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DECEMBER 13, 2010 | Commentary by NATHAN BENEFIELD
The Pot of Debt at the End of Rendell’s Rainbow
These days it's hard enough for Pennsylvania families to think about meeting their obligations let alone piling on more debt. But that's exactly what outgoing Gov. Ed Rendell did this week, when Pennsylvania State Treasurer Rob McCord signed off on Gov. Rendell's final $650 million bond issue, after Auditor General Jack Wagner refused
AUGUST 27, 2010 | Commentary by NATHAN BENEFIELD
Gov. Rendell's Gamesmanship
While table games have been in Pennsylvania casinos for more than a month, I don't know if Gov. Rendell has tried his luck. But it would be a safe wager that he's a fantastic poker player. Why? For eight years, he's been able to bluff, bully, and stare down anyone who opposes his tax-borrow-and-spend agenda.
JULY 13, 2010 | Commentary by NATHAN BENEFIELD
The Real Problem with the Specter Library
As part of the state budget deal, Gov. Rendell secured $600 million in new borrowing for pork-barrel projects, including $10 million for the "Arlen Specter Library" at Philadelphia University and another $10 million for the "John P. Murtha Center for Public Policy." These monuments to politicians have sparked outrage, but represen
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FEBRUARY 18, 2011
Pennsylvania Prison Postponed, Pork Prolonged
Yesterday, Gov. Corbett cancelled a planned prison construction project in Fayette County, estimated to cost taxpayers $200 million. In January, Auditor General Wagner called for a halt on expanding prison capacity, in its place he recommended utilizing alternative-sentencing for non-violent offenders, which could save Pennsylvanians an estimated $50 million in fiscal year 2011-12.
While Gov. Corbett appears to be taking the fiscally and socially responsible approach of looking at correction reforms, he has allowed some debt-financed pork Rendell negotiated to continue.
It was announced yesterday that Gov. Corbett approved the $42 million to Philadelphia's Aker Shipyard—a failing business that received almost $430 million in city, state and taxpayer aid in 1998—that former Gov. Rendell promised, but did not finalize, before he left office.
In other corporate welfare news, Harrisburg is expecting to receive $8.5 million in state funding through RACP, the taxpayer-funded state borrowing program for "economic development." Will this save the near bankrupt city? Here is Mayor Linda Thompson with the answer:
posted by KATRINA CURRIE | 06:10 PM | 0 comment
JANUARY 12, 2011
Rendell's Last Round of Pork
Governor Rendell recently released his 2010 commitment list for RACP funds (subscription). The Redevelopment Assistance Capital Program, or RACP, is a taxpayer-funded state borrowing program for "economic development," i.e. corporate welfare. As the commitment list shows, RACP became a slush fund for Governor Rendell and his politically connected friends.
Not surprisingly, the City of Brotherly Love topped the recipient list, with 43% of the $408 million going to projects in Philadelphia. Comparatively, only $39 million went to projects near Pittsburgh and $36 million went to Philadelphia's four suburban counties.
Also high on the funding list of recipients were Gov. Rendell's political allies, John Murtha and Arlen Specter; the Murtha Center and Specter Library combined received almost $12 million. Gov. Rendell also committed $30 million to the American Revolution Center in Philadelphia.
Unfortunately RACP, like all economic development schemes, only redistributes jobs and wealth for projects that most likely would have happened anyway, like the new Penguins Stadium, or for businesses that will continue to fail, like TastyKake. Instead of more handouts, maybe Gov. Rendell should have done the responsible thing and resisted the urge to pile on the debt, leaving office with a projected General Fund deficit of $5 billion.
Below is a detailed list of the recipients, courtesy Capitolwire.
posted by NICHOLAS FETT | 06:00 PM | 0 comment
NOVEMBER 23, 2010
Taxpayers Fund $1.75 Million Party (& $786 Million Convention Center)
Taxpayers are funding a $1.75 million party to kick-off the grand-opening of the $786 million convention center in Philadelphia, which Pennsylvanians also paid for through an economic development fund.
In the midst of a multi-billion dollar fiscal crunch, lawmakers decided that a priority was a big party to celebrate a taxpayer funded monument.
To ensure the grand-opening gets noticed, Rep. Dwight Evans obtained $1.75 million in walking around money (WAMs) to publicize the event, which the Philadelphia Inquirer reports will be used for parties, receptions, refreshments, decorations, performers, a parade, and hiring an event planner.
For lawmakers looking to cut state spending, this project exemplifies wasteful spending for two reasons. One, the convention center is a taxpayer-funded "economic development project" that competes with the private sector, and does little to improve the state economy. Secondly, the project utilized WAMs (discretionary funds doled out by the legislative leadership). The 2010 state budget included $90 million in WAMs that should be eliminated.
posted by KATRINA CURRIE | 01:39 PM | 0 comment
