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August 31, 2010 | Commentary by ELIZABETH STELLE
Traditional Energy Fuels Pennsylvania's Economy
Pennsylvania has always been a leading provider of America's energy. From timber and coal to the nation's first commercial oil well, and now the Marcellus Shale boom, traditional energy is vital to our state's economy.
But these industries, and the prosperity that accompanied them, are now threatened because they have become politically unpopular. Instead of entrepreneurship and the responsible development of natural resources, today's energy companies are rewarded on the basis of their lobbying.
June 8, 2010 | Policy Brief by KATRINA CURRIE, ELIZABETH STELLE
Pennsylvania's Natural Gas Boom
Economic & Environmental Impacts
The Marcellus Shale formation is believed to be the largest unconventional natural gas reservoir in America, and its exploration has been coined a modern-day gold rush. More than a mile underground, this once unreachable gas is now recoverable thanks to advancements in horizontal drilling and hydraulic fracturing technology.
June 2, 2010 | Testimony by ELIZABETH STELLE
Welfare Fraud and Abuse
Testimony of Elizabeth Stelle to the Pennsylvania House Republican Policy Committee
Welfare advocates justify spending increases by emphasizing that they're necessary to provide for Pennsylvania's vulnerable residents, including children, older adults, and the disabled. However, we must consider the efficiency and the outcomes of such programs. If resources are being squandered on those who don't need them and are defrauding the system, both welfare recipients and taxpayers would benefit from the above welfare reforms.
Recent Blog Posts
SEPTEMBER 2, 2010
A Slap in the Face to Pennsylvania Taxpayers
The Tribune Review revisits the Rendell Administration's leasing tens of thousands of acres of state forest lands via no-bid contracts.
State records the Tribune-Review obtained show that, in one noncompetitive agreement Jan. 7 with Texas gas company Anadarko, the state received $1,000 an acre for 2,300 acres in Sproul State Forest, in Centre and Clinton counties.
Two weeks later on Jan. 19, a public auction of 31,976 acres in Cameron, Clearfield, Potter, Clinton and Tioga counties generated $128 million, or about $4,000 an acre, for taxpayers.
A similar situation occurred in May, when another no-bid contract with Anadarko resulted in a lease of 33,000 acres at an average $3,650 an acre. Greg Wrightstone, a petroleum geologists notes private landholders were getting $5,000 to $6,000 acres at the same time.
Both of these private, no-bid lease schemes ... were consummated at less than market-bonus rates, Wrightstone said, calling the deals "a slap in the face to Pennsylvania taxpayers."
As we've blogged in the past, Gov. Rendell's no-bid deals -- in light of a budget crisis, pension crisis, and transportation crisis -- smack of corruption. And yet he wonders why lawmakers don't support his push for higher taxes.
posted by ELIZABETH STELLE | 04:05 PM | 0 comment
AUGUST 31, 2010
Coal Faces an Onslaught of New Regulations
Debate over new regulations by the EPA puts the Pennsylvania coal industry at a crossroads. Last week, experts met in Philadelphia to discuss a new ruling known as the Clean Air Interstate Rule. The measure requires 31 states, from Massachusetts to Texas, to reduce sulfur dioxide emissions from 2005 levels by 71% and nitrogen oxide emissions by 52% by 2014.
The impact on the coal industry would be significant, forcing many small and older coal-fired generation plants to close. Doug Biden, President of the Electric Power Generation Association, noted about 65% of Pennsylvania's coal-fired electricity capacity already meets or exceeds the standards set forth by the EPA; however, older and smaller plants do not.
While the Philadelphia Inquirer touts the new ruling as a way to save billions on health care costs brought on by asthma and other lung problems, there are also significant disadvantages. The new regulations are expected to cost plants in Pennsylvania a total of $2.8 billion dollars, an insurmountable amount for some of the state's oldest plants. And companies contend the actual cost of regulations will be much higher.
It's likely that over time, the industry would have closed older plants and continued upgrades. For example, PPL recently spent $1.4 billion for pollution controls on its 1961 plant in York County and Montour plant built in 1972. Sulphur dioxide emissions at Montour fell 88% - from 128,000 tons in 2007 to 15,000 tons in 2009.
But forcing large emission reductions immediately will not only result in lost jobs, as plants close, but higher electricity prices -- hurting all businesses. Jeff Holmstead, a former EPA official who authored the original interstate rule, said it was not clear whether utilities will be able meet the new standards while still providing affordable and reliable electric power.
See my commentary today on the inconsistency of punishing traditional energy while offering corporate welfare for alternative energy.
posted by ELIZABETH STELLE | 01:30 PM | 0 comment
AUGUST 27, 2010
Pillaging and Plundering of PA Public not a Plus for Pittsburgh
The Allegheny Institute highlights another failure of corporate welfare to stimulate economic growth. Back in 1998, the politically-appointed RAD board voted to force taxpayers to contribute $809 million towards the building of Heinz Field and PNC Park. Rationalized as ways to save Pittsburgh's economy, local leaders applauded the proposal.
Fast-forward a little over a decade and we see:
Pittsburgh's population has continued to fall, dropping by 23,000 from 2000 to 2009; and from June 2000 to June 2010 the number of City residents holding jobs is down by 7,600. Inflation adjusted earned income, as measured by taxes paid to the City and accounting for the 25 percent rise in the tax rate, has fallen by 18 percent-assuming inflation averaged 2.5 percent annually over the period. In the meantime, school enrollment has plunged from 38,560 to around 26,000, a stunning 32 percent decline.
Doesn't sound like economic revitalization to me. So now taxpayers are stuck with paying $25 million a year in debt payments, while their city continues to loose population, and their baseball team completes it's 18-season-long losing streak.
But there is a silver lining -- the corporate welfare did prove to be an economic stimulus for the owners of the Pirates franchise. With a cool $34 million in profits over the past three years, it is among the most profitable teams in the league.
Maybe they should throw a bit of that taxpayer money back into making the team competitive with the rest of the baseball.
posted by ELIZABETH STELLE | 08:17 AM | 0 comment
