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APRIL 11, 2012 | Commentary by JOHN BOUDER
Government-run Golf a Taxpayer Double Bogey
Believe it or not, local governments, i.e., taxpayers, own 49 golf courses in Pennsylvania. One of the poorest performers is Dauphin Highlands Golf Course, owned by Dauphin County taxpayers, which simply doesn't make enough money to cover the interest on its debt. For years, the Dauphin County General Authority has been caddying
MARCH 21, 2012 | Policy Points by COMMONWEALTH FOUNDATION
Pennsylvania Government Debt
Today, Pennsylvanians owe $121 billion in state and local government debt. This equates to more than $9,400 for every person, and almost $38,000 for the average family of four in the commonwealth.
FEBRUARY 29, 2012 | Commentary by STEPHEN BLOOM, JOHN EICHELBERGER
Sounding the Alarm to Save Pennsylvania
A four-alarm fire is engulfing Pennsylvania's economy. If we don't regain control of the state debt, corrections costs, public welfare growth and government employee pensions, our state taxpayers will be burned, and Pennsylvania's children will inherit only the ashes of our once great commonwealth.
Recent Blog Posts
APRIL 12, 2012
Chart of the Day: Pennsylvania State Debt Payments
The chart of the day shows the growth in Pennsylvania General Fund Debt service over the past decade: from $350 million in fiscal year 2002-03 to $1.1 billion in Gov. Corbett's proposed budget.
Total state debt grew 90 percent from 2002 to 2011. This growth in state debt represents one siren of the Four Alarm Fire threatening Pennsylvania's fiscal house.
posted by NATHAN BENEFIELD | 03:12 PM | 0 comment
FEBRUARY 13, 2012
House Moves Unemployment Compensation Reform
More Unemployment Compensation reform is moving through the Pennsylvania House. Yesterday, HB 1754 sponsored by Rep. Ron Miller, and HB 1852 sponsored by Rep. Seth Grove, cleared the Labor and Industry Committee. Both bills are designed to strengthen anti-fraud provisions.
Specifically, HB 1754 would establish a definitive definition of "willful misconduct." Currently the vague definition often allows employees who are fired for their own misconduct to collect unemployment benefits. HB 1852 increases the number of weeks individuals who commit UC fraud are barred from collecting benefits, called penalty weeks, from four to 10 weeks. The bill also removes the four-year limit on the imposition of penalty weeks.
Pennsylvania's Unemployment Compensation system is broken and bankrupt. The state paid $227 million in fraudulent claims last year and still owes about $3 billion in loans. The state started borrowing money from the federal government to pay claims in March 2009 and ran up a debt of almost $4 billion at its peak.
These bills are a step in the right direction, but far from the substantive reform the House dismissed last spring.
posted by ELIZABETH STELLE | 05:55 PM | 0 comment
FEBRUARY 13, 2012
Reforming State Borrowing for Corporate Welfare
Since 1986, state lawmakers have authorized more than $4 billion in borrowing for the Redevelopment Assistance Capital Program (or RACP). This is effectively debt for corporate welfare and other pork-barrel projects.
Last week, Gov. Corbett approved funding for the Arlen Specter memorial library, a Rendell-era RACP project Corbett campaigned against in 2010. In the end, the administration couldn't find a legal way to refuse the funding. Now House lawmakers are out to reform RACP and prevent future monuments to politicians.
HB 2175, unveiled at a press conference Wednesday with Rep. Mike Turzai and Rep. Rosita Youngblood, proposes to reform the way the Commonwealth incurs debt and shrink the RACP program. The bill reduces the RACP debt ceiling from $4.05 billion to $3.5 billion and then gradually to $1.5 billion over 20 years.
Pennsylvanians already owe $120 billion in combined state and local government debt—almost $10,000 for every man, woman, and child. Reforming RACP is an important first step in getting our debt under control, but a better solution would be to eliminate future RACP borrowing entirely.
Apart from the staggering amount of taxpayer debt, paid off over decades, the program is littered with economic projects of questionable benefit, from corporate headquarters to sports stadiums. Most recently, RACP was the source of a $3 million grant to the Second Mile, the charity founded by accused child molester Jerry Sandusky.
HB 2175 seeks to open up the process, requiring notification of the legislators affected, a public meeting to be held in the affected community, and certain information to be posted online.
HB 2175 was voted out of the House Finance committee today.
posted by ELIZABETH STELLE | 03:10 PM | 0 comment
