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.

Rendell RACP 2010

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

NOVEMBER 18, 2010

Disingenuous Jan Jarrett

The PennFuture president yesterday continued her lamentation over a lame duck legislature's failure to expand government, raise taxes and kill jobs:

"Every day that passes without a severance tax is money lost to Pennsylvania's citizens and communities, with more than $107 million lost to the Commonwealth so far," said Jarrett. "Meanwhile, our state budget is straining, Growing Greener funding (whee!) has all been spent, the Fish and Boat Commission and Game Commission are struggling, and - perhaps worst of all - the municipalities that host the drillers are forced to look under the couch cushions for money to deal with the strain drilling is putting on their communities. This tax is desperately needed, and the members of the Senate decided to turn a deaf ear to that desperation.

"Because of the Senate's refusal to act on the severance tax, we now have red ink as far as the eye can see," Jarrett said. "Our current budget is out of balance because it relied on revenue from the promised severance tax. There are no new revenues anywhere in sight. And the drillers will continue to laugh all the way to the bank knowing they can play Pennsylvanians for suckers while they pay the tax everywhere else they drill."

Comments like this are not surprising coming from someone willing to deceive the IRS. The premise that Pennsylvania citizens are "losing money" because a new tax isn't created highlights her belief that little good happens without government involvement. And it doesn't occur to Jarrett that mismanagement, excessive spending and stealing from the future have anything to do with state and local budget woes.

As for those allegedly scrounging municipalities, the residents of the Marcellus region apparently realize new jobs and revenues from all the new drilling may enable them to replace their own sofas without worrying about the town governments' seat cushions. Meanwhile, the gas companies are working with locals to keep roads suitable for passage and are otherwise cooperating in the best interests of a long-term relationship with the communities they impact. The idea that this could happen without government bureaucrats' help is inconceivable to Jarrett.

The Marcellus Shale boom presents tremendous opportunity for Pennsylvanians. Unfortunately with these blessings there are always leeches like PennFuture who want to use the cudgel of government to get a cut of the action, without contributing anything to the industry's productivity. Jarrett wants citizens to believe dependence on a nonexistent severance tax caused government red ink rather than irresponsible spending and gross incompetence. As she strong-arms the gas industry in order to fill her own coffers, she's the one playing Pennsylvanians for suckers.

posted by PAUL CHESSER | 04:51 PM | 1 comment

NOVEMBER 18, 2010

No WAMS Pledge

The Citizens Alliance of Pennsylvania is starting a new campaign to banish WAMs (Walking Around Money) from the General Assembly, much like some members of Congress are attempting to end earmarks in DC.

WAMs are discretionary funds hidden in the state budget under vague line items like the Opportunity Grant Program. Basically, it's a big pot of money that lawmakers dole our for pet projects. Like earmarks, these funds are sometimes used by legislative leaders to bribe encourage members to go along with large spending bills. Governor-elect Tom Corbett has already vocalized his opposition to the practice.

Pennsylvania taxpayers spend upwards of $100 million each year on WAMs, including $66 million in WAMs we've identifed that were eliminated in 2009 (in a "no-Wam budget") and put back in 2010. WAMs have been used to buy 19 Oreck vacuum cleaners for former Senator Vince Fumo, give Nintendo Wiis and big screen TVs tolocal senior centers, and hand out $23 million to Rep. Dwight Evans' favorite non-profit, Ogontz Avenue Revitalization Corp., to purchase a night club. (Evans was recently ousted as Democrat chair on the Appropriations Committee, in part for his use of these discretionary funds).

posted by ELIZABETH STELLE | 11:15 AM | 0 comment

NOVEMBER 16, 2010

Time to End State Borrowing for "Economic Development"

Fox 29 Philadelphia has a video story up about the use of RACP money—state borrowing for corporate welfare—for projects such as resort spas, sports stadiums, and Tasty Cakes (not to mention the Arlen Specter Library). The video features a couple cameos of yours truly.

RACP spending was brought up at yesterday's "Delivering on the Mandate" luncheon, with Rep. Mike Turzai saying it's time to do away with the program, which has only created more debt for taxpayers, without stimulating Pennsylvania's economy.

posted by NATHAN BENEFIELD | 02:44 PM | 0 comment

OCTOBER 22, 2010

Rendell's Legacy of Spending

Here is my letter to the editor in today's Wall Street Journal on Gov. Rendell's spending record:

Regarding the contribution of Gov. Ed Rendell in "Four Governors on How to Cut Spending" (op-ed, Oct. 13): Gov. Rendell is leaving a fiscal mess for the next governor. The state operating budget increased 45% under Gov. Rendell, and debt held by the state and state agencies increased a whopping 78%. His overspending has fueled at least 21 proposed tax increases. Pennsylvania's unemployment trust fund is $3 billion in debt, so far. Mr. Rendell also deferred the state's pension contributions, leaving a tsunami in mandated taxpayer increases in future years, all the while relying on bailouts from the federal government to balance the budget these past three years. This foolhardy practice will open up a multi-billion dollar gap once stimulus money runs out after this year.

The governor fails to note real opportunities for savings, like the billions in welfare fraud and abuse identified by Democrat Auditor General Jack Wagner, school choice programs, or repealing the prevailing wage laws that drive up the cost of government construction projects, as 19 other states have done. Gov. Rendell didn't think that the state could save money by ending the use of debt for pork-barrel projects-like the Arlen Specter Library or John Murtha Center, sports stadiums, resort hotels and corporate headquarters.

Nathan A. Benefield

Commonwealth Foundation
Harrisburg, Pa.

posted by NATHAN BENEFIELD | 09:19 AM | 1 comment

OCTOBER 11, 2010

Spending Revolt Tour: Day 5 Update

The Spending Revolt National Tour stopped in Scranton on Sunday night for a Town Hall meeting, which was streamed live (and available here and below).

The Scranton Times-Tribune covered the event pretty well. But the story's headline, "Spending Revolt bus rolls into Scranton with anti-government message," was obviously written by someone who doesn't fully understand the message.

The people I've met all across Pennsylvania are not "anti-government" but are "anti-unconstitutional government" that is trying to tax, borrow, and spend our state and nation to prosperity. Of course, if that were possible, Pennsylvania would be thriving rather than just surviving today.

Long before it was "cool" in Washington to bail out certain companies, try to stimulate the economy with government spending, and take over portions of the private sector, Gov. Rendell was doing all this and more in Pennsylvania. Since he came into office, state spending has increased at more than double the rate of inflation, state debt has soared by nearly 80% (an increase of $18 Billion), and we are continually told we don't pay enough in taxes to pay for all these important government "investments" like the Arlen Specter Library and the John Murtha Center.

It's hardly "anti-government" to suggest that We the People know how to better spend our money than do self-serving politicians in Washington and Harrisburg. We all want good government that protects citizens' life, liberty and property, rather than always threatening it and taking it away.

As Thomas Jefferson said in his First Inaugural Address as President of These United States of America, "...a wise and frugal Government, which shall restrain men from injuring one another, shall leave them otherwise free to regulate their own pursuits of industry and improvement, and shall not take from the mouth of labor the bread it has earned. This is the sum of good government...."

If this is "anti-government," then count me in with Tom!

posted by MATTHEW BROUILLETTE | 01:08 PM | 0 comment

OCTOBER 5, 2010

Hey Big Spender

Yesterday, Gov. Rendell held a press conference to make note that Tom Corbett was overstating the amount of Pennsylvania taxpayer money Rendell was wasting on pork-barrel projects. Examples cited include the Arlen Specter Library, funded via the Redevelopment Assistance Capital Program (RACP).

While the Specter Library is easy to pick on -- because it's such an egregious use of taxpayer money, and since Specter may have had a hand in the demise of the Library of Alexandria in 48 BC -- there have been other notable issues with the recent use of RACP funds (i.e., state government debt for pork projects).

• John Baer notes how $20 million in borrowed RACP funds are going to a project led by a Rendell buddy/campaign donor. Gov. Rendell has promised this funding for a new resort locals don't want.
  
  
• RACP will help fund another sports stadium, though local officials don't have enough details.
  
  
• Despite the House passing a tax on the natural gas industry, RACP money would also go to fund projects boosting gas development in the Marcellus Shale.
  
  
• Philly.com's Our Money blog offers a primer on how RACP goes to millionaires.
  
  
• RACP will subsidize a new movie theater in State College.
  
  
• And Robert Swift has compiled a number of proposed projects in the Hazleton Area and Scranton Area.
  

To highlight Gov. Rendell's tax, borrow, and spend record, Matt Brouillette will be joining the Spending Revolt Bus Tour at a number of stops across Pennsylvania this week and next.

posted by NATHAN BENEFIELD | 10:45 AM | 1 comment

SEPTEMBER 16, 2010

The Specter Library is a Less Big Waste of Taxpayer Funds than Originally Indicated

John Micek points out that Arlen Specter is demanding that Tom Corbett, who criticized the Arlen Specter Library Project, get his facts straight. Specter claims the taxpayer-funded monument to himself will cost less than the borrowing originally authorized by the General Assembly.

The Commonwealth Foundation will heretofore accommodate Senator Specter's request. Instead of repeating "Pennsylvania is giving millions in borrowed funds to wasteful pork-barrel projects like $10 million for the Specter Library," we will now say "Pennsylvania is giving millions in borrowed funds to wasteful pork-barrel projects like $2 million for the Specter Library."

Here is a recent commentary I wrote on the real problem with the Specter Library.

Here is the Corbett ad in question:

posted by NATHAN BENEFIELD | 11:06 AM | 0 comment