An encore presentation of Rendell's speech has been scheduled for 6 p.m. Tuesday for those of us who still have jobs and need to work during the day to support Rendell's massive spending plan.
PCN will hold an open phone session following the live budget address. Viewers can dial toll-free at 1-877-PA6-5001 to share their thoughts.
PCN will provide budget reaction from lawmakers following the address.
Rendell will be the guest on the LIVE PCN Call-In program beginning at 7 p.m. on Tuesday. Viewers can dial toll-free at 1-877-PA6-5001 to speak directly with the governor.
Through the coming weeks, PCN will provide extensive coverage of the 2010-11 fiscal year state budget proceedings. Check pcntv.com for programming details.
Pennsylvania collected $2.1 billion in General Fund revenue in January, which was $120.2 million, or 5.4 percent, less than anticipated, Acting Secretary of Revenue C. Daniel Hassell announced Monday.
Fiscal year-to-date General Fund collections total $14.5 billion, which is $374.4 million, or 2.5 percent, below estimate, according to Hassell.
The 2009-10 fiscal year began July 1, 2009, but the state Legislature was 101 days late in approving the spending plan.
Pennsylvania has posted deficits for six consecutive months and will finish the fiscal year on June 30, 2010, at least $500 million to $1 billion in the red.
While that's a lot better than the 2009-09 fiscal year, in which the state finished $3.25 billion in the hole, it still shows the fiscal irresponsibility of Gov. Ed Rendell and the current leadership of the Pennsylvania Legislature.
From the Pennsylvania Department of Revenue
Sales tax receipts totaled $790.5 million for January, $49.5 million below estimate. Year-to-date sales tax collections total $4.8 billion, which is $230.7 million, or 4.6 percent, less than anticipated.
Personal income tax (PIT) revenue in January was $1 billion, $51.7 million below estimate. This brings year-to-date PIT collections to $5.3 billion, which is $163.4 million, or 3 percent, below estimate.
January corporation tax revenue of $101 million was $3.2 million below estimate. Year-to-date corporation tax collections total $1.2 billion, which is $4.1 million, or 0.3 percent, below estimate.
Other General Fund revenue figures for the month included $50.4 million in inheritance tax, $9.9 million below estimate, bringing the year-to-date total to $425.7 million, which is $3.3 million below estimate.
Realty transfer tax was $16.6 million for January, $6.6 million below estimate, bringing the total to $178.3 million for the year, which is $3.3 million more than anticipated.
Other General Fund tax revenue, including cigarette, malt beverage and liquor taxes totaled $100.1 million for the month, $2.1 million above estimate and bringing the year-to-date total to $694.8 million, which is $32.3 million above estimate.
It seems like just yesterday we were debating the 2009-10 General Fund budget, but it's almost time to begin work on the 2010-11 state budget.
Gov. Ed Rendell will deliver his annual budget address to a joint session of the General Assembly at 11:30 a.m. on Tuesday, Feb. 9, in the chamber of the House of Representatives, the governor's office announced.
The last budget was adopted 101 days after the new fiscal year began because 1) the previous budget finished $3.25 billion in the red and 2) Rendell is a lame duck and 3) the current Legislative leadership is inept.
Has anything changed since last year? The current budget deficit is projected at a measly $500 million. Rendell is still a lame duck. The same Legislative leadership is in place.
We also have the added fun of 2010 being an election year when all 203 members of the House and 25 members of the Senate face the voters. And we've seen what kind of mood voters are in with recent elections in Virginia, New Jersey and Massachusetts.
So grab some popcorn, tune in to the Pennsylvania Cable Network on Feb. 9 and enjoy the show.
Remember all the hoopla by Gov. Ed Rendell when the Pennsylvania unemployment rate dropped a little last month?
Don't expect Rendell to be found today as the Pennsylvania Department of Labor & Industry announces that unemployment in Pennsylvania has risen to 8.9 percent in December. That's the state's highest unemployment level in 25 years.
Pennsylvania employers shed more than 8,100 jobs in December. Pennsylvania has lost 150,300 jobs since December 2008.
From a Department of Labor press release:
Pennsylvania's seasonally adjusted civilian labor force -- the number of people working or looking for work -- decreased by 19,000 in December to 6,310,000. Resident employment dropped 37,000 in December, while unemployment was up 19,000. The Pennsylvania labor force was down 131,000 from December 2008.
Pennsylvania's seasonally adjusted unemployment rate rose to 8.9 percent in December, up four-tenths of a percentage point from November. The state rate remained below the national unemployment rate, which remained at 10 percent in December.
Gov. Ed Rendell has publicly stated that he wants state Rep. Mario Civera, a Republican from Delaware County, to resign his state House seat because he was elected to the the Delaware County Council last November.
Rendell doesn't think an elected official can serve two masters.
But Rendell has never said a word about state Rep. David Kessler, a Berks County Democrat who continues to serve on the Oley Board of Supervisors even after being elected to the House in 2006.
Is it fair for Kessler to hold a local office at the expense of the rest of the communities in the 130th House District?
Kessler brags on his Web site that he is currently serving his 15th year as a township supervisor in Oley, and is the board's chairman. How much power does one man need? There's nobody in Oley available to serve as a township supervisor if Kessler steps down?
There's no law that says a member of the state Legislature cannot hold two elected posts. But maybe there should be.
Republican state Rep. Mario Civera has learned not to turn his back when Ed Rendell is in the room. He just might find a dagger stuck in it.
Civera won a seat on the Delaware County Council last November and was planning to resign his House seat. Although a Republican, Civera was asked by Rendell to stay in the Legislature to help Rendell get his budget passed in the House after it became clear to the governor that the House Democratic leadership was inept. Now that the budget is done, Rendell wants Civera out.
From a story by Alex Rose in the Delaware County Daily Times:
Embattled state Rep. Mario Civera, R-164, of Upper Darby, should “flat-out resign” from his House seat based on his vote against bringing table games to Pennsylvania casinos, said Democratic Gov. Ed Rendell Wednesday.
“I thought that Mario Civera might be helpful in this year’s budget process, but given his votes on table games where he voted against filling a $250 million hole in the budget, it’s pretty apparent that there are other things at play rather than his desire to help the budget,” said Rendell. “So I think he should just resign, go do the job he was elected to do here locally and then let the speaker of the House, as is his legal power, set the special election.”
Civera has yet to return calls for comment on either his table games vote or in answer to rumors he plans to leave his powerful seat as minority chairman of the House Appropriations Committee within the next week or two.
That news refueled calls from local Democrats for his resignation, which have been increasing in pitch following Civera’s election victory for a four-year term on Delaware County Council.
Gov. Ed Rendell has put out one of those idiotic press releases that Joe Biden has become famous for, claiming that federal stimulus money has created "more than 4,200 full-time equivalent jobs" in Pennsylvania.
What the hell is a "full-time equivalent job" and what about the 200,000 jobs Pennsylvania has lost during the Obama recession?
If you want a good laugh, read Rendell's press release below.
The governor has informed the state Legislature he will furlough nearly 1,000 state workers unless the Legislature approves the legalization of table games at Pennsylvania slot parlors by the end of this week.
The list of furloughs includes 112 positions with the State Police and 299 workers from the state Corrections Department. (You know Rendell is blowing smoke when he puts public safety at risk to get his way on expanded gambling).
The problem is that when the Legislature and Rendell agreed to a budget deal after a 101-day impasse, the agreement included the expansion of gambling, which would bring in $250 million needed to "balance" the 2009-10 General Fund budget. I put "balance" in quotes because the state has already run up a $254 million deficit after six months and there's no way the current budget will balance by June 30.
The Democratic-controlled state House has been debating expanded gambling for months, but Democratic leaders do not have enough vote to pass the controversial expansion bill.
Below is a copy of the memo the Rendell Administration has released, outlining the number of jobs to be cut from each department:
TO: Cabinet Secretaries and Agency Heads
FROM: Naomi Wyatt, Secretary of Administration DATE: January 5, 2010 RE: Furlough information
This memo is a follow-up to Steve Crawford's December 22, 2009, memo regarding furlough planning.
To be prepared in the event a gaming bill is not enacted, enclosed is a list that provides each of you with a furlough target for your agency. The list was developed by spreading 1,000 furloughs proportionally across all agencies' general fund complement as of December 11, 2009. (Federal, restricted, billed, and special fund complement was excluded; split-funded complement was included.)
Please begin developing a plan to implement the furloughs associated with your agency. Your plan should anticipate that furloughs could occur before the end of January. We will schedule a meeting in early January to provide additional details and information.
(Note: the number of proposed furloughs is followed by the number of full-time equivalent of General Fund positions):
Corrections: 299 (out of 15,436 positions) Labor & Industry: 6 (out of 288 positions) Military & Veterans Affairs: 38 (out of 1,914 positions) General Services: 20 (out of 1,060 positions) Education: 6 (out of 305 positions) Revenue: 31 (out of 1,620 positions) Dept. of State: 2 (out of 93 positions) State Police: 112 (out of 5,772 positions) Public Welfare: 333 (out of 17,244 positions) Community & Economic Development: 5 (out of 299 positions) Probation & Parole: 22 (out of 1,090 positions) Historical & Museum Commission: 4 (out of 186 positions) PA Emergency Management Agency: 2 (out of 111 positions) Environmental Protection: 31 (out of 1,647 positions) Conservation & Natural Resources: 24 (out of 1,281 positions) PA Securities Commission: 1 (out of 76 positions) Health: 19 (out of 992 positions) Agriculture: 7 (out of 368 positions) Insurance: 4 (out of 246 positions) Executive Offices: 28 (out of 1,463 positions) Governor's Office: 1 (out of 58 positions)
Half-way through the 2009-10 fiscal year, Pennsylvania has recorded a $254.2 million budget deficit.
While the red ink isn't flowing as much as it did for the 2008-09 fiscal year, in which the state ran up a $3.25 billion deficit, it appears Gov. Ed Rendell and the Pennsylvania Legislature will be dealing with another deficit when the current fiscal year ends on June 30.
You might be wondering how Gov. Rendell and the Legislature manage to circumvent the Pennsylvania Constitution, which mandates a balanced budget (Article VIII, Section 13 (a) Operating budget appropriations made by the General Assembly shall not exceed the actual and estimated revenues and surplus available in the same fiscal year.) It appears the Constitution is optional with the current leadership in Harrisburg.
The Pennsylvania Department of Revenue on Monday released the December tax collection numbers, showing a deficit for the sixth consecutive month of the current fiscal year.
Pennsylvania collected $2 billion in General Fund revenue in December, which was $37.2 million, or 1.8 percent, less than anticipated, according to Acting Secretary of Revenue C. Daniel Hassell.
Fiscal year-to-date General Fund collections total $12.4 billion, which is $254.2 million, or 2 percent, below estimate, Hassell said.
More from the December revenue report
Sales tax receipts totaled $627.3 million for December, $39.1 million below estimate. Year-to-date sales tax collections total $4 billion, which is $181.1 million, or 4.4 percent, less than anticipated. Personal income tax (PIT) revenue in December was $707.3 million, $6.2 million below estimate. This brings year-to-date PIT collections to $4.3 billion, which is $111.7 million, or 2.5 percent, below estimate.
December corporation tax revenue of $377.1 million was $28.7 million below estimate. Year-to-date corporation tax collections total $1.1 billion, which is $900,000, or 0.1 percent, below estimate.
Other General Fund revenue figures for the month included $74.2 million in inheritance tax, $11.3 million above estimate, bringing the year-to-date total to $375.3 million, which is $6.6 million above estimate.
Realty transfer tax was $29.1 million for December, $7.8 million above estimate, bringing the total to $161.8 million for the year, which is $10 million more than anticipated.
Other General Fund tax revenue, including cigarette, malt beverage and liquor taxes totaled $132.3 million for the month, $13.3 million above estimate and bringing the year-to-date total to $594.7 million, which is $30.2 million above estimate.
Non-tax revenue totaled $36.3 million for the month, $4.5 million above estimate, bringing the year-to-date total to $1.9 billion, which is $7.2 million below estimate.
For more revenue figures, click on the link below:
Pennsylvania has lost more than 105,000 jobs in the past year alone, so why is Ed Rendell in such a hurry to lay off more state workers?
Taht's what columnist Kevin Cramsey is wondering, too.
From a new column at Harrisburg Examiner.com:
The administration's head count is something like 721, but it doesn't include 60 or so who were offered up from the treasury and another 100-150 teachers, administrators and others who were cast out when Rendell ordered the Department of Military and Veterans Affairs to shutter the Scotland School for Veterans Children. There's probably more casualties out there if look hard enough.
Curiously, though the governor fusses and worries about state revenues being down due to a bad economy, he's willing to worsen the state's unemployment picture by putting even more people out of work and overtaxing the state's unemployment compensation fund.
State Rep. Sam Rohrer, R-Berks, a candidate for Pennsylvania governor, has sent a scathing message to supporters blasting the current governor and the Democratic leadership in the House for linking state funding to colleges with passage of expanded gambling.
Here is Rohrer's comments:
Lobbyists for Organized Gambling are at it again! This time, their ally-in-chief, Governor Ed Rendell and a majority in the state House of Representatives are holding up hundreds of millions of dollars in higher education funding to Pitt, Penn State, Lincoln and Temple in an unprecedented push to legalize high-stakes, casino table games.
This bill is truly insidious.
In addition to giving casino operators a discounted 14% tax rate (as opposed to a 55% rate for slots), they will now be able to issue lines of credit to prospective gamblers. That’s right, predatory, credit card gambling.
Friends, you know the truth about this destructive lie. When Pennsylvania approved a state lottery, it was billed as the savior for senior programs. When they approved off-track betting, small games of chance and later 67,000 slot machines were proposed and approved, they came with a promise - easy cash to fund worthy programs.
To date friends, Pennsylvania's political leaders have embraced gambling, but failed to deliver the promised windfall profit. Sounds like a Ponzi scheme to me doesn't it?
This afternoon, we're headed back to the House floor to debate this bad bill. The deck is stacked, the special interests are getting ready to celebrate, but there is still hope!
Will you please contact your state representative this afternoon? Visit the Pennsylvania Family Institute to see who needs to hear from you, and the best way to get connected.
This battle is worth the 5-minute investment of your time and energy. Will you help take on Organized Gambling?
Schroder blasts 'disgraceful' tactics by Rendell, Eachus
Rep. Curt Schroder, R-155th Dist., the Republican chairman of the House Gaming Oversight Committee, said in a prepared statement Thursday that Gov. Ed Rendell and House Majority Leader Todd Eachus (D-Luzerne) have destroyed any credibility they may have had with state universities and the public after insisting that legislation authorizing table games in the Commonwealth had to pass before state universities could be funded.
"House Republicans had insisted that the money needed to fund the universities of Pittsburgh, Penn State, Temple and Lincoln was there all along and that the universities were being used as pawns in Rendell's and Eachus's determination to expand gambling in Pennsylvania," said Schroder. "Now the majority leader, who for weeks had been towing the governor's line, admits that the money is indeed there and that the governor should sign the legislation on his desk to release the funding.
"For weeks, the universities, students and their families have had to endure the possibility that substantial tuition increases would be necessary if the state's appropriation did not come through. Students have had to entertain the possibility that they might not be able to afford to return to college for the spring semester. It was a cruel and unnecessary exercise - all to satisfy the gambling ambitions of Rendell and Eachus," Schroder said.
At a Harrisburg press conference earlier in the day, Rendell said he will sign legislation that the House passed earlier this week, releasing $700 million for the universities. The House did not take up table games legislation, pushing a possible vote on the issue until early 2010.
Anyone who has ever driven in Pennsylvania or anyone who has examined how much money PennDOT spends each year will not be surprised at the results of a new study.
Reason Foundation's 18th Annual Highway Report ranks Pennsylvania 38 in a listing of the nation's most cost-effective state-owned highway system.
The state's roads and bridges have been neglected by the Rendell Administration for the past seven years, while the Governor of Philadelphia has siphoned off money to pay union fat cats and prop up failing mass transit systems.
Pennsylvania continues to spend more than it takes in.
For the fifth month in a row in the 2009-10 fiscal year that began July 1, the state spent more than it collected in tax revenues, resulting in a cumulative shortfall of $217 million at the end of November.
While the deficit spending is below last year's pace (when Gov. Ed Rendell and the Legislature spent $3.25 billion more than the state took in), it's clear the state is headed for another budget deficit.
The Pennsylvania Department of Revenue reported Tuesday that Pennsylvania collected $1.6 billion in General Fund revenue in November, which was $56.8 million, or 3.4 percent, less than anticipated.
Fiscal year-to-date General Fund collections total $10.4 billion, which is $217 million, or 2 percent, below estimate, according to Secretary of Revenue Stephen H. Stetler.
The two biggest sources of revenue, the sales tax and the personal income tax, came in below estimate in November.
From the Revenue Department:
Sales tax receipts totaled $609.1 million for November, $52.7 million below estimate. Year-to-date sales tax collections total $3.3 billion, which is $142 million, or 4.1 percent, less than anticipated.
Personal income tax (PIT) revenue in November was $705.4 million, $21.2 million below estimate. This brings year-to-date PIT collections to $3.6 billion, which is $105.5 million, or 2.9 percent, below estimate.
Other General Fund revenue figures for the month included $58.3 million in inheritance tax, $600,000 above estimate, bringing the year-to-date total to $301.1 million, which is $4.7 million below estimate.
Realty transfer tax was $24.4 million for November, $4.5 million above estimate, bringing the total to $132.6 million for the year, which is $2.1 million more than anticipated.
Other General Fund tax revenue, including cigarette, malt beverage and liquor taxes totaled $108.5 million for the month, $4.6 million above estimate and bringing the year-to-date total to $462.3 million, which is $16.8 million above estimate.
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."
Tony Phyrillas is the city editor and political columnist for The Mercury, a two-time Pulitzer Prize-winning daily newspaper in Pottstown, Pa. Phyrillas has won several national and state awards for his columns. Phyrillas has been featured on National Public Radio (NPR) and in The New York Times and is a frequent commentator on radio and television programs. He co-hosted "Talking Politics with Tony Phyrillas & Mike Pincus" on WPAZ 1370 AM.
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State Rep. Tom Quigley (R-Montgomery) issued the following statement on the passage of House Bill 2279, which is Gov. Ed Rendell's proposed budget, minus the taxes Rendell wants to pay for the $29 billion spending plan:
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