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JULY 27, 2010 | Commentary by MATTHEW BROUILLETTE
Can Tom Corbett Keep His "No Tax" Pledge?
Attorney General Tom Corbett has taken significant criticism for his pledge to not raise taxes if elected governor. That was to be expected from his Democrat rival, Allegheny County executive Dan Onorato, who hasn't ruled out raising taxes to fill a budget gap expected to be as high as $5 billion next year. But it's the friendly
JUNE 30, 2010 | News Release by COMMONWEALTH FOUNDATION
2010 Budget Deal Fails to Plan for Future
Years of overspending push Pennsylvania toward the edge of a financial cliff in 2011
Commonwealth Foundation president and CEO Matthew Brouillette released the following statement in response to the announced Pennsylvania state budget deal.
JUNE 23, 2010 | Testimony by MATTHEW BROUILLETTE
More Reforms Before More Revenue in Transportation
Testimony before the Senate Transportation Committee
Good morning and thank you Chairman Rafferty for the invitation to testify before your committee and for your consideration of our policy solutions to help address Pennsylvania's transportation infrastructure funding challenges. While many in this building and in the transportation industry view Pennsylvania's transportation infrastructu
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JULY 28, 2010
What if State Government Hired a Psychic?
The Tribune Review adds on to the continuing Orie sisters saga, that not only did they seek the advice of a clairvoyant, but that clairvoyant asked for a job in state government.
While this represents news of the weird, it also made me think, maybe Pennsylvania needs an official state psychic.
For instance, a psychic might have predicted that:
- The state would not have received $850 million from the federal government in FMAP funds. Gov. Rendell now says that money is unlikely, less than a month after banking on it to balance the budget.
- The federal government would reject I-80 tolling. Since Gov. Rendell and lawmakers had banked on this for $415 million, they now are holding a "special session" on transportation funding.
- State revenues would not "bounce back" as the administration predicted in April. In reality, Pennsylvania collected $400 million less than was expected.
- The 2008 budget would end in a huge deficit, which ended up being $3.2 billion.
- Using the MCare fund to balance the state budget would not work. Earlier this year, the Commonwealth Court ruled that this raid of the MCare money was illegal and must be repaid; thus creating another $800 million hole in the Pennsylvania state budget.
- The federal "stimulus" legislation would do little to spur economic growth. Today, unemployment is substantially higher than proponents predicted it would be without the stimulus.
- A minimum wage increase would result in lost jobs - which we saw, beginning with younger, low-skilled workers, before spreading to the rest of the economy.
- The pension crisis would not be solved by endless investment gains. Indeed, the projected increase in taxpayer contributions in scheduled to rise by about $1,300 per household in two years.
Wow, maybe we do need a psychic. But you know who else could have told the our elected officials all this? These guys!
posted by NATHAN BENEFIELD | 08:38 AM | 0 comment
JULY 27, 2010
Tax For Soccer
It's not soccer players or fans that will be taxed to pay for the Major League Soccer stadium in Chester, but the visitors who patronize bed and breakfasts or hotels in the county.
Delaware county officials in 2008 put local taxpayers on the hook for nearly $30 million (on top of the $47 million Gov. Rendell pledged) to finance the Major League Soccer stadium.
A year after the Delaware County Council then-Vice Chairman promised residents the soccer stadium would be "entirely covered by restricted gaming funds," the council has announced a hotel-occupancy tax increase to pay for it. Needless to say, local hotel owners aren't happy their customers are required to contribute to the stadium.
The simple fact is that government-supported stadiums are a great deal for sports teams but not for taxpayers. While lawmakers promise the stadiums will foster economic growth, countless studies show otherwise. If legislators really want to stimulate the economy they should reduce the tax and regulatory burdens on job creators and not waste taxpayer dollars to help millionaires build and keep sports stadiums.
posted by KATRINA CURRIE | 03:00 PM | 0 comment
JULY 26, 2010
Free Parking? Only in "Monopoly"
Privatization Watch, which warns against privatizing government services, alerts locals that if Pittsburgh parking garages are leased to a private company the per day parking cost would increase by $4.75 by the end of the year. The blog touts the fact that the city's downtown government-operated garages are 30% cheaper than private ones.
However, the blog neglects to mention that the city's Parking Authority has $100 million in outstanding bond debt to pay off. These parking garages are cheaper because they're subsidized by taxpayers, not because they're more efficiently run. In the end, government services aren't cheaper, as the debt incurred is passed on to residents through higher taxes or fees in other services.
Leasing the city's garages could be a tough sell as the mayor has set a $300 million price tag on them ($100 million for the parking debt and $200 million to keep afloat the city's pension fund). This would be enough to keep the city from bankrupting.
The reality is, government shouldn't be involved in yellow page services. Parking garages are just one of many government-operated businesses that should be leased or sold to the private sector. Pennsylvanians can expect to hear more about privatization efforts in the near future as the state tries to rein in its projected $5 billion budget deficit, along with its $3 billion Unemployment Compensation Fund deficit, and a $4 billion pension contribution hike looming in 2012.
posted by KATRINA CURRIE | 03:00 PM | 0 comment
