RSS FEEDSRecent Research
July 22, 2010 | Commentary by MICHAEL NEROZZI, NATHAN BENEFIELD
I&R: Our Inalienable Right to Reform
It is clear our government will not reform itself. Article I, Section 2 of the Pennsylvania Constitution recognizes the right of the citizens to "alter, reform or abolish their government in such manner as they may think proper." It is past time to exercise this right, but the General Assembly and Governor have not provided the means to do so.
April 27, 2010 | Commentary by MICHAEL NEROZZI
Rendell's "Press Release Economics"
Press-release economics has long been part of a political charade in which lawmakers use other people's money to fund their political gain. In Pennsylvania, agencies such as the Department of Community and Economic Development (DCED) offer a plethora of subsidies to entice businesses to move to or stay in the Commonwealth. State lawmakers also have the ability to dole out funds, commonly known as WAMs, to businesses, non-profits or other entities of their choice. DCED or lawmakers then issue a statement taking credit for thousands of new jobs, yet never mentioning these jobs were funded by taxpayers who now have less to invest themselves. Businesses realize the political game, which rewards them for lobbying for subsidies.
November 19, 2009 | Commentary by MICHAEL NEROZZI
Bamboozled: Why Government-Run Liquor Stores are Socially and Economically Impractical
Ever since Pennsylvania seized control of wine and liquor in 1932, advocates of state-run liquor stores have touted the supposed social benefits. However, recent research clearly demonstrates that privatization would have little impact on social outcomes.
Recent Blog Posts
APRIL 8, 2010
Build America Bonds Encourage “Buy Now, Pay Later” Mentality
As part of the 2009 stimulus package, President Obama and Treasury Secretary Timothy Geithner created a new program to subsidize municipal bonds. Unlike traditional municipal bonds, Build America Bonds are not tax-exempt, and come with a guarantee that the federal government will pay roughly one-third of any interest accrued.
This is extremely enticing to local governments searching for a way to keep spending and put the costs on others, and extemely beneficial for Wall Street bond underwriters.
Pennsylvania is the 9th highest participant of Build America Bonds in the nation, with over $2 billion in bonds being issued thus far. Other states near the top of the list include debt-laden California, New York, and New Jersey.
Not only is the concept financing local government debt with federal tax dollars rather questionable, but it encourages the very behavior that led to the problems we see in cities such as Harrisburg and Allentown, both of which are facing bankruptcy from runaway debt.
posted by MICHAEL NEROZZI | 00:25 PM | 0 comment
MARCH 24, 2010
Evans Threatens to De-Fund PA Attorney General in Tiff
In a Democratic response to Attorney General Tom Corbett's decision to join 13 other states in filing a lawsuit against the Obama health care legislation, House Appropriations Chairman Dwight Evans threatened to "do whatever it takes" to thwart the AG's efforts. Incensed, Evans even went so far as to say he would be willing to cut off all state appropriations to the Office of the Attorney General to prevent Corbett from fighting this legislation. Here is probably the most priceless quote of his response:
"We are accountable to the voters of this state. He cannot think that he can do whatever he wants with taxpayer money. No one can protect him from being accountable."
This statement, coming from Evans, just screams hypocrisy. First of all, Evans should think about following his own advice, as he is one of the most notorious proponents of "WAMs" in the Legislature, with taxpayer dollars going to fund his own community group and a failed nightclub venture.
Second, President Obama, Gov. Rendell, and others used plenty of taxpayer funding to build a PR campaign around the very legislation Corbett is challenging. Tax dollars were used for everything from rallies to newsletters to press conferences, trying to gain support for these unpopular "reforms".
Furthermore, Evans threat seems a clear violation of the separation of powers, and threatens the independence of the Attorney General. Indeed, it seems particularly curious, coming a mere two days after Corbett secured a conviction against Evans' former House Democrat colleague Mike Veon, and is continuing his investigation and prosecution of House Democrats.
Lastly, the lawsuit being filed isn't over some flippant issue. There are legitimate Constitutional concerns over the legality of this legislation. Not only does the legislation violate the 10th Amendment, but the fiscal impact of the health care bill will assuredly cost Pennsylvanians billions of dollars.
posted by MICHAEL NEROZZI, NATHAN BENEFIELD | 02:14 PM | 1 comment
MARCH 23, 2010
Kanjorski Gets Sweetheart Deal for Geisinger Health
Like previous deals given to Senator Ben Nelson (Nebraska) and Mary Landrieu (Louisiana), Speaker Pelosi and President Obama offered reluctant House Democrats more favors in exchange for their support on health care legislation. One Democrat from Northeast PA, Rep. Paul Kanjorski (PA-11), received special tax exemptions for Geisinger Health, one of the largest insurance companies in the region.
According to the bill, tax-exempt insurers, such as Geisinger Health, now only have to pay half of the tax levied on insurance premiums. Geisinger Health, based out of Kanjorski's district, has offices scattered throughout the Northeast corner of the state.
In addition, Kanjorski secured an extension on the deadline on new doctor-owned hospitals to apply for Medicare program eligibility. Insiders have said this will benefit only 13 facilities in the nation; not surprisingly, Scranton Orthopedic Specialists (again, based in PA-11) is one of them.
posted by MICHAEL NEROZZI | 08:20 AM | 0 comment
