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FEBRUARY 9, 2010

Growth of Government Unions in Pennsylvania

Eric Boehm notes the growth of public-sector union members (which now represent a majority of union members nation-wide) and the decline of private union members in Pennsylvania.

More than 70 percent of union workers in Pennsylvania held private sector jobs in 1984.  Since then, private sector unions have seen nearly a 50 percent decline in membership, while public sector unions in the Commonwealth have grown by nineteen percent during the same period.

 

posted by NATHAN BENEFIELD |  09:31 AM |  0 comment
Related : Unions & Labor Policy

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FEBRUARY 9, 2010

Perpetuating Fraud And Mismanagement

The Department of Public Welfare will receive additional federal funding to support its Low Income Home Energy Assistance Program (LIHEAP). This amount will be used to increase grants by $100 for many households. Eligibility for LIHEAP is based on family size and income. A family of four earning up to $33,075 may qualify for LIHEAP.

In the past the program has come under scrutiny for reasons of fraud and mismanagement. In fact, even after numerous audits by the Auditor General Jack Wagner, the same problems have emerged in subsequent audits, despite recommendations. One audit resulted in the arrest of 18 people for stealing more than $500,000 of LIHEAP funds and related crimes, including many employees in the Department of Public Welfare.

Tens of millions have been estimated in taxpayer losses from the Department of Public Welfare. Yet once again an inefficient program escapes reform, and is instead expanded. Wasteful spending, whether at the state or federal level, only drives up taxes for working Pennsylvanians.

posted by ABHILASH SAMUEL |  07:35 AM |  0 comment
Related : Budget & Spending, Welfare

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FEBRUARY 8, 2010

Will Mandates Create "Green Jobs"?

Yes, to answer the question posed by the title, the state can mandate the creation of "green jobs" via alternative energy mandates - just as it could mandate that utilities dig hole, and then fill them up, creating "brown jobs".

A new study, commissioned by the Community Foundation for the Alleghenies, claims that expanding alternative energy mandates through HB 80 will boost the economy and create jobs.

However, these claims are based on a host of shaky assumptions. Namely, the study assumes passage of federal "cap and trade" legislation that would make traditional energy more expensive, and assumes federal and state subsidies for alternative fuels.

The authors also fail to recognize any substitution effect, ignoring that when companies are forced to engage in certain activities, and consumers are made to pay more for electricity (through higher rates or government mandates), they will reduce spending elsewhere. That is, how many jobs will be "destroyed" to create "green" jobs? Furthermore, alternative energy isn't even a new product, adding to GDP, but represents the replacing of one form of electricity with another.

The insistence that alternative energy mandates will both create green jobs and lower costs is economic ignorance. While the 31% increase in electricity costs could be offset by an increase in low-cost renewable generation, over half of the renewable energy jobs cited are temporary construction jobs.

Another interesting finding is that the claim that PA theoretically has enough
renewable energy potential to satisfy electricity needs, however, the majority of this potential is, "from relatively high cost solar." The study goes on to acknowledge that solar is not a cost-effective renewable technology.

If alternative energies are so cost-effective and are the future of our economy, there is no need to both subsidize and then mandate these energy sources.

posted by NATHAN BENEFIELD, ELIZABETH BRYAN |  00:40 PM |  0 comment
Related : Environment & Energy, Energy Policy

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FEBRUARY 8, 2010

Natural Gas Tax: One Thoughtful Editorial, One...Not So Much

In their editorial on a natural gas severance tax, likely to be part of Gov. Rendell's budget proposal on Tuesday, the Patriot News highlights some facts that don't ever make it into the Governor's bullet-points.

While the headline severance tax in Texas is 7.5 percent, the state gives a discount to Barnett Shale drillers that reduces the tax to 1.5 percent. Similarly, in Arkansas, it has a base 5 percent tax, but it reduces that to 1.5 percent during the first 24 to 36 months of production.

The reason these states reduce the tax is that companies are investing millions, sometimes billions, in these wells. Those costs need to be recovered. The tax break is meant to be at about the “break-even point.”

Furthermore, they suggest that the tax be tied to environmental issues or to lower tax burden for all Pennsylvanians. (They fail to mention how much gas companies are already giving for cleanup, such as bonding for road repairs).

On the other hand the Philadelphia Inquirer sees nothing more than a pot of money to underwrite out-of-control spending. In fact, they even suggest we tax natural gas to subsidize another industry - that of "alternative energy", which is not only already subsidized, but enjoys a mandated market.

Some of the revenue should also be set aside to invest in building the state's green economy. We already have incentives for alternative energy companies. These could be expanded with a portion of the extraction-tax revenue. Ultimately, the state's energy sector should include natural gas, solar and wind.

Some of the money must also go to the general fund. In tough economic times, the state can't afford to turn away revenue from a new source. Most businesses are hurting right now and paying less in taxes. It's only fair that companies making big profits from drilling pay their fair share.

posted by NATHAN BENEFIELD |  09:17 AM |  0 comment
Related : Environment & Energy, Taxation

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FEBRUARY 5, 2010

Rules for Radicals and Climategate

The Allentown Morning Call covers the ongoing "Climategate" scandal involving Penn State's Michael Mann. Joe Sterns, our director of communications, does a great job of staking out our position.

Of course, instead dealing with the merits of the issue, PennFuture's Jan Jarrett attacks us again:

"Oil and coal industries have invested heavily in their campaign to move their agenda ahead, to make sure we don't switch from energy made the way they produce it, by burning coal or by burning petroleum."

Really? Well, some heads in my office are going to roll because I haven't been informed about the wads of cash we're getting from these evil energy industries.

I'm guessing that the Penn State student group mentioned in the story is also wondering when their huge checks will be arriving in the mail from Exxon.

"This whole controversy really exists in an alternate universe that's been bought and paid for by the folks who want to make sure we don't enact clean air legislation. In their universe, hot is cold."

Riiiiight. We don't want clean air. Hot is cold, and we think that the snow storm coming this weekend is because its actually cold and snowy outside during the winter.

Would someone please inform these folks that we've also read Saul Alinsky's "Rule for Radicals," so we know their tactics before they even deploy them.

posted by MATTHEW BROUILLETTE |  01:53 PM |  0 comment

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FEBRUARY 5, 2010

Live Webinar: Job Opportunities in Public Policy

Looking for a career path that will enable you to advance the ideas of liberty?  Already in a position, but looking to gain the professional skills and management training to become more effective? 

Attend a live online presentation to learn about the 2010-11 Koch Associate Program, a job opportunity for professionals with up to ten years of work experience who are passionate about free-market ideas and want to become more effective at advancing liberty through their career.

Join us from your computer for one of the two live webinars on Wednesday, February 10th to learn more about this program. To attend, please register online for one of the following time slots. Remember to provide a valid email address in order to receive further information.

• Wednesday, February 10th // 3:00pm EST: Register
• Wednesday, February 10th // 7:00pm EST: Register

The program provides the opportunity to work in a full-time position at a free-market think tank, policy institute, or grassroots organization while receiving valuable management training once a week at the Charles G. Koch Charitable Foundation. Available positions range from entry- to director-level and cover a variety of roles, including policy analysis, new media, public relations, operations, and fundraising. This combination of practical work experience and continuing education creates a unique development opportunity unparalleled in the public policy arena.

posted by COMMONWEALTH FOUNDATION |  10:04 AM |  0 comment
Related : General

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FEBRUARY 5, 2010

Final Nail in I-80 Tolling's Coffin?

The FHWA is expect to announce shortly that, once again, the have rejected the Pennsylvania Turnpike Commission's bid to toll I-80 across the state.  Eric Boehm has the details over on PA Independent.

Where does that leave us?  Here are five alternatives to tolling I-80.

posted by NATHAN BENEFIELD |  08:50 AM |  0 comment
Related : Transportation, Turnpike

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FEBRUARY 4, 2010

Dude, Where's My Raise?

A struggling economy and high unemployment left many without their yearly raise or bonus in 2009. That is, of course, unless you were a government employee.

As originally reported on the Heritage Foundation's blog, government employees received twice the average raise in 2009 than those in the private sector, with total employee compensation in the public sector growing by 2.4% compared to just 1.4% in the private sector.

One of the major factors contributing to this disparity in public v. private compensation is government labor unions. Government workers, on the federal, state and local level, represent more than half of all union members. These unions bring lobbyists and special interests to the legislative table, continuously bartering for increased benefits and compensation, much to the detriment of your wallet.

There are several ways Pennsylvania can level the playing field for private industry. First, we should repeal the burdensome "prevailing-wage" laws that force government to pay higher-than-market wages. Second, we should enact "right-to-work" laws which end compulsory unionization. Finally, we should outlaw strikes for public employees in public services monopolies.

posted by MICHAEL NEROZZI |  10:06 AM |  0 comment
Related : Budget & Spending, Unions & Labor Policy, Prevailing Wage

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FEBRUARY 4, 2010

Free Money Or Greater Burden?

Pennsylvania has not known the meaning of fiscal responsibility for quite some time. Unfortunately, for working Pennsylvanians, that is not about to change. Pennsylvania's General Fund revenues are already $374 million below estimate for the 2009-10 fiscal year, and certain to increase.

Although it might come as a relief to legislators that President Obama could release funds to states to boost Medicaid payments, there is no respite for taxpayers. The state of Pennsylvania is poised to get $850 million in additional federal aid.

There is no such thing as free money - funds that the government borrows or prints will only affect our wallets in the future. Increased federal aid only augments the problem and creates perverse incentives for states to spend more.

Furthermore, Medicaid is a program in dire need of an overhaul. Currently, almost 26 percent of the Pennsylvania budget can be chalked down to Medicaid spending. With Medicaid spending increasing at 8 percent annually, its long term fiscal situation is unsustainable.

But instead of fixing Medicaid, budget, pension, unemployment benefits, and a host of other problems, the state and federal government push the problem away for another day while increasing the burden on future generations of taxpayers.

posted by ABHILASH SAMUEL |  08:53 AM |  0 comment
Related : Budget & Spending, Medicaid