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SEPTEMBER 9, 2009 | Commentary by NATHAN BENEFIELD
Whoops, We Were Wrong...
One of our goals at the Commonwealth Foundation is to predict the effect of proposed public policies. Most of the time, we are proven correct, and humbly announce, "We told you so!" But sometimes, our predictions miss the mark. Case in point: in a November 2008 commentary, we predicted "Obama's presidency will likely be less radica
AUGUST 31, 2009 | Policy Points by COMMONWEALTH FOUNDATION
Pennsylvania State Debt
In addition to the state operating budget, Pennsylvania lawmakers each year pass a capital budget, outlining how much the state can borrow, and detailing projects which may be funded through this borrowing. This PolicyPoints looks at Pennsylvania state debt.
APRIL 21, 2009 | News Release by COMMONWEALTH FOUNDATION
Pennsylvania Deficit Watch: May 2009
Update on Pennsylvania's Revenue Shortfall from the Commonwealth Foundation
Recent Blog Posts
JANUARY 25, 2010
Pennsylvanians Heavy Laden With State Debt
A recent report from Forbes finds that Pennsylvania faces a serious challenge with state government debt. Pennsylvania ranked 35 among all states in the Forbes debt rating. According to the report, state debt per capita is $950, while unfunded liabilities are a whopping $9,825 per capita.
Yet, the Philadelphia Inquirer headline, "could be worse," masks Pennsylvania's debt problem by contending that "New Jersey, New York, Ohio, California, Connecticut and Massachusetts, with a one-star rating, are much worse."
Indeed the Forbes analysis doesn't quite tell the full story - including debt by state agencies and by local governments reveals Pennsylvanians owe almost $10,000 per person in state and local debt. As for the pension crisis - taxpayer pension contributions for statewide plans alone are estimated to increase by over $1,300 per household in 2012-13.
This should be a wake up call to reform our borrowing schemes and pension plans, not a sign that there is more room for further debt.
posted by NATHAN BENEFIELD | 07:55 AM | 0 comment
JANUARY 22, 2010
Pennsylvania Unemployment Fund is $2 Billion in the Hole
Propublica.org has a great, and terrifying, tracker of states' unemployment insurance funds. Pennsylvania fund is in woeful shape, with $125 million balance, and owing $2.05 billion in money borrowed from the federal government.
To help fill this void, Pennsylvania employers will now pay an average of $432 per worker in unemployment taxes in 2010, an increase of $48 from last year. Of course, this makes it more expensive to hire workers, which adds to unemployment roles, which drives up unemployment taxes...and the cycle continues.
Click here for the Pennsylvania Unemployment Fund Profile
posted by NATHAN BENEFIELD | 08:40 AM | 0 comment
DECEMBER 17, 2009
PA Senate Approves $1.7 Billion in New Borrowing
While the debate over table games continues, another piece of legislation passed with little debate was the $1.7 billion in borrowing for the state capital budget. HB 1418 passed the Pennsylvania Senate yesterday by a 48-1 vote. The borrowing includes $325 million for Redevelopment Capital Assistance - $125 million more than last year - some of which has already been promised to Harley Davidson.
Of course, the new borrowing adds to what has already been an escalation of Pennsylvania state debt under Governor Rendell.
Capital Budget Borrowing 2008-09 vs 2009-10
| Act 54 of 2008 |
HB 1418 |
Difference |
|
|
2008-09 |
2009-10 |
||
|
Buildings and Improvements |
$404,000,000 |
$920,000,000 |
$516,000,000 |
|
Furniture and Equipment |
$15,000,000 |
$15,000,000 |
$0 |
|
Transportation Assistance |
$180,000,000 |
$192,000,000 |
$12,000,000 |
|
Redevelopment Assistance |
$200,000,000 |
$325,000,000 |
$125,000,000 |
|
Flood Control |
$41,000,000 |
$30,000,000 |
($11,000,000) |
|
Bridge Projects |
$350,000,000 |
$200,000,000 |
($150,000,000) |
|
Highway Projects |
$35,000,000 |
$0 |
($35,000,000) |
|
Total |
$1,225,000,000 |
$1,682,000,000 |
$457,000,000 |
posted by NATHAN BENEFIELD | 09:50 AM | 0 comment
