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JUNE 2, 2010 | Policy Points by COMMONWEALTH FOUNDATION
Pennsylvania Budget Facts 2010: Unemployment Compensation
Pennsylvania has borrowed over $3 billion from the federal government to keep its unemployment compensation fund solvent. Only California, with three times the population and a much higher unemployment rate, pays out more in unemployment claims.
MARCH 30, 2010 | News Release by COMMONWEALTH FOUNDATION
Pennsylvania Gubernatorial Candidate Survey
The Commonwealth Foundation asked each of the candidates in the May primary for Pennsylvania Governor to answer a series of 20 questions about state economic and fiscal policy. Answers for those candidates responding to the survey are summarized in the table. (Note: "NR"=No response)
FEBRUARY 17, 2010 | Commentary by ELIZABETH STELLE
The True Cost of Unemployment Compensation
Pennsylvania's unemployment compensation fund is bankrupt. Beginning in March 2009, the Keystone State borrowed over $2 billion from the federal government to keep it solvent. Unfortunately, unemployment continues to grow, making a bad situation worse. Since December 2007, Pennsylvania has lost more than 200,000 jobs. It is imperative tha
Recent Blog Posts
AUGUST 20, 2010
Propaganda Without Logic
I previously highlighted a state-run newsletter on Marcellus Shale, which basically represents taxpayer-funded lobbying. But the latest Pennsylvania Marcellus Shale Examiner would really blow Mr. Spock's mind.
The lead story complains that local hotel occupancy taxes often exempt stays of over 30 days - and many drilling companies are reserving rooms for that length of time. The hotel tax is usually dedicated to "promoting tourism". A Wyoming county commissioner notes:
We need these funds to help attract visitors to our region and support the small businesses that depend on those tourists.
But the article notes a mere two paragraphs earlier:
Visitors planning to attend the Little League World Series are having trouble booking the few available rooms in Lycoming County, while tourists in Bradford County have found that a reported 98 percent of area hotel rooms are filled.
You don't have to be a Vulcan to realize that you don't need government funds to promote tourism when visitors to the area are at an all time high -- even beyond the current capacity to service guests.
In a related story, from an actual media outlet, drillers are giving up their hotel rooms voluntarily, for a time, to accommodate the Little League World Series.
"We started hinting to guests that Little League was coming a few months ago," said Jennifer Locey, vice president of operations for the Holiday Inn and Holiday Inn Express & Suites in Williamsport, which together have 198 rooms booked almost entirely by ESPN for the duration of the World Series.
The hotels' management made arrangements for about 100 gas workers to stay at its Wilkes-Barre site about 80 miles away. Others took vacation, she said.
posted by NATHAN BENEFIELD | 08:39 AM | 0 comment
AUGUST 6, 2010
Quote for the Day on Stimulus Spending
Yesterday, I tweeted Dan Mitchell's blog post, which in turn cited Richard Rahn's article on the evidence of "stimulus spending" vs. limited government on growing the economy. Mitchell has since responded to government-spending defenders - post one; post two - the second contains my "quote for the day."
Thompson also writes that, “Our unemployment picture is a little more complicated than ‘Oh my god, Obama is killing jobs by taking over the states’ Medicaid burden!’” Since I’m not aware of anybody who’s made that argument, I’m not sure how to respond. That being said, jobs will be killed by having Washington take over state Medicaid budgets. Such a move would lead to a net increase in the burden of government spending, and that additional spending would divert resources from the productive sector of the economy.
Snarky...and true.
posted by NATHAN BENEFIELD | 03:30 PM | 0 comment
AUGUST 2, 2010
Non-Competitive Contracts Don't Compute
The PA Revenue Department's main computer system was installed in 1975. The outdated system's technological language, COBOL, is not even taught in universities anymore, narrowing the number of applicants who can work with the Department's system. Some operations can't even be done by the current computers; employees have to manually calculate some tax figures! The Revenue Secretary, C. Daniel Hassel, actually believes the computers could crash at any time.
Certainly, we do not begrudge the Department of Revenue this desperately needed upgrade. The expected cost is reasonably high at $100 million. Additionally, accusations that the current contract was a no-bid one are cause for concern.
The Department issued a request for contract bids in April 2009 and selected Accenture six months later, but rescinded the selection to add a specific software requirement to the contract. Accenture agreed to add this requirement to the upgrade procedure, and the Department of General Services re-contracted the company. Another bidder, Fast Enterprises, is suing for the contract.
From the start, Fast Enterprises submitted an original bid of $53 million, much less than Accenture's original bid of $65.4 million. Some speculate the companies' locations influenced Pennsylvania decision-makers. Accenture has offices in Philadelphia and Pittsburgh, while Fast Enterprises is based in Colorado.
No-bid contracts help nobody. In this case, the commonwealth chose to overpay one local company at the expense of all Pennsylvania taxpayers. Competition is foundational to shrewd financial dealings, and Pennsylvania's fiscal shapeup is far overdue.
posted by LEAH ACHOR | 00:51 PM | 0 comment
