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April 6, 2010 | Commentary by ABHILASH SAMUEL
Rendell’s Higher Taxes Equals Fewer Jobs
Pennsylvania's latest budget shortfall is the result of a pattern in which state legislators abandon fiscal prudence in "good years" and face spending cuts or tax hikes in down times. Indeed, Gov. Rendell has proposed massive spending increases with each of his budgets, usually requiring new or higher taxes. This year he is pushing for combined reporting to close "tax loopholes" for businesses, taxing cigars and smokeless tobacco, a new tax on natural gas, and expanding the Sales and Use Tax.
December 8, 2009 | Commentary by ABHILASH SAMUEL
Outward Bound - Taxes Driving People Out Of Pennsylvania
Between 2000 and 2008, Pennsylvania suffered the depletion of one of its most valuable resources - people. During this period, the state lost 56,000 net residents, according to U.S. Census Bureau data, ranking 11th in migration loss among all states. In the decade prior, Pennsylvania lost over 250,000 net residents to interstate migration - ranking 5th worst.
October 28, 2009 | Commentary by ABHILASH SAMUEL
Tort Reform Key to Reducing Health Care Costs
As Washington continues debating how to curb health care costs, one area largely ignored is medical malpractice reform. Ample evidence from states indicates tort reform is central to overhauling the healthcare system.
The Pacific Research Institute's (PRI) 2008 Tort Liability Index ranks states' tort laws, giving Pennsylvania a lowly 45. Lawrence J. McQuillan, co-creator of the index, says, "Because Pennsylvania has done little in terms of meaningful tort reform compared to other states, it is poorly positioned to contain its future tort costs and risks."
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APRIL 26, 2010
Rendell Handouts To Harley Still Not Creating Jobs
Rendell's handouts to Harley Davidson have been nothing short of legal plunder. Back in November 2009, $15 million in taxpayer funds were doled out to Harley to keep them in the state. After months of threatening to leave the state, Harley stayed, but not without cutting 1,000 jobs from its workforce.
Next month Harley will lay off 100 more employees as part of a restructuring plan that includes reducing the workforce from 1,950 to 1,000. Harley spokesman Michael DiMauro said layoffs will continue for the next 12 months.
State subsidies for Harley have done little, if anything, to make the company more efficient. For years the company has held taxpayers hostage as they have threatened to either cut the number of jobs or move to another state.
Taxpayers should not have to bail out any company, regardless of how big or small. Least of all, a company that has been leveraging the Governor's uncanny ability to waste taxpayer money.
posted by ABHILASH SAMUEL | 01:40 PM | 1 comment
APRIL 22, 2010
Economic Development Funding - A Legacy of Waste
Earlier this month the State House passed a bill establishing the Industry Partnerships Program. Yet another Department of Community and Economic Development (DCED) program will be instituted, and as all the other programs will aim to create jobs.
A report by Triad Strategies, titled, 'Changing of the Guard: Economic Development in PA', documents how the state has been using taxpayer money for economic development activities even before the 1980s. However, the 1980s in many ways solidified a greater role for the state in fostering everything from a failing steel and manufacturing industry to infrastructure development to technology-based economic development to direct subsidies and grants to woo favored companies into the state.
In 1983 the Governor Thornburgh and the General Assembly created Ben Franklin Technology Partners, which today accounts for 16 percent of the DCED's budget. In the 1990s Governor Casey started the Governor's Response Team, which is now known as the Governor's Action Team. Its sole purpose is to provide incentive packages to companies that the Governor deems appropriate. Governor Ridge's administration, then, created the DCED by merging the Departments of Commerce and Community Affairs. This marked the beginning of a thoroughly entrenched government sponsored economic development projects, the most prolific being the Opportunity Grant Program.
Governor Rendell only reinforced Pennsylvania's devotion to economic development projects, making Pennsylvania the second highest spender in the nation on economic development projects. The Rendell administration authorized the prevalence of some of the most egregious programs such as the Film Tax Credits.
Pennsylvania's attempt to attract and foster businesses has only turned into a massive corporate welfare scheme, where companies are financed by tax dollars will little return for the taxpayer.
posted by ABHILASH SAMUEL | 08:33 AM | 1 comment
APRIL 14, 2010
PA Public School Staff Grows As Enrollment Declines
Despite stagnation in qualitative measures of school performance, cries for additional spending in public schools have not subsided. In fact, Gov. Rendell says he will continue to increase funding for school districts in the coming school year despite a ballooning state budget deficit. The governor is seeking passage of a 2010-11 budget that includes a $355 million boost to its basic education subsidy to districts.
One of the drivers of higher spending is an increase in staff sizes while enrollment has declined. Data from the PA Department of Education indicates that from 1999-2000 to 2008-09 the state has seen a 12 percent increase in public school staff and a 1 percent decline in enrollment. Pennsylvania schools added 17,345 professional staff and 15,582 support staff over this time, while enrollment declined by 26,960.
Some of the highest declines in student bodies occured in Allegheny and Philadelphia counties, as enrollment fell by 16,883 and 14,072 in each county, respectively. Yet professional staff in both counties increased by over two thousand each.
| Pennsylvania Public School Enrollment and Staff | |||||||||
| Professional Staff | Support Staff | Total Staff | |||||||
| 2000 | 2009 | Change | 2000 | 2009 | Change | 2000 | 2009 | Change | |
| Pennsylvania | 138,426 | 155,771 | 17,345 | 93,344 | 108,926 | 15,582 | 231,770 | 264,697 | 32,927 |
| Philadelphia | 11,954 | 14,778 | 2,824 | 13,166 | 10,646 | -2,520 | 25,120 | 25,424 | 304 |
| Allegheny County | 11,527 | 13,980 | 2,453 | 8,758 | 9,290 | 532 | 20,285 | 23,270 | 2,985 |
| Enrollment | |||||||||
| 2001 | 2009 | Change | |||||||
| Pennsylvania | 1,814,311 | 1,787,351 | -26,960 | ||||||
| Philadelphia | 214,288 | 200,216 | -14,072 | ||||||
| Allegheny County | 173,433 | 156,550 | -16,883 | ||||||
| (includes public charter schools) | |||||||||
| Source: PA Department of Education | |||||||||
posted by ABHILASH SAMUEL | 09:33 AM | 0 comment
