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JANUARY 17, 2011 | Policy Report by COMMONWEALTH FOUNDATION
80 Ideas for a Prosperous Pennsylvania
A Blueprint for Transforming the Commonwealth
Pennsylvania must undergo a rapid transformation to reverse the poor policy decisions that have eroded economic freedoms and brought the state to its present condition. To provide a roadmap for success in this critical endeavor, the Commonwealth Foundation has compiled a list of 80 policy recommendations for Gov. Corbett and state legi
MAY 24, 2007 | Commentary by COMMONWEALTH FOUNDATION
Diet Tip of the Week, Issue 3
One of the most notorious abuses of taxpayers' money is the exercise of Walking-Around-Money (WAMs). These funds are set aside for use at each legislator's discretion to dish out to various projects, organizations, and businesses in their district. The "Community Revitalization Program," which received $44 million in the FY 2006-07 budge
MARCH 27, 2007 | Testimony by NATHAN BENEFIELD
Free-Market Approaches to Fiscal Policy
Good morning. My name is Nathan Benefield; I am the Director of Policy Research for the Commonwealth Foundation, a research and policy institute in Harrisburg. I want to thank the members of the committee for this opportunity to share our thoughts.
Recent Blog Posts
JANUARY 17, 2011
What the PHEAA is Going On?
The Patriot News reports that former Pennsylvania Higher Education Assistance Agency (PHEAA) boss Michael Hershock got $200,000 in a settlement over his 2009 firing.
To recap, he was fired for misusing PHEAA (i.e., taxpayer) money for personal expenses (emphasis added):
Among them were a $1,032 bill at the Four Seasons Hotel in New York City, where Hershock met with a potential donor, and the cost of installation of a satellite service at Hershock’s home in New Mexico.
I'm pretty sure that is not an appropriate use of taxpayer money.
When he was fired, Hershock was given a severance package of almost $375,000.
He also collects an monthly pension of $18,514 (that's $222,000 per year).
Anyone who might be confused why he merits another $200,000 from taxpayers might want to join us in the call to privatize PHEAA.
posted by NATHAN BENEFIELD | 10:06 AM | 0 comment
SEPTEMBER 3, 2009
PHEAA Wrongfully Collected $92 Million From Taxpayers
PHEAA is being sued, along with other student loan agencies, for taking advantage of a federal government loophole allowing them to wrongfully collect $92 million. In the 1980's, the federal government enacted a subsidy program guaranteeing a 9.5% return on a limited class of student loans. By reusing older loans and packaging them with new ones, PHEAA reaped millions in profits at the taxpayer's expense.
When confronted with this serious case of fraud, the Department of Education didn't even attempt to recover the funds. A 2007 settlement with Nelnet--the worst abuser of the scheme receiving more than $400 million in over payments--did not require the loan company to repay the federal government. It was left to a DOE researcher, Jon Oberg, to bring the suit on behalf of the federal government.
PHEAA was among the first agencies to employ the scheme--clearing the path for other agencies to follow. The lawsuit implies PHEAA relied on the authority of the Education Finance Council to justify their practices; this is disconcerting since the group has close ties with the Department of Education and Republican staff on the House Education Committee.
It's amazing that such flagrant abuse of the system was disregarded for so long. This is a perfect example of why state and federal governments should not be in the student loan business.
posted by ELIZABETH STELLE | 09:26 AM | 0 comment
FEBRUARY 18, 2009
Piccola Offers Alternative Plan for PA Higher Ed
State Sen. Jeff Piccola has a new proposal to offer additional grants directly to Pennsylvania students for higher education, and tie this funding to both schools' holding tuition costs down and to student maintained adequate academic performance. Here is the news release from Piccola's office and a story on the Patriot News website.
This proposal mirrors some of the reforms outlined in our Policy Brief on Pennsylvania higher education. Our five reforms were:
- Immediately halting all state higher education subsidies and making any increase contingent upon freezes in tuition costs and greater spending transparency for taxpayers.
- Replacing direct state subsidies to universities with scholarship grants to students.
- Holding students, colleges, and universities accountable for the taxpayer support they receive.
- Re-focusing all state institutions on teaching, rather than research.
- Considering a re-organization of state higher education, including the possibility of severing the taxpayers’ financial support to state, state-related, and state-aided universities.
posted by NATHAN BENEFIELD | 02:00 PM | 0 comment
