RSS FEEDS
Recent Research
DECEMBER 16, 2009 | Commentary by KATRINA CURRIE
Five Threats to Pennsylvania's Prosperity
Pennsylvania has long been one of the most economically stagnant states in the nation. For the period 1991-2008, the Commonwealth ranked 45th in job growth, 46th in personal income growth, and 47th in population growth. Pennsylvania has also faired poorly in independent evaluations of states' business climates, i
SEPTEMBER 3, 2009 | Commentary by MICHAEL NEROZZI
Tolling I-80 is a Recipe for Disaster
Once again, state lawmakers, bureaucrats and special interest groups are looking for another way to grab more money from Pennsylvanians. The latest rendition is tolling Interstate 80 across the northern tier of Pennsylvania. Unfortunately, the I-80 tolling proposal doesn’t comply with federal law, ignores much-needed reform in transp
JULY 28, 2009 | Commentary by MATTHEW BROUILLETTE, JAKE HAULK
The Perils of Slavish Devotion to Organized Labor
Labor unions maintain a political stranglehold on legislation in Pennsylvania despite representing less than two out of 10 workers.
Recent Blog Posts
FEBRUARY 11, 2010
The Impact of Unions on Public Policy
The latest Cato Journal takes on the topic of "Are Unions Good for America?" The journal features a number of good articles on issues of relevance nationally and in Pennsylvania.
- Chris Edwards tackles the issue of public sector unions and rising compensation for government workers (For PA example, see Elizabeth Bryan & Katrina Anderson's commentary during the most recent SEPTA strike.)
- David Tuerck looks at the costs of Project Labor Agreements. (Also see Commonwealth Foundation policy points on PLAs.)
- Richard Vedder examines the economic benefits of Right-to-Work laws. (Indeed, passing a Right to Work law is one of the six opportunities for Pennsylvania we noted.)
- George Leef writes about the special interests driving prevailing wage laws. (See this CF commentary for more on how that issue effects Pennsylvania.)
As private sector unions continue to shrink, while government unions grow, union leadership increasing looks to government programs to bail them out. It is important to note the impact of these laws they push for and defend, and - as Gov. Rendell noted in his budget address - put good policy ahead of special interests.
posted by NATHAN BENEFIELD | 00:12 PM | 0 comment
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
JANUARY 19, 2010
Five Alternatives to Tolling I-80
A recent Pocono Record article calls the Pennsylvania Turnpike Commission's proposal to toll I-80 "a riddle with no easy answers" (HT GrassrootsPA). However, there are alternatives to that plan, which is little more than a tax on I-80 drivers, that would free up dollars to be spent appropriately on transportation infrastructure.
- Repeal prevailing wage laws. Prevailing wage laws drive up costs for construction. State mandated wages for government projects 40% higher, on average, than the private sector pays for the same work. Repealing these laws, and paying market wages, would free up hundred of millions, if not billions, for highway construction and repair.
- Stop redirecting highway and bridge money to other purposes. While the transportation community bemoans the need for additional funding, citing structurally deficient bridges and dilapidated roads, hundreds of millions of dollars each year are redirected from road maintenance to bike trails, beautification projects, and new roads named for politicians. Just recently, Rendell gave $7 million from a mysterious pot of money in PennDOT to give bonuses to SEPTA workers, rewarding them for striking on election day.
Furthermore, Act 44 - which includes tolls on I-80 and higher Turnpike tolls - promises $250 million annually for mass transit even if I-80 isn't tolled (and a ten-year average of $414 million to transit agencies if it is). These toll dollars should not be used to prop up inefficient transit agencies, but should be dedicated to bridge and highways - specifically those used by Turnpike drivers. - Enable public-private partnerships. Public-private partnerships (P3s) are the emerging paradigm in transportation funding. While the proposed Turnpike lease received the bulk of media attention, P3s are far more expansive than that. Using P3s on new construction - express lanes, high occupancy lanes, new highways, new bridges, and the like - are much less controversial, and could happen now. Len Gilroy of the Reason Foundation outlined the potential for P3 in Pennsylvania in a recent testimony.
- Eliminate the Pennsylvania Turnpike Commission (PTC). Instead of giving the Turnpike Commission control over I-80, we should eliminate what is among the most corrupt and inefficient agencies in the country. Doing so, rolling the Turnpike Commission into PennDOT, and eliminating an unnecessary bureaucracy (e.g. the PTC employs one "manager" per mile of road) would offer substantial saving in transportation spending.
- Privatize rest stops. While the state spends taxpayer dollar to manage rest stops along its highways, they could make money by privatizing them, and leasing out the property to restaurants and service stations. While service plazas can be found along the Turnpike, federal law prohibits this amongst freeways. However, as Ronald Utt points out in a recent Heritage paper, this law was intended to protect existing businesses in the 1950s - most of which no longer exist - and there is little will to enforce it. In fact, Pennsylvania already has privatized several rest stops, but there is opportunity to do much more - for instance, along I-80.
The idea that we simply need to spend more money in transportation - and raise taxes or tolls to do so - is wrong-headed. Until the state starts spending current tax and toll dollars efficiently, and capitalizes on opportunities for private funding, lawmakers have no reason to ask taxpayers and drivers for more revenue.
posted by NATHAN BENEFIELD | 10:15 AM | 0 comment
