MARCH 12, 2012

Chart of the Day: Corrections Spending

Today's chart highlights the Pennsylvania Department of Corrections' skyrocketing spending since 1980. This unsustainable growth is part of the four-alarm fire that threatens Pennsylvania's fiscal house.

For more on Pennsylvania's four-alarm fire, corrections spending and meaningful reform, click here.

posted by KATRINA CURRIE | 03:50 PM | 0 comment

MARCH 7, 2012

Nurses' Union Opposes Corrections Reform

At yesterday's House Appropriations Committee, Department of Corrections Sec. John Wetzel explained his roadmap to reducing corrections spending, now the third-largest department in the General Fund Budget.

What was the number one issue that kept coming up? Prison nurses. Sec. Wetzel has asked vendors to provide prices for nursing services in state prisons. Currently, most of the prison nurses are government employees.

There's a reason the word "privatization" appears to carry the weight of the plague to these politicians: Union opposition. As CF's Priya Abraham highlighted in the new report, The Squeeze: Government Unions' Grip on Pennsylvanians, government unions have become a powerful force through lobbying, political activity and legal privileges.

The nursing union's argument, repeated at yesterday's hearing, defies common sense. Claiming that outsourcing nursing puts "safety" at risk is an insult to the upstanding private nurses who already work in two state corrections institutions, SCI Chester and SCI Pine Grove. Moreover, are these legislators implying that the majority of prison physicians, a service that has been outsourced for years, are incapable because they're not government staff?  

Sec. Wetzel is not considering lowering the quality of nursing services in prisons nor is he attacking current state nurses. As the Secretary explained, a private vendor would be required to provide the current scope of services offered and encouraged to hire current staff, and all nurses would still be required to go through proper training to work in prisons.

Sec. Wetzel is comparing options in order to prioritize every tax dollar spent on corrections. He should be commended for this and the overall work he's doing to improve Pennsylvania's prisons while upholding a high standard of public safety.

posted by KATRINA CURRIE | 00:16 PM | 3 comments

MARCH 6, 2012

Who Wants to Pay More for Electricity?

A new study by the Manhattan Institute confirms that forcing states to purchase renewable energy hurts taxpayers.

Pennsylvania is one of the 29 states (as well as the District of Columbia and Puerto Rico) that has a renewable energy standard -- Pennsylvania calls it an "Alternative Energy Portfolio Standard." These mandates force utility companies to produce a percentage of their electricity from renewable energy sources, such as wind and solar.

Given that state solar energy is at least 10 times more expensive than electricity from natural gas, it is not surprising that forcing companies to use it drives up costs.

Comparing states with and without these mandates, the study finds:

• In 2010, residents in states with renewable energy mandates on average experienced electricity prices 31.9 percent higher than in non-mandated states. Similarly, commercial rates were 27.4 percent higher, and industrial rates were 30.7 percent higher.

• Of the ten states with the highest electricity prices, eight have RPS mandates: Hawaii, Connecticut, New York, New Jersey, New Hampshire, Rhode Island, Maine, and California.

• Of the 10 states with the lowest electricity prices, only two have RPS mandates. They are Washington and Oregon.

This is more evidence that should lead state lawmakers to oppose increasing state solar mandates bill, which would force Pennsylvanian families to pay millions more for electricity.

posted by KATRINA CURRIE | 03:51 PM | 0 comment

MARCH 5, 2012

Utility Rates Drop Again Thanks to Marcellus Drilling

Natural gas drilling is continuing to provide significant savings for Pennsylvania families across the state through lower electricity and natural gas prices.

Last week, PPL Electric Utilities, servicing eastern Pennsylvania, dropped its residential rates nearly 11 percent. As the Philadelphia Inquirer explains, customers using 1,000 kWh a month will save $8.84. That's an extra $106 a year!

Southeastern counties serviced by UGI Utilities will see even lower natural gas bills. On the tail of its 13.5 percent rate reduction for residents in December, the company announced another 4.3 percent drop this week. All in all, UGI estimates its 570,000 customers are saving $300 million annually compared to gas prices in 2008, an average of $526 each.

Additionally, residential customers using Philadelphia Gas Works just saw prices fall by 6.6 percent this week, which it credits to the abundance of natural gas drilling.

posted by KATRINA CURRIE | 00:40 PM | 0 comment

FEBRUARY 22, 2012

Sec. John Wetzel Talks Corrections Reforms on The BOX

In latest podcast from The BOX, Corrections Secretary John Wetzel chats with Matt Brouillette about reducing the cost of corrections - a major expenditure in the Pennsylvania state budget - while still keeping our communities safe .

Listen to find out what policies have worked in other states, and hear Sec. Wetzel's plans for success in Pennsylvania.

To learn more about correction reforms, see our criminal justice recommendations. And don't forget to subscribe to The BOX in iTunes!

You can also follow Sec. Wetzel on Twitter at @johnewetzel

posted by KATRINA CURRIE | 02:37 PM | 0 comment

FEBRUARY 16, 2012

State Liquor Stores' Soviet-style Socialism Fails

The Pennsylvania Liquor Control Board once again proves it does not know how to manage a business, and its Soviet-style socialist control fails to satisfy customers.

More than a month ago, the PLCB abruptly closed a liquor store in West Philadelphia that ranked among the top 100 most profitable stores because of building safely concerns. As the Philadelphia City Paper reports, the next closest liquor store is now absurdly backlogged. Customers are being turned away and long lines are common. In fact, the reporter's mother was forced to wait outside in winter's cold because of limited space. To this, the PLCB responded that making customers wait outside in Philadelphia is normal. Normal? As we've mentioned, the PLCB does not understand customer satisfaction.

Even more absurd, the PLCB is looking to replace the closed store with locations that are a 30-minute bus ride away from the previous location, failing to relieve the congestion in the West Philadelphia liquor store.

Despite many examples of customer service incompetence, like this one, policymakers are currently considering expanding the PLCB (through SB 1287), instead of ending its unique monopoly over booze that hurts taxpayers and consumers. Lawmakers should listen to consumers and taxpayers that want their freedom back and privatize the state-run liquor stores.

posted by KATRINA CURRIE | 05:00 PM | 0 comment

FEBRUARY 15, 2012

Which County will be Duped into Imposing Marcellus Tax?

On Monday, Gov. Tom Corbett signed House Bill 1950, the Marcellus Shale impact tax, into law.

The funding formula funnels the first $23 million in revenue to statewide programs. Local communities get 60 percent of whatever is left, with the state getting the rest for additional programs. To see the revenue distribution chart, click here.

With Harrisburg politicians' pet projects getting a large chunk of the initial revenues, county officials face a "Prisoners' Dilemma." The first county to enact the tax will send the funds to Harrisburg. If a county acts alone in imposing the tax, they risk reaping less than $23 million and getting nothing in local revenue.

About 460 Marcellus wells need to be taxed this year to feed the state its $23 million. According to State Impact PA, only three counties (Bradford, Tioga, and Washington) have enough producing wells currently to generate more than $23 million. And already, Bradford County commissioners - where the lion's share of drilling is occurring - have said "no thanks" to a new tax. The commissioners note the county already received ample revenue from drillers in the form of taxes and road repairs.

The question remaining is which county will be first to tax its wells, knowing they may drive drillers away without receiving a nickel for local coffers?

posted by KATRINA CURRIE | 01:30 PM | 0 comment

FEBRUARY 10, 2012

Government Union Jeopardizes Criminal Justice Reform

As Pennsylvania takes a hard look at reforming its criminal justice system, prepare for the Pennsylvania State Corrections Officers Association's fear-mongering campaign against reducing prison populations.

The officers' union opposition surfaced in today's Patriot-News article. The article explains Corrections Secretary John Wetzel's plan to reduce the inmate population by more than 2,500 next year by making the correction system more efficient. For instance, it can take more than 100 days after an inmate is granted parole until he's released. Reducing this time would not only free up prison beds, it saves significant tax dollars—an extra 100 days in prison wastes $9,000.    

As the prison population declines, so could the number of correction officers.  From the experience in other states, such as California and New York, self-interested unions have stonewalled meaningful reforms that would chip away at their jobs. 

The claim that reducing the prison population requires releasing violent criminal into the streets—made by the president of the Officers Association—lacks any teeth. Secretary Wetzel isn't proposing lowering public safety standards or letting dangerous criminals out, but fixing costly inefficiencies in the corrections system.

While bad policies may have led to the explosion in state prison populations, it may be the unions that pose the biggest challenge in getting the inmate numbers down.

Click here for our fact sheet on Corrections Spending.

posted by KATRINA CURRIE | 02:43 PM | 0 comment

FEBRUARY 9, 2012

Marcellus Shale Bill Summarized

Gov. Corbett is expected to sign HB 1950, a comprehensive bill addressing Marcellus Shale. What's inside the bill?

The Marcellus Shale impact tax included in HB 1950 falls short of being a principled impact fee. However, it is a victory for Pennsylvania workers and land owners that this was not imposed at the state level. Instead it allows counties to choose whether or not to enact the tax, which will hopefully create important tax competition.  Some counties have already said current relationships between government and the companies are already compensating for impacts.

One of the more negative aspects of the bill is that it is littered with corporate welfare. The graph below demonstrates how the revenue from the impact tax will be distributed. Right off the bat, an assortment of local and statewide programs are funded. The leftover revenue is split up with only 60% staying local and 40% going, again, statewide with much of the revenue going to non-drilling related projects. 

The bill also significantly increases drilling regulations and bonding requirements. Here's a synopsis of those changes:

Finally, the bill restricts local governments' ability to target drilling through zoning and other regulations. Local governments retain the authority to pass ordinances (noise, lighting, etc.) so long as they don't single out gas drilling. If a county's ordinances doesn't allow for the reasonable development of drilling (decided by the Pub­lic Util­ity Com­mis­sion or the courts), that county won't be eligible for impact tax revenue.

posted by KATRINA CURRIE | 06:15 PM | 0 comment