Sen. Bob Mensch: State Budget Redux

State Budget Redux

By Sen. Bob Mensch

On Feb. 9, Gov. Ed Rendell delivered his eighth — and final — budget, and not surprisingly the greatest applause during the speech was for his statement to have the budget finished by June 30. It's not surprising this comment would be met positively. After all, last year was painful and caused a lot of financial difficulty for Pennsylvanians.

But when I'm asked if I think the budget will be done on time this year, my response is a skeptical, "I doubt it." The newly proposed budget is, in my opinion, not affordable, not sustainable, and must be rejected by the taxpayers and the legislature — but more on that in a moment.

First, let's look at history. We have not had a budget completed on time in any of the past 7 years — but that has not always been true. To find the next most recent budget that was not completed on time, you have to go back through many administrations, to I believe, Gov. Raymond P. Shafer in the late 1960s. So past performance by this administration is not encouraging.

And when we take a closer look at last year's budget mess, you will realize that the House majority leadership (Democrat) did not even put a budget in front of the House until July 13. That's right, despite the Constitutional requirement for a balanced budget to be completed by June 30, the House majority leadership decided to ignore the Constitution and do what it wanted. More importantly, last year's budget was unaffordable, just as this year's budget is unaffordable, so there is a great probability there will be another "battle" similar to last year’s 101-day impasse.

Some residents just want us all to go along and agree, but had we last year we'd have higher taxes this year, and we'd have even worse spending that we can't afford. Please realize that February 2010 is the 24th consecutive month of negative revenue collections by our state. That's right, we haven't been able to meet our spending obligations for two solid years. Yet this year's proposed budget has a further spending increase of $1.155 billion, and it includes two very significant tax increases — a sales tax increased designed to raise $1 billion or more; and an onerous business tax strategy that will chase more jobs out of Pennsylvania.

We can't afford the increased spending. We can't afford to pay more in sales taxes. We can't afford to lose any more jobs from Pennsylvania. So when someone suggests there is disagreement about this year's budget, instead of someone asking why we can't all just agree, the question should be why must the administration insist we need to spend more than we can afford?

The sales tax proposal will hurt our seniors with new taxes on medical and pharmaceutical services. We'll all pay more for financial and legal services. We'll all pay new taxes on 74 new categories of items to be taxed — we can't afford it.

Our businesses will be further stressed for providing jobs. Pennsylvania is already the 44th lowest state in new jobs creations. But the solution offered by the administration is to "close the Delaware loophole," which is actually a tax increase.

The easier solution is just lower our corporate tax rates to be competitive with other states — we presently have the highest rate in the nation - and then our businesses won't feel the need to incorporate in Delaware. But the strategy offered in the budget is actually a tax increase so don't look for a lot of compromise on corporate net income tax.

I welcome any comments regarding these thoughts. Call me at 215-529-1215 or write me at bmensch@pasen.gov

State Sen. Bob Mensch is a Republican who represents the 24th District, which includes parts of Bucks, Lehigh, Montgomery and Northampton counties.

Originally posted at TONY PHYRILLAS

Rendell runs up another $477 million in debt

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:

Pennsylvania Revenue Department Releases February Collections

Originally posted at TONY PHYRILLAS

Ed Spendell Strikes Again

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.

Originally posted at TONY PHYRILLAS

Tell Ed Rendell what you think

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

What taxes would you like raised and by how much?

A guest column by state Sen. Rob Wonderling about Pennsylvania's budget crisis and the disingenuous way Democrats approach taxes and spending.

An honest conversation

By Sen. Rob Wonderling

"I'm proud to pay taxes in the United States; the only thing is, I could be just as proud for half the money." — Arthur Godfrey

When a conversation begins "Do you want the good news or the bad news first?" you have to brace yourself. So here goes, brace yourself.

The bad news is the White House has revised its budget for the year stating that the deficit will rise by $89 billion to above $1.8 trillion — about four times the record set just last year. The red ink comes from the recession, the economic stimulus bill, and the imbalance between what the government spends and what it takes in.

The bad news is that Pennsylvania has been hit hard too by this national economic crisis. Pennsylvanians have lost jobs, businesses have cut back, and our state revenues have fallen dramatically.

As of May 1st, the actual revenue shortfall for the current fiscal year is $2.6 billion. We expect that shortfall to grow to 2.9 billion by June 30th — a drop of more than 10 percent from the official revenue estimate.

Unlike the federal government, Pennsylvania cannot operate with a deficit. We cannot borrow without limit to balance the budget or to attempt to stimulate the economy. Pennsylvania's constitution requires a balanced budget.

So you are thinking, "Where's the good news Wonderling"?

Recently, the Pennsylvania Senate passed a budget, Senate Bill 850. It is a balanced budget that does not increase taxes.

This budget represents a responsible spending plan that preserves the core governmental functions of public health, public safety, and education.

More bad news.

Budget cuts always come with pain, and I recognize that. Hundreds of difficult choices were made in this budget. Many good and important programs had to be put on hold to bring the budget into balance. I believe this short-term sacrifice is the best long-term approach for the citizens of Pennsylvania.

I have supported these programs in the past and look forward to the day when funding for these programs can be restored, but families and businesses across Pennsylvania are making cuts in their own budgets, and state government needs to do the same. We must live within our means.

I believe taking these difficult steps now will allow our Commonwealth to restore many important programs as soon as possible without a tax increase in the future. Senate Bill 850 is built on a spending level that is in line with our revenues. This budget will position our state to rebound quickly when the national economy begins to improve.

The only honest alternative to cutting spending is increasing taxes, and history shows us that solving a budget crisis with tax increases kills future economic growth.

This budget maintains the $750 million Rainy Day Fund, which we will need for future year budgets when we no longer have an infusion of national stimulus funding.

Unlike many other line items, basic education spending is preserved by using federal stabilization funds. Combined with the additional federal stimulus funds which are being sent directly to school districts under Title 1, Title 2, and I.D.E.A., this budget represents a real net increase in funding for school districts.

For example, in my Senate district, every school district will received more than it did last year. For example, East Penn School District will receive a 10.7 percent increase, Palisades School District will receive an 11.9 percent increase, and North Penn School district will receive a 20.2 percent increase.

The Pennsylvania Senate has taken unprecedented steps to further reduce spending including implementing a hiring freeze, donating the cost of living increase to charity, instituting a co-pay for health care for all state employees, eliminating automobile leases for public officials, and applying any legislative surplus to reducing the deficit.

Since voting in support of Senate Bill 850, I have received numerous e-mails from constituents supporting efforts to control spending and live within our means and then urging me in the next sentence to restore funding for independent colleges and universities, public television and the arts, to name a few programs.

To those citizens, I would ask that you e-mail me to let me know exactly what taxes you would like raised and by how much to fund your program. You may reach me at rwonderling@pasen.gov

If we are going to have true transparency in government then we must have a frank discussion about how we intend to pay for programs we simply cannot afford.

State Sen. Rob Wonderling is a Republican who represents the 24th district in Pennsylvania which includes parts of Bucks, Lehigh, Montgomery and Northampton counties.

Rendell vs. 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.

Originally posted at TONY PHYRILLAS

Prediction: Arlen Specter won't seek re-election

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.

Originally posted at TONY PHYRILLAS

PleaseNoMoreTaxes.org

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Now that's change you can believe in! It's more than Obama is offering in tax breaks.

Check out the new Web site to see how much of your money Pennsylvania is spending and what you can do about it.

'Put Pennsylvania taxpayers first'

While Gov. Ed Rendell is packing for a trip to Florida to watch the Super Bowl, Republican House members held a press conference Tuesday to discuss ways to deal with the state's growing fiscal crisis.

The goal of Republican lawmakers is to "combat the state's projected $2.3 billion budget deficit while protecting taxpayers against new or increased state taxes, new state spending or additional state debt," according to a written statement released after the Capitol Rotunda event.

Rep. Samuel E. Rohrer (R-Berks), a longtime critic of Rendell's spending policies, did not attend the press conference, but issued a statement saying he supports the measures and vows to work with fiscally conservative allies "to return financial discipline to the state budget."

From Rohrer:

"After six years of the governor's tax, borrow and spend initiatives, Pennsylvania faces a monumental budget deficit and a lagging economy. It's time to take the state checkbook and credit card out of the governor's hand. He has proven that, without a doubt, he cannot spend money better than the taxpayers of Pennsylvania."

Topping the list of initiatives supported by Rohrer and other fiscally conservative House Republicans is repeal of Rendell's increase in the state Personal Income Tax (PIT).

When Rendell took office in January 2003, the state PIT was 2.8 percent. Later that year, he signed into law a bill that raised the state PIT to 3.07 percent.

"At a time when our economy is struggling, it is more important than ever to allow Pennsylvanians to keep more of what they earn," Rohrer said. "It's hard for families to pay their rent or mortgage, grocery bills, utility bills and other expenses when state government continues to take more and more out of their paychecks."

Other initiatives supported by Rohrer and his fiscally conservative allies would:

* Call for the enactment of a state budget that includes no new taxes, no new spending and no additional borrowing.

* Empower voters by allowing them to approve or reject local tax increases through a ballot referendum.

* Institute state spending limits to control government’s spending appetite.

* Repeal the law that calls for new tolls to be implemented across Interstate 80.

* Reduce welfare spending by 10 percent and use the money to pay for much-needed road and bridge improvement projects across the Commonwealth.

* Eliminate all state discretionary funding or "Walking Around Money (WAMS)."

* Enact a series of business tax reductions.

"We have outlined a plan that would put Pennsylvania taxpayers first," Rohrer said. "In a little more than a week, when the governor delivers his budget address, Pennsylvanians should ask themselves: Who is the governor putting first? Is he doing what's right for taxpayers, or is he looking out for the special interest crowd in Harrisburg and the people who make a living by feeding at the public trough?"

Newspaper: Rendell is 'despicable'

You know I'm going to enjoy any editorial that begins with the words: 'The swaggering arrogance of Gov. Ed Rendell' ... and The Pittsburgh Tribune-Review doesn't disappoint with a commentary on Rendell's sweetheart deal for ousted state Rep. Dan Surra.

Surra, a longtime Rendell ally, was tossed out by the voters in Elk and Clearfield counties in November, but wasn't out of work for long. He entered the Politician Protection Program. Despite a hiring freeze imposed by Gov. Rendell himself, the gov found a job for Surra, who is now helping promote tourism at an annual salary of $95,000.

From the Tribune-Review editorial:

Fast Eddie said his hiring freeze didn't apply to him since he granted himself exceptions. He also told reporters to "get off your butts" and go up to a state woodlands area to ask the people there about Mr. Surra.

Such imperiousness as Pennsylvania faces a $2.3 billion budget deficit, layoffs of state workers and possible tax increases is despicable.

Surra had been the House Democratic Caucus administrator. And as Rep. Mike Turzai, R-Bradford Woods, reminds, Surra voted for the 2005 legislative pay-jacking, to increase taxes and for Rendell's bloated budgets.

Read the full editorial at the newspaper's Web site.

Rendell scheme to cut taxes with gambling is a bust

Daniel R. Reynolds, writing in The Philadelphia Inquirer, says that after five years in operation, Pennsylvania's much-ballyhooed gambling venture has turned out to be a bust.

"Expanding gaming in Pennsylvania is simply an additional de facto tax - on top of the state lottery implemented many years ago," Reynolds writes.

Gov. Ed Rendell's promises of substantial property tax relief have never materialized, Reynolds says.

From Reynold's column:

There is work to be done on the issue of taxation in Pennsylvania, but it is not the work that Rendell, Fumo, and their brethren in Harrisburg have done - and that, in the end, can benefit only casino operators. Lawmakers must lead for the good of the entire public, not just a segment of it, and abolish the property tax as a means of funding public education in Pennsylvania.

The residential property tax is a regressive tax - that is, it taxes poor people at higher rates than it does rich people. Because of their lower property values, poor communities are forced to implement higher property taxes to raise enough money to fund their schools. And communities with high property values can afford to keep their property taxes lower.

Read the full column at the newspaper's Web site.

Originally posted at TONY PHYRILLAS

Rendell keeps digging deeper hole

And you wonder why Pennsylvania is facing a potential $2 billion budget shortfall?

Gov. Ed Rendell continues to defend the hiring of political crony Dan Surra to a $95,000 patronage job despite a hiring freeze that has left 5,000 other state jobs unfilled.

Rendell himself admitted that the state's General Fund deficit will likely reach $1.6 billion to $1.9 billion by the the end of the fiscal year in June. Republican lawmakers say the deficit could top $2.1 billion.

"Everyone has to understand that what has happened leaves us no option," Rendell said this week. "We're going to have to cut virtually every program that there is."

But giving a $95,000-a-year-job to an ousted state lawmaker is not among the cuts Rendell is willing to make.

Reporter Brad Bumstead has more on Rendell's hypocrisy and "Go to hell" attitude toward Pennsylvania taxpayers in the Pittsburgh Tribune-Review.

From Bumstead's article:

"Let me stress, I reserved the right when I announced the hiring freeze to make exceptions," Rendell told reporters while visiting the Pennsylvania Farm Show. During a speech at the farm show, he boosted his predicted budget deficit for 2008-09 from $1.6 billion to $1.9 billion.

Rendell said he did not create a special job for Surra, but he acknowledged the DCNR job was not posted and others weren't considered.

The Democratic governor's decision to hire Surra, a Democrat who failed to win re-election to the state House of Representatives in November, has been universally panned by the state's newspapers.

From The Pottstown Mercury:

THORNS to Gov. Ed Rendell for creating a job for a former state legislator, violating a hiring freeze imposed during the current state budget crisis ... Rendell also has slashed hundreds of millions of dollars from the budget to help offset a projected $1.7 billion shortfall this fiscal year. Creating a job for an ousted legislator in this fiscally-stressed environment was a slap in the face to state taxpayers. The governor should know better.

Originally posted at TONY PHYRILLAS

Chester County lawmaker on Rendell overspending

State Rep. Curt Schroder, R-Chester County, has an op-ed column in The West Chester Daily Local News on Pennsylvania's growing budget deficit, which has passed the $550 million mark in the first four months of the current fiscal year.

Schroder, who voted against Rendell's $28.3 billion budget, says the red ink is not caused by "the global economic meltdown" as Rendell claims, but by a pattern of overspending on the part of the Democratic governor.

From Schroder's column:

Pennsylvania's budget deficit, which analysts predict could reach as high as $2.5 billion by the end of the current fiscal year, was not created solely by the economic downturn as some would have you believe. Instead, it is the result of years of overspending in Harrisburg.

Gov. Ed Rendell's budgets have routinely increased spending beyond the rate of inflation. Now, to quote one controversial clergyman, "The chickens are coming home to roost!"

From 2002 to the current 2008-09 budget, spending increased by 38.6 percent while the rate of inflation only rose by 19.5 percent.

Schroder says the token cuts Rendell has offered to make so far are not enough. The entire budget must be reopened or the state will face a huge financial crisis in 2009.

From his column:

This entire budget, and the house of cards on which it is based, must be reopened. It needs to be re-examined from top to bottom by the General Assembly - the elected body of the taxpaying citizens of Pennsylvania.

There is no shortage of ideas worth exploring. We should use this opportunity to force some tough decisions and finally come to grips with unnecessary spending on programs that either don't work or only serve a narrow special interest. If we do not act now, Pennsylvania will face its own fiscal crisis of Wall Street proportions.

Read the full column, "Blames deficit on overspending," at the newspaper's Web site.

End of the line for Bill DeWeese?

Bill DeWeese has been in the state House for more than 30 years, having risen on more than one occasion to the Majority Leader post.

But his days in Harrisburg could be coming to end because he is liked to the Bonusgate scandal which occurred under his watch.

Here are some links about DeWeese's future:

Lowman Henry at Lincoln Blog says the fat lady is singing for DeWeese.

John Baer at the Philadelphia Daily News writes that Rep. Josh Shapiro's call for DeWeese's ouster could be the tipping point for the state's stalled reform movement

John Micek weighs on on the Shapiro call for DeWeese to go at his Capitol Ideas blog

Tony Phyrillas says that Shapiro is working on behalf of Gov. Ed Rendell in launching a mutiny against DeWeese. It's the only way to save the Democrats from losing control of the House in Novemember.

POLICY BLOG also has a roundup of DeWeese/Shapiro/Reform news.

PA GOP applauds Supreme Court ruling on Voter ID

Pennsylvania Republican Party Chairman Robert A. Gleason Jr. supports the U.S. Supreme Court's ruling Monday that upheld the Constitutional right of states to require voters to produce photo identification before casting their ballot to combat voter fraud and uphold the integrity of our elections.

"The Republican Party of Pennsylvania was ecstatic to learn of the Supreme Court's ruling that allows states to run fair and honest elections by using photo identification," Gleason said in a written statement. "Ensuring the integrity of our elections is paramount, and I believe requiring voters to show a form of identification is an important tool in combating voter fraud. Many Americans are made to show photo identification before they board a plane, drive a car, cash a check, or even rent a movie, so we agree with the Supreme Court that it is acceptable to check identification before they cast their vote."

In 2006, Gov. Ed Rendell vetoed House bill 1318 that would have required voters to produce photo identification here in the Commonwealth. Under this bill, voters would have had to produce either a driver's license, passport or other photo ID or even something with the person's name on it, such as a utility bill.

"If Pennsylvania is serious about conducting fair elections, our legislature should pass a bill requiring voters to show photo identification and Gov. Rendell should sign it immediately," Gleason said.

How low can Pennsylvania go?

POLICY BLOG reports that The Small Business and Entrepreneurship Council has ranked Pennsylvania 28th in its Business Tax Index 2008 survey.

It's the latest poor showing for Gov. Ed Rendell's Pennsylvania in national rankings of the state's business climate.

POLICY BLOG recaps the state's mediocrity:

* Pacific Research Institute State Tort Liability Rankings - 45th
* Beacon Hill Institute State Competitiveness Report 2007 - 34th
* ALEC-Laffer State Economic Competitiveness Index - 44th on Economic Performance; 37th for Economic Outlook
* Alliance for Worker Freedom Index of Worker Freedom - F (Tied for worst)
Small Business and Entrepreneurship Council Policy Environment for Entrepreneurship. - 24th
* Tax Foundation State Business Tax Climate Index - 27th
* Tax Foundation State and Local Tax Burden - 24th (50 is best)
* CEO Magazine Best States to do Business - 37th (
* Forbes Magazine Best States For Business - 39th

Rendell's 'borrow, tax and spend' mantra

POLICY BLOG has a nice roundup of links to articles about Gov. Rendell asking the Legislature to borrow, tax, and spend more.

It's wearing thing, governor, especially as the state's economy turns sour after five years of mismanagent by the Rendell administration.

The article also mentions Tax Freedom Day in Pennsylvania, which is the day you have to work until to pay the government. Hint: You're still working for the government.

POLICY BLOG notes that taxes in Pennsylvania "already consume more household income than housing or health care."

Rendell ignores state's crumbling roads and bridges

The Philadelphia Inquirer ran a lengthy story over the weekend about Pennsylvania's crumbling roads and bridges. There's nothing new about the problem. The hook that makes it timely is the recent closing of Interstate 95, one of the most heavily-traveled roads in the country, because part of a bridge support was about to fall down.

The question I have is why hasn't Gov. Ed Rendell made a priority of fixing the state's crumbling infrastructure? He's been in office for five years and has yet to find a way to repair the state's roads and bridges. Rendell has increased state spending by $7 billion but hardly any of that money is going for bridge and road repairs.

He's come up with the Interstate 80 toll plan and is looking at leasing the Pennsylvania Turnpike to a private firm, but neither plan is going to fix decaying roads and bridges today.

Where are Rendell's priorities? Casinos? No-bid contracts for political pals? Taxpayer-funded soccer stadiums? Helping Hillary Clinton get elected president?

The bottom line is that Rendell has failed to address one of the most pressing needs in the state over the past five years. And why hasn't the Legislature been on top of this?

Read the full story, "The extreme cost of fixing bridges and highways" in The Inquirer's online edition.

Tony Phyrillas: Gambling probe forces Democratic official to resign

With less than six weeks to go before the Nov. 6 election, the Democratic ticket of Joe Hoeffel and Ruth Damsker suffered a major blow in its efforts to win control of the Montgomery County Board of Commissioners.

One of the co-chairs of the Hoeffel-Damsker campaign resigned Tuesday after authorities busted a huge illegal gambling operation in Montgomery County. The case involves bars and other establishments housing video poker machines.

One of the businesses raided was Cisco's Bar and Grille in the 1500 block of Bethlehem Pike in Flourtown. Cisco's is owned and operated by Joanne C. Olszewski and her husband. Olszewski is an elected jury commissioner in Montgomery County and co-chair of the Hoeffel-Damsker campaign.

Everyone knows that the Commonwealth of Pennsylvania is now in the gambling business thanks to Ed Rendell, so Olszewski will have a hard time explaining why her family business is running video poker machines.

Olszewski is also first vice president of the Montgomery County Democratic Committee and a member of the State Democratic Committee. Read more about Olszewski's resignation in The Mercury.

The other interesting quirk in this story (other than the timing) is that the Montgomery County District Attorney's Office, which is handling the investigation, is headed by Bruce L. Castor Jr., who is a Republican candidate for Montgomery County Commissioner.

Castor said his First Assistant D.A., Risa Ferman, is handling the case, but Castor was pictured prominently in the press conference announcing the raids. Ferman is the Republican candidate to replace Castor as Montgomery County D.A.

Reporter Margaret Gibbons pointed out in her story that, "Even before the district attorney's press conference, a story taken from KYW-AM radio citing sources indicating that an unnamed county elected official was caught in the investigation went up on the Castor-Matthews campaign Web site."

Gibbons also asked Montgomery County Democratic Chairman Marcel L. Groen if the timing of the raids were politically motivated.

"I do not believe the underlying investigation was politically motivated, but the timing of the announcement of the investigation coming just six weeks before the election is interesting to say the least," Groen said.

Ferman denied any shenanigans.

"We don't accuse public officials of committing crimes unless we're sure," Ferman told Gibbons. "We're in the business of doing investigations and we understand that a public official's reputation is paramount."

Montgomery County Republican Party Chairman Ken Davis isn't satisfied with Olszewski's departure from the Hoeffel-Damsker campaign. He wants the Democratic candidates to push for Olszewski's resignation as a jury commissioner.

"Everyone is innocent until proven guilty in a court of law, and I ask that the rights of Ms. Olszewski be observed as she deals with this difficult situation regarding an investigation for an illegally rigged gambling machine operated out of a business she owns, Cisco's Bar," Davis said in a written statement.

Because Olszewski is a key member of Damsker-Hoeffel '07, the Montgomery County Democratic Committee and State Democratic Committee who has donated and raised a significant amount of money for the Damsker-Hoeffel campaign and Democratic Party, Davis wants Damsker and Hoeffel to consider asking for her resignation as Jury Commissioner in light of these serious allegations.

"Her resignation simply from the Damsker-Hoeffel campaign is not enough," Davis said.

Hoeffel and Damsker have made numerous allegations about corruption in the Republican-controlled county. Davis wasted no time in turning the tables on the Democrats.

"Republican officials have repeatedly been exonerated from recklessly false claims made by both Damsker and Hoeffel," Davis said. "I hope that the alleged crimes of Ms. Olszewski, the only Democratic elected official in the Court House, do not represent the type of culture Damsker and Hoeffel want to establish in Montgomery County."

Davis wants Damsker and Hoeffel and the Montgomery County Democratic Committee to answer the following questions:

• Did Damsker, Hoeffel or any Democratic Party official hold campaign fundraisers at Ms. Olszewski's bar, Cisco's?

• Did Damsker, Hoeffel or any Democratic Party official at any time play, or encourage attendees/patrons to play, the allegedly rigged illegal video poker machines in Cisco's Bar?

• Did any illegal gambling proceeds from the video poker machines in Cisco's Bar find their way in to the campaign coffers of Damsker, Hoeffel or the Democratic Party?

• Have any representatives of JC Vending Inc. made campaign contributions to Damsker, Hoeffel or any Democratic Party organizations?

Stay tuned.

Tony Phyrillas

Tony Phyrillas is a columnist for The Mercury in Pottstown, Pa. He received a first place award for Best Opinion Column in 2007 by Suburban Newspapers of America. He was also honored for column writing in 2006 by the Society of Professional Journalists.

Copyright © 2005-2007, THE CENTRIST Blog; All Rights Reserved.

Tony Phyrillas: GOP should hold Montgomery County

An internal poll done for the Republican candidates in the much-watched race for Montgomery County Commissioner shows the GOP slate of Bruce Castor and Jim Matthews keeping control of this crucial SE Pennsylvania county for four more years.

Republicans have controlled Montgomery County politics for the past 138 years, but Democrats have been chipping away in Southeastern Pennsylvania.

Castor, the current Montgomery County District Attorney, is on top with 55 percent support, according to the poll. Democrat Joe Hoeffel is second with 51 percent. Jim Matthews comes in third with 40 percent. Incumbent Democrat Ruth Damsker brings up the rear with 34 percent.

If the trend holds until Election Day, Castor and Matthews would keep a Republican majority on the board, with Hoeffel as the minority commissioner.

Castor is the best known political figure in Montgomery County and is well respected as a tough prosecutor. He will be the top vote-getter on Nov. 6. Hoefell, a former county commissioner and former area Congressman, has lots of name recognition, too, because he's always running for something. His ultra liberal politics will attract support from the eastern half of the county.

It's no secret that Gov. Ed Rendell is working hard to capture one of the traditional Republican SE Pennsylvania counties for the Democrats. The key is control of county government. Rendell wants a base where he can operate to swing SE Pennsylvania for the Democrats in the 2008 presidential race.

With the Montgomery County commissioners' race looking safe for the GOP, expect Rendell to concentrate on Chester County and Bucks County in the final weeks of the campaign.

Looking over the latest poll numbers, Matthews, who ran for lieutenant governor of Pennsylvania on the Lynn Swann ticket in 2006, has gained 6 points on Damsker in the past month. The last poll showed Matthews and Damsker dead even.

Damkser has lost ground with some wacky behavior and oddball comments. She brought up the "R" word (reassessment) in a county that is doing very well financially. Property taxes are a big issue in Montgomery County and a countywide reassessment would be a de facto tax increase for many residents.

Damsker also has had several widely publicized spats with Commissioners' Chairman Tom Ellis and even broke into tears are a recent commissioners' meeting. There's no crying in politics!

The current GOP-led board managed to cut property taxes in 2007 and Castor/Matthews have promised another property tax cut in 2008 if they're elected.

The poll by Neil Newhouse also asked potential voters to rank the candidates via favorable and unfavorable traits.

Here are the results:

Castor -- Fav. 68% Unfav 9%
Hoeffel -- Fav. 57% Unfav 24%
Matthews -- Fav. 34% Unfav. 6%
Damsker -- Fav. 25% Unfav. 9%

And for laughs, the poll also asked views on other politicians:

Specter -- Fav. 68% Unfav. 28%
Rendell -- Fav. 70% Unfav. 27%
Giuliani -- Fav. 64% Unfav. 29%
H. Clinton -- Fav. 51% Unfav. 46%
Bush -- Fav. 34% Unfav. 65%

(Note the difference between Giuliani's and Clinton's numbers in Montgomery County. If Republicans have any hope of winning Pennsylvania in 2008, Giuliani has to be the party nominee.)

Tony Phyrillas

Tony Phyrillas is a columnist for The Mercury in Pottstown, Pa. He received a first place award for Best Opinion Column in 2007 by Suburban Newspapers of America. He was also honored for column writing in 2006 by the Society of Professional Journalists.

Copyright © 2005-2007, THE CENTRIST Blog; All Rights Reserved.